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‘‘(15) EXCEPTION FOR FEDERAL RESERVE AND 
FEDERAL HOME LOAN BANKS.—No provision of this 
subsection shall apply with respect to— 
‘‘(A) any extension of credit from any Fed-
eral home loan bank or Federal Reserve Bank 
to any regulated entity; or 
‘‘(B) any security interest in the assets of 
the regulated entity securing any such extension 
of credit. 
‘‘(e) VALUATION OF CLAIMS IN DEFAULT.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of Federal law or the law of any State, and 
regardless of the method which the Agency deter-
mines to utilize with respect to a regulated entity in 
default or in danger of default, including trans-
actions authorized under subsection (i), this sub-
section shall govern the rights of the creditors of 
such regulated entity. 
‘‘(2) MAXIMUM LIABILITY.—The maximum li-
ability of the Agency, acting as receiver or in any 
other capacity, to any person having a claim against 
the receiver or the regulated entity for which such 
receiver is appointed shall equal the lesser of— 
‘‘(A) the amount such claimant would have 
received if the Agency had liquidated the assets 
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and liabilities of such regulated entity without 
exercising the authority of the Agency under 
subsection (i) of this section; or 
‘‘(B) the amount of proceeds realized from 
the performance of contracts or sale of the as-
sets of the regulated entity. 
‘‘(f) LIMITATION
ON COURT ACTION.—Except as 
provided in this section or at the request of the Director, 
no court may take any action to restrain or affect the exer-
cise of powers or functions of the Agency as a conservator 
or a receiver. 
‘‘(g) LIABILITY OF DIRECTORS AND OFFICERS.— 
‘‘(1) IN GENERAL.—A director or officer of a 
regulated entity may be held personally liable for 
monetary damages in any civil action by, on behalf 
of, or at the request or direction of the Agency, 
which action is prosecuted wholly or partially for the 
benefit of the Agency— 
‘‘(A) acting as conservator or receiver of 
such regulated entity, or 
‘‘(B) acting based upon a suit, claim, or 
cause of action purchased from, assigned by, or 
otherwise conveyed by such receiver or conser-
vator, 
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for gross negligence, including any similar conduct 
or conduct that demonstrates a greater disregard of 
a duty of care (than gross negligence) including in-
tentional tortious conduct, as such terms are defined 
and determined under applicable State law. 
‘‘(2) NO LIMITATION.—Nothing in this para-
graph shall impair or affect any right of the Agency 
under other applicable law. 
‘‘(h) DAMAGES.—In any proceeding related to any 
claim against a director, officer, employee, agent, attorney, 
accountant, appraiser, or any other party employed by or 
providing services to a regulated entity, recoverable dam-
ages determined to result from the improvident or other-
wise improper use or investment of any assets of the regu-
lated entity shall include principal losses and appropriate 
interest. 
‘‘(i) LIMITED-LIFE REGULATED ENTITIES.— 
‘‘(1) ORGANIZATION.— 
‘‘(A) PURPOSE.—If a regulated entity is in 
default, or if the Agency anticipates that a reg-
ulated entity will default, the Agency may orga-
nize a limited-life regulated entity with those 
powers and attributes of the regulated entity in 
default or in danger of default that the Director 
determines necessary, subject to the provisions 
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of this subsection. The Director shall grant a 
temporary charter to the limited-life regulated 
entity, and the limited-life regulated entity shall 
operate subject to that charter. 
‘‘(B) AUTHORITIES.—Upon the creation of 
a limited-life regulated entity under subpara-
graph (A), the limited-life regulated entity 
may— 
‘‘(i) assume such liabilities of the reg-
ulated entity that is in default or in danger 
of default as the Agency may, in its discre-
tion, determine to be appropriate, provided 
that the liabilities assumed shall not exceed 
the amount of assets of the limited-life reg-
ulated entity; 
‘‘(ii) purchase such assets of the regu-
lated entity that is in default, or in danger 
of default, as the Agency may, in its dis-
cretion, determine to be appropriate; and 
‘‘(iii) perform any other temporary 
function which the Agency may, in its dis-
cretion, prescribe in accordance with this 
section. 
‘‘(2) CHARTER.— 
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‘‘(A) 
CONDITIONS.—The 
Agency 
may 
grant a temporary charter if the Agency deter-
mines that the continued operation of the regu-
lated entity in default or in danger of default 
is in the best interest of the national economy 
and the housing markets. 
‘‘(B) TREATMENT AS BEING IN DEFAULT 
FOR CERTAIN PURPOSES.—A limited-life regu-
lated entity shall be treated as a regulated enti-
ty in default at such times and for such pur-
poses as the Agency may, in its discretion, de-
termine. 
‘‘(C) MANAGEMENT.—A limited-life regu-
lated entity, upon the granting of its charter, 
shall be under the management of a board of 
directors consisting of not fewer than 5 nor 
more than 10 members appointed by the Agen-
cy. 
‘‘(D) BYLAWS.—The board of directors of 
a limited-life regulated entity shall adopt such 
bylaws as may be approved by the Agency. 
‘‘(3) CAPITAL STOCK.—No capital stock need 
be paid into a limited-life regulated entity by the 
Agency. 
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‘‘(4) INVESTMENTS.—Funds of a limited-life 
regulated entity shall be kept on hand in cash, in-
vested in obligations of the United States or obliga-
tions guaranteed as to principal and interest by the 
United States, or deposited with the Agency, or any 
Federal Reserve bank. 
‘‘(5) EXEMPT
STATUS.—Notwithstanding any 
other provision of Federal or State law, the limited- 
life regulated entity, its franchise, property, and in-
come shall be exempt from all taxation now or here-
after imposed by the United States, by any territory, 
dependency, or possession thereof, or by any State, 
county, municipality, or local taxing authority. 
‘‘(6) WINDING UP.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), unless Congress authorizes the sale 
of the capital stock of the limited-life regulated 
entity, not later than 2 years after the date of 
its organization, the Agency shall wind up the 
affairs of the limited-life regulated entity. 
‘‘(B) EXTENSION.—The Director may, in 
the discretion of the Director, extend the status 
of the limited-life regulated entity for 3 addi-
tional 1-year periods. 
‘‘(7) TRANSFER OF ASSETS AND LIABILITIES.— 
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‘‘(A) IN GENERAL.— 
‘‘(i) TRANSFER OF ASSETS AND LI-
ABILITIES.—The Agency, as receiver, may 
transfer any assets and liabilities of a reg-
ulated entity in default, or in danger of de-
fault, to the limited-life regulated entity in 
accordance with paragraph (1). 
‘‘(ii) SUBSEQUENT
TRANSFERS.—At 
any time after a charter is transferred to 
a limited-life regulated entity, the Agency, 
as receiver, may transfer any assets and li-
abilities of such regulated entity in default, 
or in danger in default, as the Agency 
may, in its discretion, determine to be ap-
propriate in accordance with paragraph 
(1). 
‘‘(iii) 
EFFECTIVE
WITHOUT
AP-
PROVAL.—The transfer of any assets or li-
abilities of a regulated entity in default, or 
in danger of default, transferred to a lim-
ited-life regulated entity shall be effective 
without any further approval under Fed-
eral or State law, assignment, or consent 
with respect thereto. 
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‘‘(8) PROCEEDS.—To the extent that available 
proceeds from the limited-life regulated entity exceed 
amounts required to pay obligations, such proceeds 
may be paid to the regulated entity in default, or in 
danger of default. 
‘‘(9) POWERS.— 
‘‘(A) IN GENERAL.—Each limited-life regu-
lated entity created under this subsection shall 
have all corporate powers of, and be subject to 
the same provisions of law as, the regulated en-
tity in default or in danger of default to which 
it relates, except that— 
‘‘(i) the Agency may— 
‘‘(I) remove the directors of a 
limited-life regulated entity; and 
‘‘(II) fix the compensation of 
members of the board of directors and 
senior management, as determined by 
the Agency in its discretion, of a lim-
ited-life regulated entity; 
‘‘(ii) the Agency may indemnify the 
representatives for purposes of paragraph 
(1)(B), and the directors, officers, employ-
ees, and agents of a limited-life regulated 
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entity on such terms as the Agency deter-
mines to be appropriate; and 
‘‘(iii) the board of directors of a lim-
ited-life regulated entity— 
‘‘(I) shall elect a chairperson who 
may also serve in the position of chief 
executive officer, except that such per-
son shall not serve either as chair-
person or as chief executive officer 
without the prior approval of the 
Agency; and 
‘‘(II) may appoint a chief execu-
tive officer who is not also the chair-
person, except that such person shall 
not serve as chief executive officer 
without the prior approval of the 
Agency. 
‘‘(B) STAY OF JUDICIAL ACTION.—Any ju-
dicial action to which a limited-life regulated 
entity becomes a party by virtue of its acquisi-
tion of any assets or assumption of any liabil-
ities of a regulated entity in default shall be 
stayed from further proceedings for a period of 
up to 45 days at the request of the limited-life 
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regulated entity. Such period may be modified 
upon the consent of all parties. 
‘‘(10) OBTAINING OF CREDIT AND INCURRING 
OF DEBT.— 
‘‘(A) IN GENERAL.—The limited-life regu-
lated entity may obtain unsecured credit and 
incur unsecured debt in the ordinary course of 
business. 
‘‘(B) INABILITY
TO
OBTAIN
CREDIT.—If 
the limited-life regulated entity is unable to ob-
tain unsecured credit the Director may author-
ize the obtaining of credit or the incurring of 
debt— 
‘‘(i) with priority over any or all ad-
ministrative expenses; 
‘‘(ii) secured by a lien on property 
that is not otherwise subject to a lien; or 
‘‘(iii) secured by a junior lien on prop-
erty that is subject to a lien. 
‘‘(C) LIMITATIONS.— 
‘‘(i) IN
GENERAL.—The Director, 
after notice and a hearing, may authorize 
the obtaining of credit or the incurring of 
debt secured by a senior or equal lien on 
property that is subject to a lien (other 
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than mortgages that collateralize the mort-
gage-backed securities issued or guaran-
teed by the regulated entity) only if— 
‘‘(I) the limited-life regulated en-
tity is unable to obtain such credit 
otherwise; and 
‘‘(II) there is adequate protection 
of the interest of the holder of the lien 
on the property which such senior or 
equal lien is proposed to be granted. 
‘‘(ii) BURDEN
OF
PROOF.—In any 
hearing under this subsection, the Director 
has the burden of proof on the issue of 
adequate protection. 
‘‘(D) EFFECT ON DEBTS AND LIENS.—The 
reversal or modification on appeal of an author-
ization under this paragraph to obtain credit or 
incur debt, or of a grant under this section of 
a priority or a lien, does not affect the validity 
of any debt so incurred, or any priority or lien 
so granted, to an entity that extended such 
credit in good faith, whether or not such entity 
knew of the pendency of the appeal, unless such 
authorization and the incurring of such debt, or 
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the granting of such priority or lien, were 
stayed pending appeal. 
‘‘(11) ISSUANCE OF PREFERRED DEBT.—A lim-
ited-life regulated entity may, subject to the ap-
proval of the Director and subject to such terms and 
conditions as the Director may prescribe, issue 
notes, bonds, or other debt obligations of a class to 
which all other debt obligations of the limited-life 
regulated entity shall be subordinate in right and 
payment. 
‘‘(12) NO FEDERAL STATUS.— 
‘‘(A) AGENCY STATUS.—A limited-life reg-
ulated entity is not an agency, establishment, or 
instrumentality of the United States. 
‘‘(B) 
EMPLOYEE
STATUS.—Representa-
tives for purposes of paragraph (1)(B), interim 
directors, directors, officers, employees, or 
agents of a limited-life regulated entity are not, 
solely by virtue of service in any such capacity, 
officers or employees of the United States. Any 
employee of the Agency or of any Federal in-
strumentality who serves at the request of the 
Agency as a representative for purposes of 
paragraph (1)(B), interim director, director, of-
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ficer, employee, or agent of a limited-life regu-
lated entity shall not— 
‘‘(i) solely by virtue of service in any 
such capacity lose any existing status as 
an officer or employee of the United States 
for purposes of title 5, United States Code, 
or any other provision of law; or 
‘‘(ii) receive any salary or benefits for 
service in any such capacity with respect to 
a limited-life regulated entity in addition to 
such salary or benefits as are obtained 
through employment with the Agency or 
such Federal instrumentality. 
‘‘(13) ADDITIONAL
POWERS.—In addition to 
any other powers granted under this subsection, a 
limited-life regulated entity may— 
‘‘(A) extend a maturity date or change in 
an interest rate or other term of outstanding 
securities; 
‘‘(B) issue securities of the limited-life reg-
ulated entity, for cash, for property, for existing 
securities, or in exchange for claims or inter-
ests, or for any other appropriate purposes; and 
‘‘(C) take any other action not inconsistent 
with this section. 
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‘‘(j) OTHER EXEMPTIONS.—When acting as a re-
ceiver, the following provisions shall apply with respect to 
the Agency: 
‘‘(1) EXEMPTION FROM TAXATION.—The Agen-
cy, including its franchise, its capital, reserves, and 
surplus, and its income, shall be exempt from all 
taxation imposed by any State, country, munici-
pality, or local taxing authority, except that any real 
property of the Agency shall be subject to State, ter-
ritorial, county, municipal, or local taxation to the 
same extent according to its value as other real 
property is taxed, except that, notwithstanding the 
failure of any person to challenge an assessment 
under State law of the value of such property, and 
the tax thereon, shall be determined as of the period 
for which such tax is imposed. 
‘‘(2) EXEMPTION
FROM
ATTACHMENT
AND 
LIENS.—No property of the Agency shall be subject 
to levy, attachment, garnishment, foreclosure, or sale 
without the consent of the Agency, nor shall any in-
voluntary lien attach to the property of the Agency. 
‘‘(3) 
EXEMPTION
FROM
PENALTIES
AND 
FINES.—The Agency shall not be liable for any 
amounts in the nature of penalties or fines, includ-
ing those arising from the failure of any person to 
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pay any real property, personal property, probate, or 
recording tax or any recording or filing fees when 
due. 
‘‘(k) PROHIBITION OF CHARTER REVOCATION.—In 
no case may a receiver appointed pursuant to this section 
revoke, annul, or terminate the charter of a regulated enti-
ty.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) HOUSING AND COMMUNITY DEVELOPMENT 
ACT OF 1992.—Subtitle B of title XIII of the Hous-
ing and Community Development Act of 1992 is 
amended by striking sections 1369 (12 U.S.C. 
4619), 1369A (12 U.S.C. 4620), and 1369B (12 
U.S.C. 4621). 
(2) FEDERAL HOME LOAN BANKS.—Section 25 
of the Federal Home Loan Bank Act (12 U.S.C. 
1445) is amended to read as follows: 
‘‘SEC. 25. SUCCESSION OF FEDERAL HOME LOAN BANKS. 
‘‘Each Federal Home Loan Bank shall have succes-
sion until it is voluntarily merged with another Bank 
under this Act, or until it is merged, reorganized, rehabili-
tated, liquidated, or otherwise wound up by the Director 
in accordance with the provisions of section 1367 of the 
Housing and Community Development Act of 1992, or by 
further Act of Congress.’’. 
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SEC. 155. CONFORMING AMENDMENTS. 
Title XIII of the Housing and Community Develop-
ment Act of 1992, as amended by the preceding provisions 
of this Act, is further amended— 
(1) in sections 1365 (12 U.S.C. 4615) through 
1369D (12 U.S.C. 4623), but not including section 
1367 (12 U.S.C. 4617) as amended by section 154 
of this Act— 
(A) by striking ‘‘An enterprise’’ each place 
such term appears and inserting ‘‘A regulated 
entity’’; 
(B) by striking ‘‘an enterprise’’ each place 
such term appears and inserting ‘‘a regulated 
entity’’; and 
(C) by striking ‘‘the enterprise’’ each place 
such term appears and inserting ‘‘the regulated 
entity’’; 
(2) in section 1366 (12 U.S.C. 4616)— 
(A) in subsection (b)(7), by striking ‘‘sec-
tion 1369 (excluding subsection (a)(1) and 
(2))’’ and inserting ‘‘section 1367’’; and 
(B) in subsection (d), by striking ‘‘the en-
terprises’’ and inserting ‘‘the regulated enti-
ties’’; 
(3) in section 1368(d) (12 U.S.C. 4618(d)), by 
striking ‘‘Committee on Banking, Finance and 
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Urban Affairs’’ and inserting ‘‘Committee on Finan-
cial Services’’; 
(4) in section 1369C (12 U.S.C. 4622)— 
(A) in subsection (a)(4), by striking ‘‘ac-
tivities (including existing and new programs)’’ 
and inserting ‘‘activities, services, undertakings, 
and offerings (including existing and new prod-
ucts (as such term is defined in section 
1321(f))’’; and 
(B) in subsection (c), by striking ‘‘any en-
terprise’’ and inserting ‘‘any regulated entity’’; 
and 
(5) in subsections (a) and (d) of section 1369D, 
by striking ‘‘section 1366 or 1367 or action under 
section 1369)’’ each place such phrase appears and 
inserting ‘‘section 1367)’’. 
Subtitle D—Enforcement Actions 
SEC. 161. CEASE-AND-DESIST PROCEEDINGS. 
Section 1371 of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 4631) is amended— 
(1) by striking subsections (a) and (b) and in-
serting the following new subsections: 
‘‘(a) ISSUANCE FOR UNSAFE OR UNSOUND PRAC-
TICES AND VIOLATIONS OF RULES OR LAWS.—If, in the 
opinion of the Director, a regulated entity or any regulated 
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entity-affiliated party is engaging or has engaged, or the 
Director has reasonable cause to believe that the regulated 
entity or any regulated entity-affiliated party is about to 
engage, in an unsafe or unsound practice in conducting 
the business of the regulated entity or is violating or has 
violated, or the Director has reasonable cause to believe 
that the regulated entity or any regulated entity-affiliated 
party is about to violate, a law, rule, or regulation, or any 
condition imposed in writing by the Director in connection 
with the granting of any application or other request by 
the regulated entity or any written agreement entered into 
with the Director, the Director may issue and serve upon 
the regulated entity or such party a notice of charges in 
respect thereof. The Director may not, pursuant to this 
section, enforce compliance with any housing goal estab-
lished under subpart B of part 2 of subtitle A of this title, 
with section 1336 or 1337 of this title, with subsection 
(m) or (n) of section 309 of the Federal National Mort-
gage Association Charter Act (12 U.S.C. 1723a(m), (n)), 
with subsection (e) or (f) of section 307 of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
1456(e), (f)), or with paragraph (5) of section 10(j) of 
the Federal Home Loan Bank Act (12 U.S.C. 1430(j)). 
‘‘(b) ISSUANCE FOR UNSATISFACTORY RATING.—If a 
regulated entity receives, in its most recent report of ex-
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amination, a less-than-satisfactory rating for asset quality, 
management, earnings, or liquidity, the Director may (if 
the deficiency is not corrected) deem the regulated entity 
to be engaging in an unsafe or unsound practice for pur-
poses of this subsection.’’; 
(2) in subsection (c)(2), by striking ‘‘enterprise, 
executive officer, or director’’ and inserting ‘‘regu-
lated entity or regulated entity-affiliated party’’; and 
(3) in subsection (d)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘enterprise, executive officer, or di-
rector’’ and inserting ‘‘regulated entity or regu-
lated entity-affiliated party’’; 
(B) in paragraph (1)— 
(i) by striking ‘‘an executive officer or 
a director’’ and inserting ‘‘a regulated enti-
ty affiliated party’’; and 
(ii) by inserting ‘‘(including reim-
bursement of compensation under section 
1318)’’ after ‘‘reimbursement’’; 
(C) in paragraph (6), by striking ‘‘and’’ at 
the end; 
(D) by redesignating paragraph (7) as 
paragraph (8); and 
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(E) by inserting after paragraph (6) the 
following new paragraph: 
‘‘(7) to effect an attachment on a regulated en-
tity or regulated entity-affiliated party subject to an 
order under this section or section 1372; and’’. 
SEC. 162. TEMPORARY CEASE-AND-DESIST PROCEEDINGS. 
Section 1372 of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 4632) is amended— 
(1) by striking subsection (a) and inserting the 
following new subsection: 
‘‘(a) GROUNDS FOR ISSUANCE.—Whenever the Direc-
tor determines that the violation or threatened violation 
or the unsafe or unsound practice or practices specified 
in the notice of charges served upon the regulated entity 
or any regulated entity-affiliated party pursuant to section 
1371(a), or the continuation thereof, is likely to cause in-
solvency or significant dissipation of assets or earnings of 
the regulated entity, or is likely to weaken the condition 
of the regulated entity prior to the completion of the pro-
ceedings conducted pursuant to sections 1371 and 1373, 
the Director may issue a temporary order requiring the 
regulated entity or such party to cease and desist from 
any such violation or practice and to take affirmative ac-
tion to prevent or remedy such insolvency, dissipation, 
condition, or prejudice pending completion of such pro-
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