221 
have to any shareholder of the regulated 
entity that arises as a result of the status 
of that person as a shareholder of the reg-
ulated entity; and 
‘‘(iii) no shareholder or creditor of a 
regulated entity shall have any right or 
claim against the charter of the regulated 
entity once the Agency has been appointed 
receiver for the regulated entity and a lim-
ited-life regulated entity succeeds to the 
charter pursuant to subparagraph (A). 
‘‘(C) LIMITED-LIFE
REGULATED
ENTITY 
TREATED AS BEING IN DEFAULT FOR CERTAIN 
PURPOSES.—A limited-life regulated entity shall 
be treated as a regulated entity in default at 
such times and for such purposes as the Agency 
may, in its discretion, determine. 
‘‘(D) MANAGEMENT.—Upon its establish-
ment, a limited-life regulated entity shall be 
under the management of a board of directors 
consisting of not fewer than 5 nor more than 
10 members appointed by the Agency. 
‘‘(E) BYLAWS.—The board of directors of 
a limited-life regulated entity shall adopt such 
bylaws as may be approved by the Agency. 
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‘‘(3) CAPITAL STOCK.— 
‘‘(A) NO
AGENCY
REQUIREMENT.— 
The Agency is not required to pay capital 
stock into a limited-life regulated entity or 
to issue any capital stock on behalf of a 
limited-life regulated entity established 
under this subsection. 
‘‘(B) AUTHORITY.—If the Director 
determines that such action is advisable, 
the Agency may cause capital stock or 
other securities of a limited-life regulated 
entity established with respect to an enter-
prise to be issued and offered for sale, in 
such amounts and on such terms and con-
ditions as the Director may determine, in 
the discretion of the Director. 
‘‘(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
TAX
STATUS.—Notwithstanding 
any other provision of Federal or State law, a lim-
ited-life regulated entity, its franchise, property, and 
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income shall be exempt from all taxation now or 
hereafter imposed by the United States, by any ter-
ritory, dependency, or possession thereof, or by any 
State, county, municipality, or local taxing authority. 
‘‘(6) WINDING UP.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), not later than 2 years after 
the date of its organization, the Agency shall 
wind up the affairs of a limited-life regulated 
entity. 
‘‘(B) EXTENSION.—The Director may, in 
the discretion of the Director, extend the status 
of a limited-life regulated entity for 3 additional 
1-year periods. 
‘‘(C) TERMINATION
OF
STATUS
AS
LIM-
ITED-LIFE REGULATED ENTITY.— 
‘‘(i) IN GENERAL.—Upon the sale by 
the Agency of 80 percent or more of the 
capital stock of a limited-life regulated en-
tity, as defined in clause (iv), to 1 or more 
persons (other than the Agency)— 
‘‘(I) the status of the limited-life 
regulated entity as such shall termi-
nate; and 
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‘‘(II) the entity shall cease to be 
a limited-life regulated entity for pur-
poses of this subsection. 
‘‘(ii) DIVESTITURE
OF
REMAINING 
STOCK, IF ANY.— 
‘‘(I) IN
GENERAL.—Not later 
than 1 year after the date on which 
the status of a limited-life regulated 
entity is terminated pursuant to 
clause (i), the Agency shall sell to 1 or 
more persons (other than the Agency) 
any remaining capital stock of the 
former limited-life regulated entity. 
‘‘(II) 
EXTENSION
AUTHOR-
IZED.—The Director may extend the 
period referred to in subclause (I) for 
not longer than an additional 2 years, 
if the Director determines that such 
action would be in the public interest. 
‘‘(iii) 
SAVINGS
CLAUSE.—Notwith-
standing any provision of law, other than 
clause (ii), the Agency shall not be re-
quired to sell the capital stock of an enter-
prise or a limited-life regulated entity es-
tablished with respect to an enterprise. 
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225 
‘‘(iv) APPLICABILITY.—This subpara-
graph applies only with respect to a lim-
ited-life regulated entity that is established 
with respect to an enterprise. 
‘‘(7) TRANSFER OF ASSETS AND LIABILITIES.— 
‘‘(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 and subject to the restric-
tions of paragraph (1). 
‘‘(ii) SUBSEQUENT
TRANSFERS.—At 
any time after the establishment of a lim-
ited-life regulated entity, the Agency, as 
receiver, may transfer any assets and li-
abilities of the regulated entity in default, 
or in danger of default, as the Agency 
may, in its discretion, determine to be ap-
propriate in accordance with and subject to 
the restrictions of paragraph (1). 
‘‘(iii) 
EFFECTIVE
WITHOUT
AP-
PROVAL.—The transfer of any assets or li-
abilities of a regulated entity in default or 
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in danger of default to a limited-life regu-
lated entity shall be effective without any 
further approval under Federal or State 
law, assignment, or consent with respect 
thereto. 
‘‘(iv) EQUITABLE
TREATMENT
OF 
SIMILARLY
SITUATED
CREDITORS.—The 
Agency shall treat all creditors of a regu-
lated entity in default or in danger of de-
fault that are similarly situated under sub-
section (c)(1) in a similar manner in exer-
cising the authority of the Agency under 
this subsection to transfer any assets or li-
abilities of the regulated entity to the lim-
ited-life regulated entity established with 
respect to such regulated entity, except 
that the Agency may take actions (includ-
ing making payments) that do not comply 
with this clause, if— 
‘‘(I) the Director determines that 
such actions are necessary to maxi-
mize the value of the assets of the 
regulated entity, to maximize the 
present value return from the sale or 
other disposition of the assets of the 
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