400 
‘‘(12) NO FEDERAL STATUS.— 
‘‘(A) AGENCY STATUS.—A limited-life regu-
lated entity is not an agency, establishment, or 
instrumentality of the United States. 
‘‘(B) EMPLOYEE
STATUS.—Representatives 
for purposes of paragraph (1)(B), interim direc-
tors, 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 instrumentality 
who serves at the request of the Agency as a rep-
resentative for purposes of paragraph (1)(B), in-
terim director, director, officer, employee, or 
agent of a limited-life regulated 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
401 
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 se-
curities; 
‘‘(B) issue securities of the limited-life regu-
lated entity, for cash, for property, for existing 
securities, or in exchange for claims or interests, 
or for any other appropriate purposes; and 
‘‘(C) take any other action not inconsistent 
with this section. 
‘‘(j) OTHER EXEMPTIONS.—When acting as a receiver, 
the following provisions shall apply with respect to the 
Agency: 
‘‘(1) EXEMPTION FROM TAXATION.—The Agency, 
including its franchise, its capital, reserves, and sur-
plus, and its income, shall be exempt from all tax-
ation imposed by any State, country, municipality, 
or local taxing authority, except that any real prop-
erty of the Agency shall be subject to State, territorial, 
county, municipal, or local taxation to the same ex-
tent according to its value as other real property is
402 
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, including those arising 
from the failure of any person to pay any real prop-
erty, 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 re-
voke, annul, or terminate the charter of a regulated entity. 
‘‘(l) PRESERVATION OF BANKRUPTCY LAW .—Nothing 
in this Act shall be construed to modify, impair, or super-
sede the operation of any provision of title 11 of the United 
States Code, or the operation of any provision of title 28 
of such Code that relates to cases under such title 11, except 
as otherwise provided in section 1367(b) of this Act and
403 
except that a regulated entity may not be a debtor under 
such title 11.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) HOUSING
AND
COMMUNITY
DEVELOPMENT 
ACT OF 1992.—Subtitle B of title XIII of the Housing 
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 succession 
until it is voluntarily merged with another Bank under this 
Act, or until it is merged, reorganized, rehabilitated, liq-
uidated, or otherwise wound up by the Director in accord-
ance with the provisions of section 1367 of the Housing and 
Community Development Act of 1992, or by further Act of 
Congress.’’. 
SEC. 349. CONFORMING AMENDMENTS. 
Title XIII of the Housing and Community Develop-
ment Act of 1992, as amended by the preceding provisions 
of this title, is further amended— 
(1) in sections 1365 (12 U.S.C. 4615) through 
1369D (12 U.S.C. 4623), but not including section
404 
1367 (12 U.S.C. 4617) as amended by section 349 of 
this title— 
(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 ‘‘section 
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 entities’’; 
(3) in section 1368(d) (12 U.S.C. 4618(d)), by 
striking ‘‘Committee on Banking, Finance and Urban 
Affairs’’ and inserting ‘‘Committee on Financial 
Services’’; 
(4) in section 1369C (12 U.S.C. 4622)— 
(A) in subsection (a)(4), by striking ‘‘activi-
ties (including existing and new programs)’’ and 
inserting ‘‘activities, services, undertakings, and
414 
‘‘(A) if a regulated entity, or a regulated 
entity-affiliated party— 
‘‘(i) commits any violation described 
in any subparagraph of paragraph (1); 
‘‘(ii) recklessly engages in an unsafe or 
unsound practice in conducting the affairs 
of such regulated entity; or 
‘‘(iii) breaches any fiduciary duty; and 
‘‘(B) the violation, practice, or breach— 
‘‘(i) is part of a pattern of misconduct; 
‘‘(ii) causes or is likely to cause more 
than a minimal loss to such regulated enti-
ty; or 
‘‘(iii) results in pecuniary gain or 
other benefit to such party, 
the regulated entity or regulated entity-affiliated 
party shall forfeit and pay a civil penalty of not 
more than $50,000 for each day during which such 
violation, practice, or breach continues. 
‘‘(3) THIRD TIER.—Notwithstanding paragraphs 
(1) and (2), any regulated entity which, or any regu-
lated entity-affiliated party who— 
‘‘(A) knowingly—
415 
‘‘(i) commits any violation or engages 
in any conduct described in any subpara-
graph of paragraph (1); 
‘‘(ii) engages in any unsafe or unsound 
practice in conducting the affairs of such 
regulated entity; or 
‘‘(iii) breaches any fiduciary duty; and 
‘‘(B) knowingly or recklessly causes a sub-
stantial loss to such regulated entity or a sub-
stantial pecuniary gain or other benefit to such 
party by reason of such violation, practice, or 
breach, 
shall forfeit and pay a civil penalty in an amount 
not to exceed the applicable maximum amount deter-
mined under paragraph (4) for each day during 
which such violation, practice, or breach continues. 
‘‘(4) MAXIMUM AMOUNTS OF PENALTIES FOR ANY 
VIOLATION DESCRIBED IN PARAGRAPH (3).—The max-
imum daily amount of any civil penalty which may 
be assessed pursuant to paragraph (3) for any viola-
tion, practice, or breach described in such paragraph 
is— 
‘‘(A) in the case of any person other than 
a regulated entity, an amount not to exceed 
$2,000,000; and
416 
‘‘(B) in the case of any regulated entity, 
$2,000,000.’’; 
(3) in subsection (c)(1)(B), by striking ‘‘enter-
prise, executive officer, or director’’ and inserting 
‘‘regulated entity or regulated entity-affiliated party’’; 
(4) in subsection (d), by striking the first sen-
tence and inserting the following: ‘‘If a regulated enti-
ty or regulated entity-affiliated party fails to comply 
with an order of the Director imposing a civil money 
penalty under this section, after the order is no longer 
subject to review as provided under subsection (c)(1) 
and section 1374, the Director may, in the discretion 
of the Director, bring an action in the United States 
District Court for the District of Columbia, or the 
United States district court within the jurisdiction of 
which the headquarters of the regulated entity is lo-
cated, to obtain a monetary judgment against the reg-
ulated entity or regulated entity affiliated party and 
such other relief as may be available, or request that 
the Attorney General of the United States bring such 
an action.’’; and 
(5) in subsection (g), by striking ‘‘subsection 
(b)(3)’’ and inserting ‘‘this section, unless authorized 
by the Director by rule, regulation, or order’’.
417 
SEC. 356. REMOVAL AND PROHIBITION AUTHORITY. 
(a) IN GENERAL.—Subtitle C of title XIII of the Hous-
ing and Community Development Act of 1992 is amend-
ed— 
(1) by redesignating sections 1377, 1378, 1379, 
1379A, and 1379B (12 U.S.C. 4637–41) as sections 
1379, 1379A, 1379B, 1379C, and 1379D, respectively; 
and 
(2) by inserting after section 1376 (12 U.S.C. 
4636) the following new section: 
‘‘SEC. 1377. REMOVAL AND PROHIBITION AUTHORITY. 
‘‘(a) AUTHORITY TO ISSUE ORDER.—Whenever the 
Director determines that— 
‘‘(1) any regulated entity-affiliated party has, 
directly or indirectly— 
‘‘(A) violated— 
‘‘(i) any law or regulation; 
‘‘(ii) any cease-and-desist order which 
has become final; 
‘‘(iii) any condition imposed in writ-
ing by the Director in connection with the 
grant of any application or other request by 
such regulated entity; or 
‘‘(iv) any written agreement between 
such regulated entity and the Director;
418 
‘‘(B) engaged or participated in any unsafe 
or unsound practice in connection with any reg-
ulated entity; or 
‘‘(C) committed or engaged in any act, 
omission, or practice which constitutes a breach 
of such party’s fiduciary duty; 
‘‘(2) by reason of the violation, practice, or 
breach described in any subparagraph of paragraph 
(1)— 
‘‘(A) such regulated entity has suffered or 
will probably suffer financial loss or other dam-
age; or 
‘‘(B) such party has received financial gain 
or other benefit by reason of such violation, prac-
tice, or breach; and 
‘‘(3) such violation, practice, or breach— 
‘‘(A) involves personal dishonesty on the 
part of such party; or 
‘‘(B) demonstrates willful or continuing dis-
regard by such party for the safety or soundness 
of such regulated entity, the Director may serve 
upon such party a written notice of the Direc-
tor’s intention to remove such party from office 
or to prohibit any further participation by such