(2) meet all other requirements of this Act. 
(f) DEVELOPMENT RISK INSURANCE.—
(1) IN GENERAL.—Any project on the list es-
tablished pursuant to subsection (c)(2) shall be eligi-
ble to apply to the Corporation for development risk 
insurance in accordance with this subsection to in-
sure against the risk of loss that would result if a 
project does not proceed within a specified time 
frame as the result of the failure to secure relevant 
permits or specified Federal, State, or local approv-
als. 
(2) TERMS AND SCOPE OF COVERAGE.—Devel-
opment risk insurance provided under this sub-
section shall—
(A) contain such limitations, deductibles, 
exclusions, and exceptions as the Corporation 
shall establish; and 
(B) apply only to developmental costs in-
curred after the date of the approval of the ap-
plication for such insurance. 
(3) 
MAXIMUM
ON
INSURANCE
OF 
PRECONSTRUCTION
RISK.—The Corporation shall 
not 
insure 
more 
than 
percent 
of 
the 
preconstruction phase development risk of any 
project, as determined by the Corporation.
(4) ADDITIONAL
CONDITIONS.—The Corpora-
tion may impose such other conditions and require-
ments in connection with any insurance provided 
under this subsection as the Corporation may deter-
mine to be appropriate, including requirements for 
audits of costs and other matters. 
(5) FEES FOR INSURANCE.—The Corporation 
may charge such fees and obtain such other com-
pensation for providing insurance coverage under 
this subsection as the Corporation, in the Corpora-
tion’s discretion, shall determine to be appropriate. 
(6) MAXIMUM EXPOSURE OF CORPORATION.—
The total outstanding exposure of the Corporation 
with respect to insurance provided under this sub-
section may not exceed the amount which is equal to 
5 percent of the sum of the capital, surplus, and re-
tained earnings of the Corporation, as measured at 
the time any such insurance is provided. 
(g) DISCRETION OF CORPORATION AND INSURANCE 
CORPORATION.—Consistent with other provisions of this 
Act, any determination of the Corporation or the Insur-
ance Corporation to provide assistance to any project, and 
the manner in which such assistance is provided, including 
the terms, conditions, fees and charges in respect thereof,
shall be at the sole discretion of the Corporation or the 
Insurance Corporation, as the case may be. 
(h) INDEPENDENT INVESTMENT COMMITTEE.—Any 
final decision to provide or not provide assistance under 
this Act by the Corporation or the Insurance Corporation 
with respect to any specific proposal shall be made by an 
investment committee, of the respective corporation, which 
shall be comprised of senior officers of the Corporation 
and the Insurance Corporation, as the case may be, ap-
pointed to such committee by the respective board of direc-
tors, which committees shall not have any nonofficer direc-
tor members. 
(i) STATE AND LOCAL PERMITS REQUIRED.—The 
provision of assistance by the Corporation or the Insur-
ance Corporation in accordance with this section shall not 
be deemed to relieve any recipient of assistance or the re-
lated project of any obligation to obtain required State and 
local permits and approvals. 
(j) ANNUAL REPORT.—A State, revolving fund, or 
other entity receiving assistance from the Corporation or 
the Insurance Corporation shall make annual reports to 
the Corporation or the Insurance Corporation, as the case 
may be, on the use of any such assistance, compliance with 
the criteria set forth in this section, and a disclosure of 
all entities with a development, ownership, or operational
interest in a project assisted or proposed to be assisted 
pursuant to this Act. 
(k) COOPERATION.—While the Corporation and In-
surance Corporation each has sole discretion, the Corpora-
tion and Insurance Corporation shall cooperate with State, 
local, and regional officials. 
SEC. 9. CAPITALIZATION AND ORGANIZATION OF THE COR-
PORATION AND THE INSURANCE CORPORA-
TION. 
(a) CAPITALIZATION.—
(1) CAPITALIZATION OF THE CORPORATION.—
(A) VOTING
COMMON
STOCK.—Effective 
for any fiscal year only to such extent and in 
such amounts as are provided in advance in ap-
propriation Acts, the Secretary shall subscribe 
for and purchase, in each of the 3 years fol-
lowing the date of enactment of this Act, voting 
common stock of the Corporation having an ag-
gregate purchase price in each year of 
$3,000,000,000, except that no such purchase 
shall occur after the transition date. 
(B) LIMITATION ON SALE OF SECURITIES 
BY
SECRETARY.—Securities purchased by the 
Secretary may not be sold or otherwise trans-
ferred by the Secretary unless such sale or
transfer is effected pursuant to section 13 or is 
explicitly authorized by an Act of Congress. 
(2) CAPITALIZATION OF THE INSURANCE COR-
PORATION.—
(A) IN GENERAL.—The Corporation may 
subscribe for and purchase voting common 
stock of the Insurance Corporation in such 
amounts and at such times as the board of di-
rectors of the Corporation shall from time to 
time consider appropriate. 
(B) LIMITATION ON INVESTMENT BY COR-
PORATION.—Not more than 25 percent of the 
capital, surplus, and retained earnings of the 
Corporation may be invested by the Corporation 
in the Insurance Corporation without the con-
sent of the Secretary, measured at the time of 
any such investment. 
(3) REPURCHASE
OF
OUTSTANDING
OBLIGA-
TIONS.—The Corporation and the Insurance Cor-
poration may purchase in the open market any of 
their respective outstanding obligations at any time 
and at any price. 
(b) PLACE OF BUSINESS AND GOVERNING LAW.—
(1) CORPORATION.—
(A) PRINCIPAL OFFICE.—The Corporation 
shall maintain its principal office in the District 
of Columbia, and shall be deemed, for purposes 
of venue in civil actions, to be a resident of the 
District of Columbia. 
(B) APPLICABILITY OF DISTRICT OF CO-
LUMBIA BUSINESS CORPORATION ACT.—To the 
extent not inconsistent with this Act, the Cor-
poration shall be subject to the District of Co-
lumbia Business Corporation Act. 
(2) INSURANCE CORPORATION.—
(A) PLACE OF BUSINESS.—The Insurance 
Corporation shall maintain its principal office 
in the District of Columbia, and shall be 
deemed, for purposes of venue in civil actions, 
to be a resident thereof. 
(B) APPLICABILITY OF DISTRICT OF CO-
LUMBIA BUSINESS CORPORATION ACT.—To the 
extent not inconsistent with this Act, the Insur-
ance Corporation shall be subject to the District 
of Columbia Business Corporation Act. 
(3) APPLICABILITY
OF
STATE
INSURANCE 
LAWS.—Before the transition date, the Corporation 
and the Insurance Corporation shall not be subject 
to the provisions of the law of any State or political