266
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
267
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
268
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-
269
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.
270
‘‘(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
271
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.’’.
272
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
273
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
274
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-