Sec. 305. Repeal of enterprise charters
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Section 1367 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4617 ) is amended by striking subsection
(k)and inserting the following new subsection: Effective upon the certification date (as such term is defined in section 2 of the Partnership to Strengthen Homeownership Act of 2015 ), the charter of the Federal National Mortgage Association is repealed and the Federal National Mortgage Association shall have no authority to conduct new business under such charter, except that the provisions of such charter in effect immediately before such repeal shall continue to apply with respect to the rights and obligations of any holders of— outstanding debt obligations of the Federal National Mortgage Association, including any— bonds, debentures, notes, or other similar instruments; capital lease obligations; or obligations in respect of letters of credit, bankers’ acceptances, or other similar instruments; or mortgage-backed securities guaranteed by the Federal National Mortgage Association that are not eligible mortgage-backed securities insured by Ginnie Mae pursuant to section 202 of the Partnership to Strengthen Homeownership Act of 2015 . Effective upon the certification date, the charter of the Federal Home Loan Mortgage Corporation is repealed and the Federal Home Loan Mortgage Corporation shall have no authority to conduct new business under such charter, except that the provisions of such charter in effect immediately before such repeal shall continue to apply with respect to the rights and obligations of any holders of— outstanding debt obligations of the Federal Home Loan Mortgage Corporation, including any— bonds, debentures, notes, or other similar instruments; capital lease obligations; or obligations in respect of letters of credit, bankers’ acceptances, or other similar instruments; or mortgage-backed securities guaranteed by the Federal Home Loan Mortgage Corporation that are not eligible mortgage-backed securities insured by Ginnie Mae pursuant to section 202 of the Partnership to Strengthen Homeownership Act of 2015 . The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under any obligation described in paragraph
(1)or (2). Notwithstanding any other provision of law, provision 2(a) (relating to Dividend Payment Dates and Dividend Periods) and provision 2(c) (relating to Dividend Rates and Dividend Amount) of the Senior Preferred Stock Purchase Agreement, or any provision of any certificate in connection with such Agreement creating or designating the terms, powers, preferences, privileges, limitations, or any other conditions of the Variable Liquidation Preference Senior Preferred Stock of an enterprise issued pursuant to such Agreement— shall not be amended, restated, or otherwise changed to reduce the rate or amount of dividends in effect pursuant to such Agreement as of the Third Amendment to such Agreement dated August 17, 2012, except that any amendment to such Agreement to facilitate the sale of assets of the enterprises shall be permitted; and shall remain in effect until the guarantee obligations described under paragraphs (1)(B) and (2)(B) of this subsection are fully extinguished. All guarantee fee amounts derived from the single-family mortgage guarantee business of the enterprises in existence as of the certification date shall be subject to the Senior Preferred Stock Purchase Agreement. For purposes of this paragraph, the term Senior Preferred Stock Purchase Agreement means— the Amended and Restated Senior Preferred Stock Purchase Agreement, dated September 26, 2008, as such Agreement has been amended on May 6, 2009, December 24, 2009, and August 17, 2012, respectively, and as such Agreement may be further amended and restated, entered into between the Department of the Treasury and each enterprise, as applicable; and any provision of any certificate in connection with such Agreement creating or designating the terms, powers, preferences, privileges, limitations, or any other conditions of the Variable Liquidation Preference Senior Preferred Stock of an enterprise issued or sold pursuant to such Agreement. Notwithstanding any other provision of this subsection, Ginnie Mae shall provide that during the 30-year period beginning upon the certification date, any securities described in paragraph (1)(B) or (2)(B) may be exchanged, at the request of the holder of such security, for securities insured under section 202 of the Partnership to Strengthen Homeownership Act of 2015 , and Ginnie Mae shall ensure fungibility between such securities exchanged. Ginnie Mae may establish such terms and conditions for such exchanges as Ginnie Mae considers appropriate, except that Ginnie Mae shall provide that in such exchanges such securities described in paragraph (1)(B) or (2)(B) shall receive a risk weight of zero. .
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Sec. 305
Repeal of enterprise charters
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