Page:United States Statutes at Large Volume 110 Part 4.djvu/441

 PUBLIC LAW 104-208—SEPT. 30, 1996 110 STAT. 3009-278 pursuant to section 439(q) or with purchasing loans under an agreement with the Secretary as described in paragraph (6). Nothing in this section shall modify the attributes accorded the debt obligations of the Association by section 439, regardless of whether such debt obligations are incurred prior to, or at any time following, the reorganization effective date or are transferred to a trust in accordance with subsection (d). "(8) MONITORING OF SAFETY AND SOUNDNESS.— "(A) OBLIGATION TO OBTAIN, MAINTAIN, AND REPORT INFORMATION. —The Association shall obtain such information and make and keep such records as the Secretary of the Treasury may from time to time prescribe concerning— "(i) the financial risk to the Association resulting from the activities of any associated person, to the extent such activities are reasonably likely to have a material impact on the financial condition of the Association, including the Association's capital ratio, the Association's liquidity, or the Association's ability to conduct and finance the Association's operations; and "(ii) the Association's policies, procedures, and systems for monitoring and controlling any such financial risk. "(B) SUMMARY REPORTS. — The Secretary of the Treasury may require summary reports of the information described in subparagraph (A) to be filed no more frequently than quarterly. If, as a result of adverse market conditions or based on reports provided pursuant to this subparagraph or other available information, the Secretary of the Treasury has concerns regarding the financial or operational condition of the Association, the Secretary of the Treasury may, notwithstanding the preceding sentence and subparagraph (A), require the Association to make reports concerning the activities of any associated person whose business activities are reasonably likely to have a material impact on the financial or operational condition of the Association. "(C) SEPARATE OPERATION OF CORPORATIONS. — "(i) IN GENERAL. —The funds and assets of the Association shall at all times be maintained separately from the funds and assets of the Holding Company or any subsidiary of the Holding Company and may be used by the Association solely to carry out the Association's purposes and to fulfill the Association's obligations. "(ii) BOOKS AND RECORDS.— The Association shall maintain books and records that clearly reflect the assets and liabilities of the Association, separate from the assets and liabilities of the Holding Company or any subsidiary of the Holding Company. "(iii) CORPORATE OFFICE.— The Association shall maintain a corporate office that is physically separate from any office of the Holding Company or any subsidiary of the Holding Company. "(iv) DIRECTOR. —No director of the Association who is appointed by the President pursuant to section

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