Page:United States Statutes at Large Volume 122.djvu/2789

 12 2 STA T . 2 76 6 PUBLIC LA W 11 0– 2 89—J UL Y3 0, 2008 ‘ ‘ (i)sole l yb y v i rtu eo f servi c ei na ny suc h ca p acity lose any e x istin g status as an officer or e m ployee of the U nite dS tates for purposes of title 5, United States C ode, or any other provision of la w; or ‘‘(ii) receive any salary or benefits for service in any such capacity with respect to a limited - life regu- lated entity in addition to such salary or benefits as are obtained through employment with the A gency or such F ederal instrumentality . ‘‘( 1 1)A UTHORI T Y TOO B T A I NC R ED IT. — ‘‘(A) I N G ENERA L .—A limited-life regulated entity may obtain unsecured credit and issue unsecured debt. ‘‘( B ) INABILITY TO OBTAIN CREDIT.—If a limited-life regulated entity is unable to obtain unsecured credit or issue unsecured debt, the D irector may authori z e the obtaining of credit or the issuance of debt by the limited- life regulated entity— ‘‘(i) with priority over any or all of the obligations of the limited-life regulated entity; ‘‘(ii) secured by a lien on property of the limited- life regulated entity that is not otherwise sub j ect to a lien; or ‘‘(iii) secured by a junior lien on property of the limited-life regulated entity that is subject to a lien. ‘‘(C) L I M ITATION S .— ‘‘(i) IN GENERAL.— T he Director, after notice and a hearing, may authorize the obtaining of credit or the issuance of debt by a limited-life regulated entity that is secured by a senior or e q ual lien on property of the limited-life regulated entity that is subject to a lien (other than mortgages that collateralize the mortgage-bac k ed securities issued or guaranteed by an enterprise) only if— ‘‘(I) the limited-life regulated entity is unable to otherwise obtain such credit or issue such debt; and ‘‘(II) there is adequate protection of the interest of the holder of the lien on the property with respect to which such senior or equal lien is proposed to be granted. ‘‘(D) BURDEN O FP ROOF.—In any hearing under this subsection, the Director has the burden of proof on the issue of adequate protection. ‘‘(1 2 ) E FFECT ON DEBTS AND LIENS.—The reversal or modi- fication on appeal of an authorization under this subsection to obtain credit or issue debt, or of a grant under this section of a priority or a lien, does not affect the validity of any debt so issued, 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 issuance of such debt, or the granting of such priority or lien, were stayed pending appeal. ‘‘(j) O THER AGENCY E X EMPTIONS.— ‘‘(1) APPLICABILITY.—The provisions of this subsection shall apply with respect to the Agency in any case in which the Agency is acting as a conservator or a receiver.

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