Page:United States Statutes at Large Volume 96 Part 2.djvu/119

 PUBLIC LAW 97-320—OCT. 15, 1982

96 STAT. 1481

merging or consolidating with or assuming the liabilities and purchasing the assets of such insured institution; or "(iv) to take any combination of the actions referred to in clauses (i) through (iii). "(B) An insured institution described in this subparagraph— "(i) is an insured institution which is in default; "(ii) is an insured institution which, in the judgment of the Corporation is in danger of default; or "(iii) is an insured institution which, when severe financial conditions exist which threaten the stability of a significant number of insured institutions, or of insured institutions possessing significant financial resources, is determined by the Corporation, in its sole discretion, to require assistance under subparagraph (A) in order to lessen the risk to the Corporation posed by such insured institution under such threat of instability. "(3) The Corporation may provide any person acquiring control of, merging with, consolidating with or acquiring the assets of an insured institution under section 408(m) of this Act with such Post, p. 1483. financial assistance as it could provide an insured institution under this subsection. "(4)(A) No assistance shall be provided under paragraph (1), (2), or (3) of this subsection in an amount in excess of that amount which the Corporation determines to be reasonably necessary to save the cost of liquidating (including paying the insured accounts of) such insured institution, except that such restriction shall not apply in any case in which the Corporation determines that the continued operation of such insured institution is essential to provide adequate savings or home financing services in its community. "(B) The Corporation may not use its authority under this subsection to purchase the voting or common stock of an insured institution. Nothing in the preceding sentence shall be construed to limit the ability of the Corporation to enter into and enforce covenants and agreements that it determines to be necessary to protect its (b) Section 406(b) of the National Housing Act (12 U.S.C. 1729(b)) is amended to read as follows: "Ob)(l) In the event that a Federal association is in default, the Corporation shall be appointed as conservator or receiver and as such— "(A) is authorized— "(i) to take over the assets of and operate such association; "(ii) to take such action as may be necessary to put it in a sound solvent condition; "(iii) to merge it with another insured institution; "(iv) to organize a new Federal association to take over its assets; "(v) to proceed to liquidate its assets in an orderly manner; or "(vi) to make such other disposition of the matter as it deems appropriate; whichever it deems to be in the best interest of the association, its savers, and the Corporation; and "(B) shall pay all valid credit obligations of the association.

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