103 STAT. 338 PUBLIC LAW 101-73 —AUG. 9, 1989 "(B) ISSUANCE OF NONVOTING SHARES. — Th is section shall not prohibit a savings association chartered as part of a transaction described in paragraph (1) from issuing any nonvoting shares or less than 50 percent of the voting shares of such association to any person other than the mutual holding company. " (9) INSOLVENCY AND UQUIDATION. — "(A) IN GENERAL. — Notwithstanding any provision of law, upon— "(i) the default of any savings association— "(I) the stock of which is owned by any mutual holding company; and "(II) which was chartered in a transaction de- scribed in paragraph (1); "(ii) the default of a mutual holding company; or "(iii) a foreclosure on a pledge by a mutual holding company described in paragraph (8)(A), a trustee shall be appointed receiver of such mutual holding company and such trustee shall have the authority to liquidate the Eissets of, and satisfy the liabilities of, such mutual holding company pursuant to title 11, United States Code. " (B) DISTRIBUTION OF NET PROCEEDS. — Except as provided in subparagraph (C), the net proceeds of any liquidation of any mutual holding company pursuant to subparagraph (A) shall be transferred to persons who hold ownership in- terests in such mutual holding company. "(C) RECOVERY BY CORPORATION.— If the Corporation incurs a loss as a result of the default of any savings association subsidiary of a mutual holding company which is liquidated pursuant to subparagraph (A), the Corporation shall succeed to the ownership interests of the depositors of such savings association in the mutual holding company, to the extent of the Corporation's loss. "(10) DEFINITIONS.—For purposes of this subsection— "(A) MUTUAL HOLDING COMPANY. —The term 'mutual holding company' means a corporation organized as a hold- ing company under this subsection. "(B) MUTUAL ASSOCIATION. — The term 'mutual associa- tion' means a savings association which is operating in mutual form. "(C) DEFAULT.—The term 'default' means an adiudication or other official determination of a court of competent jurisdiction or other public authority pursuant to which a conservator, receiver, or other legal custodian is appointed. "(p) HOLDING COMPANY ACTIVITIES CONSTITUTING SERIOUS RISK TO SUBSIDIARY SAVINGS ASSOCIATION.— " (1) DETERMINATION AND IMPOSITION OF RESTRICTIONS.— If the Director determines that there is reasonable cause to believe that the continuation by a savings and loan holding company of any activity constitutes a serious risk to the financial safety, soundness, or stability of a savings and loan holding company's subsidiary savings association, the Director may impose such restrictions as the Director determines to be necessary to ad- dress such risk. Such restrictions shall be issued in the form of a directive to the holding company and any of its subsidiaries, limiting—
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