12 2 STA T . 2 6 6 0PUBLIC LA W 110 – 2 89—J UL Y3 0 , 2008 (10)byinsert in gaf ter p aragrap h ( 7 ) , as re d esignated, the f ol lo w ing
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‘( 8 ) DEFAULT;IND AN G E RO F DEFAULT .— ‘‘( A ) DEFAULT.— T he ter m ‘defa u lt ’ means, with respe c t to a regulated entity, any ad j udication or other official determination by any court of competent jurisdiction, or the Agency, pursuant to which a conser v ator, receiver, limited - life regulated entity, or legal custodian is appointed for a regulated entity. ‘‘( B ) I N DANGER OF DEFAULT.—The term ‘in danger of default’ means a regulated entity with respect to which, in the opinion of the Agency— ‘‘(i) the regulated entity is not li k ely to be able to pay the obligations of the regulated entity in the normal course of business; or ‘‘(ii) the regulated entity— ‘‘(I) has incurred or is likely to incur losses that will deplete all or substantially all of its cap- ital; and ‘‘(II) there is no reasonable prospect that the capital of the regulated entity will be replenished.’’; (11) by inserting after paragraph (1) the following: ‘‘( 2 ) AGEN CY .—The term ‘Agency’ means the F ederal H ousing Finance Agency established under section 1 3 11. ‘‘(3) AUT H ORI Z ING S TATUTES.—The term ‘authori z ing stat- utes’ means— ‘‘(A) the Federal N ational M ortgage Association C harter Act; ‘‘(B) the Federal Home L oan Mortgage Corporation Act; and ‘‘(C) the Federal Home Loan Bank Act. ‘‘( 4 ) BOARD.—The term ‘Board’ means the Federal Housing Finance O versight Board established under section 1313A.’’; (12) by inserting after paragraph (10), as redesignated by this section, the following: ‘‘(11) E NTITY-AFFILIATED P ARTY.—The term ‘entity-affiliated party’ means— ‘‘(A) any director, officer, employee, or controlling stock- holder of, or agent for, a regulated entity; ‘‘(B) any shareholder, affiliate, consultant, or joint ven- ture partner of a regulated entity, and any other person, as determined by the Director (by regulation or on a case- by-case basis) that participates in the conduct of the affairs of a regulated entity, provided that a member of a Federal Home Loan Bank shall not be deemed to have participated in the affairs of that Bank solely by virtue of being a shareholder of, and obtaining advances from, that Bank; ‘‘(C) any independent contractor for a regulated entity (including any attorney, appraiser, or accountant), if— ‘‘(i) the independent contractor knowingly or reck- lessly participates in— ‘‘(I) any violation of any law or regulation; ‘‘(II) any breach of fiduciary duty; or ‘‘(III) any unsafe or unsound practice; and ‘‘(ii) such violation, breach, or practice caused, or is likely to cause, more than a minimal financial loss
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