(a) Appointment

(1) In general

Upon a determination and notice under section 4618(d) of this title that an enterprise is critically undercapitalized and not later than 30 days after providing notice under section 4619(a)(3) of this title, the Director shall appoint a conservator for the enterprise in accordance with the provisions of section 4619 of this title (excluding subsections ^[1] (a)(1) and (2)). (FOOTNOTE 1) So in original. Probably should be ''subsection''.

(2) Exception

Notwithstanding paragraph (1), the Director may determine not to appoint a conservator for an enterprise classified as critically undercapitalized, but only pursuant to a written finding by the Director, with the written concurrence of the Secretary of the Treasury, that -

(A)

the appointment of a conservator would have serious adverse effects on economic conditions of national financial markets or on the financial stability of the housing finance market; and

(B)

the public interest would be better served by taking some other enforcement action authorized under this chapter.

(b) Authority

The Director shall have the authority to take any actions under sections 4615 and 4616 of this title with respect to an enterprise under conservatorship.

(c) Approval of activities

(1) Conservator

The conservator of any enterprise classified as critically undercapitalized may undertake an activity subject to the approval of the Secretary under section 4542 of this title only with the additional approval of the Director.

(2) No conservator

If the Director determines under subsection (a)(2) of this section not to appoint a conservator for an enterprise classified as critically undercapitalized, the provisions of section 4616 of this title shall apply with respect to the enterprise.

(d) Effective date

This section shall take effect upon the first classification of the enterprises within capital classifications that occurs under section 4614 of this title