Stock of each enterprise; plan to terminate conservatorship

(a) Senior Preferred Stock conversion The Secretary of the Treasury may convert the Senior Preferred Stocks of each enterprise into common equity. (b) No resumption of periodic commitment fee The Secretary of the Treasury shall not require the enterprises to adhere to the periodic commitment fee described in section 3.2 of the Senior Preferred Stock Purchase Agreements. (c) Exercise of warrants for common stock The Secretary of the Treasury shall exercise the warrants for the purchase of common stock of the enterprises provided to the Secretary under the Senior Preferred Stock Purchase Agreements. (d) Preparation To terminate conservatorship (1) Capital standards Not later than 90 after the date of the enactment of this section, the Director of the Federal Housing Finance Agency shall make a determination with respect to necessary capital standards for each enterprise to exit conservatorship. (2) Insufficient capital If an enterprise does not meet the capital standards described in paragraph (1), the Director of the Federal Housing Finance Agency shall— (A) direct the enterprise to sell stock to meet capital standards; (B) define capital thresholds that determine the level of intervention by the Director; and (C) determine a timeline for the enterprise to reach necessary capital standards. (3) Commitment to restructure Not later than 1 year after the date of the enactment of this section, the Secretary of the Treasury and each enterprise shall restructure the investment and dividend amount of the Department of the Treasury with respect to each enterprise in a manner that facilitates the orderly exit from conservatorship. (e) Sale of stocks Not later than 2 years after the date of the enactment of this section, the Secretary of the Treasury shall sell the stock from exercising its warrants described in subsection (c). (f) Definitions In this section: (1) Enterprise The term enterprise has the meaning given such term in section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4502). (2) Senior Preferred Stock Purchase Agreement The term Senior Preferred Stock Purchase Agreement means, with respect to an enterprise, the Amended and Restated Senior Preferred Stock Purchase Agreements, dated September 26, 2008, amended May 6, 2009, further amended December 24, 2009, and further amended August 17, 2012, between the Secretary of the Treasury and such enterprise.