§2297h–3 Establishment of Private Corporation

Summary

Directors must form a private, for-profit company under state law to take over the Corporation’s assets, debts, and business when privatization occurs. Directors may act as the incorporators and must file the articles of incorporation needed to set it up. Employees or officers (including board members) who work on this for the private company while following this law are treated as acting in their official Corporation roles for purposes of section 205 of title 18. The private company is not part of the U.S. government and is not a government corporation or government-controlled. Its financial obligations are not obligations of, or guaranteed by, the Corporation or the United States, and the obligations must say that. No claim under section 1491 of title 28 may be made against the United States based on the private company’s actions. Starting on the privatization date, the limits in section 207(a)–(d) of title 18 do not apply to acts done while carrying out official duties for the private company if the person was an officer or employee of the Corporation continuously during the 45 days before privatization. If privatization does not happen, the private company must be dissolved within 1 year of incorporation unless the Secretary of the Treasury or his delegate agrees to delay dissolution for one more year.