§2297h–3 Establishment of Private Corporation

Summary

Directors must form a private, for-profit company under state law to take the Corporation’s assets and keep its business going when privatization happens. The directors can be the incorporators and must file the required articles of incorporation. When employees, officers, or directors act for that private company under these rules, they are treated as acting in their official roles for purposes of 18 U.S.C. 205. The private company will not be a U.S. government agency, government corporation, or government-controlled entity. Its debts are not debts of, or guaranteed by, the Corporation or the United States, and the obligations must say so clearly. No claim under 28 U.S.C. 1491 may be made against the United States for the private company’s actions. Starting on the privatization date, the limits in 18 U.S.C. 207(a)–(d) do not apply to duties at the private company if the person worked for the Corporation continuously during the 45 days before privatization. If privatization does not occur, the Corporation must dissolve the private company within 1 year of incorporation unless the Secretary of the Treasury or a delegate allows one additional year.