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Good Day cfljmljfl,

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obiterdictum Member Level  Thursday, 06/18/15 01:25:09 PM
Re: cfljmljfl post# 303678
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Good Day cfljmljfl,

My understanding through experience is either party may terminate a Charter and end the relationship that brings to the parties. However, termination of the Charter does not terminate the life if either party. Is it correct to say the GSEs could terminate the Charter and continue a life as an entity?

The GSE charters can only be terminated by an Act of Congress.

See: Search the documents for "dissolve" Cntrl F (PC) Command F (Mac)

The corporate form of the GSEs after a termination of the Charter is partially determined by Congress and shareholders. For an example of a GSE going private review Sallie Mae's privatization.


Is it correct to say that terminating the Charter would no longer force the GSEs to comply with the mission restrictions of the Charter?

Yes. The charters have mission mandates and restrictions and with the end of the charters so these would end as well depending on the corporate status taken.

Bottom line is could GSEs survive as private entity without government Charter?


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