Obit, so from this statement, termination awaits the court's "stamp " of " illegality" or "unconstitutionality " ?
Yes. If the Third Amendment and NWS is declared illegal and is vacated and set aside as Perry Capital has requested in their original complaint, the entire SPSPA according to 6.12 can be declared null and void. This does not mean the conservatorship is terminated. It does mean the US Treasury will lose its hold over the FHFA Director discretion to terminate the Conservatorship. This can lead to other problems, wherein, the FHFA and FHFA Director come back to full independence and power.
Or, since Treasury doesn't have the judicial authority to determine "illegality " or " constitutionality " , does The Treasury have an option or another path where upon he can solely act to terminate the agreement ?
Yes. The new Treasury Secretary can work to waive the agreement with the FHFA Director under SPSPA provision 6.3. In this case, there would be no need for a legal decision to rescind and unwind the SPSPA.
6.3. Amendments; Waivers. This Agreement may be waived or amended solely by a writing
executed by both of the parties hereto, and, with respect to amendments to or waivers of the
provisions of Sections 5.3, 6.2 and 6.11, the Conservator; provided, however, that no such waiver or
amendment shall decrease the aggregate Commitment or add conditions to funding the amounts
required to be funded by Purchaser under the Commitment if such waiver or amendment would,
in the reasonable opinion of Seller, adversely affect in any material respect the holders of debt
securities of Seller and/or the beneficiaries of Mortgage Guarantee Obligations, in each case in
their capacities as such, after taking into account any alternative arrangements that may be
implemented concurrently with such waiver or amendment. In no event shall any rights granted
hereunder prevent the parties hereto from waiving or amending in any manner whatsoever the
covenants of Seller hereunder.
If so option exsisted, might this be the quickest path President Trump and Treasure Nominee are referencing ?
No idea as to what President Trump and Treasure Nominee were referencing. Surely, Treasury and FHFA can use 6.3 to end the SPSPA, the Third Amendment and NWS with and exchange of letters and signatures and without Congressional approval.
