; and (iii) are permitted and required to be distributed under the related transaction documents and any contracts executed by or on behalf of the estate. (L) Sovereign immunity Except in connection with a guarantee provided under paragraph (4) or any other contract executed by the applicable covered bond regulator under this section 343, the Secretary and the covered bond regulator shall be entitled to sovereign immunity in carrying out the provisions of this subtitle. (2) Borrowings and credit (A) In general Any servicer or administrator for an estate created under subsection (b)(1) or (c)(2) may borrow funds or otherwise obtain credit, on behalf of and for the benefit of the estate, from any person in compliance with this paragraph (2) solely for the purpose of providing liquidity in the case of timing mismatches among the assets and the liabilities of the estate. Except with respect to an underwriter, section 5 of the Securities Act of 1933, the Trust Indenture Act of 1939, and any State or local law requiring registration for an offer or sale of a security or registration or licensing of an issuer of, underwriter of, or broker or dealer in a security does not apply to the offer or sale under this paragraph (2) of a security that is not an equity security. (B) Conditions A servicer or administrator may borrow funds or otherwise obtain credit under subparagraph (A)— (i) on terms affording the lender only claims or liens that are fully subordinated to the claims and interests of the applicable indenture trustee and the applicable covered bondholders and all other claims against and interests in the estate, except for the residual interest, if the servicer or administrator certifies to the applicable covered bond regulator that, in the business judgment of the servicer or administrator, the borrowing or credit is in the best interests of the estate and is expected to maximize the value and the proceeds of the cover pool held by the estate