Full text of Resolution Trust Corporation Funding Act of 1991

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105 STAT. 58

PUBLIC LAW 102-18—MAR. 23, 1991
Public Law 102-18
102d Congress
An Act

Mar. 23, 1991
[S. 419]

To amend the Federal Home Loan Bank Act to enable the Resolution Trust Corporation to meet its obligations to depositors and others by the least expensive means.

Resolution Trust

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled.

Corporation
Funding Act of
1991.

Banks and
banking.

SECTION 1. SHORT TITLE.

This Act may be cited as the "Resolution Trust Corporation
Funding Act of 1991".

12 u s e 1421

"*"

TITLE I—RTC RESOLUTION PROCESS AND
FUNDING
SEC. 101. THRIFT RESOLUTION FUNDING.

Section 21A(i) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(i)) is amended—
(1) by redesignating paragraphs (1) and (2) as subparagraphs
(A) and (B), respectively, and moving the left margin of such
subparagraphs (as so redesignated) 2 ems to the right;
(2) in the heading, by striking "BORROWING" and inserting
"FUNDING";

(3) by inserting after such heading the following new paragraph designation and heading:
"(1) BORROWING.—"; and

(4) by adding at the end the following new paragraph:
"(2) INTERIM FUNDING.—The Secretary of the Treasury shall
provide the sum of $30,000,000,000 to the Corporation to carry
out the purposes of this section,".
SEC. 102. REPORTS.

(a) IN GENERAL.—Section 21A(k) of the Federal Home Loan Bank
Act (12 U.S.C. 1441a(k)) is amended—
(1) in paragraph (IXA)—
(A) by striking "The" and inserting "Notwithstanding
section 9105 of title 31, United States Code, the"; and
(B) by striking everything after "standards" the first
place it appears and inserting ". The audited statements
shall be transmitted to the Congress by the Oversight Board
not later than 180 days after the end of the Corporation's
fiscal year to which those statements apply.";
(2) in paragraph (1)(B), by striking ", or by an independent
certified public accountant retained to audit the Corporation's
financial statement,"; and
(3) by adding at the end the following:
"(8) OPERATING PLANS.—

PUBLIC LAW 102-18—MAR. 23, 1991

105 STAT. 59

"(A) IN GENERAL.—Before the beginning of each calendar
quarter, the Oversight Board shall submit to the Committee
on Banking, Housing, and Urban Affairs of the Senate and
the Committee on Banking, Finance and Urban Affairs of
the House of Representatives a detailed financial operating
plan covering the remaining quarters of the Corporation's
fiscal year in which that quarter occurs.
"(B) CONTENTS.—At a minimum, a detailed financial
operating plan shall include—
"(i) estimates of the aggregate assets of institutions
that are projected to be resolved in each quarter,
"(ii) the estimated aggregate cost of resolutions in
each quarter,
"(iii) the estimated aggregate asset sales and principal collections in each quarter, and
"(iv) the Corporation's summary pro forma financial
statement at the end of each quarter.
"(9)

REPORTS ON

SEVERELY TROUBLED INSTITUTIONS.—The

i Director of the Office of Thrift Supervision shall deliver on a
quarterly basis to the Oversight Board a list of savings associations for which the Director has determined grounds exist, or
are likely to exist in the current fiscal year of the Corporation
and in the next following fiscal year of the Corporation, for the
appointment of a conservator or receiver under the Home
Owners' Loan Act. The Oversight Board shall report the aggregate number and assets of such savings associations to Congress
within 60 days after the end of each calendar quarter.".
(b) FIRST REQUIRED PLAN.—The first plan described in section 12 u s e 1441a
21A(k)(8) of the Federal Home Loan Bank Act, as amended by note.
subsection (a), is due not later than 30 days after the date of
enactment of this Act.
(c) TIMELINESS OF REPORTS.—

12 u s e 1441a

(1) IN GENERAL.—At any time when an agency is delinquent in note.
providing information to Congress or any of its committees as
required by paragraph (1), (4), (5), (6), (8), or (9) of section 21A(k)
of the Federal Home Loan Bank Act or by subsection (b) of this
section, the President of the Oversight Board, and the head of
any agency responsible for such delinquency shall, within 15
days of such delinquency, in testimony before the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Banking, Finance and Urban Affairs of the
House of Representatives—
(A) explain the causes of such delinquency; and
(B) describe what steps are being taken to correct it and
prevent its recurrence.
Testimony shall not be required pursuant to the preceding
sentence before either Committee if the Chairman and Ranking
Member of such Committee agree that such testimony is not
necessary. For purposes of this paragraph, the term "head of an
agency" means the Chairman of the Resolution Trust Corporation with respect to reports to be filed by such Corporation, the
Director of the Office of Thrift Supervision with respect to
reports to be filed by such Office, and the Comptroller General
with respect to audits to be conducted by the General Accounting Office.
(2) TRANSITION RULE.—Any information described in paragraph (1) of this subsection that is delinquent on the date of

105 STAT. 60

PUBLIC LAW 102-18—MAR. 23, 1991
enactment of this Act shall be provided to the appropriate
committees of Congress not later than 30 days following enactment of this Act. Failure to provide such information as required by this paragraph shall be considered as a delinquency
under the provisions of paragraph (1).
SEC. 103. STATUS OF EMPLOYEES.
(a) RESOLUTION TRUST CORPORATION.—Section 21A of the Federal

Home Loan Bank Act (12 U.S.C. 1441a) is amended by adding at the
end the following new subsection:
"(q) STATUS OF EMPLOYEES.—

"(1) LiABiUTY.—A director, member, officer, or employee of
the Corporation or of the Oversight Board has no liability under
the Securities Act of 1933 with respect to any claim arising out
of or resulting from any act or omission by such person within
the scope of such person's employment in connection with any
transaction involving the disposition of assets (or any interests
in any assets or any obligations backed by any assets) by the
Corporation. This subsection shall not be construed to limit
personal liability for criminal acts or omissions, willful or malicious misconduct, acts or omissions for private gain, or any
other acts or omissions outside the scope of such person's
employment.
"(2) DEFINITION.—For purposes of this subsection, the term
'employee of the Corporation or of the Oversight Board' includes—
"(A) any employee of the Office of the Comptroller of the
Currency or of the Office of Thrift Supervision who serves
as a deputy or assistant to a member of the Board of
Directors of the Corporation; and
"(B) any officer or employee of the Federal Deposit Insurance Corporation who performs services for the Corporation
on behalf of the Federal Deposit Insurance Corporation,
acting as exclusive manager.
"(3) EFFECT ON OTHER LAW.—This subsection does not affect—
"(A) any other immunities and protections that may be
available under applicable law with respect to such transactions, or
"(B) any other right or remedy against the Corporation,
against the United States under applicable law, or against
any person other than a person described in paragraph (1)
participating in such transactions.
This subsection shall not be construed to limit or alter in any
way the immunities that are available under applicable law for
Federal officials and employees not described in this
subsection.".
(b) FEDERAL DEPOSIT INSURANCE CORPORATION.—Section 2 of the

Federal Deposit Insurance Act (12 U.S.C. 1812) is amended by
adding at the end the following new subsection:
"(f) STATUS OF EMPLOYEES.—

"(1) IN GENERAL.—A director, member, officer, or employee of
the Corporation has no liability under the Securities Act of 1933
with respect to any claim arising out of or resulting from any
act or omission by such person within the scope of such person's
employment in connection with any transaction involving the
disposition of assets (or any interests in any assets or any
obligations backed by any assets) by the Corporation. This

PUBLIC LAW 102-18—MAR. 23, 1991
subsection shall not be construed to limit personal liability for
criminal acts or omissions, willful or malicious misconduct, acts
or omissions for private gain, or any other acts or omissions
outside the scope of such person's employment.
"(2) DEFINITION.—For purposes of this subsection, the term
'employee of the Corporation' includes any employee of the
Office of the Comptroller of the Currency or of the Office of
Thrift Supervision who serves as a deputy or assistant to a
member of the Board of Directors of the Corporation in connection with activities of the Corporation.
"(3) EFFECT ON OTHER LAW.—This subsection does not affect—
"(A) any other immunities and protections that may be
available to such person under applicable law with respect
to such transactions, or
"(B) any other right or remedy against the Corporation,
against the United States under applicable law, or against
any person other than a person described in paragraph (1)
participating in such transactions.
This subsection shall not be construed to limit or alter in any
way the immunities that are available under applicable law for
Federal officials and employees not described in this
subsection.".
SEC. 104. INCIDENTAL POWERS.
(a) RESOLUTION TRUST CORPORATION.—Section 21A(b)(10)(N) of the

Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(10)(N)) is amended
by adding at the end the following: "The Corporation may indemnify
the directors, officers and employees of the Corporation on such
terms as the Corporation deems proper against any liability under
any civil suit pursuant to any statute or pursuant to common law
with respect to any claim arising out of or resulting from any act or
omission by such person within the scope of such person's employment in connection with any transaction entered into involving the
disposition of assets (or any interests in any assets or any obligations
backed by any assets) by the Corporation. For purposes of this
subparagraph, the terms 'officers' and 'employees include officers
and employees of the Federal Deposit Insurance Corporation or of
other agencies who perform services for the Corporation on behalf of
the Federal Deposit Insurance Corporation, acting as exclusive manager. The indemnification authorized by this subparagraph shall be
in addition to and not in lieu of any immunities or other protections
that may be available to such person under applicable law, and this
provision does not affect any such immunities or other protections.".
(b) OVERSIGHT BOARD.—Section 21A(a)(5) of the Federal Home
Loan Bank Act (12 U.S.C. 1441a(a)(5)) is amended—
(1) by redesignating subparagraphs (I) and (J) as subparagraphs (J) and (K), respectively; and
(2) by inserting after subparagraph (H) the following:
"(I) indemnify, from funds made available to it by the
Corporation, the members, officers, and employees of the
Oversight Board on such terms as the Oversight Board
deems proper against any liability under any civil suit
pursuant to any statute or pursuant to common law with
respect to any claim arising out of or resulting from any act
or omission by such person within the scope of such person's employment in connection with any transaction
entered into involving the disposition of assets (or any

105 STAT. 61

105 STAT. 62

PUBLIC LAW 102-18—MAR. 23, 1991
interests in any assets or any obligations backed by any
assets) by the Corporation, and the indemnification
authorized by this provision shall be in addition to and not
in lieu of any immunities or other protections that may be
available to such person under applicable law, and this
provision does not affect any such immunities or other
protections;".
SEC. 105. CLARIFICATION OF REVIEW OF PRIOR CASES.

Section 21A(b)(ll)(B) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(b)(ll)(B)) is amended—
(1) by striking "The Corporation shall exercise" and inserting
the following:
"(C) PROVISIONS APPLICABLE TO REVIEW OF PRIOR CASES.—

"(i) I N GENERAL.—The Corporation shall exercise";
and
(2) by adding at the end of subparagraph (C), as so designated
by paragraph (1) of this section, the following:
"(ii) ADDITIONAL PROVISIONS.—The Corporation, in

modifying, renegotiating, or restructuring the insolvent
institution cases resolved by the Federal Savings and
Loan Insurance Corporation between January 1, 1988,
and the date of enactment of the Financial Institutions
Reform, Recovery and Enforcement Act of 1989, shall
carry out its responsibilities under section 519(a) of the
Department of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1991 (104 Stat. 1386) and shall, consistent
with achieving the greatest overall financial savings to
the Federal Government, pursue all legal means by
which the Corporation can reduce both the direct outlays and the tax benefits associated with such cases,
including, but not limited to, restructuring to eliminate
tax-free interest payments and renegotiating to capture
a larger portion of the tax benefits for the
Corporation.".

TITLE II-^RTC DISPOSITION OF
AFFORDABLE HOUSING
SEC. 201. AMENDMENTS RELATING TO SCOPE OF PROGRAM.

(a) DEFINITION OF CORPORATION.—Section 21A(c)(9)(C) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(9)(C)) is amended by
striking the period at the end and inserting ", except that for
purposes of subsection (c)(2) only, the term means the Resolution
Trust Corporation acting in any capacity.".
(b) SALES TO INSURED DEPOSITORY INSTITUTIONS EXCLUDED FROM

PROGRAM.—Section 21A(c)(10) of the Federal Home Loan Bank Act
(12 U.S.C. 1441a(c)(10)) is amended to read as follows:
"(10) EXEMPTION FOR CERTAIN TRANSACTIONS WITH INSURED
DEPOSITORY INSTITUTIONS.—The provisions of this subsection

shall not apply with respect to any eligible residential property
after the date the Corporation enters into a contract to sell such
property to an insured depository institution (as defined in
section 3 of the Federal Deposit Insurance Act), including any

PUBLIC LAW 102-18—MAR. 23, 1991

105 STAT. 63

sale in connection with a transfer of all or substantially all of
the assets of a closed savings association (including such property) to an insured depository institution.".
SEC. 202. AMENDMENTS RELATING TO SALE PROCEDURES.

Section 21A(c)(6)(A)(i) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(c)(6)(A)(i)) is amended to read as follows:
"(i) SALE PRICE.—The Corporation may sell eligible
single family property to qualifying households, nonprofit organizations, and public agencies without
regard to any minimum purchase price.".
SEC. 203. SCOPE OF APPLICATION.

The amendments made by sections 201 and 202 of this Act to
section 21A of the Federal Home Loan Bank Act shall be effective
only during the period beginning on the date of the enactment of
this Act and ending at the end of fiscal year 1991, and section 21A
shall apply after the end of such period as if such amendments had
not been made.

TITLE III—RTC MANAGEMENT REFORMS
SEC. 301. MANAGEMENT ENHANCEMENT GOALS.
Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a)
is amended by adding at the end the following new subsection:
"(r) MANAGEMENT ENHANCEMENT GOALS.—
"(1) ACTION TO ACHIEVE SPECIFIC GOALS.—The

Corporation,
upon the enactment of this subsection, shall take action to
assure achievement of the management goals specified in this
paragraph, as follows:
"(A) MANAGING CONSERVATORSHIPS.—The Corporation
shall standardize procedures with respect to its (i) auditing
of conservatorships, (ii) ensuring and monitoring of compliance with Corporation policies and procedures by
conservatorship managing agents, and (iii) ensuring and
monitoring of conservatorship managing agent performance. These procedures shall be developed and implemented
not later than September 30,1991.
"(B) PACE OF RESOLUTIONS.—The Corporation shall take
all reasonable and necessary steps to reduce the length of
time institutions remain in conservatorship, with the goal
that no institution shall be in conservatorship for more
than 9 months.
"(C) INFORMATION RESOURCES MANAGEMENT PROGRAM.—

The Corporation shall develop and incorporate within its
strategic plan for information resources management, (i) a
translation of program goals into the communication and
computer hardware and software, and staff needed to
accomplish such goals, (ii) a systems architecture to ensure
that all systems will work together, and (iii) an identification of Corporation information and systems needs at all
operational levels.
"(D)

SECURITIES PORTFOLIO MANAGEMENT SYSTEM.—The

Corporation shall develop within its information architecture framework, a centralized system for the management

12 USC 1441a

105 STAT. 64

PUBLIC LAW 102-18—MAR. 23, 1991
of its portfolio of securities. This system shall be developed
and implemented not later than September 30,1991.
"(E) TRACKING REO ASSETS.—The Corporation shall develop, within its information architecture, an effective
system to track and inventory real-estate-owned assets.
This system shall be developed and implemented not later
than September 30,1991.
"(F) ASSET VALUATION.—The Corporation shall develop a
process for the quarterly valuation or updating of valuations of the assets it holds in its capacity as receiver (or as
a result of such capacity). Such process shall incorporate, to
the extent practical. Corporation disposition experience. In
addition, the necessary information systems shall be developed to track and manage these valuations.
"(G)

Reports.

STANDARDIZATION OF DUE DILIGENCE AND MARKET

FORMAT.—The Corporation shall develop a program for
performing due diligence on one- to four-family mortgages
and for marketing such loans on a pooled basis.
"(H) CONTRACTING,—The Corporation, in order to identify
the need for any changes in its contracting process which
would enhance the independence, integrity, consistency and
effectiveness of that process, shall consult on a regular basis
with other agencies and organizations that have large scale
contracting and procurement systems, and shall review on
a regular basis its organizational structure and relationships. The Corporation shall develop and have in widespread use the following:
"(i) A manual setting forth comprehensive policies
and procedures.
"(ii) A revised and expanded directive that clearly
and definitively describes the roles and responsibilities
of all those involved in the contracting process.
"(iii) A revised and expanded directive that sets forth
in detail the standard procedures to be followed in
evaluating contractor proposals.
"(iv) A set of standardized solicitation and contract
documents for use by all Corporation officers.
"(v) A series of standardized contracting training
modules for use by Corporation personnel and private
contractors.
"(2) The Corporation shall, not later than September 30, 1991,
file with the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Banking, Finance and
Urban Affairs of the House of Representatives, a report on the
progress being made toward full compliance by the agency with
this subsection, as well as a timetable for completing those
items not yet completed.".

PUBLIC LAW 102-18—MAR. 23, 1991

TITLE IV—MINORITY CONTRACTING
REPORT
SEC. 401. MINORITY AND WOMEN BUSINESS POLICY, OUTREACH AND
EQUAL OPPORTUNITY REPORTING REQUIREMENT.

Section 21A(k)(5)(B) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(k)(5)(B)) is amended by adding at the end the following
new clause:
"(xiii) A complete description of all actions taken by
the Corporation pursuant to subsections (a), (b), and (c)
of section 1216 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 with respect to
the employment of and contracting with minorities,
women, and businesses owned or controlled by minorities or women and any other activity of the Corporation
pursuant to the outreach program of the Corporation
for minorities and women. Such description shall
specify the steps taken by the Corporation, in its corporate capacity and its capacity as conservator or receiver, to implement the minority and women outreach
programs required by section 1216(c) of the Financial
Institutions Reform, Recovery, and Enforcement Act of
1989 and shall set forth information and data showing—
"(I) the extent to which and means by which
contract solicitations have been directed to minorities, women, and businesses owned or controlled by
minorities or women by the Corporation and by the
Federal Deposit Insurance Corporation on behalf of
the Corporation;
"(II) the extent to which prime contracts and
subcontracts have been awarded to minorities,
women, and businesses owned or controlled by
minorities or women, including data with respect
to the number of such contracts, the dollar
amounts thereof, and the percentage of Corporation contracting activity represented thereby
(including contracting activity by the Federal Deposit Insurance Corporation on behalf of the Corporation);
"(III) contracting and outreach activity with respect to joint ventures and other business arrangements in which minorities, women, or businesses
owned or controlled by minorities or women have a
participation or interest; and
"(IV) the extent to which the Corporation's
minority and women contracting outreach programs have been successful in maximizing

105 STAT. 65

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PUBLIC LAW 102-18—MAR. 23, 1991
opportunities through the outreach policies established by the Corporation for participation of
minorities, women, and businesses owned or controlled by minorities or women in the Corporation's contracting activities.".
Approved March 23, 1991.

LEGISLATIVE HISTORY—S. 419 (H.R. 1315):
HOUSE REPORTS: No. 102-27 (Comm. of Conference).
SENATE REPORTS: No. 102-13 (Comm. on Banking, Housing, and Urban Affairs).
CONGRESSIONAL RECORD, Vol. 137 (1991):
Feb. 26, 27, Mar. 5-7, considered and passed Senate.
Mar. 12, H.R. 1315 considered and rejected in House.
Mar. 13, S. 419 considered and passed House, amended.
Mar. 19, Senate agreed to conference report.
Mar. 21, House agreed to conference report.