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PUBLIC LAW 102-233—DEC. 12, 1991
Public Law 102-238
102d Congress

105 STAT. 1761

An Act

To provide funding for the resolution of failed savings associations and working
capital for the Resolution Trust Corporation, to restructure the Oversight Board
and the Resolution Trust Corporation, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1, SHORT TITLE.

This Act may be cited as the "Resolution Trust Corporation
Refinancing, Restructuring, and Improvement Act of 1991".

TITLE I—RESOLUTION TRUST
CORPORATION REFINANCING
SEC. 101. THRIFT RESOLUTION FUNDING PROVISIONS.

Section 21A(i) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(i)) is amended by adding at the end the following new paragraph:
"(3) ADDITIONAL INTERIM FUNDING.—In addition to amounts

provided under paragraph (2), the Secretary of the Treasury
shall provide to the Corporation such sums as may be necessary
not to exceed $25 billion to carry out the purposes of this section
until April 1, 1992.".
SEC. 102. APPOINTMENT BY DIRECTOR OF THE OFFICE OF THRIFT
SUPERVISION.

Section 11(c)(6)(B) of the Federal Deposit Insurance Act (12 U.S.C.
1821(c)(6)(B)) is amended to read as follows:
"(B) RECEIVER.—Whenever the Director of the Office of
Thrift Supervision appoints a receiver under the provisions
of section 5(d)(2)(C) of the Home Owners' Loan Act for the
purpose of liquidation or winding up any savings association s 3.ifi3.ii's^^
"(i) before October 1, 1993, the Resolution Trust Corporation shall be appointed;
"(ii) after September 30, 1993, the Resolution Trust
Corporation shall be appointed if the Resolution Trust
Corporation had been placed in control of the depository institution at any time on or before such date; and
"(iii) after September 30, 1993, the Corporation shall
be appointed unless the Resolution Trust Corporation
is required to be appointed under clause (ii).".
SEC. 103. EXTENSION OF RESOLUTION TRUST CORPORATION DUTY.

(a) IN GENERAL.—Section 21A(b)(3)(A)(ii) of the Federal Home
Loan Bank Act (12 U.S.C. 1441a(b)(3)(A)(ii)(II)) is amended to read as
follows:

Dec. 12, 1991
[H.R. 3435]

Resolution Trust
Corporation
Refinancing,
Restructuring,
and
Improvement
Act of 1991.
Banks and
banking.
12 u s e 1421
note.

105 STAT. 1762

PUBLIC LAW 102-233—DEC. 12, 1991
"(ii) for which a conservator or receiver is appointed
after December 31, 1988, and before October 1, 1993
(including any institution described in paragraph (6)).".
(b) CONTINUATION OF RTC RECEIVERSHIP OR CONSERVATORSHIP.—

Section 21A(b)(6) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(b)(6)) is amended to read as follows:
"(6)

CONTINUATION

OF

RTC

RECEIVERSHIP

OR

CONSER-

VATORSHIP.—If the Corporation is appointed £is conservator or
receiver for any insured depository institution described
in paragraph (3)(A) before October 1, 1993, and a conservator or
receiver is appointed for such institution on or after such date,
the Corporation may be appointed as conservator or receiver for
such institution on or after October 1,1993.".
SEC. 104. TERMINATION OF FICO BORROWING AUTHORITY.

Section 21(e)(2) of the Federal Home Loan Bank Act (12 U.S.C.
1441(e)(2)) is amended to read as follows:
"(2) TERMINATION OF BORROWING AUTHORITY.—No obligation
of the Financing Corporation shall be issued after the date of
enactment of the Resolution Trust Corporation Thrift Depositor
Protection Refinance Act of 1991.".
SEC. 105. REQUIREMENT TO PAY RTC WORKING CAPITAL DEBT BEFORE
TRANSFERRING FUNDS TO REFCORP.
Section 21A(o)(2) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(o)(2)) is amended by inserting after "Thereafter" the following: ", if there are no liabilities of the Corporation outstanding,".
SEC. 106. RTC REPORTS ON ASSET SALES, LOANS SECURED BY ASSETS,
BUDGETS, AND OTHER MATTERS.

(a) QUARTERLY REPORTS.—Section 21A(k)(7) of the Federal Home
Loan Bank Act (12 U.S.C. 1441a(k)(7)) is amended to read as follows:
"(7) QUARTERLY REPORTS.—Not later than May 31, August 31,
November 30, and the last day of February of each year, the
Corporation shall submit a report to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of the
Senate containing the following information for the quarter
ending on the last day of the month ending before the month in
which such report is required to be submitted:
"(A) ASSET SALES.—The report shall contain the following
information with respect to assets of institutions described
in subsection (b)(3)(A) which were disposed of by the Corporation during the quarter covered by the report:
"(i) The total amount of the actual sales of assets
during the quarter.
"(ii) The value of the assets as determined on the
basis of the amount at which each such asset was
accounted for on the books of the institution.
"(iii) The fair market value of the assets as estimated
by the Corporation for purposes of securing amounts
borrowed from the Federal Financing Bank by the
Corporation.
"(iv) The net recovery on asset sales during the
quarter.
"(v) A subtotal of the value of the assets disposed of
during the quarter in each of the following categories:

PUBLIC LAW 102-233—DEC. 12, 1991

105 STAT. 1763

"(I) Cash and securities.
"(II) Mortgage loans for 1- to 4-family dwellings.
"(Ill) Construction and land loans.
"(IV) Other mortgage loans.
"(V) Consumer loans.
"(VI) Commercial loans.
"(VII) Real estate owned assets.
"(VIII) Other assets.
"(B) AUCTION SALES.—The report shall contain information regarding auction sales of RTC assets, including the
following information:
"(i) The date and location of each auction sale during
the quarter.
"(ii) The total value of the sales of assets sold during
an auction during the quarter.
"(iii) The total value of assets sold at each auction, as
determined on the basis of the amount at which each
such asset was accounted for on the books of the
institution.
"(iv) The total fair market value of assets sold at each
auction, as estimated by the Corporation.
"(v) The total actual selling price of assets sold
during each auction held during the quarter.
"(vi) The net recovery or loss on assets sold during an
auction during the quarter, by category listed in
subclauses (I) through (VII) of clause (vii).
"(vii) A subtotal of the value of the assets sold during
an auction during the quarter in each of the following
categories:
"(I) Cash and securities.
"(II) Mortgage loans for 1- to 4-family dwellings.
"(Ill) Construction and land loans.
"(IV) Other mortgage loans.
"(V) Consumer loans.
"(VI) Commercial loans.
"(VII) Real estate owned assets.
"(VIII) Other assets.
"(C) FEDERAL FINANCING BANK LOAN STATUS.—The report
shall contain the following information with respect to
loans from the Federal Financing Bank to the Corporation:
"(i) The total amount of loans outstanding at the
beginning of the quarter.
"(ii) The total amount of loans originated during the
quarter.
"(iii) The total amount of loans repaid during the
quarter.
"(iv) The total amount of loans outstanding at the
end of the quarter.
"(D) SELLER FINANCING.—The report shall contain
information regarding the Corporation's use of seller
financing to encourage the sales of assets during the quarter, including the following:
"(i) A total of the amount of funds used for seller
financing purposes during the quarter.
"(ii) The number of applications received by the Corporation which requested seller financing.

105 STAT. 1764

PUBLIC LAW 102-233—DEC. 12, 1991
"(iii) A breakdown of the type of assets sold, according to the categories Usted in subclauses (I) through
(VIII) of subparagraph (B)(vii).
"(iv) Projections of the total amount of seller financing which will be needed during the succeeding 2 quarters.".
(b) SEMIANNUAL REPORT ON NATIONAL AND REGIONAL ADVISORY

BOARDS.—Section 21A(k)(4)(B) of the Federal Home Loan Bank Act
(12 U.S.C. 1441a(k)(4)(B)) is amended—
(1) by striking "and" at the end of clause (iii);
(2) by striking the period at the end of clause (iv) and inserting "; and"; and
(3) by inserting after clause (iv) the following new clause:
"(v) descriptions of the operations and activities of
the national and regional advisory boards established
under subsection (d) and financial statements detailing
the expenses of such boards.".
(c) RTC AND OVERSIGHT BOARD BUDGET REPORTS.—Section 21A(k)
of the Federal Home Loan Bank Act (12 U.S.C. 1441a(k)) is amended
by adding at the end the following new paragraph:
"(10) BUDGET REPORTS.—

*

"(A) I N GENERAL.—Before the end of each calendar quarter, the Oversight Board and the Corporation shall submit a
report to the Committee on Banking, Finance and Urban
Affairs of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the Senate
containing the complete annual budget, as approved by the
Oversight Board.
"(B)

ACTIVITIES RELATING TO PHASING OUT RTC OPER-

ATIONS.—Beginning with the report due in the 1st quarter
of 1994, the report shall include information on the Corporation's activities to phase down its operations and
reduce the number of employees and the amount of office
space and other overhead as the Corporation completes its
duties under this section and approaches termination.".
(d) EMPLOYEE REPORTS.—Section 21A(k) of the Federal Home Loan
Bank Act (12 U.S.C. 1441a(k)) is amended by inserting after paragraph (10) (as added by subsection (c) of this section) the following
new paragraph:
"(11) EMPLOYEE REPORTS.—The Corporation shall submit semiannual reports to the Committee on Banking, Finance and
Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate
containing the following information:
"(A) The total number of employees of the Oversight
Board and the total number of individuals performing services directly on behalf of the Corporation.
"(B) The total number of individuals performing services
for the Corporation as an employee of the Federal Deposit
;<
Insurance Corporation or any other agency, including the
Government Accounting Office and the number from each
such agency.
"(C) The total number of individuals employed in each job
classification and employment status, including employment on a temporary basis or for an agreed upon period of
time.".
(e) SUPPLEMENTAL UNAUDITED FINANCIAL STATEMENTS.—

PUBLIC LAW 102-233—DEC. 12, 1991

105 STAT. 1765

(1) INTERIM FINANCIAL STATEMENTS.—Section 21A(k)(5) of the

Federal Home Loan Bank Act (12 U.S.C. 1441a(k)(5)) is amended
by inserting at the end the following new subparagraph:
"(C) SUPPLEMENTAL UNAUDITED FINANCIAL STATEMENTS.—

In addition to the annual report required under paragraph
(4), the Oversight Board and the Corporation shall submit
to the Congress, not later than September 30 of each calendar year, an unaudited financial statement for the 6month period ending on June 30 of such year.".
(2) EFFECTIVE DATE.—The amendment made by this subsection 12 USC 1441a
shall apply with respect to annual reports required to be "°**submitted after the end of the 90-day period beginning on the
date of the enactment of this Act.

TITLE II—RESTRUCTURING AND IMPROVEMENT OF THE RESOLUTION
TRUST CORPORATION
SEC. 201. STAFF OF THE RESOLUTION TRUST CORPORATION; CHIEF
EXECUTIVE OFFICER.

Section 21A(b)(9) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(b)(9)) is amended—
(1) in subparagraph (B), by amending clause (i) to read as
follows:
"(i) FDIC.—The Corporation shall use employees (selected by the Corporation) of the Federal Deposit Insurance Corporation and the Federal Deposit Insurance
Corporation shall provide such personnel to the Corporation for its use. Notwithstanding the foregoing, the
Federal Deposit Insurance Corporation need not provide to the Corporation any employee of the Federal
Deposit Insurance Corporation who was employed by
the Federal Deposit Insurance Corporation on the date
of enactment of the Resolution Trust Corporation
Thrift Depositor Protection Refinance Act of 1991 and
who had not theretofore been provided to the Corporation by the Federal Deposit Insurance Corporation. In
addition to persons otherwise employed by the Federal
Deposit Insurance Corporation, the Federal Deposit
Insurance Corporation shall employ, and shall provide
to the Corporation, such persons as the Corporation
may request from time to time. Federal Deposit Insurance Corporation employees provided to the Corporation shall be subject to the direction and control of the
Corporation and any of them may be returned to the
Federal Deposit Insurance Corporation at any time by
the Corporation in the discretion of the Corporation.
The Corporation shall reimburse the Federal Deposit
Insurance Corporation for the actual costs incurred in
providing such employees. Any permanent employee of
the Federal Deposit Insurance Corporation who was
performing services on behalf of the Corporation immediately prior to the date of enactment of the Resolution
Trust Corporation Thrift Depositor Protection Re-

105 STAT. 1766

*

Establishment.
^*'*^^^®"*-

PUBLIC LAW 102-233—DEC. 12, 1991
finance Act of 1991 shall continue to be provided to the
Corporation after that date unless the Corporation
determines the services of any such employee to be
unnecessary, in which case such employee shall be
returned to a similar position performing services on
behalf of the Federal Deposit Insurance Corporation. In
any ensuing reduction-in-force or reorganization within
the Federal Deposit Insurance Corporation, any such
employee shall compete with the same rights as any
other Federal Deposit Insurance Corporation employee.
The Corporation may use administrative services of the
Federal Deposit Insurance Corporation and, if it does
so, shall reimburse the Federal Deposit Insurance Corporation for the actual costs of providing such services.
Any employee or officer in the executive service of the
,
Federal Deposit Insurance Corporation who was
performing services on behalf of the Corporation at
level E-4 or above immediately prior to the date of
enactment of the Resolution Trust Corporation Thrift
Depositor Protection Refinance Act of 1991 shall continue to be assigned to perform substantially similar
services on behalf of the Corporation after such date
unless the Corporation—
"(I) determines that the services of any such
employees are unnecessary, or
"(11) reassigns or substantially alters the responsibilities or duties of any such employees.
If an action described in subclause (I) or (II) occurs, any
such employee with at least 20 years of service, as
defined by chapter 83 or chapter 84 of title 5, United
States Code, shall be entitled to an annuity under
section 8336(d) or section 8414(b)(1) of title 5, United
States Code, notwithstanding the fact that such employee has not attained the age of 50 years or has
declined another position with the Federal Deposit
Insurance Corporation, and the annuity of such employee shall not be reduced because of the age of such
employee. The Federal Deposit Insurance Corporation
shall reimburse the appropriate retirement insurance
fund for any increased costs it incurs as a result of the
annuities authorized pursuant to this clause."; and
(2) by adding at the end thereof the following new subparagraph:
"(C) CHIEF EXECUTIVE OFFICER.—There is established the
office of chief executive officer of the Corporation. The chief
executive officer of the Corporation shall be appointed by
the President, by and with the advice and consent of the
Senate, and shall serve at the pleasure of the President.".

SEC. 202. TECHNICAL AND CONFORMING AMENDMENTS.

(a) TREASURY PAYMENTS TO FUND.—Section ll(aX6XE) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(6XE)) is amended—
(1) by striking "1992" and inserting "1993"; and
(2) by striking "1999" and inserting "2000".
(b) AUTHORIZATION OF APPROPRIATIONS.—Section ll(aX6)(J) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(aX6XJ)) is amended—

PUBLIC LAW 102-233—DEC. 12, 1991

105 STAT. 1767

(1) by striking "1991" each place it appears and inserting
"1992"(2) by striking "1992" and inserting "1993"; and
(3) by striking "1999" and inserting "2000".
(c) FSLIC RESOLUTION FUND.—Section llA(a)(2)(B) of the Federal
Deposit Insurance Act (12 U.S.C. 1821a(a)(2)(B)) is amended by striking "1991" and inserting "1992".
(d) SOURCE OF FUNDS.—Section llA(b)(4) of the Federal Deposit
Insurance Act (12 U.S.C. 1821a(b)(4)) is amended by striking "1991"
and inserting "1992".

TITLE III—REFORM OF THE RTC
SEC. 301. SHORT TITLE.

This title may be cited as the "Resolution Trust Corporation
Thrift Depositor Protection Reform Act of 1991".

Resolution Trust
Corporation
Thrift Depositor
Protection
Reform Act of
1991.
12 u s e 1421
note.

SEC. 302. THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD; AMENDMENTS TO REFERENCES IN THE FEDERAL HOME LOAN BANK
ACT.

(a) REDESIGNATION.—The Oversight Board, as established by sec- 12 u s e 1441a
tion 21A(a)(l) of the Federal Home Loan Bank Act (12 U.S.C. note.
1441a(a)(l)), is redesignated the Thrift Depositor Protection Oversight Board.
(b) IN GENERAL.—Except as provided in subsection (c), the Federal
Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amended by striking
"Oversight Board" each place it appears and inserting "Thrift
Depositor Protection Oversight Board".
(c) EXCEPTION.—Subsection (b) does not apply to section 21A(k)(7)
of the Federal Home Loan Bank Act (12 U.S.C. 1441a(k)(7)).
SEC. 303. ACCOUNTABILITY OF THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD.

Section 21A(a)(2) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(a)(2)) is amended—
(1) by striking "be accountable for" and inserting "monitor
the operations of; and
(2) after "(hereinafter referred to in this section as the 'Corporation')," by inserting "and shall be accountable for the duties
assigned to the Thrift Depositor Protection Oversight Board by
this Act.".
SEC. 304. MEMBERSHIP OF THRIFT DEPOSITOR PROTECTION OVERSIGHT
BOARD.

Section 21A(a)(3) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(a)(3)) is amended—
(1) in subparagraph (A)—
(A) by striking "5 members" and inserting "7 members";
(B) by striking clause (iii);
(C) by redesignating clause (iv) as clause (vi); and
(D) by inserting after clause (ii) the following:
"(iii) the Director of the Office of Thrift Supervision;
"(iv) the Chairperson of the Board of Directors of the
Federal Deposit Insurance Corporation;
' '
"(v) the chief executive officer of the Corporation;
and"; and

105 STAT. 1768

PUBLIC LAW 102-233—DEC. 12, 1991
(2) in subparagraph (E) by striking "3 members" and inserting
"4 members".

SEC. 305. DUTIES AND AUTHORITIES OF THRIFT DEPOSITOR PROTECTION
OVERSIGHT BOARD.

Section 21A(a)(6) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(a)(6)) is amended—
(1) by amending subparagraph (A) to read as follows:
"(A) To review overall strategies, policies, and goals
established by the Corporation for its activities, which shall
include such items as the Thrift Depositor Protection Oversight Board deems likely to have a material effect upon the
financial condition of the Corporation, the results of its
operations, or its cash flows, and such items as the Thrift
Depositor Protection Oversight Board deems to involve
substantial issues of public policy. After consultation with
the Corporation, the Thrift Depositor Protection Oversight
Board may require the modification of any such overall
strategies, policies, and goals and their implementation.
Overall strategies, policies, and goals shall include such
items as—
"(i) overall strategies, policies, and goals for case
resolutions, the management and disposition of assets,
the use of private contractors;
"(ii) the use of notes, guarantees, or other obligations
by the Corporation;
"(iii) financial goals, plans, and budgets; and
"(iv) restructuring agreements described in subsection (bXlOXB).";
(2) in subparagraph (B), by inserting "financial plans, budgets,
and" after "implementation"; and
(3) by amending subparagraph (C) to read as follows:
"(C) To review all rules, regulations, standards, principles, procedures, guidelines, and statements that may be
adopted or announced by the Corporation. The provisions of
this subparagraph shall not apply to internal administrative policies and procedures (including such matters as
personnel practices, divisions and organization of staffing,
delegations of authority, and practices respecting day-today administration of the Corporation's affairs) and determinations or actions described in paragraph (8) of this
subsection:
Provided, That if the Thrift Depositor Protection Oversight
Board requires the modification of any overall strategies, policies and goals, it shall, within 30 days of the date at which it
directs the RTC make such modification, provide the House and
Senate Banking Committees with an explanation that identifies
which ground justifies the review and giving reasons why the
modification is necessary to satisfy these grounds.".
SEC. 306. LIMITATION OF AUTHORITY OF THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD.

Section 21A(a)(8)(A) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(a)(8)(A)) is amended—
(1) by striking "(i) involving" and inserting "involving (i)";
and

PUBLIC LAW 102-233—DEC. 12, 1991

105 STAT. 1769

(2) by striking "provide general policies and procedures" and
inserting "review overall strategies, policies, and goals established by the Corporation".
SEC. 307. OPEN MEETINGS.

Section 21A(c)(10) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)(10)) is amended—
(1) by striking "4" and inserting "6"; and
(2) by adding a sentence at the end, to read as follows: "The
Thrift Depositor Protection Oversight Board shall maintain a
transcript of its open meetings.".
SEC. 308. STRATEGIC PLAN.

Section 21A(a)(14)(A) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(a)(14)(A)) is amended to read as follows:
"(A) IN GENERAL.—The chief executive officer of the Corporation is authorized to implement the strategic plan for
conducting the Corporation's functions and activities
submitted by the former Oversight Board to the Congress,
dated December 31,1989.".
SEC. 309. MANAGEMENT AND DUTIES OF THE RESOLUTION TRUST CORPORATION.

(a) MANAGEMENT.—Section 21A(b)(l)(C) of the Federal Home Loan
Bank Act (12 U.S.C. 1441a(b)(l)(C)) is amended to read as follows:
"(C)

MANAGEMENT BY CHIEF EXECUTIVE OFFICER.—The

Corporation shall be managed by or under the direction of
itjS C h l G l GXGCUtlVG o f i i c G r

(b) DUTIES.—Section 21A(b)(3)(B) of the Federal Home Loan Bank
Act (12 U.S.C. 1441a(b)(3)(B)) is amended to read as follows:
"(B) To develop and establish overall strategies, policies,
and goals for the Corporation, subject to review by the
Thrift Depositor Protection Oversight Board pursuant to
subsection (a)(6)(A) of this section.".
(c) REAL AND PERSONAL PROPERTY.—Section 21A(b)(10)(E) is
amended by adding after "real and personal property," the following: "using any legally available private sector methods including
without limitation, securitization of debt or equity, limited partnerships, mortgage investment conduits, and real estate investment
trusts,".
SEC. 310. ABOLITION OF BOARD OF DIRECTORS OF THE RESOLUTION
TRUST CORPORATION.

Section 21A(b) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(b)) is amended by striking paragraph (8) and redesignating
paragraphs (9), (10), (11), (12), (13), and (14) as paragraphs (8), (9), (10),
(11), (12), and (13), respectively.
SEC. 311. POWERS OF CHIEF EXECUTIVE OFFICER OF THE RESOLUTION
TRUST CORPORATION; CONSULTATION.

Section 21A(b)(8) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(b)(9)), as redesignated, is amended—
(1) in subparagraph (A), by striking "Unless the Oversight
Board exercises its authority under subsection (m) of this section" and inserting "Except for its chief executive officer"; and
(2) by adding, after subparagraph (C), the following new
subparagraph:

105 STAT. 1770

PUBLIC LAW 102-233—DEC. 12, 1991
"(D) POWERS OF THE CHIEF EXECUTIVE OFFICER.—The chief
executive officer may exercise all of the powers of the
Corporation and act for and on behalf of the Corporation,
and may delegate such authority, as deemed appropriate by
the chief executive officer, including the power to
subdelegate authority, to persons designated by the chief
executive officer who are employees of the Federal Deposit
Insurance Corporation utilized by the Corporation or who
provide services for the Corporation.".

SEC. 312. NATIONAL HOUSING ADVISORY BOARD.

Section 21A(d) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(d)) is amended—
(1) by redesignating paragraphs (2) through (4) as paragraphs
(3) through (5), respectively;
(2) by inserting after paragraph (1) the following new paragraph:
"(2) NATIONAL HOUSING ADVISORY BOARD.—

"(A) ESTABLISHMENT.—The Thrift Depositor Protection
Oversight Board shall establish a National Housing
Advisory Board to advise the Thrift Depositor Protection
Oversight Board on policies and programs related to the
provision of affordable housing.
"(B) MEMBERSHIP.—The National Housing Advisory
Board shall consist of—
"(i) the Secretary of Housing and Urban Development; and
"(ii) the chairpersons of any regional advisory boards
established pursuant to paragraph (3).
"(C) MEETINGS.—The National Housing Advisory Board
shall meet 4 times a year, or more frequently if requested
by the Thrift Depositor Protection Oversight Board.".
SEC. 313. RIGHTS OF EMPLOYEES UPON SUNSET.

12 use 1437
note.

The Financial Institutions Reform, Recovery, and Enforcement
Act of 1989 is amended—
(1) in section 404(9)—
(A) by striking "of such Corporation shall be transferred
to" and inserting "of the Federal Deposit Insurance Corporation assigned to the Resolution Trust Corporation shall
be reassigned to a position within"; and
(B) by striking "of this subsection" and inserting "of this
section"; and
(2) in section 404(2)—
(A) by inserting "grade," after "status, tenure,"; and
(B) by inserting "or, if the employee is a temporary
employee, separated in accordance with the terms of the
appointment" after "cause".
SEC. 314. TECHNICAL AND CONFORMING AMENDMENTS TO THE FEDERAL
HOME LOAN BANK ACT.

Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a)
is amended—
(1) in subsection (a)—
(A) in paragraph (7), by striking "(b)(12)" and inserting
"(b)(ll)";
(B) in paragraph (8)—

PUBLIC LAW 102-233—DEC. 12, 1991

105 STAT. 1771

(i) by striking "(A)"; and
(ii) by striking subparagraph (B); and
(C) in paragraph (10)—
(i) by striking "establish and review the general
policy o f and inserting "review overall strategies, policies, and goals established by"; and
(ii) by striking "standards, policies, and procedures
necessary to carry out" and inserting "matters as pertain to";
(2) in subsection (b)—
(A) in parEigraph (3), by striking "and through the Federal Deposit Insurance Corporation (or any replacement
authorized pursuant to subsection (m))";
(B) in paragraph (9) as redesignated—
(i) by striking subparagraph (B) and redesignating
subparagraphs (C) through (N) £is subparagraphs (B)
through (M), respectively;
(ii) in subparagraph (M), as redesignated, by striking
"on behalf of the Federal Deposit Insurance Corporation, acting as exclusive manager"; and
(C) in pareigraph (11), £is redesignated—
(i) by amending subparagraph (A) to read as follows:
"(A) STRATEGIES, POLICIES, AND GOALS.—The Corporation
shall adopt the rules, regulations, stsindards, procedures,
guidelines, and statements necessary to implement the
strategic plan submitted by the former Oversight Board to
Congress dated December 31, 1989. The Corporation may
establish overall strategies, policies, and goals for its activities and may issue such rules, regulations, standards, principles, procedures, guidelines, and statements as the
Corporation considers necessary or appropriate to carry out
its duties.";
(ii) by amending subparagraph (B) to read as follows:
"(B) REVIEW, ETC.—Such overall strategies, policies, and
goals, and such rules, regulations, standards, principles,
procedures, guidelines, and statements—
"(i) shall be provided by the Corporation to the Thrift
Depositor Protection Oversight Board promptly or
prior to publication or announcement to the extent
practicable;
"(ii) shall be subject to the review of the Thrift
Depositor Protection Oversight Board as provided in
subsection (a)(6)(A) (with respect to overall strategies,
policies, and goals); and
"(iii) shall be promulgated pursuant to subchapter II
of chapter 5, of title 5 United States Code."; and
(iii) in subparagraphs (D) and (E), by striking "Board
of Directors' each place it appears and inserting "chief
executive officer";
(3) by striking subsections (m) and (n) and redesignating
subsections (o), (p), (q), and (r) as subsections (m), (n), (o), and (p)
respectively;
(4) in subsection (n), £is redesignated, in paragraph (5), by
striking "Directors, officers," and inserting "Officers"; and
(5) in subsection (o), as redesignated—
(A) in paragraph (1) by striking "director,"; and
(B) in paragraph (2)—

105 STAT. 1772

PUBLIC LAW 102-233—DEC. 12, 1991
(i) by striking ".—";
(ii) by striking subparagraph (A);
(iii) by striking the designation "(B)"; and
(iv) by striking "on behalf of the Federal Deposit
Insurance Corporation, acting as exclusive manager".

SEC. 315. OTHER TECHNICAL AND CONFORMING AMENDMENTS.

(a) INSPECTOR GENERAL ACT.—Section 11(1) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking "the Oversight Board and the Board of Directors of the Resolution Trust
Corporation" and inserting "; the Chairperson of the Thrift Depositor Protection Oversight Board and the chief executive officer of the
Resolution Trust Corporation".
(b) THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD.—Section

5313 of title 5, United States Code, is amended by striking "Oversight Board, Resolution Trust Corporation" and inserting "Thrift
Depositor Protection Oversight Board".
(c) CHIEF EXECUTIVE OFFICER.—Section 5314 of title 5, United
States Code, is amended by adding at the end the following: "chief
executive officer. Resolution Trust Corporation.".
(d) RESOLUTION TRUST CORPORATION FUNDING ACT OF 1991.—Section 102(c)(1) of the Resolution Trust Corporation Funding Act of
1991 (12 U.S.C. 1441a note) is amended by striking "Chairman of the
Resolution Trust Corporation" and inserting "chief executive officer
of the Resolution Trust Corporation".
SEC. 316. REMOVAL AND REMAND.

Section 21A(1)(3) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(l)(3)) is amended to read as follows:
"(3) R E M O V A L AND REMAND.—

"(A) IN GENERAL.—The Corporation, in any capacity and
without bond or security, may remove any action, suit, or
proceeding from a State court to the United States district
court with jurisdiction over the place where the action, suit,
or proceeding is pending, to the United States district court
for the District of Columbia, or to the United States district
court with jurisdiction over the principal place of business
of any institution for which the Corporation has been appointed conservator or receiver if the action, suit, or
proceeding is brought against the institution or the Corporation as conservator or receiver of such institution. The
removal of any such suit or proceeding shall be instituted—
"(i) not later than 90 days after the date the Corporation is substituted as a party, or
"(ii) not later than 30 days after service on the
Corporation, if the Corporation is named as a party in
any capacity and if such suit is filed after August 9,
1989.
"(B) SUBSTITUTION.—The Corporation shall be deemed
substituted in any action, suit, or proceeding for a party
upon the filing of a copy of the order appointing the Corporation as conservator or receiver for that party of the
filing of such other pleading informing the court that the
Corporation has been appointed conservator or receiver for
such party.
"(C) APPEAL.—The Corporation may appeal anv order of
remand entered by a United States district court.'.

PUBLIC LAW 102-233—DEC. 12, 1991

105 STAT. 1773

SEC. 317. SAVINGS PROVISIONS.

12 USC 1441a

(a) SAVINGS PROVISIONS.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS NOT AFFECTED.—

This title shall not affect the validity of any right, duty, or
obligation of the United States, the Corporation, the Oversight
Board, or any other person, that—
(A) arises under or pursuant to the Federal Home Loan
Bank Act, or any other provision of law applicable with
respect to the Oversight Board; and
(B) existed on the day before the effective date of the
Resolution Trust Corporation Thrift Depositor Protection
Reform Act of 1991.
(2) CONTINUATION OF SUITS.—No action or other proceeding
commenced by or against the Oversight Board, with respect to
any function of the Oversight Board, shall abate by reason of
the enactment of this Act, except that the Thrift Depositor
Protection Oversight Board shall continue as party to any such
action or proceeding, notwithstanding the change of name of
the Oversight Board.
(b) CONTINUATION OF ORDERS, RESOLUTIONS, DETERMINATIONS, AND

REGULATIONS.—All orders, resolutions, determinations, and regulations that—
(1) have been issued, made, prescribed, or allowed to become
effective by the Oversight Board (including orders, resolutions,
determinations, and regulations which relate to the conduct of
conservatorships and receiverships), or by a court of competent
jurisdiction, in the performance of functions under the Federal
Home Loan Bank Act; and
(2) are in effect on the effective date of the Resolution Trust
Corporation Thrift Depositor Protection Reform Act of 1991,
shall continue in effect according to the terms of such orders,
resolutions, determinations, and regulations, and shall be enforceable by or against the Thrift Depositor Protection Oversight Board,
or the Resolution Trust Corporation, by any court of competent
jurisdiction, or by operation of law, notwithstanding the change of
name of the Oversight Board.
SEC. 318. EFFECTIVE DATE OF THIS TITLE.

12 USC 1441

The effective date of the Resolution Trust Corporation Thrift ^^
Depositor Protection Reform Act of 1991 shall be February 1, 1992.

TITLE IV—MINORITIES, WOMEN, AND
SMALL BUSINESS PROVISIONS
SEC. 401. INCREASED PARTICIPATION OF MINORITIES AND WOMEN IN
CONTRACTING PROCESS.

Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a)
is amended by inserting after subsection (s) (as added by section 227
of this Act) the following new subsection:
"(t) REVIEW AND EVALUATION PROCEDURE FOR CONTRACTS.—

"(1) IN GENERAL.—In the review and evaluation of proposals,
the Corporation shall provide additional incentives to minorityor women-owned businesses by awarding any such business an
additional 10 percent of the total technical points and an additional 5 percent of the total cost preference points achievable in

105 STAT. 1774

PUBLIC LAW 102-233—DEC. 12, 1991
the technical and cost rating process applicable with respect to
such proposals.
"(2) CERTAIN JOINT VENTURES INCLUDED.—Paragraph (1) shall
apply to any proposal submitted by a joint venture in which a
minority- or woman-owned business has participation of not less
than 25 percent.
"(3) AUTHORITY TO ADJUST TECHNICAL AND COST PREFERENCE

POINTS.—The Corporation may adjust the technical and cost
preference points applicable in evaluating proposals to the
extent necessary to ensure the maximum participation level
possible for minority- or women-owned businesses.
"(4) DEFINITIONS.—For purposes of this subsection.—
"(A) MINORITY-OWNED BUSINESS.—The term 'minorityowned business' means a business—
"(i) more than 50 percent of the ownership or control
of which is held by 1 or more minority individuals; and
"(ii) more than 50 percent of the net profit or loss of
which accrues to 1 or more minority individuals.
"(B) WOMEN-OWNED BUSINESS.—The term 'women's business' means a business—
"(i) more than 50 percent of the ownership or control
of which is held by 1 or more women;
"(ii) more than 50 percent of the net profit or loss of
which accrues to 1 or more women; and
"(iii) a significant percentage of senior management
positions of which are held by women.".
SEC. 402. OPERATION OF BRANCH FACILITIES BY MINORITIES AND
WOMEN.
(a) ACQUISITION OF BRANCH FACILITIES FROM THE RTC.—Section

21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) is
amended by inserting after subsection (t) (as added by section 301 of
this title) the following new subsection:
\
\

"(u) ACQUISITION OF BRANCH FACILITIES IN MINORITY NEIGHBORHOODS.—

\
Y
V
>

"(1) I N GENERAL.—In the case of any savings association for
which the Corporation has been appointed conservator or receiver, the Corporation may make available any branch of such
association which is located in any predominantly minority
neighborhood to any minority depository institution or women's
depository institution on the following terms:
"(A) The branch may be made available on a rent-free
lease basis for not less than 5 years.
"(B) Of all expenses incurred in maintaining the operation of the facilities in which such branch is located, the
institution shall be liable only for the payment of applicable
real property taxes, real property insurance, and utilities.
"(C) The lease may provide an option to purchase the
branch during the term of the lease.
"(2) DEFINITIONS.—For purposes of this subsection—
"(A) MINORITY DEPOSITORY INSTITUTION.—The term
'minority institution' means a depository institution (as
defined in section 3(c) of the Federal Deposit Insurance
Act)—
"(i) more than 50 percent of the ownership or control
of which is held by 1 or more minority individuals; and

PUBLIC LAW 102-233—DEC. 12, 1991

105 STAT. 1775

"(ii) more than 50 percent of the net profit or loss of
which accrues to 1 or more minority individuals.
"(B) WOMEN'S DEPOSITORY INSTITUTION.—The term
'women's depository institution' means a depository institution (EIS defined in section 3(c) of the Federal Deposit Insurance Act)—
"(i) more than 50 percent of the ownership or control
of which is held by 1 or more women;
"(ii) more than 50 percent of the net profit or loss of
which accrues to 1 or more women; and
"(iii) a significant percentage of senior management
positions of which are held by women.
"(C) MINORITY.—The term 'minority' has the meaning
given to such term by section 1204(c)(3) of the Financial
Institutions Reform, Recovery and Enforcement Act of
1989.".
(b) COMMUNITY REINVESTMENT CREDIT FOR DEPOSITORY INSTITUTIONS PROVIDING ASSISTANCE.—The Community Reinvestment Act

of 1977 (12 U.S.C. 2901 et seq.) is amended by adding at the end the
following new section:
"SEC. 808. OPERATION OF BRANCH FACILITIES BY MINORITIES AND
WOMEN.

"(a) IN GENERAL.—In the case of any depository institution which
donates, sells on favorable terms (as determined by the appropriate
Federal financial supervisory agency), or makes available on a rentfree basis any branch of such institution which is located in any
predominantly minority neighborhood to any minority depository
institution or women's depository institution, the amount of the
contribution or the amount of the loss incurred in connection with
such activity shall be treated as meeting the credit needs of the
institution's community for purposes of this title.
"(b) DEFINITIONS.—For purposes of this section—
"(1) MINORITY DEPOSITORY INSTITUTION.—The term 'minority
institution' means a depository institution (as defined in section
3(c) of the Federal Deposit Insurance Act)—
"(A) more than 50 percent of the ownership or control of
which is held by 1 or more minority individuals; and
"(B) more than 50 percent of the net profit or loss of
which accrues to 1 or more minority individuals.
"(2) WOMEN'S DEPOSITORY INSTITUTION.—The term 'women's
depository institution' means a depository institution (as defined in section 3(c) of the Federal Deposit Insurance Act)—
"(A) more than 50 percent of the ownership or control of
which is held by 1 or more women;
"(B) more than 50 percent of the net profit or loss of
which accrues to 1 or more women; and
"(C) a significant percentage of senior management positions of which are held by women.
"(3) MINORITY.—The term 'minority' has the meaning given to
such term by section 1204(c)(3) of the Financial Institutions
Reform, Recovery and Enforcement Act of 1989.".

12 USC 2907.

105 STAT. 1776

PUBLIC LAW 102-233—DEC. 12, 1991

SEC. 403. ACQUISITION OF FAILING MAJORITY ASSOCIATIONS BY MINORITY INSTITUTIONS.

Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a)
is amended by inserting after subsection (u) (as added by section 302
of this title) the following new subsection:
"(v) ASSISTANCE UNDER CIRCUMSTANCES FOR ACQUISITION OF
MAJORITY-OWNED INSTITUTIONS.—

"(1) IN GENERAL.—In addition to the assistance provided
pursuant to the minority interim capital assistance program
established by the Oversight Board by regulation pursuant to
the strategic plan under subsection (a), the Corporation may
provide assistance for minority-owned depository institutions
and minority investors for the acquisition of any savings
association for which the Corporation has been appointed conservator or receiver and which, before such appointment, was
not a minority-owned association, if the Corporation has not
received acceptable bids for the acquisition of such association
without offering such assistance.
"(2) ADDITIONAL ASSETS.—In connection with the acquisition of
any savings association for which the Corporation provides
assistance under paragraph (1), the Corporation may transfer
assets of other savings associations for which the Corporation
has been appointed conservator or receiver.
"(3) DEFINITIONS.—For purposes of this subsection—
"(A) MINORITY.—The term 'minority' has the meaning
given to such term by section 1204(c)(3) of the Financial
Institutions Reform, Recovery and Enforcement Act of
1989.
"(B) ACQUISITION.—The term 'acquisition' means any
transaction in which a savings association is acquired (as
defined in section 13(c)(8) of the Federal Deposit Insurance
Act).".
SEC. 404. STATUTORY ESTABLISHMENT OF PROGRAM.

Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a)
is amended by inserting after subsection (v) (as added by section 303
of this title) the following new subsection:
"(w) MINORITY INTERIM CAPITAL ASSISTANCE PROGRAM.—

"(1) IN GENERAL.—The minority interim capital assistance
program established by the Oversight Board by regulation
pursuant to the strategic plan under subsection (a) is hereby
established by law.
"(2) ASSISTANCE UNDER CIRCUMSTANCES FOR ACQUISITION OF
MAJORITY-OWNED INSTITUTIONS.—In addition to the assistance

provided pursuant to the program established under paragraph
(1), the Corporation shall provide assistance under such program for minority-owned depository institutions and minority
investors for the acquisition of any savings association for which
the Corporation has been appointed conservator or receiver and
which, before such appointment, was not a minority-owned
association, if the Corporation has not received acceptable bids
for the acquisition of such association without offering such
assistance.
"(3) EXTENSION OF INTERIM FINANCING PERIOD.—The period for
repayment of capital assistance provided under the minority
interim capital assistance program shall be not less than 2
years.

PUBLIC LAW 102-233—DEC. 12, 1991

'

105 STAT. 1777

"(4) INTEREST RATE.—The rate of interest imposed by the
Corporation in connection with any interim financing provided
under the minority interim capital assistance program may not
exceed the average cost of funds to the Corporation as of the
time such rate is established.
"(5) DEFINITIONS.—For purposes of this subsection—
"(A) MINORITY.—The term 'minority' has the meaning
given to such term by section 1204(c)(3) of the Financial
Institutions Reform, Recovery and Enforcement Act of
1989.
"(B) ACQUISITION.—The term 'acquisition' means any
transaction in which a savings association is acquired (as
defined in section 13(c)(8) of the Federal Deposit Insurance
Act).".

SEC. 405. GOAL FOR PARTICIPATION OF SMALL BUSINESS CONCERNS.

Section 21A(b)(14) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(b)(14)) is amended to read as follows:
"(14) GOAL FOR PARTICIPATION OF SMALL BUSINESS CONCERNS.—

The Corporation shall have an annual goal that presents the
maximum practicable opportunity for small business concerns
and small business concerns owned and controlled by socially
and economically disadvantaged individuals to participate in
the performance of contracts awarded by the Corporation.".

TITLE V^MISCELLANEOUS HOUSING
PROVISIONS
SEC. 501.
(a) CREDIT ENHANCEMENT T O PROVIDE HOUSING OPPORTUNITIES
FOR LOW-INCOME P E R S O N S . —

(1) IN GENERAL.—Section 21A(b)(10)(K) of the Federal Home
Loan Bank Act (12 U.S.C. 1441a(b)(10)(K)) is amended to read as
follows:
"(K) To make loans and, with respect to eligible residential properties, develop risk sharing structures and other
credit enhancements to assist in the provision of property
ownership, rental, and cooperative housing opportunities
for lower- and moderate-income families.".
(2) CREDIT ENHANCEMENT FOR CERTAIN TAX-EXEMPT BONDS.—

Section 21A(c)(8)(B) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(c)(8)(B)) is amended—
(A) by striking "(B) CREDIT ENHANCEMENT.—With respect

to" and inserting the following:
"(B) CREDIT ENHANCEMENT.—
"(i) IN GENERAL.—With respect to"; and

(B) by adding at the end the following new clause:
"(ii) CERTAIN TAX-EXEMPT BONDS.—The Corporation
may provide credit enhancements with respect to taxexempt bonds issued on behalf of nonprofit organizations pursuant to section 103, and subpart A of part IV
of subchapter A of chapter 1, of the Internal Revenue
Code of 1986, with respect to the disposition of eligible
residential properties for the purposes described in
clause (i).".

105 STAT. 1778

PUBLIC LAW 102-233—DEC. 12, 1991

TITLE VI—RESOLUTION TRUST CORPORATION AFFORDABLE HOUSING PROGRAM
SEC. 601. INCLUSION OF ELIGIBLE RESIDENTIAL PROPERTY UNDER
CONSERVATORSHIP.

Section 21A(c)(9) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)(9)) is amended—
(1) by striking subparagraphs (C) and (D) and inserting the
following new subparagraphs:
"(C) CORPORATION.—The term 'Corporation' means the
Resolution Trust Corporation.
"(D) ELIGIBLE MULTIFAMILY HOUSING PROPERTY.—
"(i) BASIC DEFINITION.—The term 'eligible

multifamily housing property' means a property consisting
of more than 4 dwelling units—
"(I) to which the Corporation acquires title either
in its corporate capacity or as receiver (including
its capacity as the sole owner of a subsidiary corporation of a depository institution under receivership, which subsidiary has as its principal business
the ownership of real property), but not in its
capacity as an operating conservator; and
'(II) that has an appraised value that does not
exceed the applicable dollar amount set forth in
section 221(d)(3)(ii) of the National Housing Act for
elevator-type structures (without regard to any increase of such amount for high-cost areas),
"(ii) EXPANDED DEFINITION.—Notwithstanding clause
(i), to the extent or in such amounts as are provided in
appropriations Acts for additional costs and losses to
the Corporation resulting from this clause taking
effect, the term 'eligible multifamily housing property'
shall mean a property consisting of more than 4 dwelling units—
"(I) to which the Corporation acquires title in its
corporate capacity, its capacity as conservator, or
its capacity as receiver (including its capacity as
the sole owner of a subsidiary corporation of a
depository institution under conservatorship or receivership, which subsidiary has as its principal
business the ownership of real property); and
"(II) that has an appraised value that does not
exceed the applicable dollar amount set forth in
section 221(d)(3)(ii) of the National Housing Act for
elevator-type structures (without regard to any increase of such amount for high-cost areas)."; and
(2) by striking subparagraph (F) and inserting the following
new subparagraph:
"(F) ELIGIBLE SINGLE FAMILY PROPERTY.—The term 'eligible single family property' means a 1- to 4-family residence (including a manufactured home)—
"(I) to which the Corporation acquires title in its
corporate capacity, its capacity as conservator, or
its capacity as receiver (including its capacity as
the sole owner of a subsidiary corporation of a

PUBLIC LAW 102-233—DEC. 12,1991

105 STAT. 1779

depository institution under conservatorship or receivership, which subsidiary has as its principal
business the ownership of real property); and
"(11) that has an appraised value that does not
exceed the applicable dollar amount set forth in
the first sentence of section 208(b)(2) of the National Housing Act (without regard to any increase
of such amount for high-cost areas).".
SEC. 602. TIME LIMITATIONS ON SALE OF ELIGIBLE SINGLE FAMILY
PROPERTY.

Section 21A(c)(2)(B) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)(2)(B)), as amended by Public Law 102-139, is amended—
(1) in the first sentence, by striking "For" and inserting
"Except as provided in the last sentence of this subparagraph
for"; and
(2) by adding at the end the following new sentence: "To the
extent or in such amounts as are provided in appropriations
Acts for additional costs and losses to the Corporation resulting
from this sentence taking effect, for purposes of this subsection
the period referred to in the first and third sentences shall be
considered to be the 180-day period following the date on which
the Corporation first makes an eligible single family property
available for sale.".
SEC. 603. ACTIVE MARKETING OF ELIGIBLE SINGLE FAMILY PROPERTY
TO LOWER-INCOME VETERANS.

Section 21A(c)(2)(B) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)(2)(B)) is amended—
(1) in clause (i) of the first sentence, by inserting "(including
qualifying households with members who are veterans)" after
"households";
(2) in subclause (I) of clause (ii) of the first sentence, by
inserting "(including lower-income families with members who
are veterans)" after "lower-income families"; and
(3) in the fourth sentence, by inserting "and to lower-income
families with members who are veterans" before the period.
SEC. 604. PREVENTION OF SPECULATION ON ELIGIBLE SINGLE FAMILY
PROPERTY.
(a) RESIDENCY REQUIREMENTS.—
(1) QUALIFYING HOUSEHOLDS.—Section

21A(cX9)(K) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(cX9)(K)) is amended
by striking "and (ii) whose adjusted income" and inserting the
following: "(ii) who agrees to occupy the property as a principal
residence for at least 12 months (except as provided in paragraph (2)(D)); (iii) who certifies in writing that the household
intends to occupy the property as a principal residence for at
least 12 months (except as provided in paragraph (2XD)); and (iv)
whose income".
(2) LOWER-INCOME FAMILIES.—The first sentence of section
21A(cX2XB) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(cX2)) is amended by striking "by such families." and
inserting the following: "by any such family who, except as
provided in subparagraph (D), agrees to occupy the property as
a principal residence for at least 12 months and who certifies in

105 STAT. 1780

PUBLIC LAW 102-233—DEC. 12, 1991
writing that the family intends to occupy the property for at
least 12 months.",
(b) RECAPTURE OF PROFITS FROM RESALE.—Section 21A(c)(2) of the

Federal Home Loan Bank Act (12 U.S.C. 1441a(cX2)) is amended by
adding at the end the following new subparagraphs:
"(C) RECAPTURE OF PROFITS FROM RESALE.—Except as provided in subparagraph (D), if any eligible single family
property sold (i) to a qualif5dng household, or (ii) to a lowerincome family pursuant to subparagraph (BXiiXH), paragraph (12XCXi), or paragraph (13XB), is resold by the
qualifjdng household or lower-income family during the
1-year period beginning upon initial acquisition by the
household or lower-income family, the Corporation shall
recapture 75 percent of the amount of any proceeds from
the resale that exceed the sum of (I) the original sale price
for the acquisition of the property by the qualifying household or lower-income family; (II) the costs of any improvements to the property made after the date of the acquisition, and (III) any closing costs in connection with the
acquisition.
' (D) EXCEPTIONS TO RECAPTURE REQUIREMENT.—

"(i) RELOCATION.—The Corporation (or its successor)
may in its discretion waive the applicability (I) to any
qualifying household of the requirement under
subparagraph (C) and the requirements relating to residency of a qualifying household under paragraphs
(9XL)(ii) and (iii), and (II) to any lower-income family of
the requirement under subparagraph (C) and the residency requirements under subparagraph (B)(ii)(II). The
Corporation may grant any such a waiver only for good
cause shown, including any necessary relocation of the
qualifying household or lower-income family.
"(ii) OTHER RECAPTURE PROVISIONS.—The requirement
under subparagraph (C) shall not apply to any eligible
single family property for which, upon resale by the
qualifying household or lower-income family during the
1-year period beginning upon initial acquisition by
the household or family, a portion of the sale proceeds
or any subsidy provided in connection with the acquisition of the property by the household or family is
required to be recaptured or repaid under any other
Federal, State, or local law (including section 143(m) of
the Internal Revenue Code of 1986) or regulation or
under any sale agreement.".
SEC. 605. AVOIDANCE OF DISPLACEMENT UNDER SINGLE FAMILY PROPERTY DISPOSITION PROGRAM.

Section 21A(cX2) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)(2)) is amended by adding after subparagraph (D) (as added
by section 504(b) of this Act) the following new subparagraph:
"(E) EXCEPTION TO AVOID DISPLACEMENT OF EXISTING RESI-

DENTS.—Notwithstanding the first sentence of subparagraph (B), during the 180-day period following the date on
which the Corporation makes an eligible single family property available for sale, the Corporation may sell the property to the household residing in the property, but only if (i)
such household was residing in the property at the time
notice regarding the property was provided to clearing-

PUBLIC LAW 102-233—DEC. 12, 1991

105 STAT. 1781

houses under subparagraph (A), (ii) such sale is necessary to
avoid the displacement of, and unnecessary hardship to, the
resident household, (iii) the resident household intends to
occupy the property as a principal residence for at least 12
months, and (iv) and the resident household certifies in
writing that the household intends to occupy the property
for at least 12 months.".
SEC. 606. PERIODS FOR EXPRESSION OF SERIOUS INTEREST AND RESTRICTED BIDS FOR ELIGIBLE MULTIFAMILY HOUSING PROPERTY.

Section 21A(c)(3) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)(3)) is amended—
(1) in the first sentence of subparagraph (B), by striking the
first comma and all that follows through "first";
(2) in subparagraph (C), by striking "determining that a
property is ready for sale" and inserting the following: "the
expiration of the period referred to in subparagraph (B) for a
property,"; and
(3) in subparagraph (D), by inserting after the period at the
end the following new sentence: "If, before the expiration of
such 45-day period, any offer to purchase a property initially
accepted by the Corporation is subsequently rejected or fails (for
any reason), the Corporation shall accept another offer to purchase the property made during such period that complies with
the terms and conditions established by the Corporation (if such
another offer is made). The preceding sentence may not be
construed to require a qualifying multifamily purchaser whose
offer is accepted during the 45-day period to purchase the
property before the expiration of the period.".
SEC. 607. LOWER-INCOME OCCUPANCY REQUIREMENTS FOR ELIGIBLE
MULTIFAMILY HOUSING PROPERTY.

Section 21A(c)(3)(E) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)(3)(E)) is amended to read as follows:
"(E) LOWER-INCOME OCCUPANCY REQUIREMENTS.—
"(i) SINGLE PROPERTY PURCHASES.—With respect

to
any purchase of a single eligible multifamily housing
property by a qualifying multifamily purchaser under
subparagraph (D)—
"(I) not less than 35 percent of all dwelling units
purchased shall be made available for occupancy
by and maintedned as affordable for lower-income
and very low-income families during the remaining
useful life of the building property structure in
which the units are located: Provided, That
'^(11) not less than 20 percent of all dwelling units
purchased shall be made available for occupancy
shall be made available for occupancy by and
maintained as affordable for very low-income families during the remaining useful life of the building
or structure in which the units are located.
"(ii) AGGREGATION REQUIREMENTS FOR MULTIPROPERTY

PURCHASES.—With respect to any purchase under
subparagraph (D) by a qualifying multifamily purchaser involving more than one eligible multifamily
housing property as a part of the same negotiation—

105 STAT. 1782

PUBLIC LAW 102-233—DEC. 12, 1991
"(I) the provisions of clause (i) shall apply in the
aggregate to the properties so purchased; except
that
"(ID to the extent or in such amounts as are
provided in appropriations Acts for additional costs
and losses to the Corporation resulting from this
subclause taking effect, not less than (a) 40 percent
of the aggregate number of all dwelling units purchased shall be made available for occupancy by
and maintained as affordable for lower-income and
very low-income families during the remaining
useful life of the building property structure in
which the units are located, (b) 20 percent of the
aggregate number of all dwelling units purchased
shall be made available for occupancy by and
maintained as affordable for very low-income families during the remaining useful life of the building
property structure in which the units are located,
and (c) not less than 10 percent of the dwelling
units in each separate property purchased shall be
made available for occupancy by and maintained
as affordable for lower-income families during the
remaining useful life of the property in which the
units are located.
The requirements of this subparagraph shall be contained
in the deed or other recorded instrument.".

SEC. 608. EXTENSION OF RESTRICTED OFFER PERIOD FOR ELIGIBLE
MULTIFAMILY HOUSING PROPERTY.

Section 21A(c)(3) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)(3)) is amended—
(1) by redesignating subparagraph (G) as subparagraph (H);
and
(2) by inserting after subparagraph (F) the following new
subparagraph:
"(G) EXTENSION OF RESTRICTED OFFER PERIODS.—Notwith-

standing subparagraph (F), the Corporation may provide
notice to clearinghouses regarding, and offer for sale under
the provisions of subparagraphs (A) through (D), any eligible multifamily housing property—
"(i) in which no qualifying multifamily purchaser has
expressed serious interest during the period referred to
in subparagraph (B), or
"(ii) for which no qualifying multifamily purchaser
has made a bona fide offer before the expiration of the
period referred to in subparagraph (D),
except that the Corporation may, in the discretion of the
Corporation, alter the duration of the periods referred to in
subparagraphs (B) and (D) in offering any property for sale
under this subparagraph.".
SEC. 609. SALE PRICE.

Section 21A(c)(6)(A)(i) of 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 shall establish a
market value for each eligible multifamily housing

PUBLIC LAW 102-233—DEC. 12, 1991

105 STAT. 1783

property. The Corporation shall sell eligible multifamily housing property at the net realizable market value.
The Corporation may agree to sell eligible multifamily
housing property at a price below the net realizable
market value to the extent necessary to facilitate an
expedited sale of such property and enable a public
agency or nonprofit organization to comply with the
lower-income occupancy requirements applicable to
such property under paragraph (3). The Corporation
may sell eligible single family property or eligible condominium property to qualifying households, nonprofit
organizations, and public agencies without regard to
any minimum sale price.".
SEC. 610. AUTHORITY FOR RTC TO PARTICIPATE IN MULTIFAMILY
FINANCING POOLS.

Section 21A(c)(6XA)(ii) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(c)(6)(A)(ii)) is amended by adding at the end the following new sentence: "In providing financing for combinations of eligible multifamily housing properties under this subsection, the
Corporation may hold a participating share, including a subordinate
participation.".
SEC. 611. CREDIT ENHANCEMENT FOR CERTAIN TAX-EXEMPT BONDS.

Section 21A(c)(8)(B) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(cX8)(B)) is amended—
(1) by striking "(B) CREDIT ENHANCEMENT.—With respect to"

and inserting the following:
"(B) CREDIT ENHANCEMENT.—

"(i) IN GENERAL.—With respect to"; and
(2) by adding at the end the following new clause:
"(ii) CERTAIN TAX-EXEMPT BONDS.—The Corporation
may provide credit enhancements with respect to taxexempt bonds issued on behalf of nonprofit organizations pursuant to section 103, and subpart A of part IV
of subchapter A of chapter 1, of the Internal Revenue
Code of 1986, with respect to the disposition of eligible
residential properties for the purposes described in
clause (i).".
SEC. 612. PERMANENT EFFECTIVENESS OF EXEMPTION FOR TRANSACTIONS WITH INSURED DEPOSITORY INSTITUTIONS.

12 USC 1441a
note.

Notwithstanding section 203 of the Resolution Trust Corporation
Funding Act of 1991, the amendment made by section 201(b) of such
Act shall apply on and after the date of the enactment of this Act.
SEC. 613. TRANSFER OF CERTAIN ELIGIBLE RESIDENTIAL PROPERTIES
TO STATE HOUSING AGENCIES FOR DISPOSITION.

Section 21A(c) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)) is amended by adding at the end the following new paragraph:
"(12) TRANSFER OF CERTAIN ELIGIBLE RESIDENTIAL PROPERTIES

TO STATE HOUSING AGENCIES FOR DISPOSITION.—Notwithstanding
paragraphs (2), (3), (5), and (6), the Corporation may transfer
eligible residential properties to the State housing finance
agency or any other State housing agency for the State in which
the property is located, or to any local housing agency in whose

/
/

105 STAT. 1784

PUBLIC LAW 102-233—DEC. 12, 1991
jurisdiction the property is located. Transfers of eligible residential properties under this paragraph may be conducted by direct
sale, consignment sale, or any other method the Corporation
considers appropriate and shall be subject to the following
requirements:
"(A) INDIVIDUAL OR BULK TRANSFER.—The Corporation

may transfer such properties individually or in bulk, as
agreed to by the Corporation and the State housing finance
agency or State or local housing agency.
"(B) ACQUISITION PRICE AND DISCOUNT.—The acquisition

price paid by the State housing finance agency or State or
local housing agency to the Corporation for properties
transferred under this paragraph shall be an amount
agreed to by the Corporation and the transferee agency.
"(C) LOWER-INCOME USE.—Any State housing finance
agency or State or local housing agency acquiring properties under this paragraph shall offer to sell or transfer
the properties only as follows:
"(i) ELIGIBLE SINGLE FAMILY PROPERTIES.—For eligible

i

-'<

5j;;

single family properties—
"(I) to purchasers described under clauses (i) and
(ii) of paragraph (2)(B);
"(II) if the purchaser is a purchaser described
under paragraph (2)(B)(ii)(I), subject to the rent
limitations under paragraph (4)(A);
"(III) subject to the requirement in the second
sentence of paragraph (2)(B); and
"(IV) subject to recapture by the Corporation of
excess proceeds from resale of the properties under
subparagraphs (C) and (D) of paragraph (2).
"(ii) ELIGIBLE MULTIFAMILY HOUSING PROPERTIES.—

For eligible multifamily housing properties—
"(I) to qualifying multifamily purchasers;
"(II) subject to the lower-income occupancy
requirements under paragraph (3)(E);
"(III) subject to the provisions of paragraph
(3)(H);
"(IV) subject to a preference, among financially
acceptable offers, to the offer that would reserve
the highest percentage of dwelling units for occupancy or purchase by very low-income families and
lower-income families and would retain such
affordability for the longest term; and
"(V) subject to the rent limitations under paragraph (4)(A).
"(D) AFFORDABILITY.—The State housing finance agency
or State or local housing agency shall endeavor to make the
properties transferred under this paragraph more affordable to lower-income families based upon the extent to
which the acquisition price of a property under subparagraph (B) is less than the market value of the property.".*

PUBLIC LAW 102-233—DEC. 12, 1991

105 STAT. 1785

SEC. 614. SUSPENSION OF OFFER PERIODS FOR SALES OF ELIGIBLE
RESIDENTIAL PROPERTY TO NONPROFIT ORGANIZATIONS
AND PUBLIC AGENCIES.

Section 21A(c) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)) is amended by adding after paragraph (12) (as added by
section 513 of this Act) the following new paragraph:
"(13) EXCEPTION FOR SALES TO NONPROFIT ORGANIZATIONS AND
PUBLIC AGENCIES.—
"(A) SUSPENSION OF OFFER PERIODS.—With respect to any

eligible residential property, the Corporation may (in the
discretion of the Corporation) suspend any of the requirements of subparagraphs (A) and (B) of paragraph (2) and
subparagraphs (A) through (D) of paragraph (3), as applicable, but only to the extent that for the duration of the
suspension the Corporation negotiates the sale of the property to a nonprofit organization or public agency. If the
property is not sold pursuant to such negotiations, the
requirements of any provisions suspended shall apply upon
the termination of the suspension. Any time period referred
to in such paragraphs shall toll for the duration of any
suspension under this subparagraph.
"(B) USE RESTRICTIONS.—
"(i) EUGIBLE SINGLE FAMILY PROPERTY.—Any eligible

single family property sold under this paragraph shall
be (1) made available for occupancy by and maintained
as affordable for lower-income families for the remaining useful life of the property, or made available for
purchase by such families, (II) subject to the rent
limitations under paragraph (4)(A), (III) subject to the
requirements relating to residency of a qualifying
household under paragraph (9)(L) and to residency of a
lower-income family under paragraph (2)(B)(ii), and (IV)
subject to recapture by the Corporation of excess proceeds from resale of the property under subparagraphs
(C) and (D) of paragraph (2).
"(ii) ELIGIBLE MULTIFAMILY HOUSING PROPERTY.—Any

eligible multifamily housing property sold under this
paragraph shall comply with the lower-income occupancy requirements under paragraph (3)(E) and shall
be subject to the rent limitations under paragraph
(4)(A).".
SEC. 615. SALE OF ELIGIBLE CONDOMINIUM PROPERTY.

(a) IN GENERAL.—Section 21A(c) of the Federal Home Loan Bank
Act (12 U.S.C. 1441a(c)) is amended by adding after paragraph (13)
(as added by section 514 of this Act) the following new paragraph:
"(14) RULES GOVERNING DISPOSITION OF ELIGIBLE CONDOMINIUM
PROPERTY.—
"(A) NOTICE TO CLEARINGHOUSES.—Within a reasonable

period of time after acquiring title to an eligible condominium property, the Corporation shall provide written notice
to clearinghouses. Such notice shall contain basic information about the property. Each clearinghouse shall make
such information available, upon request, to purchasers
described in clauses (i) through (iv) of subparagraph (B). The
Corporation shall allow such purchasers reasonable access

105 STAT. 1786

PUBLIC LAW 102-233—DEC. 12, 1991
to an eligible condominium property for purposes of inspection.
"(B) OFFERS TO SELL.—For the 180-day period following

the date on which the Corporation makes an eligible condominium property available for sale, the Corporation may
offer to sell the property, at the discretion of the Corporation, to 1 or more of the following purchasers:
"(i) Qualifying households,
"(ii) Nonprofit organizations,
"(iii) Public agencies.
"(iv) For-profit entities.
"(C) LOWER-INCOME OCCUPANCY REQUIREMENTS.—

"(i) I N GENERAL.—Except as provided in clause (ii),
any nonprofit organization, public agency, or for-profit
entity that purchases an eligible condominium property shall (I) make the property available for occupancy
by and maintain it as affordable for lower-income families for the remaining useful life of the property, or (II)
make the property available for purchase by any such
family who, except as provided in subparagraph (E),
agrees to occupy the property as a principal residence
for at least 12 months and who certifies in writing that
the family intends to occupy the property for at least 12
months. The restriction described in subclause (I) of the
preceding sentence shall be contained in the deed or
other recorded instrument.
"(ii) MULTIPLE-UNIT PURCHASES,—If any

nonprofit

organization, public agency, or for-profit entity purchases more than 1 eligible condominium property as a
part of the same negotiation or purchase, the Corporation may (in the discretion of the Corporation) waive
the requirement under clause (i) and provide instead
that not less than 35 percent of all eligible condominium properties purchased shall be (I) made available
for occupancy by and maintained as affordable for
lower-income families for the remaining useful life of
the property, or (II) made available for purchase by any
such family who, except as provided in subparagraph
(E), agrees to occupy the property as a principal residence for at least 12 months and who certifies in
writing that the family intends to occupy the property
for at least 12 months. The restriction described
subclause (I) of the preceding sentence shall be contained in the deed or other recorded instrument.
"(iii) SALE TO OTHER PURCHASERS.—If, upon the
expiration of the 180-day period referred to in subparagraph (B), no purchaser described in clauses (i) through
(iv) of subparagraph (B) has made a bona fide offer to
purchase the property, the Corporation may offer to
sell the property to any other purchaser.
"(D) RECAPTURE OF PROFITS FROM RESALE.—Except as provided in subparagraph (E), if any eligible condominium
property sold (i) to a qualifying household, or (ii) to a lowerincome family pursuant to subparagraph (C)(i)(II) or
(C)(ii)(II), is resold by the qualifying household or lowerincome family during the 1-year period beginning upon
initial acquisition by the household or family, the Corpora-

PUBLIC LAW 102-233—DEC. 12, 1991

105 STAT. 1787

tion shall recapture 75 percent of the amount of any proceeds from the resale that exceed the sum of (I) the original
'
sale price for the acquisition of the property by the qualifying household or lower-income family, (II) the costs of any
improvements to the property made after the date of the
acquisition, and (III) any closing costs in connection with
the acquisition.
"(E) EXCEPTION TO RECAPTURE REQUIREMENT.—The Corporation (or its successor) may in its discretion waive the
applicability to any qualifying household or lower-income
family of the requirement under subparagraph (D) and the
requirements relating to residency of a qualifying household or lower-income family (under paragraph (9)(L) and
subparagraph (C) of this paragraph, respectively). The Corporation may grant any such a waiver only for good cause
shown, including any necessary relocation of the qualifying
household or lower-income family.
"(F) LIMITATIONS ON MULTIPLE UNIT PURCHASES.—The Corporation may not sell or offer to sell as part of the same
negotiation or purchase any eligible condominium properties that are not located in the same condominium project
(as such term is defined in section 604 of the Housing and
Community Development Act of 1980). The preceding
sentence may not be construed to require all eligible condominium properties offered or sold as part of the same
negotiation or purchase to be located in the same structure.
"(G) RENT LIMITATIONS.—Rents charged to tenants of eligible condominium properties made available for occupancy
by very low-income families shall not exceed 30 percent of
the adjusted income of a family whose income equals 50
percent of the median income for the area, as determined
by the Secretary, with adjustment for family size. Rents
charged to tenants of eligible condominium properties made
available for occupancy by lower-income families other
than very low-income families shall not exceed 30 percent
of the adjusted income of a family whose income equals 65
percent of the median income for the area, as determined
by the Secretary, with adjustment for family size.",
(b) CONFORMING AMENDMENT.—Section 21A(c)(ll)(B) of the Federal Home Loan Bank Act (12 U.S.C 1441a(c)(ll)(B)) is amended by
striking "specified under paragraphs (2) and (3)" and inserting
"applicable under paragraphs (2), (3), (12)(C), (13)(B), and (14)(C)".
SEC. 616. REPORTS TO CONGRESS REGARDING AFFORDABLE HOUSING
PROGRAM.
Section 21 A(c) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)) is amended by adding after paragraph (14) (as added by
section 515 of this Act) the following new paragraph:
"(15) REPORTS TO CONGRESS.—

"(A) IN GENERAL.—The Corporation shall submit to the
Congress semiannual reports under this paragraph regarding the disposition of eligible residential properties under
this subsection during the most recently concluded reporting period. The first report under this paragraph shall be
submitted not later than the expiration of the 4-month
period beginning upon the conclusion of the first reporting
period under subparagraph (B). Subsequent reports shall be

105 STAT. 1788

PUBLIC LAW 102-233—DEC. 12, 1991

J

submitted not less than every 6 months after such expiration.
"(B) REPORTING PERIODS.—For purposes of this paragraph,
the term 'reporting period' means the 6-month period for
which a report under this paragraph is made, except that
the first reporting period shall be the period beginning on
the date of the enactment of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 and ending
on the date of the enactment of the Resolution Trust Corporation Refinancing, Restructuring, and Improvement Act
of 1991. Each successive reporting period shall begin upon
the conclusion of the preceding reporting period.
"(C)

',

.,[.

INFORMATION REGARDING PROPERTIES SOLD.—Each

report under this paragraph shall contain information
regarding each eligible residential property sold by the
Corporation during the applicable reporting period, as follows:
"(i) A description of the property, the location of the
property, and the number of dwelling units in the
property.
"(ii) The appraised value of the property,
"(iii) The sale price of the property.
"(iv) For eligible single family properties—
"(I) the income and race of the purchaser of the
property, if the property is sold to an occupjdng
household or is sold for resale to an occupying
t
household; and
"(II) whether the property is reserved for residency by very low- or lower-income families, if the
property is sold for use as rental property.
"(v) For eligible multifamily housing properties, the
number and percentage of dwelling units in the property reserved for occupancy by very low- and lowerincome families.
"(vi) The number of eligible single family properties
sold after the expiration of the offer period for such
properties referred to in paragraph (2XB).
"(vii) The number of eligible multifamily housing
properties sold after the expiration of the periods for
such properties referred to in subparagraphs (B) and
(D) of paragraph (3).
"(D)

NUMBER OF PROPERTIES WITHIN WINDOWS.—Each

report under this parsigraph shall contain the following
information:
"(i) The number of eligible single family properties
for which the offer period referred to in paragraph
(2XB) had not expired before the conclusion of the
applicable reporting period (or had not yet commenced).
"(ii) The number of eligible multifamily housing
properties for which the 90-day period referred to in
paragraph (3XB) had not expired before the conclusion
of the applicable reporting period (or had not yet com; menced).".

PUBLIC LAW 102-233—DEC. 12, 1991

105 STAT. 1789

SEC. 617. DEFINITIONS.

Section 21A(c)(9) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)(9)), as amended by sections 501 and 504(a)(1) of this Act, is
further amended—
(1) by striking subparagraph (A) and inserting the following
new subparagraph:
"(A) ADJUSTED INCOME AND INCOME.—The terms 'adjusted
income' and 'income' shall have the meaning given such
terms in section 3(b) of the United States Housing Act of
1937.";
(2) by redesignating subparagraphs (D) through (P) as subparagraphs (E) through (Q), respectively; and
(3) by inserting after subparagraph (C) the following new
subparagraph:
"(D) ELIGIBLE CONDOMINIUM PROPERTY.—The term 'eligible condominium property' means a condominium unit,
as such term is defined in section 604 of the Housing and
Community Development Act of 1980—
"(i) to which the Corporation acquires title in its
corporate capacity, its capacity as conservator, or its
capacity as receiver (including its capacity as the sole
owner of a subsidiary corporation of a depository
institution under conservatorship or receivership,
which subsidiary has as its principal business the
ownership of real property); and
"(ii) that has an appraised value that does not exceed
the applicable dollar amount set forth in the first
sentence of section 203(b)(2) of the National Housing
Act (without regard to any increase of such amount for
high cost areas).".
SEC. 618. RISK-WEIGHTING OF HOUSING LOANS FOR PURPOSES OF CAP- Regulations.
ITAL REQUIREMENTS.
^ ^ . ^ ^ ^^^^
(a) SINGLE FAMILY HOUSING LOANS.—
(1) 50 PERCENT RISK-WEIGHTED CLASSIFICATION.—

^

^„

(a) IN GENERAL.—To provide consistent regulatory treatment of loans made for the construction of single family
housing, not later than the expiration of the 120-day period
beginning on the date of this Act each Federal banking
agency shall amend the regulations and guidelines of the
agency establishing minimum acceptable capital levels to
provide that any single family residence construction loan
described under subparagraph (B) shall be considered as a
loan within the 50 percent risk-weighted category.
(B) REQUIREMENTS.—Subparagraph (A) shall apply to any
construction loan—
(i) made for the construction of a residence consisting
of 1 to 4 dwelling units;
(ii) under which the lender has acquired from the
lender originating the mortgage loan for purchase of
the residence, before the making of the construction
loan—
(I) documentation demonstrating that the buyer
of the residence intends to purchase the residence
and has the ability to obtain a mortgage loan
sufficient to purchase the residence; and

note.

105 STAT. 1790

PUBLIC LAW 102-233—DEC. 12, 1991
(II) any other documentation from the mortgage
lender that the appropriate Federal banking
agency may consider appropriate to provide assurance of the buyer's intent to purchase the property
(including written commitments and letters of
intent);
(iii) under which the borrower requires the buyer of
the residence to make a nonrefundable deposit to the
borrower in an amount (as determined by the appropriate Federal banking agency) of not less than 1 percent of the principal amount of mortgage loan obtained
by the borrower for purchase of the residence, for use
in defraying costs relating to any cancellation of the
purchase contract of the buyer; and
(iv) that meets any other underwriting characteristics that the appropriate Federal banking agency may
establish, consistent with the purposes of the minimum
acceptable capital requirements to maintain the safety
and soundness of financial institutions.
(2) 100 PERCENT RISK-WEIGHTED CLASSIFICATION.—Not l a t e r

than the expiration of the 120-day period beginning on the date
of this Act each Federal banking agency shall amend the regulations and guidelines of the agency establishing minimum
acceptable capital levels to provide that—
(A) any single family residence construction loan for a
residence for which the purchase contract is canceled shall
be considered as a loan within the 100 percent riskweighted category; and
(B) the lender of any single family residence construction
loan shall promptly notify the appropriate Federal banking
agency of any such cancellation.
(b) MULTIFAMILY HOUSING LOANS.—•
(1) 50 PERCENT RISK-WEIGHTED CLASSIFICATION.—
(A) IN GENERAL.—To provide consistent regulatory treatment of loans made for the purchase of multifamily rental
and homeowner properties, not later than the expiration of
the 120-day period beginning on the date of this Act each
Federal banking agency shall amend the regulations and
guidelines of the agency establishing minimum acceptable
capital levels to provide that any multifamily housing loan
described under subparagraph (B) and any security
collateralized by such a loan sheill be considered as a loan or
security within the 50 percent risk-weighted category,
(B) REQUIREMENTS.—Subparagraph (A) shall apply to any
loan—
(i) secured by a first lien on a residence consisting of
more than 4 dwelling units;
(ii) under which—
(I) the rate of interest does not change over the
term of the loan, (b) the principal obligation does
not exceed 80 percent of the appraised value of the
property, and (c) the ratio of annual net operating
income generated by the property (before payment
of any debt service on the loan) to annual debt
service on the loan is not less than 120 percent; or
(II) the rate of interest changes over the term of
the loan, (b) the principal obligation does not

PUBLIC LAW 102-233—DEC. 12, 1991

,1
*
*

105 STAT. 1791

exceed 75 percent of the appraised value of the
property, and (c) the ratio of annual net operating
income generated by the property (before payment
of any debt service on the loan) to annual debt
service on the loan is not less than 115 percent;
(iii) under which—
(I) amortization of principal and interest occurs
over a period of not more than 30 years;
(II) the minimum maturity for repayment of
principal is not less than 7 years; and
(III) timely payment of all principal and interest,
in accordance with the terms of the loan, occurs for
a period of not less than 1 year; and
(iv) that meets any other underwriting characteristics that the appropriate Federal banking agency may
establish, consistent with the purposes of the minimum
acceptable capital requirements to maintain the safety
and soundness of financial institutions.
(2) SALE PURSUANT TO PRO RATA LOSS SHARING ARRANGE-

MENTS.—Not later than the expiration of the 120-day period
beginning on the date of this Act, each Federal banking agency
shall amend the regulations and guidelines of the agency
establishing minimum acceptable capital levels to provide that
any loan fully secured by a first lien on a multifamily housing
property that is sold subject to a pro rata loss sharing arrangement by an institution subject to the jurisdiction of the agency
shall be treated as sold to the extent that loss is incurred by the
purchaser of the loan. For purposes of this paragraph, the term
"pro rata loss sharing arrangement" means an agreement
providing that the purchaser of a loan shares in any loss
incurred on the loan with the selling institution on a pro rata
basis.
(3) SALE PURSUANT TO OTHER ARRANGEMENTS FOR LOSS.—Not

later than the expiration of the 180-day period beginning on the
date of the enactment of this Act, each Federal banking agency
shall amend the regulations and guidelines of the agency
establishing minimum acceptable capital levels to take into
account other loss sharing arrangements, in connection with
the sale by an institution subject to the jurisdiction of the
agency of any loan that is fully secured by a first lien on
multifamily housing property, for purposes of determining the
extent to which such loans shall be treated as sold. For purposes
of this paragraph, the term "other loss sharing arrangement"
means an agreement providing that the purchaser of a loan
shares in any loss incurred on the loan with the selling institution on other than a pro rata basis.
(c) APPROPRIATE FEDERAL BANKING AGENCY.—For purposes of this
section, the term "Federal banking agency" means the Board of
Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation, the Comptroller of the Currency, and the
Director of the Office of Thrift Supervision.
SEC. 619. APPLICABILITY.

12 USC 1441a

The amendments made by this title shall not apply to any eligible "° '
residential property or eligible condominium property of the Resolution Trust Corporation, that is subject to an agreement for sale

105 STAT. 1792

PUBLIC LAW 102-233—DEC. 12, 1991

entered into by the Corporation before the date of the enactment of
this Act.

TITLE VII—APPRAISAL AMENDMENTS
SEC. 701. REAL ESTATE APPRAISALS.
(a) CERTIFICATION AND LICENSING REQUIREMENTS.—Section 1116 of

the.Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 (12 U.S.C. 3345) is amended by adding at the end the
following new subsection:
"(e) AUTHORITY OF THE APPRAISAL SUBCOMMITTEE.—The Appraisal

Subcommittee shall not set qualifications or experience requirements for the States in licensing real estate appraisers. Recommendations of the Subcommittee shall be nonbinding on the
States.
(b) U S E OF STATE CERTIFIED AND STATE LICENSED APPRAISERS.—
(1) EFFECTIVE DATE FOR USE.—Section 1119(a)(1) of the Finan-

cial Institutions Reform, Recovery and Enforcement Act of 1989
(12 U.S.C. 3348(a)(1)) is amended by striking "July 1, 1991" and
inserting "December 31,1992".
(2) EXTENSION OF EFFECTIVE DATE.—Section 1119(b) of the
Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 (12 U.S.C. 3348(b)) is a m e n d e d (A) in the first sentence, by striking "leading to inordinate delays" and inserting ", or in any geographical political subdivision of a State, leading to significant delays"; and
(B) in the second sentence, by striking "inordinate" and
inserting "significant".
Approved December 12, 1991.

LEGISLATIVE HISTORY—H.R. 3435:
HOUSE REPORTS: No. 102-358, Pts. 1 and 2 (Ctomm. on Banking, Finance and Urban
Affairs).
CONGRESSIONAL RECORD, Vol. 137 (1991):
Nov. 26, considered and passed House.
Nov. 27, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 27 (1991):
Dec. 12, Presidential statement.