Union Calendar No. 72

103D CONGRESS

1ST SESSION H. R. 1340

[Report No. 103–103, Parts I and II]

A BILL

To provide funding for the resolution of failed

savings associations, and for other purposes.

JUNE 15, 1993

Reported with amendments, committed to the Committee

dered to be printedof the Whole House on the State of the Union, and or-
IB

Union Calendar No. 72

103D CONGRESS

1ST SESSION H. R. 1340

[Report No. 103–103, Parts I and II]

To provide funding for the resolution of failed savings associations, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 16, 1993

Mr. GONZALEZ (for himself, Mr. LEACH, Mr. NEAL of North Carolina, Mrs.

ROUKEMA, Mr. SCHUMER, Mr. KENNEDY, Mr. FLAKE, and Mr. FRANK

of Massachusetts) (all by request) introduced the following bill; which was

referred to the Committee on Banking, Finance and Urban Affairs

MAY 24, 1993

Reported with amendments, referred to the Committee on the Judiciary for

a period ending not later than June 11, 1993, for consideration of such

provisions of the bill and amendments as fall within the jurisdiction of

that committee pursuant to clause 1(l), rule X

[Strike out all after the enacting clause and insert the part printed in italic]

JUNE 10, 1993

Referral to the Committee on the Judiciary extended for a period ending not

later than June 15, 1993

JUNE 15, 1993

Reported from the Committee on the Judiciary with amendments, committed

to the Committee of the Whole House on the State of the Union and ordered to be printed

[Omit the part in black brackets and insert the part printed in boldface roman]

[For text of introduced bill, see copy of bill as introduced on March 16, 1993]
2

•HR 1340 RH

A BILL

To provide funding for the resolution of failed savings

associations, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Resolution Trust Cor5 poration Completion Act’’.

6 SEC. 2. FINAL FUNDING FOR RTC.

7 Section 21A(i) of the Federal Home Loan Bank Act

8 (12 U.S.C. 1441a(i)) is amended—

9 (1) in paragraph (3), by striking ‘‘until April 1,

10 1992’’; and

11 (2) by adding at the end the following new para12 graphs:

13 ‘‘(4) CONDITIONS ON AVAILABILITY OF FINAL

14 FUNDING IN EXCESS OF $10,000,000,000.—

15 ‘‘(A) CERTIFICATION REQUIRED.—Of the

16 funds appropriated under paragraph (3) which

17 are provided after April 1, 1993, any amount in

18 excess of $10,000,000,000 shall not be available

19 to the Corporation before the date on which the

20 Secretary of the Treasury certifies to the Con21 gress that, since the date of the enactment of the

22 Resolution Trust Corporation Completion Act,
3

•HR 1340 RH

1 the Corporation has taken such action as may be

2 necessary to comply with the requirements of

3 subsection (w) or that, as of the date of the cer4 tification, the Corporation is continuing to make

5 adequate progress toward full compliance with

6 such requirements.

7 ‘‘(B) APPEARANCE UPON REQUEST.—The

8 Secretary of the Treasury shall appear before the

9 Committee on Banking, Finance and Urban Af10 fairs of the House of Representatives and the

11 Committee on Banking, Housing, and Urban Af12 fairs of the Senate, upon the request of the chair13 man of the respective committee, to report on

14 any certification made to the Congress under

15 subparagraph (A).

16 ‘‘(5) RETURN TO TREASURY.—If the aggregate

17 amount of funds transferred to the Corporation pur18 suant to this subsection exceeds the amount needed to

19 carry out the purposes of this section or to meet the

20 requirements of section 11(a)(6)(F) of the Federal De21 posit Insurance Act, such excess amount shall be de22 posited in the general fund of the Treasury.

23 ‘‘(6) FUNDS ONLY FOR DEPOSITORS.—Notwith24 standing any other provision of law other than sec-
4

•HR 1340 RH

1 tion 13(c)(4)(G) of the Federal Deposit Insurance Act,

2 funds appropriated under this section shall—

3 ‘‘(A) be used only for the purposes of pro4 tecting insured depositors or the administrative

5 expenses of the Corporation; and

6 ‘‘(B) not be used in any manner to benefit

7 shareholders of an insured depository institution

8 in connection with any type of resolution by the

9 Corporation or the Federal Deposit Insurance

10 Corporation of an insured depository institution

11 for which the Corporation has been appointed

12 conservator or receiver or any other insured de13 pository institution in default (as defined in sec14 tion 3(x)(1) of the Federal Deposit Insurance

15 Act) under any provision of law, or the provi16 sion of assistance in any form under section 11,

17 12, or 13 of the Federal Deposit Insurance Act.’’.

18 SEC. 3. RTC MANAGEMENT REFORMS.

19 (a) IN GENERAL.—Section 21A of the Federal Home

20 Loan Bank Act (12 U.S.C. 1441a) is amended by adding

21 at the end the following new subsection:

22 ‘‘(w) RTC MANAGEMENT REFORMS.—

23 ‘‘(1) COMPREHENSIVE BUSINESS PLAN.—The

24 Corporation shall establish and maintain a com25 prehensive business plan covering the operations of
5

•HR 1340 RH

1 the Corporation, including the disposition of assets,

2 for the remainder of the Corporation’s existence.

3 ‘‘(2) MARKETING REAL PROPERTY ON AN INDI4 VIDUAL BASIS.—The Corporation shall—

5 ‘‘(A) market all assets consisting of real

6 property (other than assets transferred in con7 nection with the transfer of substantially all of

8 the assets of an insured depository institution for

9 which the Corporation has been appointed con10 servator or receiver) on an individual basis, in11 cluding sales by auction, for no fewer than 120

12 days before such assets may be made available

13 for sale or other disposition on a portfolio basis

14 or otherwise included in a multiasset sales ini15 tiative; and

16 ‘‘(B) prescribe regulations—

17 ‘‘(i) to require that the sale or other

18 disposition of any asset consisting of real

19 property on a portfolio basis or in connec20 tion with any multiasset sales initiative

21 after the end of the 120-day period described

22 in subparagraph (A) be justified in writing;

23 and

24 ‘‘(ii) to carry out the requirement of

25 subparagraph (A).
6

•HR 1340 RH

1 ‘‘(3) DISPOSITION OF REAL ESTATE RELATED

2 ASSETS.—

3 ‘‘(A) PROCEDURES FOR DISPOSITION OF

4 REAL-ESTATE RELATED ASSETS.—The Corpora5 tion shall not sell real property or

6 nonperforming real estate loans which the Cor7 poration has acquired as receiver or conservator,

8 unless—

9 ‘‘(i) the Corporation has assigned re10 sponsibility for the management and dis11 position of such assets to a qualified person

12 or entity to—

13 ‘‘(I) analyze each asset on an

14 asset-by-asset basis and consider alter15 native disposition strategies for such

16 asset;

17 ‘‘(II) develop a written manage18 ment and disposition plan; and

19 ‘‘(III) implement that plan for a

20 reasonable period of time; or

21 ‘‘(ii) the Corporation has made a de22 termination in writing, that a bulk trans23 action would maximize net recovery to the

24 Corporation, while providing opportunity

25 for broad participation by qualified bidders,
7

•HR 1340 RH

1 including minority- and women-owned

2 businesses.

3 ‘‘(B) DEFINITIONS.—

4 ‘‘(i) IN GENERAL.—The Corporation

5 may, by regulation, define any term in sub6 paragraph (A) for purposes of such sub7 paragraph.

8 ‘‘(ii) SPECIAL RULE.—In defining

9 terms pursuant to clause (i) for purposes of

10 subparagraph (A), the Corporation may de11 fine—

12 ‘‘(I) the term ‘asset’ so as to in13 clude properties or loans which are le14 gally separate and distinct properties

15 or loans, but which have sufficiently

16 common characteristics such that they

17 may be logically treated as a single

18 asset; and

19 ‘‘(II) the term ‘qualified person or

20 entity’ so as to include any employee

21 of the Thrift Depositor Protection

22 Oversight Board or any employee as23 signed to the Corporation under sub24 section (b)(8).
8

•HR 1340 RH

1 ‘‘(C) IMPLEMENTATION.—The Corporation

2 may implement the requirements of this para3 graph in such manner as the Corporation con4 siders, in the Corporation’s discretion, to be

5 appropriate.

6 ‘‘(D) EXCEPTIONS.—This paragraph shall

7 not apply to—

8 ‘‘(i) assets transferred in connection

9 with the transfer of substantially all the as10 sets of an insured depository institution for

11 which the Corporation has been appointed

12 conservator or receiver;

13 ‘‘(ii) nonperforming real estate loans

14 with a book value equal to or less than

15 $1,000,000;

16 ‘‘(iii) real property with a book value

17 equal to or less than $200,000; or

18 ‘‘(iv) real property with a book value

19 in excess of $200,000 or nonperforming real

20 estate loans with a book value in excess of

21 $1,000,000 for which the Corporation deter22 mines, in writing, that a disposition not in

23 conformity with the requirements of sub24 paragraph (A) will bring a greater return

25 to the Corporation.
9

•HR 1340 RH

1 ‘‘(E) COORDINATION WITH PARAGRAPH

2 (2).—No provision of this paragraph shall super3 sede the requirements of paragraph (2).

4 ‘‘(4) DIVISION OF MINORITIES AND WOMEN’S

5 PROGRAMS.—

6 ‘‘(A) IN GENERAL.—The Corporation shall

7 maintain a division of minorities and women’s

8 programs.

9 ‘‘(B) VICE PRESIDENT.—The head of the di10 vision shall be a vice president of the Corpora11 tion and a member of the executive committee of

12 the Corporation.

13 ‘‘(5) CHIEF FINANCIAL OFFICER.—

14 ‘‘(A) IN GENERAL.—The chief executive offi15 cer of the Corporation shall appoint a chief fi16 nancial officer for the Corporation.

17 ‘‘(B) AUTHORITY.—The chief financial offi18 cer of the Corporation shall—

19 ‘‘(i) have no operating responsibilities

20 with respect to the Corporation other than

21 as chief financial officer;

22 ‘‘(ii) report directly to the chief execu23 tive officer of the Corporation; and

24 ‘‘(iii) have such authority and duties

25 of chief financial officers of agencies under
10

•HR 1340 RH

1 section 902 of title 31, United States Code,

2 as the Thrift Depositor Protection Oversight

3 Board determines to be appropriate with re4 spect to the Corporation.

5 ‘‘(6) BASIC ORDERING AGREEMENTS.—

6 ‘‘(A) REVISION OF PROCEDURES.—The Cor7 poration shall revise the procedure for reviewing

8 and qualifying applicants for eligibility for fu9 ture contracts in a specified service area (com10 monly referred to as ‘basic ordering agreements’

11 or ‘task ordering agreements’) in such manner as

12 may be necessary to ensure that small businesses,

13 minorities, and women are not inadvertently ex14 cluded from eligibility for such contracts.

15 ‘‘(B) REVIEW OF LISTS.—The Corporation

16 shall—

17 ‘‘(i) review all lists of contractors de18 termined to be eligible for future contracts

19 in a specified service area (commonly re20 ferred to as ‘basic ordering agreements’ or

21 ‘task ordering agreements’) and other con22 tracting mechanisms; and

23 ‘‘(ii) prescribe appropriate regulations

24 and procedures,
11

•HR 1340 RH

1 to ensure the maximum participation level pos2 sible of minority- and women-owned businesses.

3 ‘‘(7) IMPROVEMENT OF CONTRACTING SYSTEMS

4 AND CONTRACTOR OVERSIGHT.—The Corporation

5 shall—

6 ‘‘(A) maintain such procedures and uniform

7 standards for—

8 ‘‘(i) entering into contracts between the

9 Corporation and private contractors; and

10 ‘‘(ii) overseeing the performance of con11 tractors and subcontractors under such con12 tracts and compliance by contractors and

13 subcontractors with the terms of contracts

14 and applicable regulations, orders, policies,

15 and guidelines of the Corporation,

16 as may be appropriate for the Corporation’s op17 erations to be carried out in as efficient and eco18 nomical a manner as may be practicable;

19 ‘‘(B) commit sufficient resources, including

20 personnel, to contract oversight and the enforce21 ment of all laws, regulations, orders, policies,

22 and standards applicable to contracts with the

23 Corporation; and

24 ‘‘(C) maintain uniform procurement guide25 lines for basic goods and administrative services
12

•HR 1340 RH

1 to prevent the acquisition of such goods and serv2 ices at widely different prices.

3 ‘‘(8) AUDIT COMMITTEE.—

4 ‘‘(A) ESTABLISHMENT.—The Thrift Deposi5 tor Protection Oversight Board shall establish

6 and maintain an audit committee.

7 ‘‘(B) DUTIES.—The audit committee shall

8 have the following duties:

9 ‘‘(i) Monitor the internal controls of

10 the Corporation.

11 ‘‘(ii) Monitor the audit findings and

12 recommendations of the inspector general of

13 the Corporation and the Comptroller Gen14 eral of the United States and the Corpora15 tion’s response to the findings and rec16 ommendations.

17 ‘‘(iii) Maintain a close working rela18 tionship with the inspector general of the

19 Corporation and the Comptroller General of

20 the United States.

21 ‘‘(iv) Regularly report the findings and

22 any recommendation of the audit committee

23 to the Corporation and the Thrift Depositor

24 Protection Oversight Board.
13

•HR 1340 RH

1 ‘‘(v) Monitor the financial operations

2 of the Corporation and report any incipient

3 problem identified by the audit committee

4 to the Corporation and the Thrift Depositor

5 Protection Oversight Board.

6 ‘‘(9) CORRECTIVE RESPONSES TO AUDIT PROB7 LEMS.—The Corporation shall maintain procedures

8 which provide for a prompt and determinative re9 sponse to problems identified by auditors of the Cor10 poration’s financial and asset-disposition operations,

11 including problems identified in audit reports by the

12 inspector general of the Corporation, the Comptroller

13 General of the United States, and the audit commit14 tee.

15 ‘‘(10) ASSISTANT GENERAL COUNSEL FOR PRO16 FESSIONAL LIABILITY.—

17 ‘‘(A) APPOINTMENT.—The chief executive of18 ficer shall appoint, within the division of legal

19 services of the Corporation, an assistant general

20 counsel for professional liability.

21 ‘‘(B) DUTIES.—The assistant general coun22 sel for professional liability appointed under

23 subparagraph (A) shall—
14

•HR 1340 RH

1 ‘‘(i) direct the investigation, evalua2 tion, and prosecution of all professional li3 ability cases involving the Corporation; and

4 ‘‘(ii) supervise all legal, investigative,

5 and other personnel and contractors in6 volved in the litigation of such claims.

7 ‘‘(C) REPORTS TO THE CONGRESS.—The as8 sistant general counsel for professional liability

9 shall submit semiannual reports to the Congress

10 not later than April 30 and October 31 of each

11 year concerning the activities of the counsel

12 under subparagraph (B).

13 ‘‘(11) MANAGEMENT INFORMATION SYSTEM.—The

14 Corporation shall maintain an effective management

15 information system capable of providing complete and

16 current information to the extent the provision of

17 such information is appropriate and cost-effective.

18 ‘‘(12) INTERNAL CONTROLS AGAINST FRAUD,

19 WASTE, AND ABUSE.—The Corporation shall main20 tain effective internal controls designed to prevent

21 fraud, waste, and abuse, identify any such activity

22 should it occur, and promptly correct any such

23 activity.

24 ‘‘(13) FAILURE TO APPOINT CERTAIN OFFICERS

25 OF THE CORPORATION.—The failure to fill any posi-
15

•HR 1340 RH

1 tion established under this section or any vacancy in

2 any such position, shall be treated as a failure to

3 comply with the requirements of this subsection for

4 purposes of subsection (i)(4).

5 ‘‘(14) REPORTS.—

6 ‘‘(A) DETAILED DISCLOSURE OF EXPENDI7 TURES.—The Corporation shall include in the

8 annual report submitted pursuant to subsection

9 (k)(4) a detailed itemization of the expenditures

10 of the Corporation during the year for which

11 funds provided pursuant to subsection (i)(3)

12 were used.

13 ‘‘(B) PUBLIC DISCLOSURE OF SALARIES.—

14 The Corporation shall include in the annual re15 port submitted pursuant to subsection (k)(4) a

16 disclosure of the salaries and other compensation

17 paid during the year covered by the report to di18 rectors and senior executive officers at any de19 pository institution for which the Corporation

20 has been appointed conservator or receiver.

21 ‘‘(C) COMPREHENSIVE LITIGATION RE22 PORT.—The Corporation shall develop and pro23 vide semiannually a comprehensive litigation re24 port of all civil actions which—
16

•HR 1340 RH

1 ‘‘(i) are filed by the Corporation pur2 suant to section 11(k) of the Federal Deposit

3 Insurance Act or any other provision of ap4 plicable law asserted by the Corporation as

5 a basis for liability of—

6 ‘‘(I) directors or officers of deposi7 tory institutions described in sub8 section (b)(3)(A); or

9 ‘‘(II) attorneys, accountants, ap10 praisers, or other licensed professionals

11 who performed professional services for

12 such depository institutions; and

13 ‘‘(ii) have been filed before January 1,

14 1993, and remain open, or are initiated, on

15 or after January 1, 1993.

16 ‘‘(15) MINORITY- AND WOMEN-OWNED BUSI17 NESSES CONTRACT PARITY GUIDELINES.—The Cor18 poration shall establish guidelines for achieving a rea19 sonably even distribution of contracts awarded to the

20 various subgroups of the class of minority- and

21 women-owned businesses whose total number of reg22 istered contractors comprise not less than five percent

23 of all minority- or women-owned registered contrac24 tors.
17

•HR 1340 RH

1 ‘‘(16) CONDITIONS ON DISCRETIONARY WAIVERS

2 OF CONFLICTS OF INTEREST.—The Corporation may

3 not grant any waiver from the requirements of any

4 regulations prescribed by the Corporation relating to

5 conflicts of interest to any minority or nonminority

6 contractor who is otherwise eligible (under such regu7 lations) for such waiver unless the contractor is under

8 subcontract with a minority- or women-owned busi9 ness, or is part of a joint venture described in sub10 section (r)(2), for the performance of a portion of the

11 contractor’s obligation under the contract.

12 ‘‘(17) CONTRACT SANCTIONS FOR FAILURE TO

13 COMPLY WITH SUBCONTRACT AND JOINT VENTURE RE14 QUIREMENTS.—The Corporation shall prescribe regu15 lations which provide sanctions, including contract

16 penalties and suspensions, for violations by contrac17 tors of requirements relating to subcontractors and

18 joint ventures.

19 ‘‘(18) MINORITY PRIORITY IN ACQUISITION OF IN20 STITUTIONS IN PREDOMINANTLY MINORITY NEIGHBOR21 HOODS.—

22 ‘‘(A) IN GENERAL.—In considering offers to

23 acquire any insured depository institution, or

24 any branch of an insured depository institution,

25 located in a predominantly minority neighbor-
18

•HR 1340 RH

1 hood (as defined in regulations prescribed under

2 subsection (s)), the Corporation shall give a first

3 priority to an offer from any minority individ4 ual, minority-owned business, or a minority de5 pository institution.

6 ‘‘(B) COORDINATION WITH SUBSECTION

7 (u).—Any offer from any minority individual,

8 minority-owned business, or a minority deposi9 tory institution to acquire any depository insti10 tution or branch described in subparagraph (A)

11 shall be eligible for capital assistance under the

12 minority interim capital assistance program es13 tablished under subsection (u)(1).

14 ‘‘(C) PERFORMING ASSETS.—In the case of

15 an acquisition of any depository institution or

16 branch described in subparagraph (A) by any

17 minority individual, minority-owned business,

18 or a minority depository institution, the Cor19 poration may provide, in connection with such

20 acquisition and in addition to performing assets

21 of the depository institution or branch, other per22 forming assets under the control of the Corpora23 tion in an amount (as determined on the basis

24 of the Corporation’s estimate of the fair market

25 value of the assets) not greater than the amount
19

•HR 1340 RH

1 of net liabilities carried on the books of the insti2 tution or branch, including deposits, which are

3 assumed in connection with the acquisition.

4 ‘‘(D) FIRST PRIORITY FOR DISPOSITION OF

5 ASSETS.—In the case of an acquisition of any

6 depository institution or branch described in

7 subparagraph (A) by any minority individual,

8 minority-owned business, or a minority deposi9 tory institution, the disposition of the perform10 ing assets of the depository institution or branch

11 to such individual, business, or minority deposi12 tory institution shall have a first priority over

13 the disposition by the Corporation of such assets

14 for any other purpose.

15 ‘‘(E) APPLICABILITY OF LEAST-COST

16 TEST.—

17 ‘‘(i) IN GENERAL.—Section 13(c)(4)(A)

18 of the Federal Deposit Insurance Act shall

19 not apply with respect to any action by the

20 Corporation under this paragraph.

21 ‘‘(ii) DUTY OF CORPORATION TO CON22 DUCT TRANSACTIONS IN LEAST-COSTLY MAN23 NER.—The Corporation shall take such ac24 tion as may be appropriate to ensure that

25 any transaction under this paragraph is
20

•HR 1340 RH

1 carried out at the least possible cost to the

2 Corporation as may be practicable.

3 ‘‘(F) DEFINITIONS.—For purposes of this

4 paragraph—

5 ‘‘(i) ACQUIRE.—The term ‘acquire’ has

6 the meaning given to such term in section

7 13(f)(8)(B) of the Federal Deposit Insurance

8 Act.

9 ‘‘(ii) MINORITY.—The term ‘minority’

10 has the meaning given to such term in sec11 tion 1204(c)(3) of the Financial Institutions

12 Reform, Recovery and Enforcement Act of

13 1989.

14 ‘‘(ii) MINORITY DEPOSITORY INSTITU15 TION.—The term ‘minority depository insti16 tution’ has the meaning given to such term

17 in subsection (s)(2).

18 ‘‘(iv) MINORITY-OWNED BUSINESS.—

19 The term ‘minority-owned business’ has the

20 meaning given to such term in subsection

21 (r)(4).

22 ‘‘(19) SUBCONTRACTS WITH MINORITY- AND

23 WOMEN-OWNED BUSINESSES.—

24 ‘‘(A) IN GENERAL.—The Corporation may

25 not enter into any contract for the provision of
21

•HR 1340 RH

1 services to the Corporation, including legal serv2 ices, under which the contractor would receive

3 fees or other compensation or remuneration in

4 an amount equal to or greater than $500,000

5 unless the Corporation requires the contractor to

6 subcontract with any minority- or women-owned

7 business, including any law firm, and to pay

8 fees or other compensation or remuneration to

9 such business in an amount commensurate with

10 the percentage of services provided by the busi11 ness.

12 ‘‘(B) LIMITED WAIVER AUTHORITY.—

13 ‘‘(i) IN GENERAL.—The Corporation

14 may grant a waiver from the application of

15 this paragraph to any contractor with re16 spect to a contract described in subpara17 graph (A) if the contractor certifies to the

18 Corporation that the contractor has deter19 mined that no eligible minority- or women20 owned business is available to enter into a

21 subcontract (with respect to such contract)

22 and provides an explanation of the basis for

23 such determination.

24 ‘‘(ii) WAIVER PROCEDURES.—Any de25 termination to grant a waiver under clause
22

•HR 1340 RH

1 (i) shall be made in writing by the chief ex2 ecutive officer of the Corporation.

3 ‘‘(C) REPORT.—Each quarterly report sub4 mitted by the Corporation pursuant to subsection

5 (k)(7) shall contain a description of each waiver

6 granted under subparagraph (B) during the

7 quarter covered by the report.

8 ‘‘(D) DEFINITIONS.—For the purposes of

9 this paragraph—

10 ‘‘(i) MINORITY.—The term ‘minority’

11 has the meaning given to such term by sec12 tion 1204(c)(3) of the Financial Institutions

13 Reform, Recovery, and Enforcement Act of

14 1989.

15 ‘‘(ii) MINORITY- AND WOMEN-OWNED

16 BUSINESS.—The terms ‘minority-owned

17 business’ and ‘women-owned business’ have

18 the meaning given to such terms in sub19 section (r)(4).’’.

20 (b) BORROWER APPEALS.—Section 21A(b)(4) of the

21 Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(4)) is

22 amended by adding at the end the following new subpara23 graph:

24 ‘‘(C) APPEALS.—The Corporation shall im25 plement and maintain a program, in a manner
23

•HR 1340 RH

1 acceptable to the Thrift Depositor Protection

2 Oversight Board, to provide an appeals process

3 for business and commercial borrowers to appeal

4 decisions by the Corporation (when acting as a

5 conservator) which would have the effect of ter6 minating or otherwise adversely affecting credit

7 or loan agreements, lines of credit, and similar

8 arrangements with such borrowers who have not

9 defaulted on their obligations.’’.

10 (c) GAO STUDY OF PROGRESS OF IMPLEMENTATION

11 OF REFORMS.—

12 (1) STUDY REQUIRED.—The Comptroller General

13 of the United States shall conduct a study of the man14 ner in which the reforms required pursuant to the

15 amendment made by subsection (a) are being imple16 mented by the Resolution Trust Corporation and the

17 progress being made by the Corporation toward the

18 achievement of full compliance with such require19 ments.

20 (2) INTERIM REPORT TO CONGRESS.—Not later

21 than 6 months after the date of the enactment of this

22 Act, the Comptroller General of the United States

23 shall submit an interim report to the Congress con24 taining the preliminary findings of the Comptroller
24

•HR 1340 RH

1 General in connection with the study required under

2 paragraph (1).

3 (3) FINAL REPORT TO CONGRESS.—Not later

4 than 1 year after the date of the enactment of this

5 Act, the Comptroller General of the United States

6 shall submit a report to the Congress containing—

7 (A) the findings of the Comptroller General

8 in connection with the study required under

9 paragraph (1); and

10 (B) such recommendations for legislative

11 and administrative action as the Comptroller

12 General may determine to be appropriate.

13 (4) DISCLOSURE OF PERFORMING ASSET TRANS14 FERS.—

15 (A) REPORT REQUIRED.—The Comptroller

16 General of the United States shall submit an an17 nual report to the Congress on transfers of per18 forming assets by the Corporation to any

19 acquirer during the year covered by the report.

20 (B) CONTENTS.—Each report submitted

21 under subparagraph (A) shall contain—

22 (i) the number and a detailed descrip23 tion of asset transfers during the year cov24 ered by the report;
25

•HR 1340 RH

1 (ii) the number of assets provided in

2 connection with each transaction during

3 such year; and

4 (iii) the fair market value, as deter5 mined by the Comptroller General, of each

6 transferred asset at the time of transfer.

7 SEC. 4. EXTENSION OF STATUTE OF LIMITATIONS.

8 (a) RESOLUTION TRUST CORPORATION.—Section

9 11(d)(14) of the Federal Deposit Insurance Act (12 U.S.C.

10 1821(d)(14)) is amended—

11 (1) in subparagraph (A)(ii), by inserting ‘‘except

12 as provided in subparagraph (B),’’ before ‘‘in the case

13 of’’;

14 (2) by redesignating subparagraph (B) as sub15 paragraph (C);

16 (3) by inserting after subparagraph (A) the fol17 lowing new subparagraph:

18 ø‘‘(B) TORT ACTIONS BROUGHT BY THE

19 RTC.—The applicable statute of limitations with

20 regard to any action in tort, other than neg21 ligence, brought by the Resolution Trust Cor22 poration in such Corporation’s capacity as con23 servator or receiver of a failed savings associa24 tion¿ ‘‘(B) CERTAIN ACTIONS BROUGHT BY

25 THE RESOLUTION TRUST CORPORATION.—
26

•HR 1340 RH

1 The applicable statute of limitations

2 with regard to any action for fraud or

3 intentional misconduct resulting in

4 unjust enrichment brought by the

5 Resolution Trust Corporation in its

6 capacity as conservator or receiver of

7 a failed savings association shall be the

8 longer of—

9 ‘‘(i) the 5-year period beginning on the

10 date the claim accrues; or

11 ‘‘(ii) the period applicable under State

12 law;’’; and

13 (4) in subparagraph (C), as redesignated—

14 (A) by striking ‘‘subparagraph (A)’’ and in15 serting ‘‘subparagraphs (A) and (B)’’; and

16 (B) by inserting ‘‘any’’ before ‘‘such sub17 paragraph’’.

18 (b) EFFECTIVE DATE; TERMINATION; FDIC AS SUC19 CESSOR.—

20 (1) EFFECTIVE DATE.—The amendments made

21 by subsection (a) shall take effect as if such amend22 ments had been included in the amendment made by

23 section 212(a) of the Financial Institutions Reform,

24 Recovery, and Enforcement Act of 1989, as of the ef25 fective date of such amendment.
27

•HR 1340 RH

1 (2) SUNSET PROVISION.—Section 11(d)(14)(B) of

2 the Federal Deposit Insurance Act (as amended by

3 subsection (a) of this section) shall cease to apply as

4 of the date of the termination of the Resolution Trust

5 Corporation.

6 (3) FDIC AS SUCCESSOR TO THE RTC.—The

7 Federal Deposit Insurance Corporation, as successor

8 to the Resolution Trust Corporation, shall have the

9 right to pursue any tort action to which the amend10 ment made by subsection (a) applies that was prop11 erly brought by the Resolution Trust Corporation be12 fore the termination of the Resolution Trust Corpora13 tion.

14 SEC. 5. LIMITATION ON BONUSES AND COMPENSATION

15 PAID BY THE RTC AND THE THRIFT DEPOSI16 TOR PROTECTION OVERSIGHT BOARD.

17 (a) IN GENERAL.—Section 21A of the Federal Home

18 Loan Bank Act (12 U.S.C. 1441a) is amended by adding

19 after subsection (w) (as added by section 3(a) of this Act)

20 the following new subsections:

21 ‘‘(x) PERFORMANCE-BASED CASH AWARDS.—

22 ‘‘(1) ESTABLISHMENT OF PERFORMANCE AP23 PRAISAL SYSTEM REQUIRED.—The Corporation shall

24 be treated as an agency for purposes of sections 4302

25 and 4304 of title 5, United States Code.
28

•HR 1340 RH

1 ‘‘(2) PROCEDURES FOR PAYMENT OF PERFORM2 ANCE-BASED CASH AWARDS.—

3 ‘‘(A) IN GENERAL.—Section 4505a of title

4 5, United States Code, shall apply with respect

5 to the Corporation.

6 ‘‘(B) LIMITATION ON AMOUNT OF CASH

7 AWARDS.—For purposes of determining the

8 amount of any performance-based cash award

9 payable to any employee of the Corporation,

10 under section 4505a of title 5, United States

11 Code, the amount of basic pay of the employee

12 which may be taken into account under such sec13 tion shall not exceed the amount which is equal

14 to the annual rate of basic pay payable for level

15 I of the Executive Schedule.

16 ‘‘(3) ALL OTHER BONUSES PROHIBITED.—Except

17 as provided in paragraph (2), no bonus or other cash

18 payment based on performance may be made to any

19 employee of the Corporation.

20 ‘‘(4) EMPLOYEE DEFINED.—For purposes of this

21 subsection, subsection (y), and sections 4302 and

22 4505a of title 5, United States Code (as applicable

23 with respect to this subsection), the term ‘employee’

24 includes any officer or employee assigned to the Cor25 poration under subsection (b)(8) and any officer or
29

•HR 1340 RH

1 employee of the Thrift Depositor Protection Oversight

2 Board.

3 ‘‘(y) LIMITATIONS ON EXCESSIVE COMPENSATION.—

4 ‘‘(1) COMPENSATION.—Notwithstanding any

5 other provision of this section, no employee (as de6 fined in subsection (x)) may receive a total amount

7 of allowances, benefits, basic pay, and other com8 pensation, including bonuses and other awards, in ex9 cess of the total amount of allowances, benefits, basic

10 pay, and other compensation, including bonuses and

11 other awards, which are provided to the chief execu12 tive officer of the Corporation.

13 ‘‘(2) NO REDUCTION IN RATE OF PAY.—Notwith14 standing paragraph (1), the annual rate of basic pay

15 and benefits, including any regional pay differential,

16 payable to any employee who was an employee as of

17 the date of the enactment of the Resolution Trust Cor18 poration Completion Act for any year ending after

19 such date of enactment shall not be reduced, by reason

20 of paragraph (1), below the annual rate of basic pay

21 and benefits, including any regional pay differential,

22 paid to such employee, by reason of such employment,

23 as of such date.

24 ‘‘(3) EMPLOYEES SERVING IN ACTING OR TEM25 PORARY CAPACITY.—Notwithstanding paragraph (1),
30

•HR 1340 RH

1 in the case of any employee who, as of the date of the

2 enactment of the Resolution Trust Corporation Com3 pletion Act, is serving in an acting capacity or is

4 otherwise temporarily employed at a higher grade

5 than such employee’s regular grade or position of em6 ployment—

7 ‘‘(A) the annual rate of basic pay and bene8 fits, including any regional pay differential,

9 payable to such employee in such capacity or at

10 such higher grade shall not be reduced by reason

11 of paragraph (1) so long as such employee con12 tinues to serve in such capacity or at such higher

13 grade; and

14 ‘‘(B) after such employee ceases to serve in

15 such capacity or at such higher grade, para16 graph (2) shall be applied with respect to such

17 employee by taking into account only the annual

18 rate of basic pay and benefits, including any re19 gional pay differential, payable to such employee

20 in such employee’s regular grade or position of

21 employment.

22 ‘‘(4) ALLOWANCES DEFINED.—For purposes of

23 paragraph (1), the term ‘allowances’ does not include

24 any allowance for travel and subsistence expenses in-
31

•HR 1340 RH

1 curred by an employee while away from home or des2 ignated post of duty on official business.’’.

3 (b) TECHNICAL AND CONFORMING AMENDMENT.—

4 (1) Section 5314 of title 5, United States Code,

5 is amended by striking the item added to such section

6 by section 315(c) of the Resolution Trust Corporation

7 Refinancing, Restructuring, and Improvement Act of

8 1991.

9 (2) Section 21A(a)(6) of the Federal Home Loan

10 Bank Act (12 U.S.C. 1441a(a)(6)) is amended by

11 adding at the end the following new subparagraph:

12 ‘‘(K) To establish the rate of basic pay, ben13 efits, and other compensation for the chief execu14 tive officer of the Corporation.’’.

15 SEC. 6. FDIC—RTC TRANSITION TASK FORCE.

16 (a) ESTABLISHMENT REQUIRED.—The Federal De17 posit Insurance Corporation and the Resolution Trust Cor18 poration shall establish an interagency transition task force

19 for the purpose of facilitating the transfer, in accordance

20 with section 21A of the Federal Home Loan Bank Act, of

21 the operations and personnel of the Resolution Trust Cor22 poration to the Federal Deposit Insurance Corporation or

23 the FSLIC Resolution Fund, as the case may be, in a co24 ordinated manner which best preserves and utilizes the

25 operational systems and personnel teams of the Resolution
32

•HR 1340 RH

1 Trust Corporation which have successfully performed man2 agement, conservatorship, receivership, or asset-disposition

3 functions.

4 (b) MEMBERS.—

5 (1) IN GENERAL.—The transition task force shall

6 consist of such number of officers and employees of the

7 Federal Deposit Insurance Corporation and the Reso8 lution Trust Corporation as the Chairperson of the

9 Board of Directors of the Federal Deposit Insurance

10 Corporation and the chief executive officer of the Res11 olution Trust Corporation may jointly determine to

12 be appropriate.

13 (2) APPOINTMENT.—The Chairperson of the

14 Board of Directors of the Federal Deposit Insurance

15 Corporation and the chief executive officer of the Res16 olution Trust Corporation shall appoint the members

17 of the transition task force.

18 (3) NO ADDITIONAL PAY.—Members of the transi19 tion task force shall receive no additional pay, allow20 ances, or benefits by reason of their service on the task

21 force.

22 (c) DUTIES.—The transition task force shall have the

23 following duties:

24 (1) Examine the operations of the Federal De25 posit Insurance Corporation and the Resolution Trust
33

•HR 1340 RH

1 Corporation to identify differences in the operations

2 of the 2 corporations which should be resolved to fa3 cilitate an orderly merger of such operations.

4 (2) Evaluate the differences in the operational

5 systems of the Federal Deposit Insurance Corporation

6 and the Resolution Trust Corporation.

7 (3) Recommend which of the operational systems

8 of the Resolution Trust Corporation should be pre9 served for use by the Federal Deposit Insurance Cor10 poration.

11 (4) Recommend procedures to be followed by the

12 Federal Deposit Insurance Corporation and the Reso13 lution Trust Corporation in connection with the tran14 sition which will promote—

15 (A) coordination between the 2 corporations

16 before the termination of the Resolution Trust

17 Corporation; and

18 (B) an orderly transfer of assets, personnel,

19 and operations.

20 (5) Evaluate the management enhancement goals

21 applicable to the Resolution Trust Corporation under

22 section 21A(p) of the Federal Home Loan Bank Act

23 and recommend which of such goals should apply to

24 the Federal Deposit Insurance Corporation.
34

•HR 1340 RH

1 (6) Evaluate the management reforms applicable

2 to the Resolution Trust Corporation under section

3 21A(w) of the Federal Home Loan Bank Act and rec4 ommend which of such reforms should apply to the

5 Federal Deposit Insurance Corporation.

6 (d) REPORTS TO BANKING COMMITTEES.—

7 (1) REPORTS REQUIRED.—The transition task

8 force shall submit a report to the Committee on Bank9 ing, Finance and Urban Affairs of the House of Rep10 resentative and the Committee on Banking, Housing,

11 and Urban Affairs of the Senate no later than Janu12 ary 1, 1995, and a 2d report no later than July 1,

13 1995, on the progress made by the transition task

14 force in meeting the requirements of this section.

15 (2) CONTENTS OF REPORT.—The reports re16 quired to be submitted under paragraph (1) shall con17 tain the findings and recommendations made by the

18 transition task force in carrying out the duties of the

19 task force under subsection (c) and such recommenda20 tions for legislative and administrative action as the

21 task force may determine to be appropriate.

22 (e) FOLLOWUP REPORT BY FDIC.—Not later than

23 January 1, 1996, the Federal Deposit Insurance Corpora24 tion shall submit a report to the Committee on Banking,

25 Finance and Urban Affairs of the House of Representative
35

•HR 1340 RH

1 and the Committee on Banking, Housing, and Urban Af2 fairs of the Senate containing—

3 (1) a description of the recommendations of the

4 transition task force which have been adopted by the

5 Corporation;

6 (2) a description of the recommendations of the

7 transition task force which have not been adopted by

8 the Corporation;

9 (3) a detailed explanation of the reasons why the

10 Corporation did not adopt each recommendation de11 scribed in paragraph (2); and

12 (4) a description of the actions taken by the Cor13 poration to comply with section 21A(m)(3) of the

14 Federal Home Loan Bank Act.

15 SEC. 7. AMENDMENTS RELATING TO THE TERMINATION OF

16 THE RTC.

17 (a) AMENDMENT RELATING TO TRANSFER OF PERSON18 NEL AND SYSTEMS.—Section 21A(m) of the Federal Home

19 Loan Bank Act (12 U.S.C. 1441a(m)) is amended by add20 ing at the end the following new paragraph:

21 ‘‘(3) TRANSFER OF PERSONNEL AND SYSTEMS.—

22 In connection with the assumption by the Federal De23 posit Insurance Corporation of conservatorship and

24 receivership functions with respect to institutions de-
36

•HR 1340 RH

1 scribed in subsection (b)(3)(A) and the termination of

2 the Corporation pursuant to paragraph (1)—

3 ‘‘(A) any management, resolution, or asset4 disposition system of the Corporation which the

5 Secretary of the Treasury determines, after con6 sidering the recommendations of the interagency

7 transfer task force under section 5(c)(3) of the

8 Resolution Trust Corporation Completion Act,

9 has been of positive benefit to the operations of

10 the Corporation (including any personal prop11 erty of the Corporation which is used in operat12 ing any such system) shall, notwithstanding

13 paragraph (2), be transferred to and used by the

14 Federal Deposit Insurance Corporation in a

15 manner which preserves the integrity of the sys16 tem for so long as such system is efficient and

17 cost-effective; and

18 ‘‘(B) any personnel of the Corporation in19 volved with any such system who are otherwise

20 eligible to be transferred to the Federal Deposit

21 Insurance Corporation shall be transferred to the

22 Federal Deposit Insurance Corporation for con23 tinued employment, subject to section 404(9) of

24 the Financial Institutions Reform, Recovery,

25 and Enforcement Act of 1989 and other applica-
37

•HR 1340 RH

1 ble provisions of this section, with respect to such

2 system.’’.

3 (b) AMENDMENT RELATING TO DATE OF TERMI4 NATION.—Section 21A(m)(1) of the Federal Home Loan

5 Bank Act (12 U.S.C. 1441a(m)(1)) is amended by striking

6 ‘‘December 31, 1996’’ and inserting ‘‘December 31, 1995’’.

7 SEC. 8. SAIF FUNDING AUTHORIZATION AMENDMENTS.

8 (a) AMENDMENT TO SAIF FUNDING PROVISION.—Sec9 tion 11(a)(6)(D) of the Federal Deposit Insurance Act (12

10 U.S.C. 1821(a)(6)(D)) is amended to read as follows:

11 ‘‘(D) TREASURY PAYMENTS TO FUND.—To

12 the extent of the availability of amounts provided

13 in appropriation Acts and subject to subpara14 graphs (E) and (G), the Secretary of the Treas15 ury shall pay to the Savings Association Insur16 ance Fund such amounts as may be needed to

17 pay losses incurred by the Fund in fiscal years

18 1994 through 1998.’’.

19 (b) CERTIFICATION OF NEED FOR FUNDS AND OTHER

20 CONDITIONS ON SAIF FUNDING.—Section 11(a)(6)(E) of

21 the Federal Deposit Insurance Act (12 U.S.C.

22 1821(a)(6)(E)) is amended to read as follows:

23 ‘‘(E) CERTIFICATION CONDITIONS ON AVAIL24 ABILITY OF FUNDING.—Notwithstanding sub25 paragraph (J), no amount is authorized to be
38

•HR 1340 RH

1 appropriated for payments by the Secretary of

2 the Treasury in accordance with subparagraph

3 (D) for any fiscal year unless the Chairperson of

4 the Board of Directors certifies to the Congress,

5 at any time before the beginning of or during

6 such fiscal year, that—

7 ‘‘(i) such amount is needed to pay for

8 losses which can reasonably be expected to

9 be incurred by the Savings Association In10 surance Fund during such year;

11 ‘‘(ii) the Board of Directors has deter12 mined that—

13 ‘‘(I) Savings Association Insur14 ance Fund members, in the aggregate,

15 are unable to pay additional semi16 annual assessments under section 7(b)

17 during such year at the assessment

18 rates which would be required in order

19 to cover, from such additional assess20 ments, losses incurred by the Fund

21 during such year; and

22 ‘‘(II) an increase in the assess23 ment rates for Savings Association In24 surance Fund members to cover such

25 losses could reasonably be expected to
39

•HR 1340 RH

1 result in greater losses to the Govern2 ment (through an increase in the num3 ber of institutions in default);

4 ‘‘(iii) the Board of Directors has deter5 mined that—

6 ‘‘(I) Savings Association Insur7 ance Fund members, in the aggregate,

8 are unable to pay additional semi9 annual assessments under section 7(b)

10 during such year at the assessment

11 rates which would be required in order

12 to meet the repayment schedule re13 quired under section 14(c) for any

14 amount borrowed under section 14(a)

15 to cover losses incurred by the Fund

16 during such year; and

17 ‘‘(II) an increase in the assess18 ment rates for Savings Association In19 surance Fund members to meet any

20 such repayment schedule could reason21 ably be expected to result in greater

22 losses to the Government (through an

23 increase in the number of institutions

24 in default);
40

•HR 1340 RH

1 ‘‘(iv) as of the date of certification, the

2 Corporation has in effect procedures de3 signed to ensure that the activities of the

4 Savings Association Insurance Fund and

5 the affairs of any Savings Association In6 surance Fund member for which a conserva7 tor or receiver has been appointed are con8 ducted in an efficient manner and the Cor9 poration is in compliance with such proce10 dures; and

11 ‘‘(v) with respect to the most recent

12 audit of the Savings Association Insurance

13 Fund by the Comptroller General of the

14 United States before the date of the certifi15 cation—

16 ‘‘(I) the Corporation has taken or

17 is taking appropriate action to imple18 ment any recommendation made by

19 the Comptroller General; or

20 ‘‘(II) no corrective action is nec21 essary or appropriate as a result of

22 such audit.’’.

23 (c) AVAILABILITY OF UNEXPENDED RTC FUNDING

24 FOR SAIF.—Section 11(a)(6)(F) of the Federal Deposit In-
41

•HR 1340 RH

1 surance Act (12 U.S.C. 1821(a)(6)(F)) is amended to read

2 as follows:

3 ‘‘(F) AVAILABILITY OF RTC FUNDING.—At

4 any time before the end of the 2-year period be5 ginning on the date of the termination of the

6 Resolution Trust Corporation, the Secretary of

7 the Treasury shall provide, out of funds appro8 priated to the Resolution Trust Corporation pur9 suant to section 21A(i)(3) of the Federal Home

10 Loan Bank Act and not expended by the Resolu11 tion Trust Corporation, to the Savings Associa12 tion Insurance Fund for any year such amounts

13 as are needed by the Fund and are not needed

14 by the Resolution Trust Corporation if the

15 Chairperson of the Board of Directors has cer16 tified to the Congress that—

17 ‘‘(i) such amounts are needed by the

18 Savings Association Insurance Fund;

19 ‘‘(ii) any amount transferred shall be

20 used only for losses incurred by the Fund;

21 ‘‘(iii) the Board of Directors has deter22 mined that—

23 ‘‘(I) Savings Association Insur24 ance Fund members, in the aggregate,

25 are unable to pay additional semi-
42

•HR 1340 RH

1 annual assessments under section 7(b)

2 during such year at the assessment

3 rates which would be required in order

4 to cover, from such additional assess5 ments, losses incurred by the Fund

6 during such year; and

7 ‘‘(II) an increase in the assess8 ment rates for Savings Association In9 surance Fund members to cover such

10 losses could reasonably be expected to

11 result in greater losses to the Govern12 ment (through an increase in the num13 ber of institutions in default); and

14 ‘‘(iv) the Board of Directors has deter15 mined that—

16 ‘‘(I) Savings Association Insur17 ance Fund members, in the aggregate,

18 are unable to pay additional semi19 annual assessments under section 7(b)

20 during such year at the assessment

21 rates which would be required in order

22 to meet the repayment schedule re23 quired under section 14(c) for any

24 amount borrowed under section 14(a)
43

•HR 1340 RH

1 to cover losses incurred by the Fund

2 during such year; and

3 ‘‘(II) an increase in the assess4 ment rates for Savings Association In5 surance Fund members to meet any

6 such repayment schedule could reason7 ably be expected to result in greater

8 losses to the Government (through an

9 increase in the number of institutions

10 in default).’’.

11 (d) APPEARANCES BEFORE THE BANKING COMMIT12 TEES.—Section 11(a)(6)(H) of the Federal Deposit Insur13 ance Act (12 U.S.C. 1821(a)(6)(H)) is amended to read as

14 follows:

15 ‘‘(H) APPEARANCE UPON REQUEST.—The

16 Secretary of the Treasury and the Chairperson of

17 the Board of Directors of the Federal Deposit In18 surance Corporation shall appear before the

19 Committee on Banking, Finance and Urban Af20 fairs of the House of Representatives and the

21 Committee on Banking, Housing, and Urban Af22 fairs of the Senate, upon the request of the chair23 man of the respective committee, to report on

24 any certification made to the Congress under

25 subparagraph (E) or (F).’’.
44

•HR 1340 RH

1 (e) AMENDMENTS TO AUTHORIZATION OF APPROPRIA2 TION.—Section 11(a)(6)(J) of the Federal Deposit Insur3 ance Act (12 U.S.C. 1821(a)(6)(J)) is amended—

4 (1) by striking ‘‘There are’’ and inserting ‘‘Sub5 ject to subparagraph (E), there are’’; and

6 (2) by striking ‘‘of this paragraph, except’’ and

7 all that follows through the period and inserting the

8 following: ‘‘of subparagraph (D) for fiscal years 1994

9 through 1998, except that the aggregate amount ap10 propriated pursuant to this authorization may not

11 exceed $16,000,000,000.’’.

12 (f) RETURN OF TRANSFERRED AND UNEXPENDED

13 AMOUNTS TO TREASURY.—Section 11(a)(6) of the Federal

14 Deposit Insurance Act (12 U.S.C. 1821(a)(6)) is amended

15 by adding at the end the following new subparagraph:

16 ‘‘(K) RETURN TO TREASURY.—If the aggre17 gate amount of funds transferred to the Savings

18 Association Insurance Fund under subparagraph

19 (D) or (F) exceeds the amount needed to cover

20 losses incurred by the Fund, such excess amount

21 shall be deposited in the general fund of the

22 Treasury.’’.

23 (g) TECHNICAL AND CONFORMING AMENDMENTS.—

24 (1) Section 11(a)(6)(G) of the Federal Deposit

25 Insurance Act (12 U.S.C. 1821(a)(6)(G)) is amended
45

•HR 1340 RH

1 by striking ‘‘subparagraphs (E) and (F)’’ and insert2 ing ‘‘subparagraph (D)’’.

3 (2) The heading of section 11(a)(6)(G) of the

4 Federal Deposit Insurance Act (12 U.S.C.

5 1821(a)(6)(G)) is amended by striking ‘‘SUBPARA6 GRAPHS (E) AND (F)’’ and inserting ‘‘SUBPARAGRAPH

7 (D)’’.

8 SEC. 9. MORATORIUM EXTENSION.

9 (a) CONVERSION MORATORIUM UNTIL SAIF RECAPI10 TALIZED.—Section 5(d)(2)(A)(ii) of the Federal Deposit In11 surance Act is amended—

12 (1) by striking ‘‘before the end’’ and inserting

13 ‘‘before the later of the end’’; and

14 (2) by inserting ‘‘or the date on which the Sav15 ings Association Insurance Fund first meets or ex16 ceeds the designated reserve ratio for such fund’’ be17 fore the period.

18 (b) CLARIFICATION OF DEFINITION.—Section

19 5(d)(2)(B) of the Federal Deposit Insurance Act (12 U.S.C.

20 1815(d)(2)(B)) is amended—

21 (1) by striking the period at the end of clause

22 (iv) and inserting ‘‘; and’’; and

23 (2) by adding at the end the following new

24 clause:

25 ‘‘(v) the transfer of deposits—
46

•HR 1340 RH

1 ‘‘(I) from a Bank Insurance Fund

2 member to a Savings Association In3 surance Fund member; or

4 ‘‘(II) from a Savings Association

5 Insurance Fund member to a Bank In6 surance Fund member,

7 in a transaction in which the deposit is re8 ceived from a depositor at an insured depos9 itory institution for which a receiver has

10 been appointed and the receiving insured

11 depository institution is acting as agent for

12 the Corporation in connection with the pay13 ment of such deposit to the depositor at the

14 institution for which a receiver has been ap15 pointed.’’.

16 (c) TECHNICAL AND CONFORMING AMENDMENTS.—

17 Clauses (ii) and (iii) of section 5(d)(2)(C) of the Federal

18 Deposit Insurance Act and section 5(d)(3)(I)(i) of such Act

19 are each amended by striking ‘‘5-year period referred to in’’

20 and inserting ‘‘moratorium period established by’’.

21 SEC. 10. REPAYMENT SCHEDULE FOR PERMANENT FDIC

22 BORROWING AUTHORITY.

23 Section 14(c) of the Federal Deposit Insurance Act (12

24 U.S.C. 1824(c)) is amended by adding the following new

25 paragraph:
47

•HR 1340 RH

1 ‘‘(3) INDUSTRY REPAYMENT.—

2 ‘‘(A) BIF MEMBER PAYMENTS.—No agree3 ment or repayment schedule under paragraph

4 (1) shall require any payment by a Bank Insur5 ance Fund member for funds obtained under

6 subsection (a) for purposes of the Savings Asso7 ciation Fund.

8 ‘‘(B) SAIF MEMBER PAYMENTS.—No agree9 ment or repayment schedule under paragraph

10 (1) shall require any payment by a Savings As11 sociation Insurance Fund member for funds ob12 tained under subsection (a) for purposes of the

13 Bank Insurance Fund.’’.

14 SEC. 11. DEPOSIT INSURANCE FUNDS.

15 Section 11(a)(4) of the Federal Deposit Insurance Act

16 (12 U.S.C. 1821(a)(4)) is amended—

17 (1) by striking ‘‘and’’ at the end of subpara18 graph (B);

19 (2) in subparagraph (C) by striking the period

20 and inserting ‘‘; and’’; and

21 (3) by adding at the end the following new sub22 paragraph:

23 ‘‘(D) notwithstanding any other provision

24 of law other than section 13(c)(4)(G), used only

25 for the purposes of protecting insured depositors
48

•HR 1340 RH

1 and shall not be used in any manner to benefit

2 shareholders of an insured depository institution

3 in connection with any type of resolution by the

4 Corporation or the Resolution Trust Corporation

5 of any insured depository institution for which

6 the Corporation or the Resolution Trust Cor7 poration has been appointed conservator or re8 ceiver or any other insured depository institu9 tion in default under any provision of law, or

10 the provision of assistance in any form under

11 this section or section 12 or 13.’’.

12 SEC. 12. MAXIMUM DOLLAR LIMITS FOR ELIGIBLE CON13 DOMINIUM AND SINGLE FAMILY PROPERTIES

14 UNDER RTC AFFORDABLE HOUSING PRO15 GRAM.

16 Section 21A(c)(9) of the Federal Home Loan Bank Act

17 (12 U.S.C. 1441a(c)(9)) is amended—

18 (1) in subparagraph (D), by striking clause (ii)

19 and inserting the following new clause:

20 ‘‘(ii) that has an appraised value that

21 does not exceed—

22 ‘‘(I) $67,500 in the case of a 1-

23 family residence, $76,000 in the case of

24 a 2-family residence, $92,000 in the

25 case of a 3-family residence, and
49

•HR 1340 RH

1 $107,000 in the case of a 4-family resi2 dence; or

3 ‘‘(II) only to the extent or in such

4 amounts as are provided in appropria5 tion Acts for additional costs and losses

6 to the Corporation resulting from this

7 subclause taking effect, the amount

8 provided in section 203(b)(2)(A) of the

9 National Housing Act, except that such

10 amount shall not exceed $101,250 in

11 the case of a 1-family residence,

12 $114,000 in the case of a 2-family resi13 dence, $138,000 in the case of a 3-fam14 ily residence, and $160,500 in the case

15 of a 4-family residence.’’; and

16 (2) in subparagraph (G)—

17 (A) by moving subclause (I) two ems to the

18 left and redesignating such subclause as clause

19 (i); and

20 (B) by striking subclause (II) and inserting

21 the following new clause:

22 ‘‘(ii) that has an appraised value that

23 does not exceed—

24 ‘‘(I) $67,500 in the case of a 1-

25 family residence, $76,000 in the case of
50

•HR 1340 RH

1 a 2-family residence, $92,000 in the

2 case of a 3-family residence, and

3 $107,000 in the case of a 4-family resi4 dence; or

5 ‘‘(II) only to the extent or in such

6 amounts as are provided in appropria7 tion Acts for additional costs and losses

8 to the Corporation resulting from this

9 subclause taking effect, the amount

10 provided in section 203(b)(2)(A) of the

11 National Housing Act, except that such

12 amount shall not exceed $101,250 in

13 the case of a 1-family residence,

14 $114,000 in the case of a 2-family resi15 dence, $138,000 in the case of a 3-fam16 ily residence, and $160,500 in the case

17 of a 4-family residence.’’.

18 SEC. 13. INCLUSION OF SUBSIDIARIES’ PROPERTIES IN

19 FDIC AFFORDABLE HOUSING PROGRAM.

20 Section 40(p) of the Federal Deposit Insurance Act (12

21 U.S.C. 1831q(p)) is amended in paragraphs (4)(A), (5)(A),

22 and (7)(A), by inserting before ‘‘; and’’ each place it ap23 pears the following: ‘‘(including in its capacity as the sole

24 owner of a subsidiary corporation of a depository institu25 tion under conservatorship or receivership, which subsidi-
51

•HR 1340 RH

1 ary has as its principal business the ownership of real

2 property)’’.

3 SEC. 14. CHANGES AFFECTING BOTH RTC AND FDIC

4 AFFORDABLE HOUSING PROGRAMS.

5 (a) NOTICE TO CLEARINGHOUSES REGARDING PROP6 ERTIES NOT INCLUDED IN PROGRAMS.—

7 (1) RTC.—Section 21A(c) of the Federal Home

8 Loan Bank Act (12 U.S.C. 1441a(c)) is amended by

9 adding at the end the following new paragraph:

10 ‘‘(16) NOTICE TO CLEARINGHOUSES REGARDING

11 INELIGIBLE PROPERTIES.—

12 ‘‘(A) IN GENERAL.—Within a reasonable pe13 riod of time after acquiring title to an ineligible

14 residential property, the Corporation shall pro15 vide written notice to clearinghouses.

16 ‘‘(B) CONTENT.—For ineligible single fam17 ily properties, such notice shall contain the same

18 information about such properties that the notice

19 required under paragraph (2)(A) contains with

20 respect to eligible single family properties. For

21 ineligible multifamily housing properties, such

22 notice shall contain the same information about

23 such properties that the notice required under

24 paragraph (3)(A) contains with respect to eligi25 ble multifamily housing properties. For ineligible
52

•HR 1340 RH

1 condominium properties, such notice shall con2 tain the same information about such properties

3 that the notice required under paragraph (14)(A)

4 contains with respect to eligible condominium

5 properties.

6 ‘‘(C) AVAILABILITY.—The clearinghouses

7 shall make such information available, upon re8 quest, to other public agencies, other nonprofit

9 organizations, qualifying households, qualifying

10 multifamily purchasers, and other purchasers, as

11 appropriate.

12 ‘‘(D) DEFINITIONS.—For purposes of this

13 paragraph:

14 ‘‘(i) INELIGIBLE CONDOMINIUM PROP15 ERTY.—The term ‘ineligible condominium

16 property’ means a condominium unit, as

17 such term is defined in section 604 of the

18 Housing and Community Development Act

19 of 1980—

20 ‘‘(I) to which the Corporation ac21 quires title in its corporate capacity,

22 its capacity as conservator, or its ca23 pacity as receiver (including its capac24 ity as the sole owner of a subsidiary

25 corporation of a depository institution
53

•HR 1340 RH

1 under conservatorship or receivership,

2 which subsidiary corporation has as its

3 principal business the ownership of

4 real property);

5 ‘‘(II) that has an appraised value

6 that does not exceed the applicable dol7 lar amount limitation for the property

8 under paragraph (9)(D)(ii)(II); and

9 ‘‘(III) that is not an eligible con10 dominium property.

11 ‘‘(ii) INELIGIBLE MULTIFAMILY HOUS12 ING PROPERTY.—The term ‘ineligible multi13 family housing property’ means a property

14 consisting of more than 4 dwelling units—

15 ‘‘(I) to which the Corporation ac16 quires title in its capacity as conserva17 tor (including its capacity as the sole

18 owner of a subsidiary corporation of a

19 depository institution under

20 conservatorship, which subsidiary cor21 poration has as its principal business

22 the ownership of real property);

23 ‘‘(II) that has an appraised value

24 that does not exceed, for such part of

25 the property as may be attributable to
54

•HR 1340 RH

1 dwelling use (excluding exterior land

2 improvements), the dollar amount lim3 itations under paragraph (9)(E)(i)(II);

4 and

5 ‘‘(III) that is not an eligible mul6 tifamily housing property.

7 ‘‘(iii) INELIGIBLE SINGLE FAMILY

8 PROPERTY.—The term ‘ineligible single

9 family property’ means a 1- to 4-family

10 residence (including a manufactured

11 home)—

12 ‘‘(I) to which the Corporation ac13 quires title in its corporate capacity,

14 its capacity as conservator, or its ca15 pacity as receiver (including its capac16 ity as the sole owner of a subsidiary

17 corporation of a depository institution

18 under conservatorship or receivership,

19 which subsidiary corporation has as its

20 principal business the ownership of

21 real property);

22 ‘‘(II) that has an appraised value

23 that does not exceed the applicable dol24 lar amount limitation for the property

25 under paragraph (9)(G)(ii)(II); and
55

•HR 1340 RH

1 ‘‘(III) that is not an eligible sin2 gle family property.

3 ‘‘(iv) INELIGIBLE RESIDENTIAL PROP4 ERTY.—The term ‘ineligible residential

5 property’ includes ineligible single family

6 properties, ineligible multifamily housing

7 properties, and ineligible condominium

8 properties.’’.

9 (2) FDIC.—Section 40 of the Federal Deposit

10 Insurance Act (12 U.S.C. 1831q) is amended by add11 ing at the end the following new subsection:

12 ‘‘(q) NOTICE TO CLEARINGHOUSES REGARDING INELI13 GIBLE PROPERTIES.—

14 ‘‘(1) IN GENERAL.—Within a reasonable period

15 of time after acquiring title to an ineligible residen16 tial property, the Corporation shall provide written

17 notice to clearinghouses.

18 ‘‘(2) CONTENT.—For ineligible single family

19 properties, such notice shall contain the same infor20 mation about such properties that the notice required

21 under subsection (c)(1) contains with respect to eligi22 ble single family properties. For ineligible multifam23 ily housing properties, such notice shall contain the

24 same information about such properties that the no25 tice required under subsection (d)(1) contains with re-
56

•HR 1340 RH

1 spect to eligible multifamily housing properties. For

2 ineligible condominium properties, such notice shall

3 contain the same information about such properties

4 that the notice required under paragraph (l)(1) con5 tains with respect to eligible condominium properties.

6 ‘‘(3) AVAILABILITY.—The clearinghouses shall

7 make such information available, upon request, to

8 other public agencies, other nonprofit organizations,

9 qualifying households, qualifying multifamily pur10 chasers, and other purchasers, as appropriate.

11 ‘‘(4) DEFINITIONS.—For purposes of this sub12 section:

13 ‘‘(A) INELIGIBLE CONDOMINIUM PROP14 ERTY.—The term ‘ineligible condominium prop15 erty’ means any eligible condominium property

16 to which the provisions of this section do not

17 apply as a result of the limitations under sub18 section (b)(2)(A).

19 ‘‘(B) INELIGIBLE MULTIFAMILY HOUSING

20 PROPERTY.—The term ‘ineligible multifamily

21 housing property’ means any eligible multifam22 ily housing property to which the provisions of

23 this section do not apply as a result of the limi24 tations under subsection (b)(2)(A).
57

•HR 1340 RH

1 ‘‘(C) INELIGIBLE SINGLE FAMILY PROP2 ERTY.—The term ‘ineligible single family prop3 erty’ means any eligible single family property

4 to which the provisions of this section do not

5 apply as a result of the limitations under sub6 section (b)(2)(A).

7 ‘‘(D) INELIGIBLE RESIDENTIAL PROP8 ERTY.—The term ‘ineligible residential property’

9 includes ineligible single family properties, ineli10 gible multifamily housing properties, and ineli11 gible condominium properties.’’.

12 (b) NEGOTIATED SALE PREFERENCE FOR USE FOR

13 HOMELESS FAMILIES.—

14 (1) RTC.—Section 21A(c)(13) of the Federal

15 Home Loan Bank Act (12 U.S.C. 1441a(c)(13)) is

16 amended by adding at the end the following new sub17 paragraph:

18 ‘‘(C) PREFERENCE FOR USE FOR HOMELESS

19 FAMILIES.—In negotiating and selling an eligi20 ble residential property under this paragraph,

21 the Corporation shall give preference to any offer

22 to purchase the property for use in providing

23 housing or shelter for homeless individuals (as

24 such term is defined in section 103 of the Stew25 art B. McKinney Homeless Assistance Act) or
58

•HR 1340 RH

1 homeless families, but only if the Corporation de2 termines that such sale will result in net present

3 value proceeds substantially similar to the

4 amount of such proceeds that would have resulted

5 from sale of the property under this subsection

6 (other than under this paragraph).’’.

7 (2) FDIC.—Section 40(k) of the Federal Deposit

8 Insurance Act (12 U.S.C. 1831q(k)) is amended by

9 adding at the end the following new paragraph:

10 ‘‘(3) PREFERENCE FOR USE FOR HOMELESS

11 FAMILIES.—In negotiating and selling an eligible res12 idential property under this subsection, the Corpora13 tion shall give preference to any offer to purchase the

14 property for use in providing housing or shelter for

15 homeless individuals (as such term is defined in sec16 tion 103 of the Stewart B. McKinney Homeless As17 sistance Act) or homeless families, but only if the Cor18 poration determines that such sale will result in net

19 present value proceeds substantially similar to the

20 amount of such proceeds that would have resulted

21 from sale of the property under this section (other

22 than under this subsection).’’.

23 (c) AFFORDABLE HOUSING ADVISORY BOARD.—

24 (1) ESTABLISHMENT.—There is hereby estab25 lished the Affordable Housing Advisory Board (in this
59

•HR 1340 RH

1 subsection referred to as the ‘‘Advisory Board’’) to ad2 vise the Thrift Depositor Protection Oversight Board

3 and the Board of Directors of the Federal Deposit In4 surance Corporation on policies and programs related

5 to the provision of affordable housing, including the

6 operation of the affordable programs.

7 (2) MEMBERSHIP.—The Advisory Board shall

8 consist of—

9 (A) the Secretary of Housing and Urban

10 Development;

11 (B) the Chairperson of the Board of Direc12 tors of the Federal Deposit Insurance Corpora13 tion (or the Chairperson’s delegate), who shall be

14 a nonvoting member;

15 (C) the Chairperson of the Thrift Depositor

16 Protection Oversight Board (or the Chairperson’s

17 delegate), who shall be a nonvoting member;

18 (D) 4 persons appointed by the Secretary of

19 Housing and Urban Development not later than

20 the expiration of the 90-day period beginning on

21 the date of the enactment of this Act, who rep22 resent the interests of individuals and organiza23 tions involved in using the affordable housing

24 programs (including nonprofit organizations,

25 public agencies, and for-profit organizations that
60

•HR 1340 RH

1 purchase properties under the affordable housing

2 programs, organizations that provide technical

3 assistance regarding the affordable housing pro4 grams, and organizations that represent the in5 terest of low- and moderate-income families);

6 and

7 (E) 2 persons who are members of the Na8 tional Housing Advisory Board pursuant to sec9 tion 21A(d)(2)(B)(ii) of the Federal Home Loan

10 Bank Act (as in effect before the date of the effec11 tiveness of the repeal under subsection (c)(2)),

12 who shall be appointed by such Board before

13 such effective date.

14 (3) TERMS.—Each member shall be appointed

15 for a term of 4 years, except as provided in para16 graphs (4) and (5).

17 (4) TERMS OF INITIAL APPOINTEES.—

18 (A) PERMANENT POSITIONS.—As designated

19 by the Secretary of Housing and Urban Develop20 ment at the time of appointment, of the members

21 first appointed under paragraph (2)(D)—

22 (i) 1 shall be appointed for a term of

23 1 year;

24 (ii) 1 shall be appointed for a term of

25 2 years;
61

•HR 1340 RH

1 (iii) 1 shall be appointed for a term of

2 3 years; and

3 (iv) 1 shall be appointed for a term of

4 4 years.

5 (B) INTERIM MEMBERS.—The members of

6 the Advisory Board under paragraph (2)(E)

7 shall be appointed for a single term of 4 years,

8 which shall begin upon the earlier of (i) the expi9 ration of the 90-day period beginning on the

10 date of the enactment of this Act, or (ii) the first

11 meeting of the Advisory Board.

12 (5) VACANCIES.—Any member appointed to fill a

13 vacancy occurring before the expiration of the term

14 for which the member’s predecessor was appointed

15 shall be appointed only for the remainder of that

16 term. A member may serve after the expiration of that

17 member’s term until a successor has taken office. A

18 vacancy in the Commission shall be filled in the man19 ner in which the original appointment was made.

20 (6) MEETINGS.—

21 (A) TIMING AND LOCATION.—The Advisory

22 Board shall meet 4 times a year, or more fre23 quently if requested by the Thrift Depositor Pro24 tection Oversight Board or the Board of Direc25 tors of the Federal Deposit Insurance Corpora-
62

•HR 1340 RH

1 tion. In each year, the Advisory Board shall con2 duct such meetings at various locations in dif3 ferent regions of the United States in which sub4 stantial residential property assets of the Federal

5 Deposit Insurance Corporation or the Resolution

6 Trust Corporation are located. The first meeting

7 of the Advisory Board shall take place not later

8 than the expiration of the 90-day period begin9 ning on the date of the enactment of this Act.

10 (B) ADVICE.—The Advisory Board shall

11 submit information and advice resulting from

12 each meeting, in such form as the Board consid13 ers appropriate, to the Thrift Depositor Protec14 tion Oversight Board and the Board of Directors

15 of the Federal Deposit Insurance Corporation.

16 (7) ANNUAL REPORTS.—For each year, the Advi17 sory Board shall submit a report containing its find18 ings and recommendations to the Congress, the Fed19 eral Deposit Insurance Corporation, and the Resolu20 tion Trust Corporation. The first such report shall be

21 made not later than the expiration of the 6-month pe22 riod beginning on the date of the enactment of this

23 Act.

24 (8) DEFINITION.—For purposes of this sub25 section, the term ‘‘affordable housing programs’’
63

•HR 1340 RH

1 means the program under section 21A(c) of the Fed2 eral Home Loan Bank Act and the program under

3 section 40 of the Federal Deposit Insurance Act.

4 (9) APPOINTMENT OF CERTAIN ADVISORY

5 BOARD MEMBERS.—Members appointed

6 under paragraph (2)(D) shall be ap7 pointed to represent specific interests

8 and shall not be considered employees of

9 the executive branch or special Govern10 ment employees for purposes of sections

11 203 through 209 of title 18, United States

12 Code.

13 (d) TERMINATION OF NATIONAL HOUSING ADVISORY

14 BOARD.—

15 (1) TERMINATION.—The National Housing Advi16 sory Board under section 21A(d)(2) of the Federal

17 Home Loan Bank Act shall terminate upon the expi18 ration of the 90-day period beginning on the date of

19 the enactment of this Act.

20 (2) REPEAL.—Paragraph (2) of section 21A(d)

21 of the Federal Home Loan Bank Act is repealed upon

22 the expiration of the period referred to in paragraph

23 (1).
64

•HR 1340 RH

1 (e) PROVISION OF INFORMATION REGARDING SELLER

2 FINANCING TO MINORITY- AND WOMEN-OWNED BUSI3 NESSES.—

4 (1) RTC.—Section 21A(c)(6)(A)(ii) of the Fed5 eral Home Loan Bank Act is amended by adding at

6 the end the following new sentences: ‘‘The Corporation

7 shall periodically provide, to a wide range of

8 minority- and women-owned businesses engaged in

9 providing affordable housing and to nonprofit organi10 zations, more than 50 percent of the control of which

11 are held by 1 or more minority individuals, that are

12 engaged in providing affordable housing, information

13 that is sufficient to inform such businesses and orga14 nizations of the availability and terms of financing

15 under this clause; such information may be provided

16 directly, by notices published in periodicals and other

17 publications that regularly provide information to

18 such businesses or organizations, and through persons

19 and organizations that regularly provide information

20 or services to such businesses or organizations. For

21 purposes of this clause, the terms ‘women-owned busi22 ness’ and ‘minority-owned business’ have the mean23 ings given such terms in subsection (r), and the term

24 ‘minority’ has the meaning given such term in section
65

•HR 1340 RH

1 1204(c)(3) of the Financial Institutions Reform, Re2 covery, and Enforcement Act of 1989.’’.

3 (2) FDIC.—Section 40(g)(1)(B) of the Federal

4 Deposit Insurance Act (12 U.S.C. 1831q(g)(1)(B)) is

5 amended by adding at the end the following new sen6 tences: ‘‘The Corporation shall periodically provide, to

7 a wide range of minority- and women-owned busi8 nesses engaged in providing affordable housing and to

9 nonprofit organizations, more than 50 percent of the

10 control of which are held by 1 or more minority indi11 viduals, that are engaged in providing affordable

12 housing, information that is sufficient to inform such

13 businesses and organizations of the availability and

14 terms of financing under this subparagraph; such in15 formation may be provided directly, by notices pub16 lished in periodicals and other publications that regu17 larly provide information to such businesses or orga18 nizations, and through persons and organizations

19 that regularly provide information or services to such

20 businesses or organizations. For purposes of this sub21 paragraph, the terms ‘women-owned business’ and

22 ‘minority-owned business’ have the meanings given

23 such terms in section 21A(r) of the Federal Home

24 Loan Bank Act, and the term ‘minority’ has the

25 meaning given such term in section 1204(c)(3) of the
66

•HR 1340 RH

1 Financial Institutions Reform, Recovery, and En2 forcement Act of 1989.’’.

3 (f) AUTHORITY TO CARRY OUT UNIFIED AFFORDABLE

4 HOUSING PROGRAM.—

5 (1) RTC.—Section 21A(c) of the Federal Home

6 Loan Bank Act (12 U.S.C. 1441a(c)), as amended by

7 the preceding provisions of this Act, is further amend8 ed by adding at the end the following new paragraph:

9 ‘‘(17) UNIFIED AFFORDABLE HOUSING PROGRAM

10 WITH FDIC.—

11 ‘‘(A) RTC AUTHORITY.—During the period

12 ending at the end of September 30, 1994, the

13 Corporation shall have the authority and shall

14 carry out the responsibilities of the Federal De15 posit Insurance Corporation under section 40 of

16 the Federal Deposit Insurance Act, subject to the

17 agreement under subparagraph (B). To the ex18 tent practicable, the Resolution Trust Corpora19 tion shall coordinate its activities under this

20 subsection with activities involved in carrying

21 out such responsibilities to provide for effective

22 and efficient management and operation of all

23 such activities.

24 ‘‘(B) AGREEMENT AND CONSULTATION.—

25 Not later than 60 days after the date of the en-
67

•HR 1340 RH

1 actment of this Act, the Resolution Trust Cor2 poration and the Federal Deposit Insurance Cor3 poration shall enter into an agreement for the

4 Resolution Trust Corporation to carry out the

5 responsibilities described in subparagraph (A)

6 during the period referred to in such subpara7 graph. Such agreement shall provide—

8 ‘‘(i) for the Resolution Trust Corpora9 tion to act as a contractor of the Federal

10 Deposit Insurance Corporation for the pur11 pose of carrying out such responsibilities of

12 the Federal Deposit Insurance Corporation;

13 ‘‘(ii) for the payment of fees for admin14 istrative costs incurred by the Resolution

15 Trust Corporation in carrying out such re16 sponsibilities;

17 ‘‘(iii) a method for determining the ex18 tent to which the provisions of section 40 of

19 the Federal Deposit Insurance Act shall be

20 effective, in accordance with the limitations

21 under subsection (b)(2) of such section;

22 ‘‘(iv) for the disposition of proceeds

23 from the sales of properties under such sec24 tion 40; and
68

•HR 1340 RH

1 ‘‘(v) a method for making seller financ2 ing available to purchasers of properties, in

3 accordance to the provisions of section

4 40(g)(1) of such Act.

5 The Resolution Trust Corporation shall consult

6 with the Affordable Housing Advisory Board

7 under section 13(c) of the Resolution Trust Cor8 poration Completion Act in preparing to carry

9 out such responsibilities.

10 ‘‘(B) TRANSFER TO FDIC.—On and after

11 October 1, 1994, the authority and responsibil12 ities of the Resolution Trust Corporation under

13 this subsection shall be carried out by the Fed14 eral Deposit Insurance Corporation. Beginning

15 not later than April 1, 1994, the Resolution

16 Trust Corporation shall consult with the Federal

17 Deposit Insurance Corporation and such Advi18 sory Board to prepare for the Federal Deposit

19 Insurance Corporation to carry out such author20 ity and responsibilities.’’.

21 (2) FDIC.—Section 40(n) of the Federal Deposit

22 Insurance Act (12 U.S.C. 1831q(n)) is amended to

23 read as follows:

24 ‘‘(n) RESPONSIBILITY TO CARRY OUT PROGRAM.—
69

•HR 1340 RH

1 ‘‘(1) AFFORDABLE HOUSING PROGRAM OFFICE.—

2 The Corporation shall establish an Affordable Hous3 ing Program Office within the Corporation to carry

4 out the provisions of this section after October 1,

5 1994, and to carry out the provisions of section

6 21A(c) of the Federal Home Loan Bank Act after

7 such date with respect to any eligible residential

8 properties and eligible condominium properties under

9 such section not disposed of by the Resolution Trust

10 Corporation before such date. The Federal Deposit In11 surance Corporation shall dedicate certain staff of the

12 Corporation to the Office and shall consult with the

13 Resolution Trust Corporation and the Affordable

14 Housing Advisory Board under section 13(c) of the

15 Resolution Trust Corporation Completion Act in car16 rying out its responsibilities. Beginning not later

17 than April 1, 1994, the Federal Deposit Insurance

18 Corporation shall consult with the Resolution Trust

19 Corporation and such Advisory Board to prepare for

20 the Affordable Housing Program Office of the Federal

21 Deposit Insurance Corporation to carry out the au22 thority and responsibilities of the Resolution Trust

23 Corporation under such section 21A(c).

24 ‘‘(2) UNIFIED AFFORDABLE HOUSING PROGRAM

25 WITH RTC.—During the period ending at the end of
70

•HR 1340 RH

1 September 30, 1994, the authority and responsibilities

2 of the Corporation under this section shall be carried

3 out by the Resolution Trust Corporation pursuant to

4 the agreement entered into under section

5 21A(c)(17)(B) of the Federal Home Loan Bank Act

6 by the Federal Deposit Insurance Corporation and

7 the Resolution Trust Corporation.’’.

8 (g) LIABILITY PROVISIONS.—

9 (1) RTC.—Section 21A(c)(11) of the Federal

10 Home Loan Bank Act (12 U.S.C. 1441a(c)(11)) is

11 amended by adding at the end the following new sub12 paragraph:

13 ‘‘(D) CORPORATION.—The Corporation shall

14 not be liable to any depositor, creditor, or share15 holder of any insured depository institution for

16 which the Corporation has been appointed re17 ceiver, or of any subsidiary corporation of a de18 pository institution under conservatorship or re19 ceivership, or any claimant against such an in20 stitution or subsidiary, because the disposition of

21 assets of the institution or the subsidiary under

22 this subsection affects the amount of return from

23 the assets.’’.
71

•HR 1340 RH

1 (2) FDIC.—Section 40(m)(4) of the Federal De2 posit Insurance Act (12 U.S.C. 1831q(m)(4)) is

3 amended—

4 (A) by inserting after ‘‘receiver,’’ the follow5 ing: ‘‘or of any subsidiary corporation of a de6 pository institution under conservatorship or re7 ceivership,’’;

8 (B) by inserting ‘‘or subsidiary’’ after ‘‘an

9 institution’’; and

10 (C) by inserting ‘‘or the subsidiary’’ after

11 ‘‘the institution’’.

12 SEC. 15. RIGHT OF FIRST REFUSAL FOR TENANTS TO PUR13 CHASE SINGLE FAMILY PROPERTY.

14 (a) RTC.—Section 21A(b) of the Federal Home Loan

15 Bank Act (12 U.S.C. 1441a(b)) is amended by adding at

16 the end the following new paragraph:

17 ‘‘(14) PURCHASE RIGHTS OF TENANTS.—

18 ‘‘(A) NOTICE.—Except as provided in sub19 paragraph (C), the Corporation may make avail20 able for sale a 1- to 4-family residence (includ21 ing a manufactured home) to which the Corpora22 tion acquires title only after the Corporation has

23 provided the household residing in the property

24 notice (in writing and mailed to the property) of

25 the availability of such property and the pref-
72

•HR 1340 RH

1 erence afforded such household under subpara2 graph (B).

3 ‘‘(B) PREFERENCE.—In selling such a

4 property, the Corporation shall give preference to

5 any bona fide offer made by the household resid6 ing in the property, if—

7 ‘‘(i) such offer is substantially similar

8 in amount to other offers made within such

9 period (or expected by the Corporation to be

10 made within such period);

11 ‘‘(ii) such offer is made during the pe12 riod beginning upon the Corporation mak13 ing such property available and of a rea14 sonable duration, as determined by the Cor15 poration based on the normal period for

16 sale of such properties; and

17 ‘‘(iii) the household making the offer

18 complies with any other requirements appli19 cable to purchasers of such property, includ20 ing any downpayment and credit require21 ments.

22 ‘‘(C) EXCEPTIONS.—Subparagraphs (A)

23 and (B) shall not apply to—

24 ‘‘(i) any residence transferred in con25 nection with the transfer of substantially all
73

•HR 1340 RH

1 of the assets of an insured depository insti2 tution for which the Corporation has been

3 appointed conservator or receiver;

4 ‘‘(ii) any eligible single family prop5 erty (as such term is defined in subsection

6 (c)(9)); or

7 ‘‘(iii) any residence for which the

8 household occupying the residence was the

9 mortgagor under a mortgage on such resi10 dence and to which the Corporation ac11 quired title pursuant to default on such

12 mortgage.’’.

13 (b) FDIC.—Section 11 of the Federal Deposit Insur14 ance Act (12 U.S.C. 1821) is amended by adding at the

15 end the following new subsection:

16 ‘‘(u) PURCHASE RIGHTS OF TENANTS.—

17 ‘‘(1) NOTICE.—Except as provided in paragraph

18 (3), the Corporation may make available for sale a 1-

19 to 4-family residence (including a manufactured

20 home) to which the Corporation acquires title only

21 after the Corporation has provided the household re22 siding in the property notice (in writing and mailed

23 to the property) of the availability of such property

24 and the preference afforded such household under

25 paragraph (2).
74

•HR 1340 RH

1 ‘‘(2) PREFERENCE.—In selling such a property,

2 the Corporation shall give preference to any bona fide

3 offer made by the household residing in the property,

4 if—

5 ‘‘(A) such offer is substantially similar in

6 amount to other offers made within such period

7 (or expected by the Corporation to be made with8 in such period);

9 ‘‘(B) such offer is made during the period

10 beginning upon the Corporation making such

11 property available and of a reasonable duration,

12 as determined by the Corporation based on the

13 normal period for sale of such properties; and

14 ‘‘(C) the household making the offer com15 plies with any other requirements applicable to

16 purchasers of such property, including any

17 downpayment and credit requirements.

18 ‘‘(3) EXCEPTIONS.—Paragraphs (1) and (2)

19 shall not apply to—

20 ‘‘(A) any residence transferred in connec21 tion with the transfer of substantially all of the

22 assets of an insured depository institution for

23 which the Corporation has been appointed con24 servator or receiver;
75

•HR 1340 RH

1 ‘‘(B) any eligible single family property (as

2 such term is defined in subsection (c)(9)); or

3 ‘‘(C) any residence for which the household

4 occupying the residence was the mortgagor under

5 a mortgage on such residence and to which the

6 Corporation acquired title pursuant to default

7 on such mortgage.’’.

8 SEC. 16. PREFERENCE FOR SALES OF REAL PROPERTY FOR

9 USE FOR HOMELESS FAMILIES.

10 (a) RTC.—Section 21A(b) of the Federal Home Loan

11 Bank Act (12 U.S.C. 1441a(b)), as amended by the preced12 ing provisions of this Act, is further amended by adding

13 at the end the following new paragraph:

14 ‘‘(15) PREFERENCE FOR SALES FOR HOMELESS

15 FAMILIES.—Subject to paragraph (14), in selling any

16 real property (other than eligible residential property

17 and eligible condominium property, as such terms are

18 defined in subsection (c)(9)) to which the Corporation

19 acquires title, the Corporation shall give preference,

20 among substantially similar offers, to any offer that

21 would provide for the property to be used, during the

22 remaining useful life of the property, to provide hous23 ing or shelter for homeless persons (as such term is

24 defined in section 103 of the Stewart B. McKinney

25 Homeless Assistance Act) or homeless families.’’.
76

•HR 1340 RH

1 (b) FDIC.—Section 11 of the Federal Deposit Insur2 ance Act (12 U.S.C. 1821), as amended by the preceding

3 provisions of this Act, is further amended by adding at the

4 end the following new subsection:

5 ‘‘(v) PREFERENCE FOR SALES FOR HOMELESS FAMI6 LIES.—Subject to subsection (u), in selling any real prop7 erty (other than eligible residential property and eligible

8 condominium property, as such terms are defined in section

9 40(p)) to which the Corporation acquires title, the Corpora10 tion shall give preference, among substantially similar of11 fers, to any offer that would provide for the property to

12 be used, during the remaining useful life of the property,

13 to provide housing or shelter for homeless persons (as such

14 term is defined in section 103 of the Stewart B. McKinney

15 Homeless Assistance Act) or homeless families.’’.

16 SEC. 17. EXPEDITED MARKETING OF COMMERCIAL PROP17 ERTIES TO PUBLIC AGENCIES AND NON18 PROFIT ORGANIZATIONS FOR USE IN CARRY19 ING OUT PROGRAMS FOR AFFORDABLE

20 HOUSING.

21 (a) RTC.—Section 21A(b) of the Federal Home Loan

22 Bank Act (12 U.S.C. 1441a(b)), as amended by the preced23 ing provisions of this Act, is further amended by adding

24 at the end the following new paragraph:
77

•HR 1340 RH

1 ‘‘(16) EXPEDITED MARKETING OF COMMERCIAL

2 REAL PROPERTIES.—

3 ‘‘(A) AUTHORITY.—Notwithstanding any

4 other provision of this section, the Corporation

5 may, at the discretion of the Corporation, nego6 tiate the sale under this paragraph of eligible

7 commercial real properties of the Corporation to

8 public agencies and nonprofit organizations in

9 an expedited manner.

10 ‘‘(B) USE OF ELIGIBLE COMMERCIAL REAL

11 PROPERTY.—The Corporation may sell an eligi12 ble commercial real property pursuant to such

13 negotiations only if—

14 ‘‘(i) the purchaser agrees that the prop15 erty, during the remaining useful life of the

16 property, shall be used for offices and ad17 ministrative purposes of the purchaser to

18 carry out a program to acquire residential

19 properties to provide (I) homeownership

20 and rental housing opportunities for very21 low income, lower-income, and moderate-in22 come families, or (II) housing or shelter for

23 homeless persons (as such term is defined in

24 section 103 of the Stewart B. McKinney
78

•HR 1340 RH

1 Homeless Assistance Act) or homeless fami2 lies; and

3 ‘‘(ii) the Corporation determines that

4 such sale will result in net present value

5 proceeds substantially similar to the

6 amount of such proceeds that would have re7 sulted from disposition of the property in

8 the manner that would have been used but

9 for disposition under this paragraph.

10 ‘‘(C) DEFINITIONS.—For purposes of this

11 paragraph:

12 ‘‘(i) COMMERCIAL REAL PROPERTY.—

13 The term ‘commercial real property’ means

14 any property (I) to which the Corporation

15 acquires title, and (II) that the Corpora16 tion, in the discretion of the Corporation,

17 determines is suitable for use for the loca18 tion of offices or other administrative func19 tions involved with carrying out a program

20 referred to in subparagraph (B)(i).

21 ‘‘(ii) NONPROFIT ORGANIZATION AND

22 PUBLIC AGENCY.—The terms ‘nonprofit or23 ganization’ and ‘public agency’ have the

24 meanings given the terms in subsection

25 (c)(9).’’.
79

•HR 1340 RH

1 (b) FDIC.—Section 11 of the Federal Deposit Insur2 ance Act (12 U.S.C. 1821), as amended by the preceding

3 provisions of this Act, is further amended by adding at the

4 end the following new subsection:

5 ‘‘(w) EXPEDITED MARKETING OF COMMERCIAL REAL

6 PROPERTIES.—

7 ‘‘(1) AUTHORITY.—Notwithstanding any other

8 provision of this section, the Corporation may, at the

9 discretion of the Corporation, negotiate the sale under

10 this subsection of eligible commercial real properties

11 of the Corporation to public agencies and nonprofit

12 organizations in an expedited manner.

13 ‘‘(2) USE OF ELIGIBLE COMMERCIAL REAL PROP14 ERTY.—The Corporation may sell an eligible commer15 cial real property pursuant to such negotiations only

16 if—

17 ‘‘(A) the purchaser agrees that the property,

18 during the remaining useful life of the property,

19 shall be used for offices and administrative pur20 poses of the purchaser to carry out a program to

21 acquire residential properties to provide (i)

22 homeownership and rental housing opportunities

23 for very-low income, lower-income, and mod24 erate-income families, or (ii) housing or shelter

25 for homeless persons (as such term is defined in
80

•HR 1340 RH

1 section 103 of the Stewart B. McKinney Home2 less Assistance Act) or homeless families; and

3 ‘‘(B) the Corporation determines that such

4 sale will result in net present value proceeds sub5 stantially similar to the amount of such proceeds

6 that would have resulted from disposition of the

7 property in the manner that would have been

8 used but for disposition under this subsection.

9 ‘‘(3) DEFINITIONS.—For purposes of this sub10 section:

11 ‘‘(A) COMMERCIAL REAL PROPERTY.—The

12 term ‘commercial real property’ means any

13 property (i) to which the Corporation acquires

14 title, and (ii) that the Corporation, in the discre15 tion of the Corporation, determines is suitable

16 for use for the location of offices or other admin17 istrative functions involved with carrying out a

18 program referred to in paragraph (2)(A).

19 ‘‘(B) NONPROFIT ORGANIZATION AND PUB20 LIC AGENCY.—The terms ‘nonprofit organization’

21 and ‘public agency’ have the meanings given the

22 terms in section 40(p).’’.
81

•HR 1340 RH

1 SEC. 18. FEDERAL HOME LOAN BANKS HOUSING OPPOR2 TUNITY HOTLINE PROGRAM.

3 The Federal Home Loan Bank Act (12 U.S.C. 1422

4 et seq.) is amended by inserting after section 26 the follow5 ing new section:

6 ‘‘SEC. 27. HOUSING OPPORTUNITY HOTLINE PROGRAM.

7 ‘‘(a) ESTABLISHMENT.—Each of the Federal Home

8 Loan Banks shall establish and operate a program substan9 tially similar (in the determination of the Board) to the

10 ‘Housing Opportunity Hotline’ program established in Oc11 tober 1992, by the Federal Home Loan Bank of Dallas.

12 ‘‘(b) PURPOSE.—Each program established under this

13 section shall provide information regarding the availability

14 for purchase of single-family properties that are owned or

15 held by Federal agencies and are located in the Federal

16 Home Loan Bank district for such Bank. Each Federal

17 Home Loan Bank shall consult with such agencies to ac18 quire such information.

19 ‘‘(c) REQUIRED INFORMATION.—Each program estab20 lished under this section shall provide information regard21 ing the size, location, price, and other characteristics of such

22 single family properties, the eligibility requirements for

23 purchasers of such properties, the terms for such sales, and

24 the terms of any available seller financing, and shall iden25 tify properties that are affordable to low- and moderate26 income families.
82

•HR 1340 RH

1 ‘‘(d) TOLL-FREE TELEPHONE NUMBER.—Each pro2 gram established under this section shall establish and

3 maintain a toll-free telephone line for providing the infor4 mation made available under the program.

5 ‘‘(e) DEFINITIONS.—For purposes of this section:

6 ‘‘(1) FEDERAL AGENCIES.—The term ‘Federal

7 agencies’ means the Farmers Home Administration,

8 the Federal Deposit Insurance Corporation, the Fed9 eral National Mortgage Association, the Federal

10 Home Loan Mortgage Corporation, the General Serv11 ices Administration, the Department of Housing and

12 Urban Development, the Resolution Trust Corpora13 tion, and the Department of Veterans Affairs.

14 ‘‘(2) SINGLE FAMILY PROPERTY.—The term ‘sin15 gle family property’ means a 1- to 4-family residence,

16 including a manufactured home.’’.

17 SEC. 19. CONFLICT OF INTEREST PROVISIONS APPLICABLE

18 TO THE FDIC.

19 (a) IN GENERAL.—Section 12 of the Federal Deposit

20 Insurance Act (12 U.S.C. 1822) is amended by adding at

21 the end the following new subsection:

22 ‘‘(f) CONFLICT OF INTEREST.—

23 ‘‘(1) APPLICABILITY OF OTHER PROVISIONS.—
83

•HR 1340 RH

1 ø‘‘(A) CLARIFICATION OF STATUS OF COR2 PORATION.—The Corporation shall be an agency

3 for purposes of title 18, United States Code.¿

4 ‘‘(A) CLARIFICATION OF STATUS OF

5 CORPORATION.—The Corporation is,

6 and has been since its creation, an

7 agency for purposes of title 18, United

8 States Code.

9 ‘‘(B) TREATMENT OF CONTRACTORS.—Any

10 individual who, pursuant to a contract or any

11 other arrangement, performs functions or activi12 ties of the Corporation, under the direct super13 vision of an officer or employee of the Corpora14 tion, shall be deemed to be an employee of the

15 Corporation for the purposes of title 18, United

16 States Code and this Act. Any individual who,

17 pursuant to a contract or any other agreement,

18 acts for or on behalf of the Corporation, and

19 who is not otherwise treated as an of20 ficer or employee of the United States

21 for purposes of title 18, United States

22 Code, shall be deemed to be a public official for

23 the purposes of section 201 of title 18, United

24 States Code.
84

•HR 1340 RH

1 ø‘‘(2) ESTABLISHMENT OF REGULATIONS.—The

2 Board of Directors shall prescribe regulations govern3 ing conflict of interest, ethical responsibilities, and

4 post-employment restrictions applicable to officers

5 and employees of the Corporation.

6 ø‘‘(3) USE OF CONFIDENTIAL INFORMATION.—

7 The Board of Directors shall prescribe regulations ap8 plicable to independent contractors governing conflicts

9 of interest, ethical responsibilities, and the use of con10 fidential information consistent with the goals and

11 purposes of titles 18 and 41, United States Code.¿

12 ‘‘(2) REGULATIONS CONCERNING EM13 PLOYEE CONDUCT.—The officers and em14 ployees of the Corporation and those in15 dividuals under contract to the Corpora16 tion who are deemed, under paragraph

17 (1)(B), to be employees of the Corporation

18 for purposes of title 18, United States

19 Code, shall be subject to the ethics and

20 conflict of interest rules and regulations

21 issued by the Office of Government Eth22 ics, including those concerning employee

23 conduct, financial disclosure, and post24 employment activities. The Board of Di25 rectors may prescribe regulations that
85

•HR 1340 RH

1 supplement such rules and regulations

2 only with the concurrence of that Office.

3 ‘‘(3) REGULATIONS CONCERNING INDE4 PENDENT CONTRACTORS.—The Board of Di5 rectors, with the concurrence of the Of6 fice of Government Ethics, shall pre7 scribe regulations applicable to those

8 independent contractors who are not

9 deemed, under paragraph (1)(B), to be

10 employees of the Corporation for pur11 poses of title 18, United States Code, gov12 erning conflicts of interest, ethical re13 sponsibilities, and the use of confidential

14 information consistent with the goals and

15 purposes of titles 18 and 41, United States

16 Code. Any such regulations shall be in

17 addition to, and not in lieu of, any other

18 statute or regulation which may apply to

19 the conduct of such independent contrac20 tors.

21 ‘‘(4) DISAPPROVAL OF CONTRACTORS.—

22 ‘‘(A) IN GENERAL.—The Board of Directors

23 shall prescribe regulations establishing proce24 dures for ensuring that any individual who is

25 performing, directly or indirectly, any function
86

•HR 1340 RH

1 or service on behalf of the Corporation meets

2 minimum standards of competence, experience,

3 integrity, and fitness.

4 ‘‘(B) PROHIBITION FROM SERVICE ON BE5 HALF OF CORPORATION.—The procedures estab6 lished under subparagraph (A) shall provide that

7 the Corporation shall prohibit any person who

8 does not meet the minimum standards of com9 petence, experience, integrity, and fitness from—

10 ‘‘(i) entering into any contract with

11 the Corporation; or

12 ‘‘(ii) being employed by the Corpora13 tion or any person performing any service

14 for or on behalf of the Corporation.

15 ‘‘(C) INFORMATION REQUIRED TO BE SUB16 MITTED.—The procedures established under sub17 paragraph (A) shall require that any offer sub18 mitted to the Corporation by any person under

19 this section and any employment application

20 submitted to the Corporation by any person shall

21 include—

22 ‘‘(i) a list and description of any in23 stance during the 5 years preceding the sub24 mission of such application in which the

25 person or a company under such person’s
87

•HR 1340 RH

1 control defaulted on a material obligation to

2 an insured depository institution; and

3 ‘‘(ii) such other information as the

4 Board may prescribe by regulation.

5 ‘‘(D) SUBSEQUENT SUBMISSIONS.—

6 ‘‘(i) IN GENERAL.—No offer submitted

7 to the Corporation may be accepted unless

8 the offeror agrees that no person will be em9 ployed, directly or indirectly, by the offeror

10 under any contract with the Corporation

11 unless—

12 ‘‘(I) all applicable information

13 described in subparagraph (C) with re14 spect to any such person is submitted

15 to the Corporation; and

16 ‘‘(II) the Corporation does not

17 disapprove of the direct or indirect em18 ployment of such person.

19 ‘‘(ii) FINALITY OF DETERMINATION.—

20 Any determination made by the Corpora21 tion pursuant to this paragraph shall be in

22 the Corporation’s sole discretion and shall

23 not be subject to review.

24 ‘‘(E) PROHIBITION REQUIRED IN CERTAIN

25 CASES.—The standards established under sub-
88

•HR 1340 RH

1 paragraph (A) shall require the Corporation to

2 prohibit any person who has—

3 ‘‘(i) been convicted of any felony;

4 ‘‘(ii) been removed from, or prohibited

5 from participating in the affairs of, any in6 sured depository institution pursuant to

7 any final enforcement action by any appro8 priate Federal banking agency;

9 ‘‘(iii) demonstrated a pattern or prac10 tice of defalcation regarding obligations to

11 insure depository institutions; or

12 ‘‘(iv) caused a substantial loss to Fed13 eral deposit insurance funds,

14 from service on behalf of the Corporation.

15 ‘‘(5) ABROGATION OF CONTRACTS.—The Cor16 poration may rescind any contract with a person

17 who—

18 ‘‘(A) fails to disclose a material fact to the

19 Corporation;

20 ‘‘(B) would be prohibited under paragraph

21 (6) from providing services to, receiving fees

22 from, or contracting with the Corporation; or

23 ‘‘(C) has been subject to a final enforcement

24 action by any appropriate Federal banking

25 agency.
89

•HR 1340 RH

1 ‘‘(6) PRIORITY OF FDIC RULES.—To the extent

2 that the regulations under this subsection conflict

3 with rules of other agencies or Government corpora4 tions, officers, directors, employees, and independent

5 contractors of the Corporation who are also subject to

6 the conflict of interest or ethical rules of another agen7 cy or Government corporation, shall be governed by

8 the regulations prescribed by the Board of Directors

9 under this subsection when acting for or on behalf of

10 the Corporation. Notwithstanding the preced11 ing sentence, the rules of the Corporation

12 shall not take priority over the ethics and

13 conflict of interest rules and regulations

14 promulgated by the Office of Government

15 Ethics unless specifically authorized by

16 that Office.’’.

17 (b) TECHNICAL AND CONFORMING AMENDMENT.—Sec18 tion 3(z) of the Federal Deposit Insurance Act (12 U.S.C.

19 1813(z)) is amended to read as follows:

20 ‘‘(z) OTHER DEFINITIONS.—

21 ‘‘(1) FEDERAL BANKING AGENCY.—The term

22 ‘Federal banking agency’ means the Comptroller of

23 the Currency, the Director of the Office of Thrift Su24 pervision, the Board of Governors of the Federal Re-
90

•HR 1340 RH

1 serve System, or the Federal Deposit Insurance Cor2 poration.

3 ‘‘(2) COMPANY.—The term ‘company’ has the

4 meaning given to such term in section 2(b) of the

5 Bank Holding Company Act of 1956.’’.

6 (c) EFFECTIVE DATE.—The amendment made by sub7 section (a) shall apply after the end of the 6-month period

8 beginning on the date of the enactment of this Act.

9 SEC. 20. RESTRICTIONS ON SALES OF ASSETS TO CERTAIN

10 PERSONS.

11 (a) IN GENERAL.—Section 11(p) of the Federal De12 posit Insurance Act (12 U.S.C. 1821(p)) is amended by re13 designating paragraphs (1) and (2) as paragraphs (2) and

14 (3) and by inserting before paragraph (2) (as so redesig15 nated) the following new paragraph:

16 ‘‘(1) PERSONS WHO ENGAGED IN IMPROPER CON17 DUCT WITH, OR CAUSED LOSSES TO, DEPOSITORY IN18 STITUTIONS.—The Corporation shall prescribe regula19 tions which, at a minimum, shall prohibit the sale of

20 assets of a failed institution by the Corporation to—

21 ‘‘(A) any person who—

22 ‘‘(i) has defaulted, or was a member of

23 a partnership or an officer or director of a

24 corporation which has defaulted, on 1 or

25 more obligations the aggregate amount of
91

•HR 1340 RH

1 which exceed $1,000,000 to such failed insti2 tution;

3 ‘‘(ii) has been found to have engaged in

4 fraudulent activity in connection with any

5 obligation referred to in clause (i); and

6 ‘‘(iii) proposes to purchase any such

7 asset in whole or in part through the use of

8 the proceeds of a loan or advance of credit

9 from the Corporation or from any institu10 tion for which the Corporation has been ap11 pointed as conservator or receiver;

12 ‘‘(B) any person who participated, as an of13 ficer or director of such failed institution or of

14 any affiliate of such institution, in a material

15 way in transactions that resulted in a substan16 tial loss to such failed institution;

17 ‘‘(C) any person who has been removed

18 from, or prohibited from participating in the af19 fairs of, such failed institution pursuant to any

20 final enforcement action by an appropriate Fed21 eral banking agency; or

22 ‘‘(D) any person who has demonstrated a

23 pattern or practice of defalcation regarding obli24 gations to such failed institution.’’.
92

•HR 1340 RH

1 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

2 Section 11(p) of the Federal Deposit Insurance Act (12

3 U.S.C. 1821(p)) is amended—

4 (1) in paragraph (2) (as so redesignated by the

5 amendment made by subsection (a) of this section)—

6 (A) by striking ‘‘individual’’ and inserting

7 ‘‘person’’; and

8 (B) by striking ‘‘paragraph (2)’’ and insert9 ing ‘‘paragraph (3)’’;

10 (2) in paragraph (3) (as so redesignated by the

11 amendment made by subsection (a) of this section)—

12 (A) by striking ‘‘individual’’ each place

13 such term appears and inserting ‘‘person’’; and

14 (B) by striking ‘‘Paragraph (1)’’ and in15 serting ‘‘Paragraphs (1) and (2)’’;

16 (3) by adding at the end the following new para17 graph:

18 ‘‘(4) DEFINITION OF DEFAULT.—For purposes of

19 paragraphs (1) and (2), the term ‘default’ means a

20 failure to comply with the terms of a loan or other

21 obligation to such an extent that the property secur22 ing the obligation is foreclosed upon.’’; and

23 (4) by striking the heading and inserting the fol24 lowing new heading: ‘‘(p) CERTAIN SALES OF ASSETS

25 PROHIBITED.—’’.
93

•HR 1340 RH

1 SEC. 21. WHISTLEBLOWER PROTECTION.

2 Section 33(a)(2) of the Federal Deposit Insurance Act

3 (12 U.S.C. 1831j(a)(2)) is amended—

4 (1) by striking ‘‘or Federal Reserve bank’’ and

5 inserting ‘‘Federal reserve bank, or any person who is

6 performing, directly or indirectly, any function or

7 service on behalf of the Corporation’’;

8 (2) by striking ‘‘or’’ at the end of subparagraph

9 (B);

10 (3) by striking the period at the end of subpara11 graph (C) and inserting ‘‘; or’’; and

12 (4) by adding at the end the following new sub13 paragraph:

14 ‘‘(D) the person, or any officer or employee

15 of the person, who employs such employee.’’.

16 SEC. 22. FDIC ASSET DISPOSITION DIVISION.

17 (a) IN GENERAL.—Section 1 of the Federal Deposit In18 surance Act (12 U.S.C. 1811) is amended—

19 (1) by striking ‘‘There is hereby created’’ and in20 serting ‘‘(a) ESTABLISHMENT OF CORPORATION.—

21 There is hereby established’’; and

22 (2) by adding at the end the following new sub23 section:

24 ‘‘(b) ASSET DISPOSITION DIVISION.—

25 ‘‘(1) ESTABLISHMENT.—The Corporation shall

26 have a separate division of asset disposition.
94

•HR 1340 RH

1 ‘‘(2) MANAGEMENT.—The division of asset dis2 position shall have an administrator who shall be ap3 pointed by the Board of Directors.

4 ‘‘(3) POWERS AND DUTIES OF DIVISION.—The di5 vision of asset disposition shall exercise all the powers

6 and duties of the Corporation under this Act relating

7 to the liquidation of insured depository institutions

8 and the disposition of assets of such institutions.’’.

9 (b) EFFECTIVE DATE.—The amendment made by sub10 section (a) shall take effect on July 1, 1995.

11 SEC. 23. PRESIDENTIALLY-APPOINTED INSPECTOR GEN12 ERAL FOR FDIC.

13 (a) IN GENERAL.—Section 11 of the Inspector General

14 Act of 1978 (5 U.S.C. App.) is amended—

15 (1) in paragraph (1), by inserting ‘‘, the Chair16 person of the Board of Directors of the Federal De17 posit Insurance Corporation,’’ after ‘‘Chairperson of

18 the Thrift Depositor Protection Oversight Board’’;

19 and

20 (2) in paragraph (2), by inserting ‘‘the Federal

21 Deposit Insurance Corporation,’’ after ‘‘the Resolution

22 Trust Corporation’’.

23 (b) NO REDUCTION IN RATE OF PAY OF EXISTING EM24 PLOYEES OF THE OFFICE OF THE IG OF THE FDIC.—
95

•HR 1340 RH

1 (1) IN GENERAL.—Notwithstanding paragraphs

2 (7) and (8) of section 6(a) of the Inspector General

3 Act of 1978, the annual rate of basic pay and bene4 fits, including any regional pay differential, payable

5 to any employee of the office of the inspector general

6 of the Federal Deposit Insurance Corporation who

7 was an employee of such office as of the date of the

8 enactment of the Resolution Trust Corporation Com9 pletion Act for any year ending after such date of en10 actment shall not be reduced, by reason of the amend11 ment made by subsection (a) of this section, below the

12 annual rate of basic pay and benefits, including any

13 regional pay differential, paid to such employee, by

14 reason of such employment, as of such date.

15 (2) EMPLOYEES SERVING IN ACTING OR TEM16 PORARY CAPACITY.—Notwithstanding paragraph (1),

17 in the case of any employee described in such para18 graph who, as of the date of the enactment of the Res19 olution Trust Corporation Completion Act, is serving

20 in an acting capacity or is otherwise temporarily em21 ployed at a higher grade than such employee’s regular

22 grade or position of employment—

23 (A) the annual rate of basic pay and bene24 fits, including any regional pay differential,

25 payable to such employee in such capacity or at
96

•HR 1340 RH

1 such higher grade shall not be reduced by reason

2 of the applicability of paragraph (7) or (8) of

3 section 6(a) of the Inspector General Act of 1978

4 so long as such employee continues to serve in

5 such capacity or at such higher grade; and

6 (B) after such employee ceases to serve in

7 such capacity or at such higher grade, para8 graph (1) shall be applied with respect to such

9 employee by taking into account only the annual

10 rate basic pay and benefits, including any re11 gional pay differential, payable to such employee

12 in such employee’s regular grade or position of

13 employment.

14 (c) TECHNICAL AND CONFORMING AMENDMENTS.—

15 (1) Section 8E(a)(2) of the Inspector General Act

16 of 1978 (5 U.S.C. App.) is amended by striking ‘‘the

17 Federal Deposit Insurance Corporation,’’.

18 (2) Section 5315 of title 5, United States Code,

19 is amended by adding at the end the following new

20 item:

21 ‘‘Inspector General, Federal Deposit Insurance

22 Corporation.’’.
97

•HR 1340 RH

1 SEC. 24. DEPUTY CHIEF EXECUTIVE OFFICER.

2 Section 21A(b)(8) of the Federal Home Loan Bank Act

3 (12 U.S.C. 1441a(b)(8)) is amended by adding at the end

4 the following new subparagraphs:

5 ‘‘(E) DEPUTY CHIEF EXECUTIVE OFFI6 CER.—

7 ‘‘(i) IN GENERAL.—There is hereby es8 tablished the position of deputy chief execu9 tive officer of the Corporation.

10 ‘‘(ii) APPOINTMENT.—The deputy chief

11 executive officer of the Corporation shall—

12 ‘‘(I) be appointed by the Chair13 person of the Thrift Depositor Protec14 tion Oversight Board, with the rec15 ommendation of the chief executive offi16 cer; and

17 ‘‘(II) be an employee of the Fed18 eral Deposit Insurance Corporation in

19 accordance with subparagraph (B)(i)

20 of this paragraph.

21 ‘‘(iii) DUTIES.—The deputy chief exec22 utive officer shall perform such duties as the

23 chief executive officer may require.

24 ‘‘(F) ACTING CHIEF EXECUTIVE OFFICER.—

25 In the event of a vacancy in the position of chief

26 executive officer or during the absence or disabil-
98

•HR 1340 RH

1 ity of the chief executive officer, the deputy chief

2 executive officer shall perform the duties of the

3 position as the acting chief executive officer.’’.

4 SEC. 25. DUE PROCESS PROTECTIONS RELATING TO AT5 TACHMENT OF ASSETS.

6 Section 8 of the Federal Deposit Insurance Act (12

7 U.S.C. 1818) is amended—

8 (1) by striking subsection (i)(4)(B) and inserting

9 the following new subparagraph:

10 ‘‘(B) STANDARD.—

11 ‘‘(i) SHOWING.—Rule 65 of the Federal

12 Rules of Civil Procedure shall apply with

13 respect to any proceeding under subpara14 graph (A) without regard to the require15 ment of such rule that the applicant show

16 that the injury, loss, or damage is irrep17 arable and immediate.

18 ‘‘(ii) STATE PROCEEDING.—If, in the

19 case of any proceeding in a State court, the

20 court determines that rules of civil proce21 dure available under the laws of such State

22 provide substantially similar protections to

23 such party’s right to due process as Rule 65

24 (as modified with respect to such proceeding

25 by clause (i)), the relief sought under sub-
99

•HR 1340 RH

1 paragraph (A) may be requested under the

2 laws of such State.’’.

3 (2) in subsection (b), by adding the following

4 new paragraph:

5 ‘‘(9) STANDARD FOR CERTAIN ORDERS.—No au6 thority under this subsection or subsection (c) to pro7 hibit any institution-affiliated party from withdraw8 ing, transferring, removing, dissipating, or disposing

9 of any funds, assets, or other property may be exer10 cised unless the agency meets the standards of Rule 65

11 of the Federal Rules of Civil Procedure without re12 gard to the requirement of such rule that the appli13 cant show that the injury, loss, or damage is irrep14 arable and immediate.’’.

15 SEC. 26. GAO STUDIES REGARDING FEDERAL REAL PROP16 ERTY DISPOSITION.

17 (a) RTC AFFORDABLE HOUSING PROGRAM.—The

18 Comptroller General of the United States shall conduct a

19 study of the program carried out by the Resolution Trust

20 Corporation pursuant to section 21A(c) of the Federal

21 Home Loan Bank Act to determine the effectiveness of such

22 program in providing affordable homeownership and rental

23 housing for very low-, low-, and moderate-income families.

24 The study shall examine the procedures used under the pro25 gram to sell eligible single family properties, eligible con-
100

•HR 1340 RH

1 dominium properties, and eligible multifamily housing

2 properties, the characteristics and numbers of purchasers

3 of such properties, and the amount of and reasons for any

4 losses incurred by the Resolution Trust Corporation in sell5 ing properties under the program. Not later than the expi6 ration of the 6-month period beginning on the date of the

7 enactment of this Act, the Comptroller General shall submit

8 a report to the Congress on the results of the study under

9 this subsection, which shall describe any findings under the

10 study and contain any recommendations of the Comptroller

11 General for improving the effectiveness of such program.

12 (b) SINGLE AGENCY FOR REAL PROPERTY DISPOSI13 TION.—The Comptroller General of the United States shall

14 conduct a study to determine the feasibility and effective15 ness of establishing a single Federal agency responsible for

16 selling and otherwise disposing of real property owned or

17 held by the Department of Housing and Urban Develop18 ment, the Farmers Home Administration of the Department

19 of Agriculture, the Federal Deposit Insurance Corporation,

20 and the Resolution Trust Corporation. The study shall ex21 amine the real property disposition procedures of such

22 agencies and corporations, analyze the feasibility of consoli23 dating such procedures through such single agency, and de24 termine the characteristics and authority necessary for any

25 such single agency to efficiently carry out such disposition
101

•HR 1340 RH

1 activities. Not later than the expiration of the 12-month pe2 riod beginning on the date of the enactment of this Act,

3 the Comptroller General shall submit a report to the Con4 gress on the study under this subsection, which shall de5 scribe any findings under the study and contain any rec6 ommendations of the Comptroller General for the establish7 ment of such single agency.

Amend the title so as to read: ‘‘A bill to provide for

the remaining funds needed to assure that the United

States fulfills its obligation for the protection of depositors at savings and loan institutions, to improve the management of the Resolution Trust Corporation (‘RTC’) in

order to assure the taxpayers the fairest and most efficient disposition of savings and loan assets, to provide for

a comprehensive transition plan to assure an orderly

transfer of RTC resources to the Federal Deposit Insurance Corporation, to abolish the RTC, and for other

purposes.’’.

HR 1340 RH——2

HR 1340 RH——3

HR 1340 RH——4

HR 1340 RH——5

HR 1340 RH——6

HR 1340 RH——7