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 or-
dered 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]
A BILL
To provide funding for the resolution of failed savings
associations, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Resolution Trust Cor-
poration Completion Act’’.
SEC. 2. FINAL FUNDING FOR RTC.
Section 21A(i) of the Federal Home Loan Bank Act
(12 U.S.C. 1441a(i)) is amended—
(1) in paragraph (3), by striking ‘‘until April 1,
1992’’; and
(2) by adding at the end the following new para-
graphs:
‘‘(4) CONDITIONS
ON
AVAILABILITY
OF
FINAL
FUNDING IN EXCESS OF $10,000,000,000.—
‘‘(A) CERTIFICATION
REQUIRED.—Of the
funds appropriated under paragraph (3) which
are provided after April 1, 1993, any amount in
excess of $10,000,000,000 shall not be available
to the Corporation before the date on which the
Secretary of the Treasury certifies to the Con-
gress that, since the date of the enactment of the
Resolution Trust Corporation Completion Act,
the Corporation has taken such action as may be
necessary to comply with the requirements of
subsection (w) or that, as of the date of the cer-
tification, the Corporation is continuing to make
adequate progress toward full compliance with
such requirements.
‘‘(B) APPEARANCE
UPON
REQUEST.—The
Secretary of the Treasury shall appear before the
Committee on Banking, Finance and Urban Af-
fairs of the House of Representatives and the
Committee on Banking, Housing, and Urban Af-
fairs of the Senate, upon the request of the chair-
man of the respective committee, to report on
any certification made to the Congress under
subparagraph (A).
‘‘(5) RETURN TO TREASURY.—If the aggregate
amount of funds transferred to the Corporation pur-
suant to this subsection exceeds the amount needed to
carry out the purposes of this section or to meet the
requirements of section 11(a)(6)(F) of the Federal De-
posit Insurance Act, such excess amount shall be de-
posited in the general fund of the Treasury.
‘‘(6) FUNDS ONLY FOR DEPOSITORS.—Notwith-
standing any other provision of law other than sec-
tion 13(c)(4)(G) of the Federal Deposit Insurance Act,
funds appropriated under this section shall—
‘‘(A) be used only for the purposes of pro-
tecting insured depositors or the administrative
expenses of the Corporation; and
‘‘(B) not be used in any manner to benefit
shareholders of an insured depository institution
in connection with any type of resolution by the
Corporation or the Federal Deposit Insurance
Corporation of an insured depository institution
for which the Corporation has been appointed
conservator or receiver or any other insured de-
pository institution in default (as defined in sec-
tion 3(x)(1) of the Federal Deposit Insurance
Act) under any provision of law, or the provi-
sion of assistance in any form under section 11,
12, or 13 of the Federal Deposit Insurance Act.’’.
SEC. 3. RTC MANAGEMENT REFORMS.
(a) IN GENERAL.—Section 21A of the Federal Home
Loan Bank Act (12 U.S.C. 1441a) is amended by adding
at the end the following new subsection:
‘‘(w) RTC MANAGEMENT REFORMS.—
‘‘(1) COMPREHENSIVE
BUSINESS
PLAN.—The
Corporation shall establish and maintain a com-
prehensive business plan covering the operations of
the Corporation, including the disposition of assets,
for the remainder of the Corporation’s existence.
‘‘(2) MARKETING REAL PROPERTY ON AN INDI-
VIDUAL BASIS.—The Corporation shall—
‘‘(A) market all assets consisting of real
property (other than assets transferred in con-
nection with the transfer of substantially all of
the assets of an insured depository institution for
which the Corporation has been appointed con-
servator or receiver) on an individual basis, in-
cluding sales by auction, for no fewer than 120
days before such assets may be made available
for sale or other disposition on a portfolio basis
or otherwise included in a multiasset sales ini-
tiative; and
‘‘(B) prescribe regulations—
‘‘(i) to require that the sale or other
disposition of any asset consisting of real
property on a portfolio basis or in connec-
tion with any multiasset sales initiative
after the end of the 120-day period described
in subparagraph (A) be justified in writing;
and
‘‘(ii) to carry out the requirement of
subparagraph (A).
‘‘(3) DISPOSITION
OF
REAL
ESTATE
RELATED
ASSETS.—
‘‘(A) PROCEDURES
FOR
DISPOSITION
OF
REAL-ESTATE RELATED ASSETS.—The Corpora-
tion 
shall 
not 
sell 
real 
property 
or
nonperforming real estate loans which the Cor-
poration has acquired as receiver or conservator,
unless—
‘‘(i) the Corporation has assigned re-
sponsibility for the management and dis-
position of such assets to a qualified person
or entity to—
‘‘(I) analyze each asset on an
asset-by-asset basis and consider alter-
native disposition strategies for such
asset;
‘‘(II) develop a written manage-
ment and disposition plan; and
‘‘(III) implement that plan for a
reasonable period of time; or
‘‘(ii) the Corporation has made a de-
termination in writing, that a bulk trans-
action would maximize net recovery to the
Corporation, while providing opportunity
for broad participation by qualified bidders,
including 
minority- 
and 
women-owned
businesses.
‘‘(B) DEFINITIONS.—
‘‘(i) IN
GENERAL.—The Corporation
may, by regulation, define any term in sub-
paragraph (A) for purposes of such sub-
paragraph.
‘‘(ii) SPECIAL
RULE.—In defining
terms pursuant to clause (i) for purposes of
subparagraph (A), the Corporation may de-
fine—
‘‘(I) the term ‘asset’ so as to in-
clude properties or loans which are le-
gally separate and distinct properties
or loans, but which have sufficiently
common characteristics such that they
may be logically treated as a single
asset; and
‘‘(II) the term ‘qualified person or
entity’ so as to include any employee
of the Thrift Depositor Protection
Oversight Board or any employee as-
signed to the Corporation under sub-
section (b)(8).
‘‘(C) IMPLEMENTATION.—The Corporation
may implement the requirements of this para-
graph in such manner as the Corporation con-
siders, in the Corporation’s discretion, to be
appropriate.
‘‘(D) EXCEPTIONS.—This paragraph shall
not apply to—
‘‘(i) assets transferred in connection
with the transfer of substantially all the as-
sets of an insured depository institution for
which the Corporation has been appointed
conservator or receiver;
‘‘(ii) nonperforming real estate loans
with a book value equal to or less than
$1,000,000;
‘‘(iii) real property with a book value
equal to or less than $200,000; or
‘‘(iv) real property with a book value
in excess of $200,000 or nonperforming real
estate loans with a book value in excess of
$1,000,000 for which the Corporation deter-
mines, in writing, that a disposition not in
conformity with the requirements of sub-
paragraph (A) will bring a greater return
to the Corporation.
‘‘(E) 
COORDINATION
WITH
PARAGRAPH
(2).—No provision of this paragraph shall super-
sede the requirements of paragraph (2).
‘‘(4) DIVISION
OF
MINORITIES
AND
WOMEN’S
PROGRAMS.—
‘‘(A) IN GENERAL.—The Corporation shall
maintain a division of minorities and women’s
programs.
‘‘(B) VICE PRESIDENT.—The head of the di-
vision shall be a vice president of the Corpora-
tion and a member of the executive committee of
the Corporation.
‘‘(5) CHIEF FINANCIAL OFFICER.—
‘‘(A) IN GENERAL.—The chief executive offi-
cer of the Corporation shall appoint a chief fi-
nancial officer for the Corporation.
‘‘(B) AUTHORITY.—The chief financial offi-
cer of the Corporation shall—
‘‘(i) have no operating responsibilities
with respect to the Corporation other than
as chief financial officer;
‘‘(ii) report directly to the chief execu-
tive officer of the Corporation; and
‘‘(iii) have such authority and duties
of chief financial officers of agencies under
section 902 of title 31, United States Code,
as the Thrift Depositor Protection Oversight
Board determines to be appropriate with re-
spect to the Corporation.
‘‘(6) BASIC ORDERING AGREEMENTS.—
‘‘(A) REVISION OF PROCEDURES.—The Cor-
poration shall revise the procedure for reviewing
and qualifying applicants for eligibility for fu-
ture contracts in a specified service area (com-
monly referred to as ‘basic ordering agreements’
or ‘task ordering agreements’) in such manner as
may be necessary to ensure that small businesses,
minorities, and women are not inadvertently ex-
cluded from eligibility for such contracts.
‘‘(B) REVIEW OF LISTS.—The Corporation
shall—
‘‘(i) review all lists of contractors de-
termined to be eligible for future contracts
in a specified service area (commonly re-
ferred to as ‘basic ordering agreements’ or
‘task ordering agreements’) and other con-
tracting mechanisms; and
‘‘(ii) prescribe appropriate regulations
and procedures,
to ensure the maximum participation level pos-
sible of minority- and women-owned businesses.
‘‘(7) IMPROVEMENT OF CONTRACTING SYSTEMS
AND
CONTRACTOR
OVERSIGHT.—The Corporation
shall—
‘‘(A) maintain such procedures and uniform
standards for—
‘‘(i) entering into contracts between the
Corporation and private contractors; and
‘‘(ii) overseeing the performance of con-
tractors and subcontractors under such con-
tracts and compliance by contractors and
subcontractors with the terms of contracts
and applicable regulations, orders, policies,
and guidelines of the Corporation,
as may be appropriate for the Corporation’s op-
erations to be carried out in as efficient and eco-
nomical a manner as may be practicable;
‘‘(B) commit sufficient resources, including
personnel, to contract oversight and the enforce-
ment of all laws, regulations, orders, policies,
and standards applicable to contracts with the
Corporation; and
‘‘(C) maintain uniform procurement guide-
lines for basic goods and administrative services
to prevent the acquisition of such goods and serv-
ices at widely different prices.
‘‘(8) AUDIT COMMITTEE.—
‘‘(A) ESTABLISHMENT.—The Thrift Deposi-
tor Protection Oversight Board shall establish
and maintain an audit committee.
‘‘(B) DUTIES.—The audit committee shall
have the following duties:
‘‘(i) Monitor the internal controls of
the Corporation.
‘‘(ii) Monitor the audit findings and
recommendations of the inspector general of
the Corporation and the Comptroller Gen-
eral of the United States and the Corpora-
tion’s response to the findings and rec-
ommendations.
‘‘(iii) Maintain a close working rela-
tionship with the inspector general of the
Corporation and the Comptroller General of
the United States.
‘‘(iv) Regularly report the findings and
any recommendation of the audit committee
to the Corporation and the Thrift Depositor
Protection Oversight Board.
‘‘(v) Monitor the financial operations
of the Corporation and report any incipient
problem identified by the audit committee
to the Corporation and the Thrift Depositor
Protection Oversight Board.
‘‘(9) CORRECTIVE RESPONSES TO AUDIT PROB-
LEMS.—The Corporation shall maintain procedures
which provide for a prompt and determinative re-
sponse to problems identified by auditors of the Cor-
poration’s financial and asset-disposition operations,
including problems identified in audit reports by the
inspector general of the Corporation, the Comptroller
General of the United States, and the audit commit-
tee.
‘‘(10) ASSISTANT GENERAL COUNSEL FOR PRO-
FESSIONAL LIABILITY.—
‘‘(A) APPOINTMENT.—The chief executive of-
ficer shall appoint, within the division of legal
services of the Corporation, an assistant general
counsel for professional liability.
‘‘(B) DUTIES.—The assistant general coun-
sel for professional liability appointed under
subparagraph (A) shall—
‘‘(i) direct the investigation, evalua-
tion, and prosecution of all professional li-
ability cases involving the Corporation; and
‘‘(ii) supervise all legal, investigative,
and other personnel and contractors in-
volved in the litigation of such claims.
‘‘(C) REPORTS TO THE CONGRESS.—The as-
sistant general counsel for professional liability
shall submit semiannual reports to the Congress
not later than April 30 and October 31 of each
year concerning the activities of the counsel
under subparagraph (B).
‘‘(11) MANAGEMENT INFORMATION SYSTEM.—The
Corporation shall maintain an effective management
information system capable of providing complete and
current information to the extent the provision of
such information is appropriate and cost-effective.
‘‘(12) INTERNAL
CONTROLS
AGAINST
FRAUD,
WASTE, AND ABUSE.—The Corporation shall main-
tain effective internal controls designed to prevent
fraud, waste, and abuse, identify any such activity
should it occur, and promptly correct any such
activity.
‘‘(13) FAILURE TO APPOINT CERTAIN OFFICERS
OF THE CORPORATION.—The failure to fill any posi-
tion established under this section or any vacancy in
any such position, shall be treated as a failure to
comply with the requirements of this subsection for
purposes of subsection (i)(4).
‘‘(14) REPORTS.—
‘‘(A) DETAILED DISCLOSURE OF EXPENDI-
TURES.—The Corporation shall include in the
annual report submitted pursuant to subsection
(k)(4) a detailed itemization of the expenditures
of the Corporation during the year for which
funds provided pursuant to subsection (i)(3)
were used.
‘‘(B) PUBLIC DISCLOSURE OF SALARIES.—
The Corporation shall include in the annual re-
port submitted pursuant to subsection (k)(4) a
disclosure of the salaries and other compensation
paid during the year covered by the report to di-
rectors and senior executive officers at any de-
pository institution for which the Corporation
has been appointed conservator or receiver.
‘‘(C) 
COMPREHENSIVE
LITIGATION
RE-
PORT.—The Corporation shall develop and pro-
vide semiannually a comprehensive litigation re-
port of all civil actions which—
‘‘(i) are filed by the Corporation pur-
suant to section 11(k) of the Federal Deposit
Insurance Act or any other provision of ap-
plicable law asserted by the Corporation as
a basis for liability of—
‘‘(I) directors or officers of deposi-
tory institutions described in sub-
section (b)(3)(A); or
‘‘(II) attorneys, accountants, ap-
praisers, or other licensed professionals
who performed professional services for
such depository institutions; and
‘‘(ii) have been filed before January 1,
1993, and remain open, or are initiated, on
or after January 1, 1993.
‘‘(15) MINORITY- 
AND
WOMEN-OWNED
BUSI-
NESSES
CONTRACT
PARITY
GUIDELINES.—The Cor-
poration shall establish guidelines for achieving a rea-
sonably even distribution of contracts awarded to the
various subgroups of the class of minority- and
women-owned businesses whose total number of reg-
istered contractors comprise not less than five percent
of all minority- or women-owned registered contrac-
tors.
‘‘(16) CONDITIONS ON DISCRETIONARY WAIVERS
OF CONFLICTS OF INTEREST.—The Corporation may
not grant any waiver from the requirements of any
regulations prescribed by the Corporation relating to
conflicts of interest to any minority or nonminority
contractor who is otherwise eligible (under such regu-
lations) for such waiver unless the contractor is under
subcontract with a minority- or women-owned busi-
ness, or is part of a joint venture described in sub-
section (r)(2), for the performance of a portion of the
contractor’s obligation under the contract.
‘‘(17) CONTRACT
SANCTIONS
FOR
FAILURE
TO
COMPLY WITH SUBCONTRACT AND JOINT VENTURE RE-
QUIREMENTS.—The Corporation shall prescribe regu-
lations which provide sanctions, including contract
penalties and suspensions, for violations by contrac-
tors of requirements relating to subcontractors and
joint ventures.
‘‘(18) MINORITY PRIORITY IN ACQUISITION OF IN-
STITUTIONS IN PREDOMINANTLY MINORITY NEIGHBOR-
HOODS.—
‘‘(A) IN GENERAL.—In considering offers to
acquire any insured depository institution, or
any branch of an insured depository institution,
located in a predominantly minority neighbor-
carried out at the least possible cost to the
Corporation as may be practicable.
‘‘(F) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) ACQUIRE.—The term ‘acquire’ has
the meaning given to such term in section
13(f)(8)(B) of the Federal Deposit Insurance
Act.
‘‘(ii) MINORITY.—The term ‘minority’
has the meaning given to such term in sec-
tion 1204(c)(3) of the Financial Institutions
Reform, Recovery and Enforcement Act of
1989.
‘‘(ii) MINORITY DEPOSITORY INSTITU-
TION.—The term ‘minority depository insti-
tution’ has the meaning given to such term
in subsection (s)(2).
‘‘(iv) MINORITY-OWNED
BUSINESS.—
The term ‘minority-owned business’ has the
meaning given to such term in subsection
(r)(4).
‘‘(19) SUBCONTRACTS
WITH
MINORITY- 
AND
WOMEN-OWNED BUSINESSES.—
‘‘(A) IN GENERAL.—The Corporation may
not enter into any contract for the provision of
(i) shall be made in writing by the chief ex-
ecutive officer of the Corporation.
‘‘(C) REPORT.—Each quarterly report sub-
mitted by the Corporation pursuant to subsection
(k)(7) shall contain a description of each waiver
granted under subparagraph (B) during the
quarter covered by the report.
‘‘(D) DEFINITIONS.—For the purposes of
this paragraph—
‘‘(i) MINORITY.—The term ‘minority’
has the meaning given to such term by sec-
tion 1204(c)(3) of the Financial Institutions
Reform, Recovery, and Enforcement Act of
1989.
‘‘(ii) MINORITY- AND
WOMEN-OWNED
BUSINESS.—The 
terms 
‘minority-owned
business’ and ‘women-owned business’ have
the meaning given to such terms in sub-
section (r)(4).’’.
(b) BORROWER APPEALS.—Section 21A(b)(4) of the
Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(4)) is
amended by adding at the end the following new subpara-
graph:
‘‘(C) APPEALS.—The Corporation shall im-
plement and maintain a program, in a manner
acceptable to the Thrift Depositor Protection
Oversight Board, to provide an appeals process
for business and commercial borrowers to appeal
decisions by the Corporation (when acting as a
conservator) which would have the effect of ter-
minating or otherwise adversely affecting credit
or loan agreements, lines of credit, and similar
arrangements with such borrowers who have not
defaulted on their obligations.’’.
(c) GAO STUDY OF PROGRESS OF IMPLEMENTATION
OF REFORMS.—
(1) STUDY REQUIRED.—The Comptroller General
of the United States shall conduct a study of the man-
ner in which the reforms required pursuant to the
amendment made by subsection (a) are being imple-
mented by the Resolution Trust Corporation and the
progress being made by the Corporation toward the
achievement of full compliance with such require-
ments.
(2) INTERIM REPORT TO CONGRESS.—Not later
than 6 months after the date of the enactment of this
Act, the Comptroller General of the United States
shall submit an interim report to the Congress con-
taining the preliminary findings of the Comptroller
General in connection with the study required under
paragraph (1).
(3) FINAL
REPORT
TO
CONGRESS.—Not later
than 1 year after the date of the enactment of this
Act, the Comptroller General of the United States
shall submit a report to the Congress containing—
(A) the findings of the Comptroller General
in connection with the study required under
paragraph (1); and
(B) such recommendations for legislative
and administrative action as the Comptroller
General may determine to be appropriate.
(4) DISCLOSURE OF PERFORMING ASSET TRANS-
FERS.—
(A) REPORT REQUIRED.—The Comptroller
General of the United States shall submit an an-
nual report to the Congress on transfers of per-
forming assets by the Corporation to any
acquirer during the year covered by the report.
(B) CONTENTS.—Each report submitted
under subparagraph (A) shall contain—
(i) the number and a detailed descrip-
tion of asset transfers during the year cov-
ered by the report;
(ii) the number of assets provided in
connection with each transaction during
such year; and
(iii) the fair market value, as deter-
mined by the Comptroller General, of each
transferred asset at the time of transfer.
SEC. 4. EXTENSION OF STATUTE OF LIMITATIONS.
(a) RESOLUTION
TRUST
CORPORATION.—Section
11(d)(14) of the Federal Deposit Insurance Act (12 U.S.C.
1821(d)(14)) is amended—
(1) in subparagraph (A)(ii), by inserting ‘‘except
as provided in subparagraph (B),’’ before ‘‘in the case
of’’;
(2) by redesignating subparagraph (B) as sub-
paragraph (C);
(3) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
ø‘‘(B) TORT
ACTIONS
BROUGHT
BY
THE
RTC.—The applicable statute of limitations with
regard to any action in tort, other than neg-
ligence, brought by the Resolution Trust Cor-
poration in such Corporation’s capacity as con-
servator or receiver of a failed savings associa-
tion¿ ‘‘(B) CERTAIN ACTIONS BROUGHT BY
THE RESOLUTION TRUST CORPORATION.—
The applicable statute of limitations
with regard to any action for fraud or
intentional misconduct resulting in
unjust enrichment brought by the
Resolution Trust Corporation in its
capacity as conservator or receiver of
a failed savings association shall be the
longer of—
‘‘(i) the 5-year period beginning on the
date the claim accrues; or
‘‘(ii) the period applicable under State
law;’’; and
(4) in subparagraph (C), as redesignated—
(A) by striking ‘‘subparagraph (A)’’ and in-
serting ‘‘subparagraphs (A) and (B)’’; and
(B) by inserting ‘‘any’’ before ‘‘such sub-
paragraph’’.
(b) EFFECTIVE DATE; TERMINATION; FDIC AS SUC-
CESSOR.—
(1) EFFECTIVE DATE.—The amendments made
by subsection (a) shall take effect as if such amend-
ments had been included in the amendment made by
section 212(a) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, as of the ef-
fective date of such amendment.
(2) SUNSET PROVISION.—Section 11(d)(14)(B) of
the Federal Deposit Insurance Act (as amended by
subsection (a) of this section) shall cease to apply as
of the date of the termination of the Resolution Trust
Corporation.
(3) FDIC AS
SUCCESSOR
TO
THE
RTC.—The
Federal Deposit Insurance Corporation, as successor
to the Resolution Trust Corporation, shall have the
right to pursue any tort action to which the amend-
ment made by subsection (a) applies that was prop-
erly brought by the Resolution Trust Corporation be-
fore the termination of the Resolution Trust Corpora-
tion.
SEC. 5. LIMITATION ON BONUSES AND COMPENSATION
PAID BY THE RTC AND THE THRIFT DEPOSI-
TOR PROTECTION OVERSIGHT BOARD.
(a) IN GENERAL.—Section 21A of the Federal Home
Loan Bank Act (12 U.S.C. 1441a) is amended by adding
after subsection (w) (as added by section 3(a) of this Act)
the following new subsections:
‘‘(x) PERFORMANCE-BASED CASH AWARDS.—
‘‘(1) ESTABLISHMENT
OF
PERFORMANCE
AP-
PRAISAL SYSTEM REQUIRED.—The Corporation shall
be treated as an agency for purposes of sections 4302
and 4304 of title 5, United States Code.
‘‘(2) PROCEDURES FOR PAYMENT OF PERFORM-
ANCE-BASED CASH AWARDS.—
‘‘(A) IN GENERAL.—Section 4505a of title
5, United States Code, shall apply with respect
to the Corporation.
‘‘(B) LIMITATION
ON
AMOUNT
OF
CASH
AWARDS.—For purposes of determining the
amount of any performance-based cash award
payable to any employee of the Corporation,
under section 4505a of title 5, United States
Code, the amount of basic pay of the employee
which may be taken into account under such sec-
tion shall not exceed the amount which is equal
to the annual rate of basic pay payable for level
I of the Executive Schedule.
‘‘(3) ALL OTHER BONUSES PROHIBITED.—Except
as provided in paragraph (2), no bonus or other cash
payment based on performance may be made to any
employee of the Corporation.
‘‘(4) EMPLOYEE DEFINED.—For purposes of this
subsection, subsection (y), and sections 4302 and
4505a of title 5, United States Code (as applicable
with respect to this subsection), the term ‘employee’
includes any officer or employee assigned to the Cor-
poration under subsection (b)(8) and any officer or
employee of the Thrift Depositor Protection Oversight
Board.
‘‘(y) LIMITATIONS ON EXCESSIVE COMPENSATION.—
‘‘(1) 
COMPENSATION.—Notwithstanding 
any
other provision of this section, no employee (as de-
fined in subsection (x)) may receive a total amount
of allowances, benefits, basic pay, and other com-
pensation, including bonuses and other awards, in ex-
cess of the total amount of allowances, benefits, basic
pay, and other compensation, including bonuses and
other awards, which are provided to the chief execu-
tive officer of the Corporation.
‘‘(2) NO REDUCTION IN RATE OF PAY.—Notwith-
standing paragraph (1), the annual rate of basic pay
and benefits, including any regional pay differential,
payable to any employee who was an employee as of
the date of the enactment of the Resolution Trust Cor-
poration Completion Act for any year ending after
such date of enactment shall not be reduced, by reason
of paragraph (1), below the annual rate of basic pay
and benefits, including any regional pay differential,
paid to such employee, by reason of such employment,
as of such date.
‘‘(3) EMPLOYEES SERVING IN ACTING OR TEM-
PORARY CAPACITY.—Notwithstanding paragraph (1),
in the case of any employee who, as of the date of the
enactment of the Resolution Trust Corporation Com-
pletion Act, is serving in an acting capacity or is
otherwise temporarily employed at a higher grade
than such employee’s regular grade or position of em-
ployment—
‘‘(A) the annual rate of basic pay and bene-
fits, including any regional pay differential,
payable to such employee in such capacity or at
such higher grade shall not be reduced by reason
of paragraph (1) so long as such employee con-
tinues to serve in such capacity or at such higher
grade; and
‘‘(B) after such employee ceases to serve in
such capacity or at such higher grade, para-
graph (2) shall be applied with respect to such
employee by taking into account only the annual
rate of basic pay and benefits, including any re-
gional pay differential, payable to such employee
in such employee’s regular grade or position of
employment.
‘‘(4) ALLOWANCES
DEFINED.—For purposes of
paragraph (1), the term ‘allowances’ does not include
any allowance for travel and subsistence expenses in-
curred by an employee while away from home or des-
ignated post of duty on official business.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
(1) Section 5314 of title 5, United States Code,
is amended by striking the item added to such section
by section 315(c) of the Resolution Trust Corporation
Refinancing, Restructuring, and Improvement Act of
1991.
(2) Section 21A(a)(6) of the Federal Home Loan
Bank Act (12 U.S.C. 1441a(a)(6)) is amended by
adding at the end the following new subparagraph:
‘‘(K) To establish the rate of basic pay, ben-
efits, and other compensation for the chief execu-
tive officer of the Corporation.’’.
SEC. 6. FDIC—RTC TRANSITION TASK FORCE.
(a) ESTABLISHMENT REQUIRED.—The Federal De-
posit Insurance Corporation and the Resolution Trust Cor-
poration shall establish an interagency transition task force
for the purpose of facilitating the transfer, in accordance
with section 21A of the Federal Home Loan Bank Act, of
the operations and personnel of the Resolution Trust Cor-
poration to the Federal Deposit Insurance Corporation or
the FSLIC Resolution Fund, as the case may be, in a co-
ordinated manner which best preserves and utilizes the
operational systems and personnel teams of the Resolution
Trust Corporation which have successfully performed man-
agement, conservatorship, receivership, or asset-disposition
functions.
(b) MEMBERS.—
(1) IN GENERAL.—The transition task force shall
consist of such number of officers and employees of the
Federal Deposit Insurance Corporation and the Reso-
lution Trust Corporation as the Chairperson of the
Board of Directors of the Federal Deposit Insurance
Corporation and the chief executive officer of the Res-
olution Trust Corporation may jointly determine to
be appropriate.
(2) APPOINTMENT.—The Chairperson of the
Board of Directors of the Federal Deposit Insurance
Corporation and the chief executive officer of the Res-
olution Trust Corporation shall appoint the members
of the transition task force.
(3) NO ADDITIONAL PAY.—Members of the transi-
tion task force shall receive no additional pay, allow-
ances, or benefits by reason of their service on the task
force.
(c) DUTIES.—The transition task force shall have the
following duties:
(1) Examine the operations of the Federal De-
posit Insurance Corporation and the Resolution Trust
Corporation to identify differences in the operations
of the 2 corporations which should be resolved to fa-
cilitate an orderly merger of such operations.
(2) Evaluate the differences in the operational
systems of the Federal Deposit Insurance Corporation
and the Resolution Trust Corporation.
(3) Recommend which of the operational systems
of the Resolution Trust Corporation should be pre-
served for use by the Federal Deposit Insurance Cor-
poration.
(4) Recommend procedures to be followed by the
Federal Deposit Insurance Corporation and the Reso-
lution Trust Corporation in connection with the tran-
sition which will promote—
(A) coordination between the 2 corporations
before the termination of the Resolution Trust
Corporation; and
(B) an orderly transfer of assets, personnel,
and operations.
(5) Evaluate the management enhancement goals
applicable to the Resolution Trust Corporation under
section 21A(p) of the Federal Home Loan Bank Act
and recommend which of such goals should apply to
the Federal Deposit Insurance Corporation.
(6) Evaluate the management reforms applicable
to the Resolution Trust Corporation under section
21A(w) of the Federal Home Loan Bank Act and rec-
ommend which of such reforms should apply to the
Federal Deposit Insurance Corporation.
(d) REPORTS TO BANKING COMMITTEES.—
(1) REPORTS
REQUIRED.—The transition task
force shall submit a report to the Committee on Bank-
ing, Finance and Urban Affairs of the House of Rep-
resentative and the Committee on Banking, Housing,
and Urban Affairs of the Senate no later than Janu-
ary 1, 1995, and a 2d report no later than July 1,
1995, on the progress made by the transition task
force in meeting the requirements of this section.
(2) CONTENTS
OF
REPORT.—The reports re-
quired to be submitted under paragraph (1) shall con-
tain the findings and recommendations made by the
transition task force in carrying out the duties of the
task force under subsection (c) and such recommenda-
tions for legislative and administrative action as the
task force may determine to be appropriate.
(e) FOLLOWUP REPORT BY FDIC.—Not later than
January 1, 1996, the Federal Deposit Insurance Corpora-
tion shall submit a report to the Committee on Banking,
Finance and Urban Affairs of the House of Representative
and the Committee on Banking, Housing, and Urban Af-
fairs of the Senate containing—
(1) a description of the recommendations of the
transition task force which have been adopted by the
Corporation;
(2) a description of the recommendations of the
transition task force which have not been adopted by
the Corporation;
(3) a detailed explanation of the reasons why the
Corporation did not adopt each recommendation de-
scribed in paragraph (2); and
(4) a description of the actions taken by the Cor-
poration to comply with section 21A(m)(3) of the
Federal Home Loan Bank Act.
SEC. 7. AMENDMENTS RELATING TO THE TERMINATION OF
THE RTC.
(a) AMENDMENT RELATING TO TRANSFER OF PERSON-
NEL AND SYSTEMS.—Section 21A(m) of the Federal Home
Loan Bank Act (12 U.S.C. 1441a(m)) is amended by add-
ing at the end the following new paragraph:
‘‘(3) TRANSFER OF PERSONNEL AND SYSTEMS.—
In connection with the assumption by the Federal De-
posit Insurance Corporation of conservatorship and
receivership functions with respect to institutions de-
scribed in subsection (b)(3)(A) and the termination of
the Corporation pursuant to paragraph (1)—
‘‘(A) any management, resolution, or asset-
disposition system of the Corporation which the
Secretary of the Treasury determines, after con-
sidering the recommendations of the interagency
transfer task force under section 5(c)(3) of the
Resolution Trust Corporation Completion Act,
has been of positive benefit to the operations of
the Corporation (including any personal prop-
erty of the Corporation which is used in operat-
ing any such system) shall, notwithstanding
paragraph (2), be transferred to and used by the
Federal Deposit Insurance Corporation in a
manner which preserves the integrity of the sys-
tem for so long as such system is efficient and
cost-effective; and
‘‘(B) any personnel of the Corporation in-
volved with any such system who are otherwise
eligible to be transferred to the Federal Deposit
Insurance Corporation shall be transferred to the
Federal Deposit Insurance Corporation for con-
tinued employment, subject to section 404(9) of
the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 and other applica-
ble provisions of this section, with respect to such
system.’’.
(b) AMENDMENT RELATING
TO DATE
OF TERMI-
NATION.—Section 21A(m)(1) of the Federal Home Loan
Bank Act (12 U.S.C. 1441a(m)(1)) is amended by striking
‘‘December 31, 1996’’ and inserting ‘‘December 31, 1995’’.
SEC. 8. SAIF FUNDING AUTHORIZATION AMENDMENTS.
(a) AMENDMENT TO SAIF FUNDING PROVISION.—Sec-
tion 11(a)(6)(D) of the Federal Deposit Insurance Act (12
U.S.C. 1821(a)(6)(D)) is amended to read as follows:
‘‘(D) TREASURY PAYMENTS TO FUND.—To
the extent of the availability of amounts provided
in appropriation Acts and subject to subpara-
graphs (E) and (G), the Secretary of the Treas-
ury shall pay to the Savings Association Insur-
ance Fund such amounts as may be needed to
pay losses incurred by the Fund in fiscal years
1994 through 1998.’’.
(b) CERTIFICATION OF NEED FOR FUNDS AND OTHER
CONDITIONS ON SAIF FUNDING.—Section 11(a)(6)(E) of
the 
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C.
1821(a)(6)(E)) is amended to read as follows:
‘‘(E) CERTIFICATION CONDITIONS ON AVAIL-
ABILITY
OF
FUNDING.—Notwithstanding sub-
paragraph (J), no amount is authorized to be
appropriated for payments by the Secretary of
the Treasury in accordance with subparagraph
(D) for any fiscal year unless the Chairperson of
the Board of Directors certifies to the Congress,
at any time before the beginning of or during
such fiscal year, that—
‘‘(i) such amount is needed to pay for
losses which can reasonably be expected to
be incurred by the Savings Association In-
surance Fund during such year;
‘‘(ii) the Board of Directors has deter-
mined that—
‘‘(I) Savings Association Insur-
ance Fund members, in the aggregate,
are unable to pay additional semi-
annual assessments under section 7(b)
during such year at the assessment
rates which would be required in order
to cover, from such additional assess-
ments, losses incurred by the Fund
during such year; and
‘‘(II) an increase in the assess-
ment rates for Savings Association In-
surance Fund members to cover such
losses could reasonably be expected to
result in greater losses to the Govern-
ment (through an increase in the num-
ber of institutions in default);
‘‘(iii) the Board of Directors has deter-
mined that—
‘‘(I) Savings Association Insur-
ance Fund members, in the aggregate,
are unable to pay additional semi-
annual assessments under section 7(b)
during such year at the assessment
rates which would be required in order
to meet the repayment schedule re-
quired under section 14(c) for any
amount borrowed under section 14(a)
to cover losses incurred by the Fund
during such year; and
‘‘(II) an increase in the assess-
ment rates for Savings Association In-
surance Fund members to meet any
such repayment schedule could reason-
ably be expected to result in greater
losses to the Government (through an
increase in the number of institutions
in default);
‘‘(iv) as of the date of certification, the
Corporation has in effect procedures de-
signed to ensure that the activities of the
Savings Association Insurance Fund and
the affairs of any Savings Association In-
surance Fund member for which a conserva-
tor or receiver has been appointed are con-
ducted in an efficient manner and the Cor-
poration is in compliance with such proce-
dures; and
‘‘(v) with respect to the most recent
audit of the Savings Association Insurance
Fund by the Comptroller General of the
United States before the date of the certifi-
cation—
‘‘(I) the Corporation has taken or
is taking appropriate action to imple-
ment any recommendation made by
the Comptroller General; or
‘‘(II) no corrective action is nec-
essary or appropriate as a result of
such audit.’’.
(c) AVAILABILITY
OF UNEXPENDED RTC FUNDING
FOR SAIF.—Section 11(a)(6)(F) of the Federal Deposit In-
surance Act (12 U.S.C. 1821(a)(6)(F)) is amended to read
as follows:
‘‘(F) AVAILABILITY OF RTC FUNDING.—At
any time before the end of the 2-year period be-
ginning on the date of the termination of the
Resolution Trust Corporation, the Secretary of
the Treasury shall provide, out of funds appro-
priated to the Resolution Trust Corporation pur-
suant to section 21A(i)(3) of the Federal Home
Loan Bank Act and not expended by the Resolu-
tion Trust Corporation, to the Savings Associa-
tion Insurance Fund for any year such amounts
as are needed by the Fund and are not needed
by the Resolution Trust Corporation if the
Chairperson of the Board of Directors has cer-
tified to the Congress that—
‘‘(i) such amounts are needed by the
Savings Association Insurance Fund;
‘‘(ii) any amount transferred shall be
used only for losses incurred by the Fund;
‘‘(iii) the Board of Directors has deter-
mined that—
‘‘(I) Savings Association Insur-
ance Fund members, in the aggregate,
are unable to pay additional semi-
annual assessments under section 7(b)
during such year at the assessment
rates which would be required in order
to cover, from such additional assess-
ments, losses incurred by the Fund
during such year; and
‘‘(II) an increase in the assess-
ment rates for Savings Association In-
surance Fund members to cover such
losses could reasonably be expected to
result in greater losses to the Govern-
ment (through an increase in the num-
ber of institutions in default); and
‘‘(iv) the Board of Directors has deter-
mined that—
‘‘(I) Savings Association Insur-
ance Fund members, in the aggregate,
are unable to pay additional semi-
annual assessments under section 7(b)
during such year at the assessment
rates which would be required in order
to meet the repayment schedule re-
quired under section 14(c) for any
amount borrowed under section 14(a)
to cover losses incurred by the Fund
during such year; and
‘‘(II) an increase in the assess-
ment rates for Savings Association In-
surance Fund members to meet any
such repayment schedule could reason-
ably be expected to result in greater
losses to the Government (through an
increase in the number of institutions
in default).’’.
(d) APPEARANCES BEFORE THE BANKING COMMIT-
TEES.—Section 11(a)(6)(H) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1821(a)(6)(H)) is amended to read as
follows:
‘‘(H) APPEARANCE
UPON
REQUEST.—The
Secretary of the Treasury and the Chairperson of
the Board of Directors of the Federal Deposit In-
surance Corporation shall appear before the
Committee on Banking, Finance and Urban Af-
fairs of the House of Representatives and the
Committee on Banking, Housing, and Urban Af-
fairs of the Senate, upon the request of the chair-
man of the respective committee, to report on
any certification made to the Congress under
subparagraph (E) or (F).’’.
(e) AMENDMENTS TO AUTHORIZATION OF APPROPRIA-
TION.—Section 11(a)(6)(J) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1821(a)(6)(J)) is amended—
(1) by striking ‘‘There are’’ and inserting ‘‘Sub-
ject to subparagraph (E), there are’’; and
(2) by striking ‘‘of this paragraph, except’’ and
all that follows through the period and inserting the
following: ‘‘of subparagraph (D) for fiscal years 1994
through 1998, except that the aggregate amount ap-
propriated pursuant to this authorization may not
exceed $16,000,000,000.’’.
(f) RETURN
OF TRANSFERRED
AND UNEXPENDED
AMOUNTS TO TREASURY.—Section 11(a)(6) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)(6)) is amended
by adding at the end the following new subparagraph:
‘‘(K) RETURN TO TREASURY.—If the aggre-
gate amount of funds transferred to the Savings
Association Insurance Fund under subparagraph
(D) or (F) exceeds the amount needed to cover
losses incurred by the Fund, such excess amount
shall be deposited in the general fund of the
Treasury.’’.
(g) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 11(a)(6)(G) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)(6)(G)) is amended
by striking ‘‘subparagraphs (E) and (F)’’ and insert-
ing ‘‘subparagraph (D)’’.
(2) The heading of section 11(a)(6)(G) of the
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C.
1821(a)(6)(G)) is amended by striking ‘‘SUBPARA-
GRAPHS (E) AND (F)’’ and inserting ‘‘SUBPARAGRAPH
(D)’’.
SEC. 9. MORATORIUM EXTENSION.
(a) CONVERSION MORATORIUM UNTIL SAIF RECAPI-
TALIZED.—Section 5(d)(2)(A)(ii) of the Federal Deposit In-
surance Act is amended—
(1) by striking ‘‘before the end’’ and inserting
‘‘before the later of the end’’; and
(2) by inserting ‘‘or the date on which the Sav-
ings Association Insurance Fund first meets or ex-
ceeds the designated reserve ratio for such fund’’ be-
fore the period.
(b) 
CLARIFICATION
OF
DEFINITION.—Section
5(d)(2)(B) of the Federal Deposit Insurance Act (12 U.S.C.
1815(d)(2)(B)) is amended—
(1) by striking the period at the end of clause
(iv) and inserting ‘‘; and’’; and
(2) by adding at the end the following new
clause:
‘‘(v) the transfer of deposits—
‘‘(3) INDUSTRY REPAYMENT.—
‘‘(A) BIF MEMBER PAYMENTS.—No agree-
ment or repayment schedule under paragraph
(1) shall require any payment by a Bank Insur-
ance Fund member for funds obtained under
subsection (a) for purposes of the Savings Asso-
ciation Fund.
‘‘(B) SAIF MEMBER PAYMENTS.—No agree-
ment or repayment schedule under paragraph
(1) shall require any payment by a Savings As-
sociation Insurance Fund member for funds ob-
tained under subsection (a) for purposes of the
Bank Insurance Fund.’’.
SEC. 11. DEPOSIT INSURANCE FUNDS.
Section 11(a)(4) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(a)(4)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (B);
(2) in subparagraph (C) by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(D) notwithstanding any other provision
of law other than section 13(c)(4)(G), used only
for the purposes of protecting insured depositors
and shall not be used in any manner to benefit
shareholders of an insured depository institution
in connection with any type of resolution by the
Corporation or the Resolution Trust Corporation
of any insured depository institution for which
the Corporation or the Resolution Trust Cor-
poration has been appointed conservator or re-
ceiver or any other insured depository institu-
tion in default under any provision of law, or
the provision of assistance in any form under
this section or section 12 or 13.’’.
SEC. 12. MAXIMUM DOLLAR LIMITS FOR ELIGIBLE CON-
DOMINIUM AND SINGLE FAMILY PROPERTIES
UNDER RTC AFFORDABLE HOUSING PRO-
GRAM.
Section 21A(c)(9) of the Federal Home Loan Bank Act
(12 U.S.C. 1441a(c)(9)) is amended—
(1) in subparagraph (D), by striking clause (ii)
and inserting the following new clause:
‘‘(ii) that has an appraised value that
does not exceed—
‘‘(I) $67,500 in the case of a 1-
family residence, $76,000 in the case of
a 2-family residence, $92,000 in the
case of a 3-family residence, and
$107,000 in the case of a 4-family resi-
dence; or
‘‘(II) only to the extent or in such
amounts as are provided in appropria-
tion Acts for additional costs and losses
to the Corporation resulting from this
subclause taking effect, the amount
provided in section 203(b)(2)(A) of the
National Housing Act, except that such
amount shall not exceed $101,250 in
the case of a 1-family residence,
$114,000 in the case of a 2-family resi-
dence, $138,000 in the case of a 3-fam-
ily residence, and $160,500 in the case
of a 4-family residence.’’; and
(2) in subparagraph (G)—
(A) by moving subclause (I) two ems to the
left and redesignating such subclause as clause
(i); and
(B) by striking subclause (II) and inserting
the following new clause:
‘‘(ii) that has an appraised value that
does not exceed—
‘‘(I) $67,500 in the case of a 1-
family residence, $76,000 in the case of
a 2-family residence, $92,000 in the
case of a 3-family residence, and
$107,000 in the case of a 4-family resi-
dence; or
‘‘(II) only to the extent or in such
amounts as are provided in appropria-
tion Acts for additional costs and losses
to the Corporation resulting from this
subclause taking effect, the amount
provided in section 203(b)(2)(A) of the
National Housing Act, except that such
amount shall not exceed $101,250 in
the case of a 1-family residence,
$114,000 in the case of a 2-family resi-
dence, $138,000 in the case of a 3-fam-
ily residence, and $160,500 in the case
of a 4-family residence.’’.
SEC. 13. INCLUSION OF SUBSIDIARIES’ PROPERTIES IN
FDIC AFFORDABLE HOUSING PROGRAM.
Section 40(p) of the Federal Deposit Insurance Act (12
U.S.C. 1831q(p)) is amended in paragraphs (4)(A), (5)(A),
and (7)(A), by inserting before ‘‘; and’’ each place it ap-
pears the following: ‘‘(including in its capacity as the sole
owner of a subsidiary corporation of a depository institu-
tion under conservatorship or receivership, which subsidi-
ary has as its principal business the ownership of real
property)’’.
SEC. 14. CHANGES AFFECTING BOTH RTC AND FDIC
AFFORDABLE HOUSING PROGRAMS.
(a) NOTICE TO CLEARINGHOUSES REGARDING PROP-
ERTIES NOT INCLUDED IN PROGRAMS.—
(1) RTC.—Section 21A(c) of the Federal Home
Loan Bank Act (12 U.S.C. 1441a(c)) is amended by
adding at the end the following new paragraph:
‘‘(16) NOTICE TO CLEARINGHOUSES REGARDING
INELIGIBLE PROPERTIES.—
‘‘(A) IN GENERAL.—Within a reasonable pe-
riod of time after acquiring title to an ineligible
residential property, the Corporation shall pro-
vide written notice to clearinghouses.
‘‘(B) CONTENT.—For ineligible single fam-
ily properties, such notice shall contain the same
information about such properties that the notice
required under paragraph (2)(A) contains with
respect to eligible single family properties. For
ineligible multifamily housing properties, such
notice shall contain the same information about
such properties that the notice required under
paragraph (3)(A) contains with respect to eligi-
ble multifamily housing properties. For ineligible