Resolution Trust Corporation, Refinancing, Restructuring, and Improvement Act of 1991
PL 102-233 (H.R.3435), enacted 12/12/1991

PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1761 
Public Law 102-238 
102d Congress 
An Act 
To provide funding for the resolution of failed savings associations and working 
capital for the Resolution Trust Corporation, to restructure the Oversight Board 
and the Resolution Trust Corporation, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1, SHORT TITLE. 
This Act may be cited as the "Resolution Trust Corporation 
Refinancing, Restructuring, and Improvement Act of 1991". 
TITLE I—RESOLUTION TRUST 
CORPORATION REFINANCING 
Dec. 12, 1991 
[H.R. 3435] 
Resolution Trust 
Corporation 
Refinancing, 
Restructuring, 
and 
Improvement 
Act of 1991. 
Banks and 
banking. 
12 u s e 1421 
note. 
SEC. 101. THRIFT RESOLUTION FUNDING PROVISIONS. 
Section 21A(i) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(i)) is amended by adding at the end the following new para-
graph: 
"(3) ADDITIONAL INTERIM FUNDING.—In addition to amounts 
provided under paragraph (2), the Secretary of the Treasury 
shall provide to the Corporation such sums as may be necessary 
not to exceed $25 billion to carry out the purposes of this section 
until April 1, 1992.". 
SEC. 102. APPOINTMENT BY DIRECTOR OF THE OFFICE OF THRIFT 
SUPERVISION. 
Section 11(c)(6)(B) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(c)(6)(B)) is amended to read as follows: 
"(B) RECEIVER.—Whenever the Director of the Office of 
Thrift Supervision appoints a receiver under the provisions 
of section 5(d)(2)(C) of the Home Owners' Loan Act for the 
purpose of liquidation or winding up any savings associa-
tion s 3.ifi3.ii's^^ 
"(i) before October 1, 1993, the Resolution Trust Cor-
poration shall be appointed; 
"(ii) after September 30, 1993, the Resolution Trust 
Corporation shall be appointed if the Resolution Trust 
Corporation had been placed in control of the deposi-
tory institution at any time on or before such date; and 
"(iii) after September 30, 1993, the Corporation shall 
be appointed unless the Resolution Trust Corporation 
is required to be appointed under clause (ii).". 
SEC. 103. EXTENSION OF RESOLUTION TRUST CORPORATION DUTY. 
(a) IN GENERAL.—Section 21A(b)(3)(A)(ii) of the Federal Home 
Loan Bank Act (12 U.S.C. 1441a(b)(3)(A)(ii)(II)) is amended to read as 
follows: 
105 STAT. 1762 
PUBLIC LAW 102-233—DEC. 12, 1991 
"(ii) for which a conservator or receiver is appointed 
after December 31, 1988, and before October 1, 1993 
(including any institution described in paragraph (6)).". 
(b) CONTINUATION OF RTC RECEIVERSHIP OR CONSERVATORSHIP.— 
Section 21A(b)(6) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(b)(6)) is amended to read as follows: 
"(6) 
CONTINUATION 
OF 
RTC 
RECEIVERSHIP 
OR 
CONSER-
VATORSHIP.—If the Corporation is appointed £is conservator or 
receiver for any insured depository institution 
described 
in paragraph (3)(A) before October 1, 1993, and a conservator or 
receiver is appointed for such institution on or after such date, 
the Corporation may be appointed as conservator or receiver for 
such institution on or after October 1,1993.". 
SEC. 104. TERMINATION OF FICO BORROWING AUTHORITY. 
Section 21(e)(2) of the Federal Home Loan Bank Act (12 U.S.C. 
1441(e)(2)) is amended to read as follows: 
"(2) TERMINATION OF BORROWING AUTHORITY.—No obligation 
of the Financing Corporation shall be issued after the date of 
enactment of the Resolution Trust Corporation Thrift Depositor 
Protection Refinance Act of 1991.". 
SEC. 1
0
5
. 
REQUIREMENT 
TO 
PAY 
RTC 
WORKING 
CAPITAL 
DEBT 
BEFORE 
TRANSFERRING 
FUNDS 
TO 
REFCORP. 
Section 21A(o)(2) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(o)(2)) is amended by inserting after "Thereafter" the follow-
ing: ", if there are no liabilities of the Corporation outstanding,". 
SEC. 106. RTC REPORTS ON ASSET SALES, LOANS SECURED BY ASSETS, 
BUDGETS, AND OTHER MATTERS. 
(a) QUARTERLY REPORTS.—Section 21A(k)(7) of the Federal Home 
Loan Bank Act (12 U.S.C. 1441a(k)(7)) is amended to read as follows: 
"(7) QUARTERLY REPORTS.—Not later than May 31, August 31, 
November 30, and the last day of February of each year, the 
Corporation shall submit a report to the Committee on Banking, 
Finance and Urban Affairs of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs of the 
Senate containing the following information for the quarter 
ending on the last day of the month ending before the month in 
which such report is required to be submitted: 
"(A) ASSET SALES.—The report shall contain the following 
information with respect to assets of institutions described 
in subsection (b)(3)(A) which were disposed of by the Cor-
poration during the quarter covered by the report: 
"(i) The total amount of the actual sales of assets 
during the quarter. 
"(ii) The value of the assets as determined on the 
basis of the amount at which each such asset was 
accounted for on the books of the institution. 
"(iii) The fair market value of the assets as estimated 
by the Corporation for purposes of securing amounts 
borrowed from the Federal Financing Bank by the 
Corporation. 
"(iv) The net recovery on asset sales during the 
quarter. 
"(v) A subtotal of the value of the assets disposed of 
during the quarter in each of the following categories: 
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1763 
"(I) Cash and securities. 
"(II) Mortgage loans for 1- to 4-family dwellings. 
"(Ill) Construction and land loans. 
"(IV) Other mortgage loans. 
"(V) Consumer loans. 
"(VI) Commercial loans. 
"(VII) Real estate owned assets. 
"(VIII) Other assets. 
"(B) AUCTION SALES.—The report shall contain informa-
tion regarding auction sales of RTC assets, including the 
following information: 
"(i) The date and location of each auction sale during 
the quarter. 
"(ii) The total value of the sales of assets sold during 
an auction during the quarter. 
"(iii) The total value of assets sold at each auction, as 
determined on the basis of the amount at which each 
such asset was accounted for on the books of the 
institution. 
"(iv) The total fair market value of assets sold at each 
auction, as estimated by the Corporation. 
"(v) The total actual selling price of assets sold 
during each auction held during the quarter. 
"(vi) The net recovery or loss on assets sold during an 
auction during the quarter, by category listed in 
subclauses (I) through (VII) of clause (vii). 
"(vii) A subtotal of the value of the assets sold during 
an auction during the quarter in each of the following 
categories: 
"(I) Cash and securities. 
"(II) Mortgage loans for 1- to 4-family dwellings. 
"(Ill) Construction and land loans. 
"(IV) Other mortgage loans. 
"(V) Consumer loans. 
"(VI) Commercial loans. 
"(VII) Real estate owned assets. 
"(VIII) Other assets. 
"(C) FEDERAL FINANCING BANK LOAN STATUS.—The report 
shall contain the following information with respect to 
loans from the Federal Financing Bank to the Corporation: 
"(i) The total amount of loans outstanding at the 
beginning of the quarter. 
"(ii) The total amount of loans originated during the 
quarter. 
"(iii) The total amount of loans repaid during the 
quarter. 
"(iv) The total amount of loans outstanding at the 
end of the quarter. 
"(D) 
SELLER 
FINANCING.—The report 
shall 
contain 
information regarding the Corporation's use of seller 
financing to encourage the sales of assets during the quar-
ter, including the following: 
"(i) A total of the amount of funds used for seller 
financing purposes during the quarter. 
"(ii) The number of applications received by the Cor-
poration which requested seller financing. 
105 STAT. 1764 
PUBLIC LAW 102-233—DEC. 12, 1991 
"(iii) A breakdown of the type of assets sold, accord-
ing to the categories Usted in subclauses (I) through 
(VIII) of subparagraph (B)(vii). 
"(iv) Projections of the total amount of seller financ-
ing which will be needed during the succeeding 2 quar-
ters.". 
(b) SEMIANNUAL REPORT ON NATIONAL AND REGIONAL ADVISORY 
BOARDS.—Section 21A(k)(4)(B) of the Federal Home Loan Bank Act 
(12 U.S.C. 1441a(k)(4)(B)) is amended— 
(1) by striking "and" at the end of clause (iii); 
(2) by striking the period at the end of clause (iv) and insert-
ing "; and"; and 
(3) by inserting after clause (iv) the following new clause: 
"(v) descriptions of the operations and activities of 
the national and regional advisory boards established 
under subsection (d) and financial statements detailing 
the expenses of such boards.". 
(c) RTC AND OVERSIGHT BOARD BUDGET REPORTS.—Section 21A(k) 
of the Federal Home Loan Bank Act (12 U.S.C. 1441a(k)) is amended 
by adding at the end the following new paragraph: 
"(10) BUDGET REPORTS.— 
"(A) IN GENERAL.—Before the end of each calendar quar-
ter, the Oversight Board and the Corporation shall submit a 
* 
report to the Committee on Banking, Finance and Urban 
Affairs of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Senate 
containing the complete annual budget, as approved by the 
Oversight Board. 
"(B) 
ACTIVITIES RELATING TO PHASING OUT RTC OPER-
ATIONS.—Beginning with the report due in the 1st quarter 
of 1994, the report shall include information on the Cor-
poration's activities to phase down its operations and 
reduce the number of employees and the amount of office 
space and other overhead as the Corporation completes its 
duties under this section and approaches termination.". 
(d) EMPLOYEE REPORTS.—Section 21A(k) of the Federal Home Loan 
Bank Act (12 U.S.C. 1441a(k)) is amended by inserting after para-
graph (10) (as added by subsection (c) of this section) the following 
new paragraph: 
"(11) EMPLOYEE REPORTS.—The Corporation shall submit semi-
annual reports to the Committee on Banking, Finance and 
Urban Affairs of the House of Representatives and the Commit-
tee on Banking, Housing, and Urban Affairs of the Senate 
containing the following information: 
"(A) The total number of employees of the Oversight 
Board and the total number of individuals performing serv-
ices directly on behalf of the Corporation. 
"(B) The total number of individuals performing services 
for the Corporation as an employee of the Federal Deposit 
; < 
Insurance Corporation or any other agency, including the 
Government Accounting Office and the number from each 
such agency. 
"(C) The total number of individuals employed in each job 
classification and employment status, including employ-
ment on a temporary basis or for an agreed upon period of 
time.". 
(e) SUPPLEMENTAL UNAUDITED FINANCIAL STATEMENTS.— 
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1765 
(1) INTERIM FINANCIAL STATEMENTS.—Section 21A(k)(5) of the 
Federal Home Loan Bank Act (12 U.S.C. 1441a(k)(5)) is amended 
by inserting at the end the following new subparagraph: 
"(C) SUPPLEMENTAL UNAUDITED FINANCIAL STATEMENTS.— 
In addition to the annual report required under paragraph 
(4), the Oversight Board and the Corporation shall submit 
to the Congress, not later than September 30 of each cal-
endar year, an unaudited financial statement for the 6-
month period ending on June 30 of such year.". 
(2) EFFECTIVE DATE.—The amendment made by this subsection 12 USC 1441a 
shall apply with respect to annual reports required to be "°**-
submitted after the end of the 90-day period beginning on the 
date of the enactment of this Act. 
TITLE 
II—RESTRUCTURING 
AND IM-
PROVEMENT 
OF THE 
RESOLUTION 
TRUST CORPORATION 
SEC. 201. STAFF OF THE RESOLUTION TRUST CORPORATION; CHIEF 
EXECUTIVE OFFICER. 
Section 21A(b)(9) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(b)(9)) is amended— 
(1) in subparagraph (B), by amending clause (i) to read as 
follows: 
"(i) FDIC.—The Corporation shall use employees (se-
lected by the Corporation) of the Federal Deposit Insur-
ance Corporation and the Federal Deposit Insurance 
Corporation shall provide such personnel to the Cor-
poration for its use. Notwithstanding the foregoing, the 
Federal Deposit Insurance Corporation need not pro-
vide to the Corporation any employee of the Federal 
Deposit Insurance Corporation who was employed by 
the Federal Deposit Insurance Corporation on the date 
of enactment of the Resolution Trust Corporation 
Thrift Depositor Protection Refinance Act of 1991 and 
who had not theretofore been provided to the Corpora-
tion by the Federal Deposit Insurance Corporation. In 
addition to persons otherwise employed by the Federal 
Deposit Insurance Corporation, the Federal Deposit 
Insurance Corporation shall employ, and shall provide 
to the Corporation, such persons as the Corporation 
may request from time to time. Federal Deposit Insur-
ance Corporation employees provided to the Corpora-
tion shall be subject to the direction and control of the 
Corporation and any of them may be returned to the 
Federal Deposit Insurance Corporation at any time by 
the Corporation in the discretion of the Corporation. 
The Corporation shall reimburse the Federal Deposit 
Insurance Corporation for the actual costs incurred in 
providing such employees. Any permanent employee of 
the Federal Deposit Insurance Corporation who was 
performing services on behalf of the Corporation imme-
diately prior to the date of enactment of the Resolution 
Trust Corporation Thrift Depositor Protection Re-
105 STAT. 1766 
PUBLIC LAW 102-233—DEC. 12, 1991 
finance Act of 1991 shall continue to be provided to the 
Corporation after that date unless the Corporation 
determines the services of any such employee to be 
unnecessary, in which case such employee shall be 
returned to a similar position performing services on 
behalf of the Federal Deposit Insurance Corporation. In 
any ensuing reduction-in-force or reorganization within 
the Federal Deposit Insurance Corporation, any such 
employee shall compete with the same rights as any 
other Federal Deposit Insurance Corporation employee. 
The Corporation may use administrative services of the 
Federal Deposit Insurance Corporation and, if it does 
so, shall reimburse the Federal Deposit Insurance Cor-
poration for the actual costs of providing such services. 
Any employee or officer in the executive service of the 
, 
Federal 
Deposit Insurance 
Corporation 
who was 
* 
performing services on behalf of the Corporation at 
level E-4 or above immediately prior to the date of 
enactment of the Resolution Trust Corporation Thrift 
Depositor Protection Refinance Act of 1991 shall con-
tinue to be assigned to perform substantially similar 
services on behalf of the Corporation after such date 
unless the Corporation— 
"(I) determines that the services of any such 
employees are unnecessary, or 
"(11) reassigns or substantially alters the respon-
sibilities or duties of any such employees. 
If an action described in subclause (I) or (II) occurs, any 
such employee with at least 20 years of service, as 
defined by chapter 83 or chapter 84 of title 5, United 
States Code, shall be entitled to an annuity under 
section 8336(d) or section 8414(b)(1) of title 5, United 
States Code, notwithstanding the fact that such em-
ployee has not attained the age of 50 years or has 
declined another position with the Federal Deposit 
Insurance Corporation, and the annuity of such em-
ployee shall not be reduced because of the age of such 
employee. The Federal Deposit Insurance Corporation 
shall reimburse the appropriate retirement insurance 
fund for any increased costs it incurs as a result of the 
annuities authorized pursuant to this clause."; and 
(2) by adding at the end thereof the following new subpara-
graph: 
Establishment. 
"(C) CHIEF EXECUTIVE OFFICER.—There is established the 
^*'*^^^®"*- 
office of chief executive officer of the Corporation. The chief 
executive officer of the Corporation shall be appointed by 
the President, by and with the advice and consent of the 
Senate, and shall serve at the pleasure of the President.". 
SEC. 202. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) TREASURY PAYMENTS TO FUND.—Section ll(aX6XE) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1821(a)(6XE)) is amended— 
(1) by striking "1992" and inserting "1993"; and 
(2) by striking "1999" and inserting "2000". 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section ll(aX6)(J) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(aX6XJ)) is amended— 
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1767 
(1) by striking "1991" each place it appears and inserting 
"1992"-
(2) by striking "1992" and inserting "1993"; and 
(3) by striking "1999" and inserting "2000". 
(c) FSLIC RESOLUTION FUND.—Section llA(a)(2)(B) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821a(a)(2)(B)) is amended by strik-
ing "1991" and inserting "1992". 
(d) SOURCE OF FUNDS.—Section llA(b)(4) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821a(b)(4)) is amended by striking "1991" 
and inserting "1992". 
TITLE III—REFORM OF THE RTC 
SEC. 301. SHORT TITLE. 
This title may be cited as the "Resolution Trust Corporation 
Thrift Depositor Protection Reform Act of 1991". 
SEC. 302. THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD; AMEND-
MENTS TO REFERENCES IN THE FEDERAL HOME LOAN BANK 
ACT. 
(a) REDESIGNATION.—The Oversight Board, as established by sec-
tion 21A(a)(l) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(a)(l)), is redesignated the Thrift Depositor Protection Over-
sight Board. 
(b) IN GENERAL.—Except as provided in subsection (c), the Federal 
Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amended by striking 
"Oversight Board" each place it appears and inserting "Thrift 
Depositor Protection Oversight Board". 
(c) EXCEPTION.—Subsection (b) does not apply to section 21A(k)(7) 
of the Federal Home Loan Bank Act (12 U.S.C. 1441a(k)(7)). 
SEC. 303. ACCOUNTABILITY OF THRIFT DEPOSITOR PROTECTION OVER-
SIGHT BOARD. 
Section 21A(a)(2) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(a)(2)) is amended— 
(1) by striking "be accountable for" and inserting "monitor 
the operations of; and 
(2) after "(hereinafter referred to in this section as the 'Cor-
poration')," by inserting "and shall be accountable for the duties 
assigned to the Thrift Depositor Protection Oversight Board by 
this Act.". 
SEC. 304. MEMBERSHIP OF THRIFT DEPOSITOR PROTECTION OVERSIGHT 
BOARD. 
Section 21A(a)(3) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(a)(3)) is amended— 
(1) in subparagraph (A)— 
(A) by striking "5 members" and inserting "7 members"; 
(B) by striking clause (iii); 
(C) by redesignating clause (iv) as clause (vi); and 
(D) by inserting after clause (ii) the following: 
"(iii) the Director of the Office of Thrift Supervision; 
"(iv) the Chairperson of the Board of Directors of the 
Federal Deposit Insurance Corporation; 
' ' 
"(v) the chief executive officer of the Corporation; 
and"; and 
Resolution Trust 
Corporation 
Thrift Depositor 
Protection 
Reform Act of 
1991. 
12 u s e 1421 
note. 
12 u s e 1441a 
note. 
105 STAT. 1768 
PUBLIC LAW 102-233—DEC. 12, 1991 
(2) in subparagraph (E) by striking "3 members" and inserting 
"4 members". 
SEC. 305. DUTIES AND AUTHORITIES OF THRIFT DEPOSITOR PROTECTION 
OVERSIGHT BOARD. 
Section 21A(a)(6) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(a)(6)) is amended— 
(1) by amending subparagraph (A) to read as follows: 
"(A) To review overall strategies, policies, and goals 
established by the Corporation for its activities, which shall 
include such items as the Thrift Depositor Protection Over-
sight Board deems likely to have a material effect upon the 
financial condition of the Corporation, the results of its 
operations, or its cash flows, and such items as the Thrift 
Depositor Protection Oversight Board deems to involve 
substantial issues of public policy. After consultation with 
the Corporation, the Thrift Depositor Protection Oversight 
Board may require the modification of any such overall 
strategies, policies, and goals and their implementation. 
Overall strategies, policies, and goals shall include such 
items as— 
"(i) overall strategies, policies, and goals for case 
resolutions, the management and disposition of assets, 
the use of private contractors; 
"(ii) the use of notes, guarantees, or other obligations 
by the Corporation; 
"(iii) financial goals, plans, and budgets; and 
"(iv) restructuring agreements described in subsec-
tion (bXlOXB)."; 
(2) in subparagraph (B), by inserting "financial plans, budgets, 
and" after "implementation"; and 
(3) by amending subparagraph (C) to read as follows: 
"(C) To review all rules, regulations, standards, prin-
ciples, procedures, guidelines, and statements that may be 
adopted or announced by the Corporation. The provisions of 
this subparagraph shall not apply to internal administra-
tive policies and procedures (including such matters as 
personnel practices, divisions and organization of staffing, 
delegations of authority, and practices respecting day-to-
day administration of the Corporation's affairs) and deter-
minations or actions described in paragraph (8) of this 
subsection: 
Provided, That if the Thrift Depositor Protection Oversight 
Board requires the modification of any overall strategies, poli-
cies and goals, it shall, within 30 days of the date at which it 
directs the RTC make such modification, provide the House and 
Senate Banking Committees with an explanation that identifies 
which ground justifies the review and giving reasons why the 
modification is necessary to satisfy these grounds.". 
SEC. 306. LIMITATION OF AUTHORITY OF THRIFT DEPOSITOR PROTEC-
TION OVERSIGHT BOARD. 
Section 21A(a)(8)(A) of the Federal Home Loan Bank Act (12 
U.S.C. 1441a(a)(8)(A)) is amended— 
(1) by striking "(i) involving" and inserting "involving (i)"; 
and 
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1769 
(2) by striking "provide general policies and procedures" and 
inserting "review overall strategies, policies, and goals estab-
lished by the Corporation". 
SEC. 307. OPEN MEETINGS. 
Section 21A(c)(10) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)(10)) is amended— 
(1) by striking "4" and inserting "6"; and 
(2) by adding a sentence at the end, to read as follows: "The 
Thrift Depositor Protection Oversight Board shall maintain a 
transcript of its open meetings.". 
SEC. 308. STRATEGIC PLAN. 
Section 21A(a)(14)(A) of the Federal Home Loan Bank Act (12 
U.S.C. 1441a(a)(14)(A)) is amended to read as follows: 
"(A) IN GENERAL.—The chief executive officer of the Cor-
poration is authorized to implement the strategic plan for 
conducting the Corporation's functions 
and 
activities 
submitted by the former Oversight Board to the Congress, 
dated December 31,1989.". 
SEC. 309. MANAGEMENT AND DUTIES OF THE RESOLUTION TRUST COR-
PORATION. 
(a) MANAGEMENT.—Section 21A(b)(l)(C) of the Federal Home Loan 
Bank Act (12 U.S.C. 1441a(b)(l)(C)) is amended to read as follows: 
"(C) 
MANAGEMENT BY CHIEF EXECUTIVE OFFICER.—The 
Corporation shall be managed by or under the direction of 
itjS ChlGl GXGCUtlVG ofiicGr 
(b) DUTIES.—Section 21A(b)(3)(B) of the Federal Home Loan Bank 
Act (12 U.S.C. 1441a(b)(3)(B)) is amended to read as follows: 
"(B) To develop and establish overall strategies, policies, 
and goals for the Corporation, subject to review by the 
Thrift Depositor Protection Oversight Board pursuant to 
subsection (a)(6)(A) of this section.". 
(c) REAL AND PERSONAL PROPERTY.—Section 21A(b)(10)(E) is 
amended by adding after "real and personal property," the follow-
ing: "using any legally available private sector methods including 
without limitation, securitization of debt or equity, limited partner-
ships, mortgage investment conduits, and real estate investment 
trusts,". 
SEC. 310. ABOLITION OF BOARD OF DIRECTORS OF THE RESOLUTION 
TRUST CORPORATION. 
Section 21A(b) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(b)) is amended by striking paragraph (8) and redesignating 
paragraphs (9), (10), (11), (12), (13), and (14) as paragraphs (8), (9), (10), 
(11), (12), and (13), respectively. 
SEC. 311. POWERS OF CHIEF EXECUTIVE OFFICER OF THE RESOLUTION 
TRUST CORPORATION; CONSULTATION. 
Section 21A(b)(8) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(b)(9)), as redesignated, is amended— 
(1) in subparagraph (A), by striking "Unless the Oversight 
Board exercises its authority under subsection (m) of this sec-
tion" and inserting "Except for its chief executive officer"; and 
(2) by adding, after subparagraph (C), the following new 
subparagraph: 
105 STAT. 1770 
PUBLIC LAW 102-233—DEC. 12, 1991 
"(D) POWERS OF THE CHIEF EXECUTIVE OFFICER.—The chief 
executive officer may exercise all of the powers of the 
Corporation and act for and on behalf of the Corporation, 
and may delegate such authority, as deemed appropriate by 
the chief executive officer, 
including the power to 
subdelegate authority, to persons designated by the chief 
executive officer who are employees of the Federal Deposit 
Insurance Corporation utilized by the Corporation or who 
provide services for the Corporation.". 
SEC. 312. NATIONAL HOUSING ADVISORY BOARD. 
Section 21A(d) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(d)) is amended— 
(1) by redesignating paragraphs (2) through (4) as paragraphs 
(3) through (5), respectively; 
(2) by inserting after paragraph (1) the following new para-
graph: 
"(2) NATIONAL HOUSING ADVISORY BOARD.— 
"(A) ESTABLISHMENT.—The Thrift Depositor Protection 
Oversight Board shall establish a National 
Housing 
Advisory Board to advise the Thrift Depositor Protection 
Oversight Board on policies and programs related to the 
provision of affordable housing. 
"(B) MEMBERSHIP.—The National 
Housing 
Advisory 
Board shall consist o
f
— 
"(i) the Secretary of Housing and Urban Develop-
ment; and 
"(ii) the chairpersons of any regional advisory boards 
established pursuant to paragraph (3). 
"(C) MEETINGS.—The National Housing Advisory Board 
shall meet 4 times a year, or more frequently if requested 
by the Thrift Depositor Protection Oversight Board.". 
SEC. 313. RIGHTS OF EMPLOYEES UPON SUNSET. 
The Financial Institutions Reform, Recovery, and Enforcement 
Act of 1989 is amended— 
12 use 1437 
(1) in section 404(9)— 
note. 
(A) by striking "of such Corporation shall be transferred 
to" and inserting "of the Federal Deposit Insurance Cor-
poration assigned to the Resolution Trust Corporation shall 
be reassigned to a position within"; and 
(B) by striking "of this subsection" and inserting "of this 
section"; and 
(2) in section 404(2)— 
(A) by inserting "grade," after "status, tenure,"; and 
(B) by inserting "or, if the employee is a temporary 
employee, separated in accordance with the terms of the 
appointment" after "cause". 
SEC. 314. TECHNICAL AND CONFORMING AMENDMENTS TO THE FEDERAL 
HOME LOAN BANK ACT. 
Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) 
is amended— 
(1) in subsection (a)— 
(A) in paragraph (7), by striking "(b)(12)" and inserting 
"(b)(ll)"; 
(B) in paragraph (8)— 
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1771 
(i) by striking "(A)"; and 
(ii) by striking subparagraph (B); and 
(C) in paragraph (10)— 
(i) by striking "establish and review the general 
policy o f and inserting "review overall strategies, poli-
cies, and goals established by"; and 
(ii) by striking "standards, policies, and procedures 
necessary to carry out" and inserting "matters as per-
tain to"; 
(2) in subsection (b)— 
(A) in parEigraph (3), by striking "and through the Fed-
eral Deposit Insurance Corporation (or any replacement 
authorized pursuant to subsection (m))"; 
(B) in paragraph (9) as redesignated— 
(i) by striking subparagraph (B) and redesignating 
subparagraphs (C) through (N) £is subparagraphs (B) 
through (M), respectively; 
(ii) in subparagraph (M), as redesignated, by striking 
"on behalf of the Federal Deposit Insurance Corpora-
tion, acting as exclusive manager"; and 
(C) in pareigraph (11), £is redesignated— 
(i) by amending subparagraph (A) to read as follows: 
"(A) STRATEGIES, POLICIES, AND GOALS.—The Corporation 
shall adopt the rules, regulations, stsindards, procedures, 
guidelines, and statements necessary to implement the 
strategic plan submitted by the former Oversight Board to 
Congress dated December 31, 1989. The Corporation may 
establish overall strategies, policies, and goals for its activi-
ties and may issue such rules, regulations, standards, prin-
ciples, procedures, guidelines, and statements as the 
Corporation considers necessary or appropriate to carry out 
its duties."; 
(ii) by amending subparagraph (B) to read as follows: 
"(B) REVIEW, ETC.—Such overall strategies, policies, and 
goals, and such rules, regulations, standards, principles, 
procedures, guidelines, and statements— 
"(i) shall be provided by the Corporation to the Thrift 
Depositor Protection Oversight Board promptly or 
prior to publication or announcement to the extent 
practicable; 
"(ii) shall be subject to the review of the Thrift 
Depositor Protection Oversight Board as provided in 
subsection (a)(6)(A) (with respect to overall strategies, 
policies, and goals); and 
"(iii) shall be promulgated pursuant to subchapter II 
of chapter 5, of title 5 United States Code."; and 
(iii) in subparagraphs (D) and (E), by striking "Board 
of Directors' each place it appears and inserting "chief 
executive officer"; 
(3) by striking subsections (m) and (n) and redesignating 
subsections (o), (p), (q), and (r) as subsections (m), (n), (o), and (p) 
respectively; 
(4) in subsection (n), £is redesignated, in paragraph (5), by 
striking "Directors, officers," and inserting "Officers"; and 
(5) in subsection (o), as redesignated— 
(A) in paragraph (1) by striking "director,"; and 
(B) in paragraph (2)— 
105 STAT. 1772 
PUBLIC LAW 102-233—DEC. 12, 1991 
(i) by striking ".—"; 
(ii) by striking subparagraph (A); 
(iii) by striking the designation "(B)"; and 
(iv) by striking "on behalf of the Federal Deposit 
Insurance Corporation, acting as exclusive manager". 
SEC. 315. OTHER TECHNICAL AND CONFORMING AMENDMENTS. 
(a) INSPECTOR GENERAL ACT.—Section 11(1) of the Inspector Gen-
eral Act of 1978 (5 U.S.C. App.) is amended by striking "the Over-
sight Board and the Board of Directors of the Resolution Trust 
Corporation" and inserting "; the Chairperson of the Thrift Deposi-
tor Protection Oversight Board and the chief executive officer of the 
Resolution Trust Corporation". 
(b) THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD.—Section 
5313 of title 5, United States Code, is amended by striking "Over-
sight Board, Resolution Trust Corporation" and inserting "Thrift 
Depositor Protection Oversight Board". 
(c) CHIEF EXECUTIVE OFFICER.—Section 5314 of title 5, United 
States Code, is amended by adding at the end the following: "chief 
executive officer. Resolution Trust Corporation.". 
(d) RESOLUTION TRUST CORPORATION FUNDING ACT OF 1991.—Sec-
tion 102(c)(1) of the Resolution Trust Corporation Funding Act of 
1991 (12 U.S.C. 1441a note) is amended by striking "Chairman of the 
Resolution Trust Corporation" and inserting "chief executive officer 
of the Resolution Trust Corporation". 
SEC. 316. REMOVAL AND REMAND. 
Section 21A(1)(3) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(l)(3)) is amended to read as follows: 
"(3) R E M O V A L AND REMAND.— 
"(A) IN GENERAL.—The Corporation, in any capacity and 
without bond or security, may remove any action, suit, or 
proceeding from a State court to the United States district 
court with jurisdiction over the place where the action, suit, 
or proceeding is pending, to the United States district court 
for the District of Columbia, or to the United States district 
court with jurisdiction over the principal place of business 
of any institution for which the Corporation has been ap-
pointed conservator or receiver if the action, suit, or 
proceeding is brought against the institution or the Cor-
poration as conservator or receiver of such institution. The 
removal of any such suit or proceeding shall be instituted— 
"(i) not later than 90 days after the date the Corpora-
tion is substituted as a party, or 
"(ii) not later than 30 days after service on the 
Corporation, if the Corporation is named as a party in 
any capacity and if such suit is filed after August 9, 
1989. 
"(B) SUBSTITUTION.—The Corporation shall be deemed 
substituted in any action, suit, or proceeding for a party 
upon the filing of a copy of the order appointing the Cor-
poration as conservator or receiver for that party of the 
filing of such other pleading informing the court that the 
Corporation has been appointed conservator or receiver for 
such party. 
"(C) APPEAL.—The Corporation may appeal anv order of 
remand entered by a United States district court.'. 
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1773 
SEC. 317. SAVINGS PROVISIONS. 
12 USC 1441a 
(a) SAVINGS PROVISIONS.— 
(1) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS NOT AFFECTED.— 
This title shall not affect the validity of any right, duty, or 
obligation of the United States, the Corporation, the Oversight 
Board, or any other person, that— 
(A) arises under or pursuant to the Federal Home Loan 
Bank Act, or any other provision of law applicable with 
respect to the Oversight Board; and 
(B) existed on the day before the effective date of the 
Resolution Trust Corporation Thrift Depositor Protection 
Reform Act of 1991. 
(2) CONTINUATION OF SUITS.—No action or other proceeding 
commenced by or against the Oversight Board, with respect to 
any function of the Oversight Board, shall abate by reason of 
the enactment of this Act, except that the Thrift Depositor 
Protection Oversight Board shall continue as party to any such 
action or proceeding, notwithstanding the change of name of 
the Oversight Board. 
(b) CONTINUATION OF ORDERS, RESOLUTIONS, DETERMINATIONS, AND 
REGULATIONS.—All orders, resolutions, determinations, and regula-
tions that— 
(1) have been issued, made, prescribed, or allowed to become 
effective by the Oversight Board (including orders, resolutions, 
determinations, and regulations which relate to the conduct of 
conservatorships and receiverships), or by a court of competent 
jurisdiction, in the performance of functions under the Federal 
Home Loan Bank Act; and 
(2) are in effect on the effective date of the Resolution Trust 
Corporation Thrift Depositor Protection Reform Act of 1991, 
shall continue in effect according to the terms of such orders, 
resolutions, determinations, and regulations, and shall be enforce-
able by or against the Thrift Depositor Protection Oversight Board, 
or the Resolution Trust Corporation, by any court of competent 
jurisdiction, or by operation of law, notwithstanding the change of 
name of the Oversight Board. 
SEC. 318. EFFECTIVE DATE OF THIS TITLE. 
12 USC 1441 
The effective date of the Resolution Trust Corporation Thrift 
^^ 
Depositor Protection Reform Act of 1991 shall be February 1, 1992. 
TITLE IV—MINORITIES, WOMEN, AND 
SMALL BUSINESS PROVISIONS 
SEC. 401. INCREASED PARTICIPATION OF MINORITIES AND WOMEN IN 
CONTRACTING PROCESS. 
Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) 
is amended by inserting after subsection (s) (as added by section 227 
of this Act) the following new subsection: 
"(t) REVIEW AND EVALUATION PROCEDURE FOR CONTRACTS.— 
"(1) IN GENERAL.—In the review and evaluation of proposals, 
the Corporation shall provide additional incentives to minority-
or women-owned businesses by awarding any such business an 
additional 10 percent of the total technical points and an addi-
tional 5 percent of the total cost preference points achievable in 
105 STAT. 1774 
PUBLIC LAW 102-233—DEC. 12, 1991 
the technical and cost rating process applicable with respect to 
such proposals. 
"(2) CERTAIN JOINT VENTURES INCLUDED.—Paragraph (1) shall 
apply to any proposal submitted by a joint venture in which a 
minority- or woman-owned business has participation of not less 
than 25 percent. 
"(3) AUTHORITY TO ADJUST TECHNICAL AND COST PREFERENCE 
POINTS.—The Corporation may adjust the technical and cost 
preference points applicable in evaluating proposals to the 
extent necessary to ensure the maximum participation level 
possible for minority- or women-owned businesses. 
"(4) DEFINITIONS.—For purposes of this subsection.— 
"(A) MINORITY-OWNED BUSINESS.—The term 'minority-
owned business' means a business— 
"(i) more than 50 percent of the ownership or control 
of which is held by 1 or more minority individuals; and 
"(ii) more than 50 percent of the net profit or loss of 
which accrues to 1 or more minority individuals. 
"(B) WOMEN-OWNED BUSINESS.—The term 'women's busi-
ness' means a business— 
"(i) more than 50 percent of the ownership or control 
of which is held by 1 or more women; 
"(ii) more than 50 percent of the net profit or loss of 
which accrues to 1 or more women; and 
"(iii) a significant percentage of senior management 
positions of which are held by women.". 
SEC. 402. OPERATION OF BRANCH FACILITIES BY MINORITIES AND 
WOMEN. 
(a) ACQUISITION OF BRANCH FACILITIES FROM THE RTC.—Section 
21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) is 
amended by inserting after subsection (t) (as added by section 301 of 
this title) the following new subsection: 
\ 
"(u) ACQUISITION OF BRANCH FACILITIES IN MINORITY NEIGHBOR-
\ 
HOODS.— 
\ 
"(1) IN GENERAL.—In the case of any savings association for 
Y 
which the Corporation has been appointed conservator or re-
V 
ceiver, the Corporation may make available any branch of such 
> 
association which is located in any predominantly minority 
neighborhood to any minority depository institution or women's 
depository institution on the following terms: 
"(A) The branch may be made available on a rent-free 
lease basis for not less than 5 years. 
"(B) Of all expenses incurred in maintaining the oper-
ation of the facilities in which such branch is located, the 
institution shall be liable only for the payment of applicable 
real property taxes, real property insurance, and utilities. 
"(C) The lease may provide an option to purchase the 
branch during the term of the lease. 
"(2) DEFINITIONS.—For purposes of this subsection— 
"(A) 
MINORITY 
DEPOSITORY 
INSTITUTION.—The 
term 
'minority institution' means a depository institution (as 
defined in section 3(c) of the Federal Deposit Insurance 
Act)— 
"(i) more than 50 percent of the ownership or control 
of which is held by 1 or more minority individuals; and 
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1775 
"(ii) more than 50 percent of the net profit or loss of 
which accrues to 1 or more minority individuals. 
"(B) 
WOMEN'S 
DEPOSITORY 
INSTITUTION.—The 
term 
'women's depository institution' means a depository institu-
tion (EIS defined in section 3(c) of the Federal Deposit Insur-
ance Act)— 
"(i) more than 50 percent of the ownership or control 
of which is held by 1 or more women; 
"(ii) more than 50 percent of the net profit or loss of 
which accrues to 1 or more women; and 
"(iii) a significant percentage of senior management 
positions of which are held by women. 
"(C) MINORITY.—The term 'minority' has the meaning 
given to such term by section 1204(c)(3) of the Financial 
Institutions Reform, Recovery and Enforcement Act of 
1989.". 
(b) COMMUNITY REINVESTMENT CREDIT FOR DEPOSITORY INSTITU-
TIONS PROVIDING ASSISTANCE.—The Community Reinvestment Act 
of 1977 (12 U.S.C. 2901 et seq.) is amended by adding at the end the 
following new section: 
"SEC. 808. OPERATION OF BRANCH FACILITIES BY MINORITIES AND 
12 USC 2907. 
WOMEN. 
"(a) IN GENERAL.—In the case of any depository institution which 
donates, sells on favorable terms (as determined by the appropriate 
Federal financial supervisory agency), or makes available on a rent-
free basis any branch of such institution which is located in any 
predominantly minority neighborhood to any minority depository 
institution or women's depository institution, the amount of the 
contribution or the amount of the loss incurred in connection with 
such activity shall be treated as meeting the credit needs of the 
institution's community for purposes of this title. 
"(b) DEFINITIONS.—For purposes of this section— 
"(1) MINORITY DEPOSITORY INSTITUTION.—The term 'minority 
institution' means a depository institution (as defined in section 
3(c) of the Federal Deposit Insurance Act)— 
"(A) more than 50 percent of the ownership or control of 
which is held by 1 or more minority individuals; and 
"(B) more than 50 percent of the net profit or loss of 
which accrues to 1 or more minority individuals. 
"(2) WOMEN'S DEPOSITORY INSTITUTION.—The term 'women's 
depository institution' means a depository institution (as de-
fined in section 3(c) of the Federal Deposit Insurance Act)— 
"(A) more than 50 percent of the ownership or control of 
which is held by 1 or more women; 
"(B) more than 50 percent of the net profit or loss of 
which accrues to 1 or more women; and 
"(C) a significant percentage of senior management posi-
tions of which are held by women. 
"(3) MINORITY.—The term 'minority' has the meaning given to 
such term by section 1204(c)(3) of the Financial Institutions 
Reform, Recovery and Enforcement Act of 1989.". 
105 STAT. 1776 
PUBLIC LAW 102-233—DEC. 12, 1991 
SEC. 403. ACQUISITION OF FAILING MAJORITY ASSOCIATIONS BY MINOR-
ITY INSTITUTIONS. 
Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) 
is amended by inserting after subsection (u) (as added by section 302 
of this title) the following new subsection: 
"(v) ASSISTANCE UNDER CIRCUMSTANCES FOR ACQUISITION OF 
MAJORITY-OWNED INSTITUTIONS.— 
"(1) IN GENERAL.—In addition to the assistance provided 
pursuant to the minority interim capital assistance program 
established by the Oversight Board by regulation pursuant to 
the strategic plan under subsection (a), the Corporation may 
provide assistance for minority-owned depository institutions 
and minority investors for the acquisition of any savings 
association for which the Corporation has been appointed con-
servator or receiver and which, before such appointment, was 
not a minority-owned association, if the Corporation has not 
received acceptable bids for the acquisition of such association 
without offering such assistance. 
"(2) ADDITIONAL ASSETS.—In connection with the acquisition of 
any savings association for which the Corporation provides 
assistance under paragraph (1), the Corporation may transfer 
assets of other savings associations for which the Corporation 
has been appointed conservator or receiver. 
"(3) DEFINITIONS.—For purposes of this subsection— 
"(A) MINORITY.—The term 'minority' has the meaning 
given to such term by section 1204(c)(3) of the Financial 
Institutions Reform, Recovery and Enforcement Act of 
1989. 
"(B) ACQUISITION.—The term 'acquisition' means any 
transaction in which a savings association is acquired (as 
defined in section 13(c)(8) of the Federal Deposit Insurance 
Act).". 
SEC. 404. STATUTORY ESTABLISHMENT OF PROGRAM. 
Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) 
is amended by inserting after subsection (v) (as added by section 303 
of this title) the following new subsection: 
"(w) MINORITY INTERIM CAPITAL ASSISTANCE PROGRAM.— 
"(1) IN GENERAL.—The minority interim capital assistance 
program established by the Oversight Board by regulation 
pursuant to the strategic plan under subsection (a) is hereby 
established by law. 
"(2) ASSISTANCE UNDER CIRCUMSTANCES FOR ACQUISITION OF 
MAJORITY-OWNED INSTITUTIONS.—In addition to the assistance 
provided pursuant to the program established under paragraph 
(1), the Corporation shall provide assistance under such pro-
gram for minority-owned depository institutions and minority 
investors for the acquisition of any savings association for which 
the Corporation has been appointed conservator or receiver and 
which, before such appointment, was not a minority-owned 
association, if the Corporation has not received acceptable bids 
for the acquisition of such association without offering such 
assistance. 
"(3) EXTENSION OF INTERIM FINANCING PERIOD.—The period for 
repayment of capital assistance provided under the minority 
interim capital assistance program shall be not less than 2 
years. 
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1777 
"(4) INTEREST RATE.—The rate of interest imposed by the 
Corporation in connection with any interim financing provided 
under the minority interim capital assistance program may not 
exceed the average cost of funds to the Corporation as of the 
time such rate is established. 
"(5) DEFINITIONS.—For purposes of this subsection— 
' 
"(A) MINORITY.—The term 'minority' has the meaning 
given to such term by section 1204(c)(3) of the Financial 
Institutions Reform, Recovery and Enforcement Act of 
1989. 
"(B) ACQUISITION.—The term 'acquisition' means any 
transaction in which a savings association is acquired (as 
defined in section 13(c)(8) of the Federal Deposit Insurance 
Act).". 
SEC. 405. GOAL FOR PARTICIPATION OF SMALL BUSINESS CONCERNS. 
Section 21A(b)(14) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(b)(14)) is amended to read as follows: 
"(14) GOAL FOR PARTICIPATION OF SMALL BUSINESS CONCERNS.— 
The Corporation shall have an annual goal that presents the 
maximum practicable opportunity for small business concerns 
and small business concerns owned and controlled by socially 
and economically disadvantaged individuals to participate in 
the performance of contracts awarded by the Corporation.". 
TITLE V^MISCELLANEOUS HOUSING 
PROVISIONS 
SEC. 501. 
(a) CREDIT ENHANCEMENT TO PROVIDE HOUSING OPPORTUNITIES 
FOR LOW-INCOME PERSONS.— 
(1) IN GENERAL.—Section 21A(b)(10)(K) of the Federal Home 
Loan Bank Act (12 U.S.C. 1441a(b)(10)(K)) is amended to read as 
follows: 
"(K) To make loans and, with respect to eligible residen-
tial properties, develop risk sharing structures and other 
credit enhancements to assist in the provision of property 
ownership, rental, and cooperative housing opportunities 
for lower- and moderate-income families.". 
(2) CREDIT ENHANCEMENT FOR CERTAIN TAX-EXEMPT BONDS.— 
Section 21A(c)(8)(B) of the Federal Home Loan Bank Act (12 
U.S.C. 1441a(c)(8)(B)) is amended— 
(A) by striking "(B) CREDIT ENHANCEMENT.—With respect 
to" and inserting the following: 
"(B) CREDIT ENHANCEMENT.— 
"(i) IN GENERAL.—With respect to"; and 
(B) by adding at the end the following new clause: 
"(ii) CERTAIN TAX-EXEMPT BONDS.—The Corporation 
may provide credit enhancements with respect to tax-
exempt bonds issued on behalf of nonprofit organiza-
tions pursuant to section 103, and subpart A of part IV 
of subchapter A of chapter 1, of the Internal Revenue 
Code of 1986, with respect to the disposition of eligible 
residential properties for the purposes described in 
clause (i).". 
105 STAT. 1778 
PUBLIC LAW 102-233—DEC. 12, 1991 
TITLE VI—RESOLUTION TRUST CORPORA-
TION AFFORDABLE HOUSING PROGRAM 
SEC. 601. INCLUSION OF ELIGIBLE RESIDENTIAL PROPERTY UNDER 
CONSERVATORSHIP. 
Section 21A(c)(9) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)(9)) is amended— 
(1) by striking subparagraphs (C) and (D) and inserting the 
following new subparagraphs: 
"(C) CORPORATION.—The term 'Corporation' means the 
Resolution Trust Corporation. 
"(D) ELIGIBLE MULTIFAMILY HOUSING PROPERTY.— 
"(i) BASIC DEFINITION.—The term 'eligible multi-
family housing property' means a property consisting 
of more than 4 dwelling units— 
"(I) to which the Corporation acquires title either 
in its corporate capacity or as receiver (including 
its capacity as the sole owner of a subsidiary cor-
poration of a depository institution under receiver-
ship, which subsidiary has as its principal business 
the ownership of real property), but not in its 
capacity as an operating conservator; and 
'(II) that has an appraised value that does not 
exceed the applicable dollar amount set forth in 
section 221(d)(3)(ii) of the National Housing Act for 
elevator-type structures (without regard to any in-
crease of such amount for high-cost areas), 
"(ii) EXPANDED DEFINITION.—Notwithstanding clause 
(i), to the extent or in such amounts as are provided in 
appropriations Acts for additional costs and losses to 
the Corporation resulting from this clause taking 
effect, the term 'eligible multifamily housing property' 
shall mean a property consisting of more than 4 dwell-
ing units— 
"(I) to which the Corporation acquires title in its 
corporate capacity, its capacity as conservator, or 
its capacity as receiver (including its capacity as 
the sole owner of a subsidiary corporation of a 
depository institution under conservatorship or re-
ceivership, which subsidiary has as its principal 
business the ownership of real property); and 
"(II) that has an appraised value that does not 
exceed the applicable dollar amount set forth in 
section 221(d)(3)(ii) of the National Housing Act for 
elevator-type structures (without regard to any in-
crease of such amount for high-cost areas)."; and 
(2) by striking subparagraph (F) and inserting the following 
new subparagraph: 
"(F) ELIGIBLE SINGLE FAMILY PROPERTY.—The term 'eli-
gible single family property' means a 1- to 4-family resi-
dence (including a manufactured home)— 
"(I) to which the Corporation acquires title in its 
corporate capacity, its capacity as conservator, or 
its capacity as receiver (including its capacity as 
the sole owner of a subsidiary corporation of a 
PUBLIC LAW 102-233—DEC. 12,1991 
105 STAT. 1779 
depository institution under conservatorship or re-
ceivership, which subsidiary has as its principal 
business the ownership of real property); and 
"(11) that has an appraised value that does not 
exceed the applicable dollar amount set forth in 
the first sentence of section 208(b)(2) of the Na-
tional Housing Act (without regard to any increase 
of such amount for high-cost areas).". 
SEC. 602. TIME LIMITATIONS ON SALE OF ELIGIBLE SINGLE FAMILY 
PROPERTY. 
Section 21A(c)(2)(B) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)(2)(B)), as amended by Public Law 102-139, is amended— 
(1) in the first sentence, by striking "For" and inserting 
"Except as provided in the last sentence of this subparagraph 
for"; and 
(2) by adding at the end the following new sentence: "To the 
extent or in such amounts as are provided in appropriations 
Acts for additional costs and losses to the Corporation resulting 
from this sentence taking effect, for purposes of this subsection 
the period referred to in the first and third sentences shall be 
considered to be the 180-day period following the date on which 
the Corporation first makes an eligible single family property 
available for sale.". 
SEC. 603. ACTIVE MARKETING OF ELIGIBLE SINGLE FAMILY PROPERTY 
TO LOWER-INCOME VETERANS. 
Section 21A(c)(2)(B) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)(2)(B)) is amended— 
(1) in clause (i) of the first sentence, by inserting "(including 
qualifying households with members who are veterans)" after 
"households"; 
(2) in subclause (I) of clause (ii) of the first sentence, by 
inserting "(including lower-income families with members who 
are veterans)" after "lower-income families"; and 
(3) in the fourth sentence, by inserting "and to lower-income 
families with members who are veterans" before the period. 
SEC. 604. PREVENTION OF SPECULATION ON ELIGIBLE SINGLE FAMILY 
PROPERTY. 
(a) RESIDENCY REQUIREMENTS.— 
(1) QUALIFYING HOUSEHOLDS.—Section 21A(cX9)(K) of the Fed-
eral Home Loan Bank Act (12 U.S.C. 1441a(cX9)(K)) is amended 
by striking "and (ii) whose adjusted income" and inserting the 
following: "(ii) who agrees to occupy the property as a principal 
residence for at least 12 months (except as provided in para-
graph (2)(D)); (iii) who certifies in writing that the household 
intends to occupy the property as a principal residence for at 
least 12 months (except as provided in paragraph (2XD)); and (iv) 
whose income". 
(2) LOWER-INCOME FAMILIES.—The first sentence of section 
21A(cX2XB) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(cX2)) is amended by striking "by such families." and 
inserting the following: "by any such family who, except as 
provided in subparagraph (D), agrees to occupy the property as 
a principal residence for at least 12 months and who certifies in 
105 STAT. 1780 
PUBLIC LAW 102-233—DEC. 12, 1991 
writing that the family intends to occupy the property for at 
least 12 months.", 
(b) RECAPTURE OF PROFITS FROM RESALE.—Section 21A(c)(2) of the 
Federal Home Loan Bank Act (12 U.S.C. 1441a(cX2)) is amended by 
adding at the end the following new subparagraphs: 
"(C) RECAPTURE OF PROFITS FROM RESALE.—Except as pro-
vided in subparagraph (D), if any eligible single family 
property sold (i) to a qualif5dng household, or (ii) to a lower-
income family pursuant to subparagraph (BXiiXH), para-
graph (12XCXi), or paragraph (13XB), is resold by the 
qualifjdng household or lower-income family during the 
1-year period beginning upon initial acquisition by the 
household or lower-income family, the Corporation shall 
recapture 75 percent of the amount of any proceeds from 
the resale that exceed the sum of (I) the original sale price 
for the acquisition of the property by the qualifying house-
hold or lower-income family; (II) the costs of any improve-
ments to the property made after the date of the acquisi-
tion, and (III) any closing costs in connection with the 
acquisition. 
' (D) EXCEPTIONS TO RECAPTURE REQUIREMENT.— 
"(i) RELOCATION.—The Corporation (or its successor) 
may in its discretion waive the applicability (I) to any 
qualifying 
household 
of the 
requirement 
under 
subparagraph (C) and the requirements relating to resi-
dency of a qualifying household under paragraphs 
(9XL)(ii) and (iii), and (II) to any lower-income family of 
the requirement under subparagraph (C) and the resi-
dency requirements under subparagraph (B)(ii)(II). The 
Corporation may grant any such a waiver only for good 
cause shown, including any necessary relocation of the 
qualifying household or lower-income family. 
"(ii) OTHER RECAPTURE PROVISIONS.—The requirement 
under subparagraph (C) shall not apply to any eligible 
single family property for which, upon resale by the 
qualifying household or lower-income family during the 
1-year period beginning upon initial acquisition by 
the household or family, a portion of the sale proceeds 
or any subsidy provided in connection with the acquisi-
tion of the property by the household or family is 
required to be recaptured or repaid under any other 
Federal, State, or local law (including section 143(m) of 
the Internal Revenue Code of 1986) or regulation or 
under any sale agreement.". 
SEC. 605. AVOIDANCE OF DISPLACEMENT UNDER SINGLE FAMILY PROP-
ERTY DISPOSITION PROGRAM. 
Section 21A(cX2) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)(2)) is amended by adding after subparagraph (D) (as added 
by section 504(b) of this Act) the following new subparagraph: 
"(E) EXCEPTION TO AVOID DISPLACEMENT OF EXISTING RESI-
DENTS.—Notwithstanding the first sentence of subpara-
graph (B), during the 180-day period following the date on 
which the Corporation makes an eligible single family prop-
erty available for sale, the Corporation may sell the prop-
erty to the household residing in the property, but only if (i) 
such household was residing in the property at the time 
notice regarding the property was provided to clearing-
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1781 
houses under subparagraph (A), (ii) such sale is necessary to 
avoid the displacement of, and unnecessary hardship to, the 
resident household, (iii) the resident household intends to 
occupy the property as a principal residence for at least 12 
months, and (iv) and the resident household certifies in 
writing that the household intends to occupy the property 
for at least 12 months.". 
SEC. 606. PERIODS FOR EXPRESSION OF SERIOUS INTEREST AND RE-
STRICTED BIDS FOR ELIGIBLE MULTIFAMILY HOUSING PROP-
ERTY. 
Section 21A(c)(3) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)(3)) is amended— 
(1) in the first sentence of subparagraph (B), by striking the 
first comma and all that follows through "first"; 
(2) in subparagraph (C), by striking "determining that a 
property is ready for sale" and inserting the following: "the 
expiration of the period referred to in subparagraph (B) for a 
property,"; and 
(3) in subparagraph (D), by inserting after the period at the 
end the following new sentence: "If, before the expiration of 
such 45-day period, any offer to purchase a property initially 
accepted by the Corporation is subsequently rejected or fails (for 
any reason), the Corporation shall accept another offer to pur-
chase the property made during such period that complies with 
the terms and conditions established by the Corporation (if such 
another offer is made). The preceding sentence may not be 
construed to require a qualifying multifamily purchaser whose 
offer is accepted during the 45-day period to purchase the 
property before the expiration of the period.". 
SEC. 607. LOWER-INCOME OCCUPANCY REQUIREMENTS FOR ELIGIBLE 
MULTIFAMILY HOUSING PROPERTY. 
Section 21A(c)(3)(E) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)(3)(E)) is amended to read as follows: 
"(E) LOWER-INCOME OCCUPANCY REQUIREMENTS.— 
"(i) SINGLE PROPERTY PURCHASES.—With respect to 
any purchase of a single eligible multifamily housing 
property by a qualifying multifamily purchaser under 
subparagraph (D)— 
"(I) not less than 35 percent of all dwelling units 
purchased shall be made available for occupancy 
by and maintedned as affordable for lower-income 
and very low-income families during the remaining 
useful life of the building property structure in 
which the units are located: Provided, That 
'^(11) not less than 20 percent of all dwelling units 
purchased shall be made available for occupancy 
shall be made available for occupancy by and 
maintained as affordable for very low-income fami-
lies during the remaining useful life of the building 
or structure in which the units are located. 
"(ii) AGGREGATION REQUIREMENTS FOR MULTIPROPERTY 
PURCHASES.—With respect to any purchase under 
subparagraph (D) by a qualifying multifamily pur-
chaser involving more than one eligible multifamily 
housing property as a part of the same negotiation— 
105 STAT. 1782 
PUBLIC LAW 102-233—DEC. 12, 1991 
"(I) the provisions of clause (i) shall apply in the 
aggregate to the properties so purchased; except 
that 
"(ID to the extent or in such amounts as are 
provided in appropriations Acts for additional costs 
and losses to the Corporation resulting from this 
subclause taking effect, not less than (a) 40 percent 
of the aggregate number of all dwelling units pur-
chased shall be made available for occupancy by 
and maintained as affordable for lower-income and 
very low-income families during the remaining 
useful life of the building property structure in 
which the units are located, (b) 20 percent of the 
aggregate number of all dwelling units purchased 
shall be made available for occupancy by and 
maintained as affordable for very low-income fami-
lies during the remaining useful life of the building 
property structure in which the units are located, 
and (c) not less than 10 percent of the dwelling 
units in each separate property purchased shall be 
made available for occupancy by and maintained 
as affordable for lower-income families during the 
remaining useful life of the property in which the 
units are located. 
The requirements of this subparagraph shall be contained 
in the deed or other recorded instrument.". 
SEC. 608. EXTENSION OF RESTRICTED OFFER PERIOD FOR ELIGIBLE 
MULTIFAMILY HOUSING PROPERTY. 
Section 21A(c)(3) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)(3)) is amended— 
(1) by redesignating subparagraph (G) as subparagraph (H); 
and 
(2) by inserting after subparagraph (F) the following new 
subparagraph: 
"(G) EXTENSION OF RESTRICTED OFFER PERIODS.—Notwith-
standing subparagraph (F), the Corporation may provide 
notice to clearinghouses regarding, and offer for sale under 
the provisions of subparagraphs (A) through (D), any eli-
gible multifamily housing property— 
"(i) in which no qualifying multifamily purchaser has 
expressed serious interest during the period referred to 
in subparagraph (B), or 
"(ii) for which no qualifying multifamily purchaser 
has made a bona fide offer before the expiration of the 
period referred to in subparagraph (D), 
except that the Corporation may, in the discretion of the 
Corporation, alter the duration of the periods referred to in 
subparagraphs (B) and (D) in offering any property for sale 
under this subparagraph.". 
SEC. 609. SALE PRICE. 
Section 21A(c)(6)(A)(i) of Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)(6)(A)(i)) is amended to read as follows: 
"(i) SALE PRICE.—The Corporation shall establish a 
market value for each eligible multifamily housing 
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1783 
property. The Corporation shall sell eligible multifam-
ily housing property at the net realizable market value. 
The Corporation may agree to sell eligible multifamily 
housing property at a price below the net realizable 
market value to the extent necessary to facilitate an 
expedited sale of such property and enable a public 
agency or nonprofit organization to comply with the 
lower-income occupancy requirements applicable to 
such property under paragraph (3). The Corporation 
may sell eligible single family property or eligible con-
dominium property to qualifying households, nonprofit 
organizations, and public agencies without regard to 
any minimum sale price.". 
SEC. 610. AUTHORITY FOR RTC TO PARTICIPATE IN MULTIFAMILY 
FINANCING POOLS. 
Section 21A(c)(6XA)(ii) of the Federal Home Loan Bank Act (12 
U.S.C. 1441a(c)(6)(A)(ii)) is amended by adding at the end the follow-
ing new sentence: "In providing financing for combinations of eli-
gible multifamily housing properties under this subsection, the 
Corporation may hold a participating share, including a subordinate 
participation.". 
SEC. 611. CREDIT ENHANCEMENT FOR CERTAIN TAX-EXEMPT BONDS. 
Section 21A(c)(8)(B) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(cX8)(B)) is amended— 
(1) by striking "(B) CREDIT ENHANCEMENT.—With respect to" 
and inserting the following: 
"(B) CREDIT ENHANCEMENT.— 
"(i) IN GENERAL.—With respect to"; and 
(2) by adding at the end the following new clause: 
"(ii) CERTAIN TAX-EXEMPT BONDS.—The Corporation 
may provide credit enhancements with respect to tax-
exempt bonds issued on behalf of nonprofit organiza-
tions pursuant to section 103, and subpart A of part IV 
of subchapter A of chapter 1, of the Internal Revenue 
Code of 1986, with respect to the disposition of eligible 
residential properties for the purposes described in 
clause (i).". 
SEC. 612. PERMANENT EFFECTIVENESS OF EXEMPTION FOR TRANS- 
12 USC 1441a 
ACTIONS WITH INSURED DEPOSITORY INSTITUTIONS. 
note. 
Notwithstanding section 203 of the Resolution Trust Corporation 
Funding Act of 1991, the amendment made by section 201(b) of such 
Act shall apply on and after the date of the enactment of this Act. 
SEC. 613. TRANSFER OF CERTAIN ELIGIBLE RESIDENTIAL PROPERTIES 
TO STATE HOUSING AGENCIES FOR DISPOSITION. 
Section 21A(c) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)) is amended by adding at the end the following new para-
graph: 
"(12) TRANSFER OF CERTAIN ELIGIBLE RESIDENTIAL PROPERTIES 
T
O STATE HOUSING AGENCIES FOR DISPOSITION.—Notwithstanding 
paragraphs (2), (3), (5), and (6), the Corporation may transfer 
eligible residential properties to the State housing finance 
/ 
agency or any other State housing agency for the State in which 
/ 
the property is located, or to any local housing agency in whose 
105 STAT. 1784 
PUBLIC LAW 102-233—DEC. 12, 1991 
jurisdiction the property is located. Transfers of eligible residen-
tial properties under this paragraph may be conducted by direct 
sale, consignment sale, or any other method the Corporation 
considers appropriate and shall be subject to the following 
requirements: 
"(A) INDIVIDUAL OR BULK TRANSFER.—The Corporation 
may transfer such properties individually or in bulk, as 
agreed to by the Corporation and the State housing finance 
agency or State or local housing agency. 
"(B) ACQUISITION PRICE AND DISCOUNT.—The acquisition 
price paid by the State housing finance agency or State or 
local housing agency to the Corporation for properties 
transferred under this paragraph shall be an amount 
agreed to by the Corporation and the transferee agency. 
"(C) LOWER-INCOME USE.—Any State housing finance 
agency or State or local housing agency acquiring prop-
erties under this paragraph shall offer to sell or transfer 
the properties only as follows: 
"(i) ELIGIBLE SINGLE FAMILY PROPERTIES.—For eligible 
single family properties— 
"(I) to purchasers described under clauses (i) and 
(ii) of paragraph (2)(B); 
"(II) if the purchaser is a purchaser described 
under paragraph (2)(B)(ii)(I), subject to the rent 
limitations under paragraph (4)(A); 
i 
"(III) subject to the requirement in the second 
sentence of paragraph (2)(B); and 
"(IV) subject to recapture by the Corporation of 
excess proceeds from resale of the properties under 
subparagraphs (C) and (D) of paragraph (2). 
-
'
< 
"(ii) ELIGIBLE MULTIFAMILY HOUSING PROPERTIES.— 
For eligible multifamily housing properties— 
"(I) to qualifying multifamily purchasers; 
"(II) subject to the lower-income occupancy 
requirements under paragraph (3)(E); 
"(III) subject to the provisions of paragraph 
(3)(H); 
"(IV) subject to a preference, among financially 
5j;; 
acceptable offers, to the offer that would reserve 
the highest percentage of dwelling units for occu-
pancy or purchase by very low-income families and 
lower-income families and would retain such 
affordability for the longest term; and 
"(V) subject to the rent limitations under para-
graph (4)(A). 
"(D) AFFORDABILITY.—The State housing finance agency 
or State or local housing agency shall endeavor to make the 
properties transferred under this paragraph more afford-
able to lower-income families based upon the extent to 
which the acquisition price of a property under subpara-
graph (B) is less than the market value of the property.".* 
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1785 
SEC. 614. SUSPENSION OF OFFER PERIODS FOR SALES OF ELIGIBLE 
RESIDENTIAL PROPERTY TO NONPROFIT ORGANIZATIONS 
AND PUBLIC AGENCIES. 
Section 21A(c) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)) is amended by adding after paragraph (12) (as added by 
section 513 of this Act) the following new paragraph: 
"(13) EXCEPTION FOR SALES TO NONPROFIT ORGANIZATIONS AND 
PUBLIC AGENCIES.— 
"(A) SUSPENSION OF OFFER PERIODS.—With respect to any 
eligible residential property, the Corporation may (in the 
discretion of the Corporation) suspend any of the require-
ments of subparagraphs (A) and (B) of paragraph (2) and 
subparagraphs (A) through (D) of paragraph (3), as ap-
plicable, but only to the extent that for the duration of the 
suspension the Corporation negotiates the sale of the prop-
erty to a nonprofit organization or public agency. If the 
property is not sold pursuant to such negotiations, the 
requirements of any provisions suspended shall apply upon 
the termination of the suspension. Any time period referred 
to in such paragraphs shall toll for the duration of any 
suspension under this subparagraph. 
"(B) USE RESTRICTIONS.— 
"(i) EUGIBLE SINGLE FAMILY PROPERTY.—Any eligible 
single family property sold under this paragraph shall 
be (1) made available for occupancy by and maintained 
as affordable for lower-income families for the remain-
ing useful life of the property, or made available for 
purchase by such families, (II) subject to the rent 
limitations under paragraph (4)(A), (III) subject to the 
requirements relating to residency of a qualifying 
household under paragraph (9)(L) and to residency of a 
lower-income family under paragraph (2)(B)(ii), and (IV) 
subject to recapture by the Corporation of excess pro-
ceeds from resale of the property under subparagraphs 
(C) and (D) of paragraph (2). 
"(ii) ELIGIBLE MULTIFAMILY HOUSING PROPERTY.—Any 
eligible multifamily housing property sold under this 
paragraph shall comply with the lower-income occu-
pancy requirements under paragraph (3)(E) and shall 
be subject to the rent limitations under paragraph 
(4)(A).". 
SEC. 615. SALE OF ELIGIBLE CONDOMINIUM PROPERTY. 
(a) IN GENERAL.—Section 21A(c) of the Federal Home Loan Bank 
Act (12 U.S.C. 1441a(c)) is amended by adding after paragraph (13) 
(as added by section 514 of this Act) the following new paragraph: 
"(14) RULES GOVERNING DISPOSITION OF ELIGIBLE CONDOMINIUM 
PROPERTY.— 
"(A) NOTICE TO CLEARINGHOUSES.—Within a reasonable 
period of time after acquiring title to an eligible condomin-
ium property, the Corporation shall provide written notice 
to clearinghouses. Such notice shall contain basic informa-
tion about the property. Each clearinghouse shall make 
such information available, upon request, to purchasers 
described in clauses (i) through (iv) of subparagraph (B). The 
Corporation shall allow such purchasers reasonable access 
105 STAT. 1786 
PUBLIC LAW 102-233—DEC. 12, 1991 
to an eligible condominium property for purposes of inspec-
tion. 
"(B) OFFERS TO SELL.—For the 180-day period following 
the date on which the Corporation makes an eligible con-
dominium property available for sale, the Corporation may 
offer to sell the property, at the discretion of the Corpora-
tion, to 1 or more of the following purchasers: 
"(i) Qualifying households, 
"(ii) Nonprofit organizations, 
"(iii) Public agencies. 
"(iv) For-profit entities. 
"(C) LOWER-INCOME OCCUPANCY REQUIREMENTS.— 
"(i) IN GENERAL.—Except as provided in clause (ii), 
any nonprofit organization, public agency, or for-profit 
entity that purchases an eligible condominium prop-
erty shall (I) make the property available for occupancy 
by and maintain it as affordable for lower-income fami-
lies for the remaining useful life of the property, or (II) 
make the property available for purchase by any such 
family who, except as provided in subparagraph (E), 
agrees to occupy the property as a principal residence 
for at least 12 months and who certifies in writing that 
the family intends to occupy the property for at least 12 
months. The restriction described in subclause (I) of the 
preceding sentence shall be contained in the deed or 
other recorded instrument. 
"(ii) MULTIPLE-UNIT PURCHASES,—If any nonprofit 
organization, public agency, or for-profit entity pur-
chases more than 1 eligible condominium property as a 
part of the same negotiation or purchase, the Corpora-
tion may (in the discretion of the Corporation) waive 
the requirement under clause (i) and provide instead 
that not less than 35 percent of all eligible condomin-
ium properties purchased shall be (I) made available 
for occupancy by and maintained as affordable for 
lower-income families for the remaining useful life of 
the property, or (II) made available for purchase by any 
such family who, except as provided in subparagraph 
(E), agrees to occupy the property as a principal resi-
dence for at least 12 months and who certifies in 
writing that the family intends to occupy the property 
for at least 12 months. The restriction described 
subclause (I) of the preceding sentence shall be con-
tained in the deed or other recorded instrument. 
"(iii) SALE TO OTHER PURCHASERS.—If, upon the 
expiration of the 180-day period referred to in subpara-
graph (B), no purchaser described in clauses (i) through 
(iv) of subparagraph (B) has made a bona fide offer to 
purchase the property, the Corporation may offer to 
sell the property to any other purchaser. 
"(D) RECAPTURE OF PROFITS FROM RESALE.—Except as pro-
vided in subparagraph (E), if any eligible condominium 
property sold (i) to a qualifying household, or (ii) to a lower-
income family pursuant to subparagraph (C)(i)(II) or 
(C)(ii)(II), is resold by the qualifying household or lower-
income family during the 1-year period beginning upon 
initial acquisition by the household or family, the Corpora-
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1787 
tion shall recapture 75 percent of the amount of any pro-
ceeds from the resale that exceed the sum of (I) the original 
' 
sale price for the acquisition of the property by the qualify-
ing household or lower-income family, (II) the costs of any 
improvements to the property made after the date of the 
acquisition, and (III) any closing costs in connection with 
the acquisition. 
"(E) EXCEPTION TO RECAPTURE REQUIREMENT.—The Cor-
poration (or its successor) may in its discretion waive the 
applicability to any qualifying household or lower-income 
family of the requirement under subparagraph (D) and the 
requirements relating to residency of a qualifying house-
hold or lower-income family (under paragraph (9)(L) and 
subparagraph (C) of this paragraph, respectively). The Cor-
poration may grant any such a waiver only for good cause 
shown, including any necessary relocation of the qualifying 
household or lower-income family. 
"(F) LIMITATIONS ON MULTIPLE UNIT PURCHASES.—The Cor-
poration may not sell or offer to sell as part of the same 
negotiation or purchase any eligible condominium prop-
erties that are not located in the same condominium project 
(as such term is defined in section 604 of the Housing and 
Community Development Act of 1980). The preceding 
sentence may not be construed to require all eligible con-
dominium properties offered or sold as part of the same 
negotiation or purchase to be located in the same structure. 
"(G) RENT LIMITATIONS.—Rents charged to tenants of eli-
gible condominium properties made available for occupancy 
by very low-income families shall not exceed 30 percent of 
the adjusted income of a family whose income equals 50 
percent of the median income for the area, as determined 
by the Secretary, with adjustment for family size. Rents 
charged to tenants of eligible condominium properties made 
available for occupancy by lower-income families other 
than very low-income families shall not exceed 30 percent 
of the adjusted income of a family whose income equals 65 
percent of the median income for the area, as determined 
by the Secretary, with adjustment for family size.", 
(b) CONFORMING AMENDMENT.—Section 21A(c)(ll)(B) of the Fed-
eral Home Loan Bank Act (12 U.S.C 1441a(c)(ll)(B)) is amended by 
striking "specified under paragraphs (2) and (3)" and inserting 
"applicable under paragraphs (2), (3), (12)(C), (13)(B), and (14)(C)". 
SEC. 6
1
6
. 
REPORTS 
TO CONGRESS REGARDING AFFORDABLE HOUSING 
PROGRAM. 
Section 21 
A(c) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)) is amended by adding after paragraph (14) (as added by 
section 515 of this Act) the following new paragraph: 
"(15) REPORTS TO CONGRESS.— 
"(A) IN GENERAL.—The Corporation shall submit to the 
Congress semiannual reports under this paragraph regard-
ing the disposition of eligible residential properties under 
this subsection during the most recently concluded report-
ing period. The first report under this paragraph shall be 
submitted not later than the expiration of the 4-month 
period beginning upon the conclusion of the first reporting 
period under subparagraph (B). Subsequent reports shall be 
105 STAT. 1788 
PUBLIC LAW 102-233—DEC. 12, 1991 
submitted not less than every 6 months after such expira-
tion. 
J 
"(B) REPORTING PERIODS.—For purposes of this paragraph, 
the term 'reporting period' means the 6-month period for 
which a report under this paragraph is made, except that 
the first reporting period shall be the period beginning on 
the date of the enactment of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 and ending 
on the date of the enactment of the Resolution Trust Cor-
poration Refinancing, Restructuring, and Improvement Act 
of 1991. Each successive reporting period shall begin upon 
the conclusion of the preceding reporting period. 
"(C) 
INFORMATION REGARDING PROPERTIES SOLD.—Each 
report under this paragraph shall contain information 
', 
regarding each eligible residential property sold by the 
Corporation during the applicable reporting period, as fol-
lows: 
"(i) A description of the property, the location of the 
property, and the number of dwelling units in the 
property. 
"(ii) The appraised value of the property, 
"(iii) The sale price of the property. 
.,[. 
"(iv) For eligible single family properties— 
"(I) the income and race of the purchaser of the 
property, if the property is sold to an occupjdng 
household or is sold for resale to an occupying 
t 
household; and 
"(II) whether the property is reserved for resi-
dency by very low- or lower-income families, if the 
property is sold for use as rental property. 
"(v) For eligible multifamily housing properties, the 
number and percentage of dwelling units in the prop-
erty reserved for occupancy by very low- and lower-
income families. 
"(vi) The number of eligible single family properties 
sold after the expiration of the offer period for such 
properties referred to in paragraph (2XB). 
"(vii) The number of eligible multifamily housing 
properties sold after the expiration of the periods for 
such properties referred to in subparagraphs (B) and 
(D) of paragraph (3). 
"(D) 
NUMBER OF PROPERTIES WITHIN WINDOWS.—Each 
report under this parsigraph shall contain the following 
information: 
"(i) The number of eligible single family properties 
for which the offer period referred to in paragraph 
(2XB) had not expired before the conclusion of the 
applicable reporting period (or had not yet com-
menced). 
"(ii) The number of eligible multifamily housing 
properties for which the 90-day period referred to in 
paragraph (3XB) had not expired before the conclusion 
of the applicable reporting period (or had not yet com-
; 
menced).". 
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1789 
SEC. 617. DEFINITIONS. 
Section 21A(c)(9) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)(9)), as amended by sections 501 and 504(a)(1) of this Act, is 
further amended— 
(1) by striking subparagraph (A) and inserting the following 
new subparagraph: 
"(A) ADJUSTED INCOME AND INCOME.—The terms 'adjusted 
income' and 'income' shall have the meaning given such 
terms in section 3(b) of the United States Housing Act of 
1937."; 
(2) by redesignating subparagraphs (D) through (P) as sub-
paragraphs (E) through (Q), respectively; and 
(3) by inserting after subparagraph (C) the following new 
subparagraph: 
"(D) ELIGIBLE CONDOMINIUM PROPERTY.—The term 'eli-
gible condominium property' means a condominium unit, 
as such term is defined in section 604 of the Housing and 
Community Development Act of 1980— 
"(i) to which the Corporation acquires title in its 
corporate capacity, its capacity as conservator, or its 
capacity as receiver (including its capacity as the sole 
owner of a subsidiary corporation of a depository 
institution 
under conservatorship or 
receivership, 
which subsidiary has as its principal business the 
ownership of real property); and 
"(ii) that has an appraised value that does not exceed 
the applicable dollar amount set forth in the first 
sentence of section 203(b)(2) of the National Housing 
Act (without regard to any increase of such amount for 
high cost areas).". 
SEC. 618. RISK-WEIGHTING OF HOUSING LOANS FOR PURPOSES OF CAP- Regulations. 
ITAL REQUIREMENTS. 
^^.^^ ^^^^ 
(a) SINGLE FAMILY HOUSING LOANS.— 
(1) 50 PERCENT RISK-WEIGHTED CLASSIFICATION.— 
(a) IN GENERAL.—To provide consistent regulatory treat-
ment of loans made for the construction of single family 
housing, not later than the expiration of the 120-day period 
beginning on the date of this Act each Federal banking 
agency shall amend the regulations and guidelines of the 
agency establishing minimum acceptable capital levels to 
provide that any single family residence construction loan 
described under subparagraph (B) shall be considered as a 
loan within the 50 percent risk-weighted category. 
(B) REQUIREMENTS.—Subparagraph (A) shall apply to any 
construction loan— 
(i) made for the construction of a residence consisting 
^ 
of 1 to 4 dwelling units; 
(ii) under which the lender has acquired from the 
lender originating the mortgage loan for purchase of 
the residence, before the making of the construction 
loan— 
(I) documentation demonstrating that the buyer 
of the residence intends to purchase the residence 
^ „ 
and has the ability to obtain a mortgage loan 
sufficient to purchase the residence; and 
note. 
105 STAT. 1790 
PUBLIC LAW 102-233—DEC. 12, 1991 
(II) any other documentation from the mortgage 
lender that the appropriate Federal banking 
agency may consider appropriate to provide assur-
ance of the buyer's intent to purchase the property 
(including written commitments and letters of 
intent); 
(iii) under which the borrower requires the buyer of 
the residence to make a nonrefundable deposit to the 
borrower in an amount (as determined by the appro-
priate Federal banking agency) of not less than 1 per-
cent of the principal amount of mortgage loan obtained 
by the borrower for purchase of the residence, for use 
in defraying costs relating to any cancellation of the 
purchase contract of the buyer; and 
(iv) that meets any other underwriting characteris-
tics that the appropriate Federal banking agency may 
establish, consistent with the purposes of the minimum 
acceptable capital requirements to maintain the safety 
and soundness of financial institutions. 
(2) 100 PERCENT RISK-WEIGHTED CLASSIFICATION.—Not later 
than the expiration of the 120-day period beginning on the date 
of this Act each Federal banking agency shall amend the regu-
lations and guidelines of the agency establishing minimum 
acceptable capital levels to provide that— 
(A) any single family residence construction loan for a 
residence for which the purchase contract is canceled shall 
be considered as a loan within the 100 percent risk-
weighted category; and 
(B) the lender of any single family residence construction 
loan shall promptly notify the appropriate Federal banking 
agency of any such cancellation. 
(b) MULTIFAMILY HOUSING LOANS.—• 
(1) 50 PERCENT RISK-WEIGHTED CLASSIFICATION.— 
(A) IN GENERAL.—To provide consistent regulatory treat-
ment of loans made for the purchase of multifamily rental 
and homeowner properties, not later than the expiration of 
the 120-day period beginning on the date of this Act each 
Federal banking agency shall amend the regulations and 
guidelines of the agency establishing minimum acceptable 
capital levels to provide that any multifamily housing loan 
described under subparagraph 
(B) and any 
security 
collateralized by such a loan sheill be considered as a loan or 
security within the 50 percent risk-weighted category, 
(B) REQUIREMENTS.—Subparagraph (A) shall apply to any 
loan— 
(i) secured by a first lien on a residence consisting of 
more than 4 dwelling units; 
(ii) under which— 
(I) the rate of interest does not change over the 
term of the loan, (b) the principal obligation does 
not exceed 80 percent of the appraised value of the 
property, and (c) the ratio of annual net operating 
income generated by the property (before payment 
of any debt service on the loan) to annual debt 
service on the loan is not less than 120 percent; or 
(II) the rate of interest changes over the term of 
the loan, (b) the principal obligation does not 
PUBLIC LAW 102-233—DEC. 12, 1991 
105 STAT. 1791 
exceed 75 percent of the appraised value of the 
property, and (c) the ratio of annual net operating 
income generated by the property (before payment 
, 1 
of any debt service on the loan) to annual debt 
*
* 
service on the loan is not less than 115 percent; 
(iii) under which— 
(I) amortization of principal and interest occurs 
over a period of not more than 30 years; 
(II) the minimum maturity for repayment of 
principal is not less than 7 years; and 
(III) timely payment of all principal and interest, 
in accordance with the terms of the loan, occurs for 
a period of not less than 1 year; and 
(iv) that meets any other underwriting characteris-
tics that the appropriate Federal banking agency may 
establish, consistent with the purposes of the minimum 
acceptable capital requirements to maintain the safety 
and soundness of financial institutions. 
(2) SALE PURSUANT TO PRO RATA LOSS SHARING ARRANGE-
MENTS.—Not later than the expiration of the 120-day period 
beginning on the date of this Act, each Federal banking agency 
shall amend the regulations and guidelines of the agency 
establishing minimum acceptable capital levels to provide that 
any loan fully secured by a first lien on a multifamily housing 
property that is sold subject to a pro rata loss sharing arrange-
ment by an institution subject to the jurisdiction of the agency 
shall be treated as sold to the extent that loss is incurred by the 
purchaser of the loan. For purposes of this paragraph, the term 
"pro rata loss sharing arrangement" means an agreement 
providing that the purchaser of a loan shares in any loss 
incurred on the loan with the selling institution on a pro rata 
basis. 
(3) SALE PURSUANT TO OTHER ARRANGEMENTS FOR LOSS.—Not 
later than the expiration of the 180-day period beginning on the 
date of the enactment of this Act, each Federal banking agency 
shall amend the regulations and guidelines of the agency 
establishing minimum acceptable capital levels to take into 
account other loss sharing arrangements, in connection with 
the sale by an institution subject to the jurisdiction of the 
agency of any loan that is fully secured by a first lien on 
multifamily housing property, for purposes of determining the 
extent to which such loans shall be treated as sold. For purposes 
of this paragraph, the term "other loss sharing arrangement" 
means an agreement providing that the purchaser of a loan 
shares in any loss incurred on the loan with the selling institu-
tion on other than a pro rata basis. 
(c) APPROPRIATE FEDERAL BANKING AGENCY.—For purposes of this 
section, the term "Federal banking agency" means the Board of 
Governors of the Federal Reserve System, the Federal Deposit 
Insurance Corporation, the Comptroller of the Currency, and the 
Director of the Office of Thrift Supervision. 
SEC. 619. APPLICABILITY. 
12 USC 1441a 
The amendments made by this title shall not apply to any eligible "° ' 
residential property or eligible condominium property of the Resolu-
tion Trust Corporation, that is subject to an agreement for sale 
105 STAT. 1792 
PUBLIC LAW 102-233—DEC. 12, 1991 
entered into by the Corporation before the date of the enactment of 
this Act. 
TITLE VII—APPRAISAL AMENDMENTS 
SEC. 701. REAL ESTATE APPRAISALS. 
(a) CERTIFICATION AND LICENSING REQUIREMENTS.—Section 1116 of 
the.Financial Institutions Reform, Recovery, and Enforcement Act 
of 1989 (12 U.S.C. 3345) is amended by adding at the end the 
following new subsection: 
"(e) AUTHORITY OF THE APPRAISAL SUBCOMMITTEE.—The Appraisal 
Subcommittee shall not set qualifications or experience require-
ments for the States in licensing real estate appraisers. Rec-
ommendations of the Subcommittee shall be nonbinding on the 
States. 
(b) USE OF STATE CERTIFIED AND STATE LICENSED APPRAISERS.— 
(1) EFFECTIVE DATE FOR USE.—Section 1119(a)(1) of the Finan-
cial Institutions Reform, Recovery and Enforcement Act of 1989 
(12 U.S.C. 3348(a)(1)) is amended by striking "July 1, 1991" and 
inserting "December 31,1992". 
(2) EXTENSION OF EFFECTIVE DATE.—Section 1119(b) of the 
Financial Institutions Reform, Recovery, and Enforcement Act 
of 1989 (12 U.S.C. 3348(b)) is amended-
(A) in the first sentence, by striking "leading to inordi-
nate delays" and inserting ", or in any geographical politi-
cal subdivision of a State, leading to significant delays"; and 
(B) in the second sentence, by striking "inordinate" and 
inserting "significant". 
Approved December 12, 1991. 
LEGISLATIVE HISTORY—H.R. 3435: 
HOUSE REPORTS: No. 102-358, Pts. 1 and 2 (Ctomm. on Banking, Finance and Urban 
Affairs). 
CONGRESSIONAL RECORD, Vol. 137 (1991): 
Nov. 26, considered and passed House. 
Nov. 27, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 27 (1991): 
Dec. 12, Presidential statement.