Resolution Trust Corporation Funding Act of 1991
PL 102-18 (S.419), enacted 03/23/1991

105 STAT. 58 
PUBLIC LAW 102-18—MAR. 23, 1991 
Public Law 102-18 
102d Congress 
An Act 
Mar. 23, 1991 
To amend the Federal Home Loan Bank Act to enable the Resolution Trust Corpora-
[S. 419] 
tion to meet its obligations to depositors and others by the least expensive means. 
Be it enacted by the Senate and House of Representatives of the 
Resolution Trust 
United States of America in Congress assembled. 
Corporation 
Funding Act of 
SECTION 1. SHORT TITLE. 
1991. 
Banks and 
This Act may be cited as the "Resolution Trust Corporation 
banking. 
Funding Act of 1991". 
12 use 1421 
"
*
" 
TITLE I—RTC RESOLUTION PROCESS AND 
FUNDING 
SEC. 101. THRIFT RESOLUTION FUNDING. 
Section 21A(i) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(i)) is amended— 
(1) by redesignating paragraphs (1) and (2) as subparagraphs 
(A) and (B), respectively, and moving the left margin of such 
subparagraphs (as so redesignated) 2 ems to the right; 
(2) in the heading, by striking "BORROWING" and inserting 
"FUNDING"; 
(3) by inserting after such heading the following new para-
graph designation and heading: 
"(1) BORROWING.—"; and 
(4) by adding at the end the following new paragraph: 
"(2) INTERIM FUNDING.—The Secretary of the Treasury shall 
provide the sum of $30,000,000,000 to the Corporation to carry 
out the purposes of this section,". 
SEC. 102. REPORTS. 
(a) IN GENERAL.—Section 21A(k) of the Federal Home Loan Bank 
Act (12 U.S.C. 1441a(k)) is amended— 
(1) in paragraph (IXA)— 
(A) by striking "The" and inserting "Notwithstanding 
section 9105 of title 31, United States Code, the"; and 
(B) by striking everything after "standards" the first 
place it appears and inserting ". The audited statements 
shall be transmitted to the Congress by the Oversight Board 
not later than 180 days after the end of the Corporation's 
fiscal year to which those statements apply."; 
(2) in paragraph (1)(B), by striking ", or by an independent 
certified public accountant retained to audit the Corporation's 
financial statement,"; and 
(3) by adding at the end the following: 
"(8) OPERATING PLANS.— 
PUBLIC LAW 102-18—MAR. 23, 1991 
105 STAT. 59 
"(A) IN GENERAL.—Before the beginning of each calendar 
quarter, the Oversight Board shall submit to the Committee 
on Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Banking, Finance and Urban Affairs of 
the House of Representatives a detailed financial operating 
plan covering the remaining quarters of the Corporation's 
fiscal year in which that quarter occurs. 
"(B) CONTENTS.—At a minimum, a detailed financial 
operating plan shall include— 
"(i) estimates of the aggregate assets of institutions 
that are projected to be resolved in each quarter, 
"(ii) the estimated aggregate cost of resolutions in 
each quarter, 
"(iii) the estimated aggregate asset sales and prin-
cipal collections in each quarter, and 
"(iv) the Corporation's summary pro forma financial 
statement at the end of each quarter. 
"(9) 
REPORTS ON SEVERELY TROUBLED INSTITUTIONS.—The 
i Director of the Office of Thrift Supervision shall deliver on a 
quarterly basis to the Oversight Board a list of savings associa-
tions for which the Director has determined grounds exist, or 
are likely to exist in the current fiscal year of the Corporation 
and in the next following fiscal year of the Corporation, for the 
appointment of a conservator or receiver under the Home 
Owners' Loan Act. The Oversight Board shall report the aggre-
gate number and assets of such savings associations to Congress 
within 60 days after the end of each calendar quarter.". 
(b) FIRST REQUIRED PLAN.—The first plan described in section 
21A(k)(8) of the Federal Home Loan Bank Act, as amended by 
subsection (a), is due not later than 30 days after the date of 
enactment of this Act. 
(c) TIMELINESS OF REPORTS.— 
(1) IN GENERAL.—At any time when an agency is delinquent in 
providing information to Congress or any of its committees as 
required by paragraph (1), (4), (5), (6), (8), or (9) of section 21A(k) 
of the Federal Home Loan Bank Act or by subsection (b) of this 
section, the President of the Oversight Board, and the head of 
any agency responsible for such delinquency shall, within 15 
days of such delinquency, in testimony before the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Banking, Finance and Urban Affairs of the 
House of Representatives— 
(A) explain the causes of such delinquency; and 
(B) describe what steps are being taken to correct it and 
prevent its recurrence. 
Testimony shall not be required pursuant to the preceding 
sentence before either Committee if the Chairman and Ranking 
Member of such Committee agree that such testimony is not 
necessary. For purposes of this paragraph, the term "head of an 
agency" means the Chairman of the Resolution Trust Corpora-
tion with respect to reports to be filed by such Corporation, the 
Director of the Office of Thrift Supervision with respect to 
reports to be filed by such Office, and the Comptroller General 
with respect to audits to be conducted by the General Account-
ing Office. 
(2) TRANSITION RULE.—Any information described in para-
graph (1) of this subsection that is delinquent on the date of 
12 u s e 1441a 
note. 
12 u s e 1441a 
note. 
105 STAT. 60 
PUBLIC LAW 102-18—MAR. 23, 1991 
enactment of this Act shall be provided to the appropriate 
committees of Congress not later than 30 days following enact-
ment of this Act. Failure to provide such information as re-
quired by this paragraph shall be considered as a delinquency 
under the provisions of paragraph (1). 
SEC. 103. STATUS OF EMPLOYEES. 
(a) RESOLUTION TRUST CORPORATION.—Section 21A of the Federal 
Home Loan Bank Act (12 U.S.C. 1441a) is amended by adding at the 
end the following new subsection: 
"(q) STATUS OF EMPLOYEES.— 
"(1) LiABiUTY.—A director, member, officer, or employee of 
the Corporation or of the Oversight Board has no liability under 
the Securities Act of 1933 with respect to any claim arising out 
of or resulting from any act or omission by such person within 
the scope of such person's employment in connection with any 
transaction involving the disposition of assets (or any interests 
in any assets or any obligations backed by any assets) by the 
Corporation. This subsection shall not be construed to limit 
personal liability for criminal acts or omissions, willful or mali-
cious misconduct, acts or omissions for private gain, or any 
other acts or omissions outside the scope of such person's 
employment. 
"(2) DEFINITION.—For purposes of this subsection, the term 
'employee of the Corporation or of the Oversight Board' in-
cludes— 
"(A) any employee of the Office of the Comptroller of the 
Currency or of the Office of Thrift Supervision who serves 
as a deputy or assistant to a member of the Board of 
Directors of the Corporation; and 
"(B) any officer or employee of the Federal Deposit Insur-
ance Corporation who performs services for the Corporation 
on behalf of the Federal Deposit Insurance Corporation, 
acting as exclusive manager. 
"(3) EFFECT ON OTHER LAW.—This subsection does not affect— 
"(A) any other immunities and protections that may be 
available under applicable law with respect to such trans-
actions, or 
"(B) any other right or remedy against the Corporation, 
against the United States under applicable law, or against 
any person other than a person described in paragraph (1) 
participating in such transactions. 
This subsection shall not be construed to limit or alter in any 
way the immunities that are available under applicable law for 
Federal 
officials 
and employees 
not described 
in 
this 
subsection.". 
(b) FEDERAL DEPOSIT INSURANCE CORPORATION.—Section 2 of the 
Federal Deposit Insurance Act (12 U.S.C. 1812) is amended by 
adding at the end the following new subsection: 
"(f) STATUS OF EMPLOYEES.— 
"(1) IN GENERAL.—A director, member, officer, or employee of 
the Corporation has no liability under the Securities Act of 1933 
with respect to any claim arising out of or resulting from any 
act or omission by such person within the scope of such person's 
employment in connection with any transaction involving the 
disposition of assets (or any interests in any assets or any 
obligations backed by any assets) by the Corporation. This 
PUBLIC LAW 102-18—MAR. 23, 1991 
105 STAT. 61 
subsection shall not be construed to limit personal liability for 
criminal acts or omissions, willful or malicious misconduct, acts 
or omissions for private gain, or any other acts or omissions 
outside the scope of such person's employment. 
"(2) DEFINITION.—For purposes of this subsection, the term 
'employee of the Corporation' includes any employee of the 
Office of the Comptroller of the Currency or of the Office of 
Thrift Supervision who serves as a deputy or assistant to a 
member of the Board of Directors of the Corporation in connec-
tion with activities of the Corporation. 
"(3) EFFECT ON OTHER LAW.—This subsection does not affect— 
"(A) any other immunities and protections that may be 
available to such person under applicable law with respect 
to such transactions, or 
"(B) any other right or remedy against the Corporation, 
against the United States under applicable law, or against 
any person other than a person described in paragraph (1) 
participating in such transactions. 
This subsection shall not be construed to limit or alter in any 
way the immunities that are available under applicable law for 
Federal 
officials and employees not described in this 
subsection.". 
SEC. 104. INCIDENTAL POWERS. 
(a) RESOLUTION TRUST CORPORATION.—Section 21A(b)(10)(N) of the 
Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(10)(N)) is amended 
by adding at the end the following: "The Corporation may indemnify 
the directors, officers and employees of the Corporation on such 
terms as the Corporation deems proper against any liability under 
any civil suit pursuant to any statute or pursuant to common law 
with respect to any claim arising out of or resulting from any act or 
omission by such person within the scope of such person's employ-
ment in connection with any transaction entered into involving the 
disposition of assets (or any interests in any assets or any obligations 
backed by any assets) by the Corporation. For purposes of this 
subparagraph, the terms 'officers' and 'employees include officers 
and employees of the Federal Deposit Insurance Corporation or of 
other agencies who perform services for the Corporation on behalf of 
the Federal Deposit Insurance Corporation, acting as exclusive man-
ager. The indemnification authorized by this subparagraph shall be 
in addition to and not in lieu of any immunities or other protections 
that may be available to such person under applicable law, and this 
provision does not affect any such immunities or other protections.". 
(b) OVERSIGHT BOARD.—Section 21A(a)(5) of the Federal Home 
Loan Bank Act (12 U.S.C. 1441a(a)(5)) is amended— 
(1) by redesignating subparagraphs (I) and (J) as subpara-
graphs (J) and (K), respectively; and 
(2) by inserting after subparagraph (H) the following: 
"(I) indemnify, from funds made available to it by the 
Corporation, the members, officers, and employees of the 
Oversight Board on such terms as the Oversight Board 
deems proper against any liability under any civil suit 
pursuant to any statute or pursuant to common law with 
respect to any claim arising out of or resulting from any act 
or omission by such person within the scope of such per-
son's employment in connection with any transaction 
entered into involving the disposition of assets (or any 
105 STAT. 62 
PUBLIC LAW 102-18—MAR. 23, 1991 
interests in any assets or any obligations backed by any 
assets) by the Corporation, and the indemnification 
authorized by this provision shall be in addition to and not 
in lieu of any immunities or other protections that may be 
available to such person under applicable law, and this 
provision does not affect any such immunities or other 
protections;". 
SEC. 105. CLARIFICATION OF REVIEW OF PRIOR CASES. 
Section 21A(b)(ll)(B) of the Federal Home Loan Bank Act (12 
U.S.C. 1441a(b)(ll)(B)) is amended— 
(1) by striking "The Corporation shall exercise" and inserting 
the following: 
"(C) PROVISIONS APPLICABLE TO REVIEW OF PRIOR CASES.— 
"(i) IN GENERAL.—The Corporation shall exercise"; 
and 
(2) by adding at the end of subparagraph (C), as so designated 
by paragraph (1) of this section, the following: 
"(ii) ADDITIONAL PROVISIONS.—The Corporation, in 
modifying, renegotiating, or restructuring the insolvent 
institution cases resolved by the Federal Savings and 
Loan Insurance Corporation between January 1, 1988, 
and the date of enactment of the Financial Institutions 
Reform, Recovery and Enforcement Act of 1989, shall 
carry out its responsibilities under section 519(a) of the 
Department of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appro-
priations Act, 1991 (104 Stat. 1386) and shall, consistent 
with achieving the greatest overall financial savings to 
the Federal Government, pursue all legal means by 
which the Corporation can reduce both the direct out-
lays and the tax benefits associated with such cases, 
including, but not limited to, restructuring to eliminate 
tax-free interest payments and renegotiating to capture 
a 
larger 
portion of the tax benefits for the 
Corporation.". 
TITLE II-^RTC DISPOSITION OF 
AFFORDABLE HOUSING 
SEC. 201. AMENDMENTS RELATING TO SCOPE OF PROGRAM. 
(a) DEFINITION OF CORPORATION.—Section 21A(c)(9)(C) of the Fed-
eral Home Loan Bank Act (12 U.S.C. 1441a(c)(9)(C)) is amended by 
striking the period at the end and inserting ", except that for 
purposes of subsection (c)(2) only, the term means the Resolution 
Trust Corporation acting in any capacity.". 
(b) SALES TO INSURED DEPOSITORY INSTITUTIONS EXCLUDED FROM 
PROGRAM.—Section 21A(c)(10) of the Federal Home Loan Bank Act 
(12 U.S.C. 1441a(c)(10)) is amended to read as follows: 
"(10) EXEMPTION FOR CERTAIN TRANSACTIONS WITH INSURED 
DEPOSITORY INSTITUTIONS.—The provisions of this subsection 
shall not apply with respect to any eligible residential property 
after the date the Corporation enters into a contract to sell such 
property to an insured depository institution (as defined in 
section 3 of the Federal Deposit Insurance Act), including any 
PUBLIC LAW 102-18—MAR. 23, 1991 
105 STAT. 63 
sale in connection with a transfer of all or substantially all of 
the assets of a closed savings association (including such prop-
erty) to an insured depository institution.". 
SEC. 202. AMENDMENTS RELATING TO SALE PROCEDURES. 
Section 21A(c)(6)(A)(i) of the Federal Home Loan Bank Act (12 
U.S.C. 1441a(c)(6)(A)(i)) is amended to read as follows: 
"(i) SALE PRICE.—The Corporation may sell eligible 
single family property to qualifying households, non-
profit organizations, and public agencies without 
regard to any minimum purchase price.". 
SEC. 203. SCOPE OF APPLICATION. 
12 USC 1441a 
The amendments made by sections 201 and 202 of this Act to 
section 21A of the Federal Home Loan Bank Act shall be effective 
only during the period beginning on the date of the enactment of 
this Act and ending at the end of fiscal year 1991, and section 21A 
shall apply after the end of such period as if such amendments had 
not been made. 
TITLE III—RTC MANAGEMENT REFORMS 
SEC. 
3
0
1
. 
MANAGEMENT 
ENHANCEMENT 
GOALS. 
Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) 
is amended by adding at the end the following new subsection: 
"(r) MANAGEMENT ENHANCEMENT GOALS.— 
"(1) ACTION TO ACHIEVE SPECIFIC GOALS.—The Corporation, 
upon the enactment of this subsection, shall take action to 
assure achievement of the management goals specified in this 
paragraph, as follows: 
"(A) MANAGING CONSERVATORSHIPS.—The Corporation 
shall standardize procedures with respect to its (i) auditing 
of conservatorships, (ii) ensuring and monitoring of compli-
ance 
with 
Corporation 
policies 
and 
procedures 
by 
conservatorship managing agents, and (iii) ensuring and 
monitoring of conservatorship managing agent perform-
ance. These procedures shall be developed and implemented 
not later than September 30,1991. 
"(B) PACE OF RESOLUTIONS.—The Corporation shall take 
all reasonable and necessary steps to reduce the length of 
time institutions remain in conservatorship, with the goal 
that no institution shall be in conservatorship for more 
than 9 months. 
"(C) INFORMATION RESOURCES MANAGEMENT PROGRAM.— 
The Corporation shall develop and incorporate within its 
strategic plan for information resources management, (i) a 
translation of program goals into the communication and 
computer hardware and software, and staff needed to 
accomplish such goals, (ii) a systems architecture to ensure 
that all systems will work together, and (iii) an identifica-
tion of Corporation information and systems needs at all 
operational levels. 
"(D) 
SECURITIES PORTFOLIO MANAGEMENT SYSTEM.—The 
Corporation shall develop within its information architec-
ture framework, a centralized system for the management 
105 STAT. 64 
PUBLIC LAW 102-18—MAR. 23, 1991 
of its portfolio of securities. This system shall be developed 
and implemented not later than September 30,1991. 
"(E) TRACKING REO ASSETS.—The Corporation shall de-
velop, within its information architecture, an effective 
system to track and inventory real-estate-owned assets. 
This system shall be developed and implemented not later 
than September 30,1991. 
"(F) ASSET VALUATION.—The Corporation shall develop a 
process for the quarterly valuation or updating of valu-
ations of the assets it holds in its capacity as receiver (or as 
a result of such capacity). Such process shall incorporate, to 
the extent practical. Corporation disposition experience. In 
addition, the necessary information systems shall be devel-
oped to track and manage these valuations. 
"(G) STANDARDIZATION OF DUE DILIGENCE AND MARKET 
FORMAT.—The Corporation shall develop a program for 
performing due diligence on one- to four-family mortgages 
and for marketing such loans on a pooled basis. 
"(H) CONTRACTING,—The Corporation, in order to identify 
the need for any changes in its contracting process which 
would enhance the independence, integrity, consistency and 
effectiveness of that process, shall consult on a regular basis 
with other agencies and organizations that have large scale 
contracting and procurement systems, and shall review on 
a regular basis its organizational structure and relation-
ships. The Corporation shall develop and have in wide-
spread use the following: 
"(i) A manual setting forth comprehensive policies 
and procedures. 
"(ii) A revised and expanded directive that clearly 
and definitively describes the roles and responsibilities 
of all those involved in the contracting process. 
"(iii) A revised and expanded directive that sets forth 
in detail the standard procedures to be followed in 
evaluating contractor proposals. 
"(iv) A set of standardized solicitation and contract 
documents for use by all Corporation officers. 
"(v) A series of standardized contracting training 
modules for use by Corporation personnel and private 
contractors. 
Reports. 
"(2) The Corporation shall, not later than September 30, 1991, 
file with the Committee on Banking, Housing, and Urban Af-
fairs of the Senate, and the Committee on Banking, Finance and 
Urban Affairs of the House of Representatives, a report on the 
progress being made toward full compliance by the agency with 
this subsection, as well as a timetable for completing those 
items not yet completed.". 
PUBLIC LAW 102-18—MAR. 23, 1991 
105 STAT. 65 
TITLE IV—MINORITY CONTRACTING 
REPORT 
SEC. 401. MINORITY AND WOMEN BUSINESS POLICY, OUTREACH AND 
EQUAL OPPORTUNITY REPORTING REQUIREMENT. 
Section 21A(k)(5)(B) of the Federal Home Loan Bank Act (12 
U.S.C. 1441a(k)(5)(B)) is amended by adding at the end the following 
new clause: 
"(xiii) A complete description of all actions taken by 
the Corporation pursuant to subsections (a), (b), and (c) 
of section 1216 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 with respect to 
the employment of and contracting with minorities, 
women, and businesses owned or controlled by minori-
ties or women and any other activity of the Corporation 
pursuant to the outreach program of the Corporation 
for minorities and women. Such description shall 
specify the steps taken by the Corporation, in its cor-
porate capacity and its capacity as conservator or re-
ceiver, to implement the minority and women outreach 
programs required by section 1216(c) of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 
1989 and shall set forth information and data show-
ing— 
"(I) the extent to which and means by which 
contract solicitations have been directed to minori-
ties, women, and businesses owned or controlled by 
minorities or women by the Corporation and by the 
Federal Deposit Insurance Corporation on behalf of 
the Corporation; 
"(II) the extent to which prime contracts and 
subcontracts have been awarded to minorities, 
women, and businesses owned or controlled by 
minorities or women, including data with respect 
to the number of such contracts, the dollar 
amounts thereof, and the percentage of Corpora-
tion 
contracting 
activity 
represented 
thereby 
(including contracting activity by the Federal De-
posit Insurance Corporation on behalf of the Cor-
poration); 
"(III) contracting and outreach activity with re-
spect to joint ventures and other business arrange-
ments in which minorities, women, or businesses 
owned or controlled by minorities or women have a 
participation or interest; and 
"(IV) the extent to which the Corporation's 
minority and women contracting outreach pro-
grams 
have 
been 
successful 
in 
maximizing 
105 STAT. 66 
PUBLIC LAW 102-18—MAR. 23, 1991 
opportunities through the outreach policies estab-
lished by the Corporation for participation of 
minorities, women, and businesses owned or con-
trolled by minorities or women in the Corpora-
tion's contracting activities.". 
Approved March 23, 1991. 
LEGISLATIVE HISTORY—S. 419 (H.R. 1315): 
HOUSE REPORTS: No. 102-27 (Comm. of Conference). 
SENATE REPORTS: No. 102-13 (Comm. on Banking, Housing, and Urban Affairs). 
CONGRESSIONAL RECORD, Vol. 137 (1991): 
Feb. 26, 27, Mar. 5-7, considered and passed Senate. 
Mar. 12, H.R. 1315 considered and rejected in House. 
Mar. 13, S. 419 considered and passed House, amended. 
Mar. 19, Senate agreed to conference report. 
Mar. 21, House agreed to conference report.