12 U.S.C. § 1437 : US Code - Section 1437: Repealed.

Search 12 U.S.C. § 1437 : US Code - Section 1437: Repealed.

Sec. 1437. Repealed. Pub. L. 101-73, title VII, Sec. 703(a), Aug.
9, 1989, 103 Stat. 415.
Section, acts July 22, 1932, ch. 522, Sec. 17, 47 Stat. 736; 1947
Reorg. Plan No. 3, eff. July 27, 1947, 12 F.R. 4981, 61 Stat. 954;
Aug. 11, 1955, ch. 783, title I, Sec. 109(a)(3), 69 Stat. 640; June
29, 1977, Pub. L. 95-56, 91 Stat. 252; Aug. 4, 1977, Pub. L. 95-90,
Secs. 1, 2, 91 Stat. 564; Oct. 15, 1982, Pub. L. 97-320, title I,
Sec. 127, 96 Stat. 1486; Jan. 12, 1983, Pub. L. 97-457, Sec. 8, 96
Stat. 2507; Nov. 30, 1983, Pub. L. 98-181, title VII, Sec. 702(b),
97 Stat. 1267, set forth powers and duties, etc., of Federal Home
Loan Bank Board.
TRANSFER OF FUNCTIONS, PERSONNEL, AND PROPERTY OF FEDERAL SAVINGS
AND LOAN INSURANCE CORPORATION AND FEDERAL HOME LOAN BANK BOARD
Pub. L. 101-73, title IV, Secs. 401-406, Aug. 9, 1989, 103 Stat.
354-363, as amended by Pub. L. 102-233, title III, Sec. 313, Dec.
12, 1991, 105 Stat. 1770, provided that:
"SEC. 401. FSLIC AND FEDERAL HOME LOAN BANK BOARD ABOLISHED.
"(a) In general. -
"(1) FSLIC. - Effective on the date of the enactment of this
Act [Aug. 9, 1989], the Federal Savings and Loan Insurance
Corporation established under section 402 of the National Housing
Act [former 12 U.S.C. 1725] is abolished.
"(2) FHLBB. - Effective at the end of the 60-day period
beginning on the date of the enactment of this Act, the Federal
Home Loan Bank Board and the position of Chairman of the Federal
Home Loan Bank Board are abolished.
"(b) Disposition of Affairs. -
"(1) In general. - During the 60-day period beginning on the
date of the enactment of this Act [Aug. 9, 1989], the Chairman of
the Federal Home Loan Bank Board -
"(A) shall, solely for the purpose of winding up the affairs
of the Federal Savings and Loan Insurance Corporation and the
Federal Home Loan Bank Board -
"(i) manage the employees of the Board and provide for the
payment of the compensation and benefits of any such employee
which accrue before the effective date of the transfer of
such employee pursuant to section 403; and
"(ii) manage any property of the Board and the Corporation
until such property is transferred pursuant to section 405;
and
"(B) may take any other action necessary for the purpose of
winding up the affairs of the Corporation and the Board.
"(2) Availability of funds in fslic resolution fund on a
reimbursable basis. -
"(A) Availability of funds. - Notwithstanding any provision
of section 11A of the Federal Deposit Insurance Act [12 U.S.C.
1821a] (as added by section 215 of this Act), funds in the
FSLIC Resolution Fund shall be available to the Chairman of the
Federal Home Loan Bank Board to pay any expense incurred in
carrying out the requirements of paragraph (1).
"(B) Payment by fdic. - Upon the request of the Chairman of
the Federal Home Loan Bank Board, the Federal Deposit Insurance
Corporation shall pay to the Chairman from the FSLIC Resolution
Fund the amounts requested for expenses described in
subparagraph (A).
"(C) Exclusive source of funds. - No funds or other property
of the Federal Home Loan Bank Board or the Federal Savings and
Loan Insurance Corporation (other than the FSLIC Resolution
Fund) may be used by the Chairman of the Federal Home Loan Bank
Board to pay any expense incurred in carrying out any provision
of this title [see Tables for classification].
"(D) Reimbursement by successor agencies. - Disbursements
from the FSLIC Resolution Fund pursuant to subparagraph (A)
which are attributable to employees described in paragraph
(1)(A)(i) and property described in paragraph (1)(A)(ii) shall
be reimbursed by the agency to which any such employee or
property is transferred.
"(c) Authority and Status of Chairman of the Federal Home Loan
Bank Board. -
"(1) In general. - Notwithstanding the repeal of section 17 of
the Federal Home Loan Bank Act [12 U.S.C. 1437] by section 703 of
this Act, the repeal of section 402(c) of the National Housing
Act [12 U.S.C. 1725(c)] by section 407 of this title, the
abolishment of the Federal Savings and Loan Insurance Corporation
under section 401 of this title, the Chairman of the Federal Home
Loan Bank Board shall have any authority vested in the Chairman
or the Board before such date of enactment [Aug. 9, 1989] which
is necessary for the Chairman to carry out the requirements of
this section, paragraphs (1) and (2) of section 403(b), and
section 405(a) during the 60-day period beginning on such date.
"(2) Other provisions. - For purposes of paragraph (1), the
Chairman of the Federal Home Loan Bank Board shall continue to be
-
"(A) treated as an officer of the United States during the 60-
day period referred to in such subparagraph; and
"(B) entitled to compensation at the annual rate of basic pay
payable for level III of the Executive Schedule [5 U.S.C.
5314].
"(3) No additional compensation if appointed director. - During
the 60-day period beginning on the date of the enactment of this
Act [Aug. 9, 1989], the Chairman of the Federal Home Loan Bank
Board shall not be entitled to any additional compensation by
reason of his appointment as Director of the Office of Thrift
Supervision.
"(d) Status of Employees Before Transfer. -
"(1) Employees of fslic. - Any employee of the Federal Savings
and Loan Insurance Corporation shall be treated as an employee of
the Federal Home Loan Bank Board for purposes of subsection
(b)(1)(A)(i).
"(2) Rule of construction. - The repeal of section 17 of the
Federal Home Loan Bank Act [12 U.S.C. 1437] by section 703 of
this Act, the repeal of section 402(c) of the National Housing
Act [12 U.S.C. 1725(c)] by section 407 of this title, and the
abolishment of the Federal Savings and Loan Insurance Corporation
under section 401 of this title, shall not be construed as
affecting the status of employees of such Corporation or of the
Federal Home Loan Bank Board as employees of an agency of the
United States for purposes of any other provision of law before
the effective date of the transfer of any such employee pursuant
to section 403.
"(e) Continuation of Services. -
"(1) In general. - The Director of the Office of Thrift
Supervision, the Chairperson of the Oversight Board of the
Resolution Trust Corporation, the Chairperson of the Federal
Deposit Insurance Corporation, and the Chairperson of the Federal
Housing Finance Board may use the services of employees and other
personnel and the property of the Federal Home Loan Bank Board
and the Federal Savings and Loan Insurance Corporation, on a
reimbursable basis, to perform functions which have been
transferred to such agencies for such time as is reasonable to
facilitate the orderly transfer of functions transferred pursuant
to any other provision of this Act [see Tables for
classification] or any amendment made by this Act to any other
provision of law.
"(2) Reimbursement. - The reimbursement required under
paragraph (1) with respect to employees, personnel, and property
described in such paragraph shall be made to the FSLIC Resolution
Fund and shall be taken into account in determining the amount of
any reimbursement required under subsection (b)(2)(D).
"(3) Agency services. - Any agency, department, or other
instrumentality of the United States (including any Federal home
loan bank), and any successor to any such agency, department, or
instrumentality, which was providing supporting services to the
Federal Home Loan Bank Board or the Federal Savings and Loan
Insurance Corporation before the enactment of this Act [Aug. 9,
1989] in connection with functions that are transferred to the
Office of Thrift Supervision, the Resolution Trust Corporation,
the Federal Deposit Insurance Corporation, or the Federal Housing
Finance Board shall -
"(A) continue to provide such services, on a reimbursable
basis, until the transfer of such functions is complete; and
"(B) consult with any such agency to coordinate and
facilitate a prompt and reasonable transition.
"(f) Savings Provisions Relating to FSLIC. -
"(1) Existing rights, duties, and obligations not affected. -
Subsection (a) shall not affect the validity of any right, duty,
or obligation of the United States, the Federal Savings and Loan
Insurance Corporation, or any other person, which -
"(A) arises under or pursuant to any section of title IV of
the National Housing Act [former 12 U.S.C. 1724 et seq.]; and
"(B) existed on the day before the date of the enactment of
this Act [Aug. 9, 1989].
"(2) Continuation of suits. - No action or other proceeding
commenced by or against the Federal Savings and Loan Insurance
Corporation, or any Federal home loan bank with respect to any
function of the Corporation which was delegated to employees of
such bank, shall abate by reason of the enactment of this Act
[see Tables for classification], except that the appropriate
successor to the interests of such Corporation shall be
substituted for the Corporation or the Federal home loan bank as
a party to any such action or proceeding.
"(g) Savings Provisions Relating to FHLBB. -
"(1) Existing rights, duties, and obligations not affected. -
Subsection (a) shall not affect the validity of any right, duty,
or obligation of the United States, the Federal Home Loan Bank
Board, or any other person, which -
"(A) arises under or pursuant to the Federal Home Loan Bank
Act [12 U.S.C. 1421 et seq.], the Home Owners' Loan Act of 1933
[12 U.S.C. 1461 et seq.], or any other provision of law
applicable with respect to such Board (other than title IV of
the National Housing Act [former 12 U.S.C. 1724 et seq.]); and
"(B) existed on the day before the date of the enactment of
this Act [Aug. 9, 1989].
"(2) Continuation of suits. -
"(A) [sic] In general. - No action or other proceeding
commenced by or against the Federal Home Loan Bank Board, or
any Federal home loan bank with respect to any function of the
Board which was delegated to employees of such bank, shall
abate by reason of the enactment of this Act [see Tables for
classification], except that the appropriate successor to the
interests of such Board shall be substituted for the Board or
the Federal home loan bank as a party to any such action or
proceeding.
"(h) Continuation of Orders, Resolutions, Determinations, and
Regulations. - Subject to section 402, all orders, resolutions,
determinations, and regulations, which -
"(1) have been issued, made, prescribed, or allowed to become
effective by the Federal Savings and Loan Insurance Corporation
or the Federal Home Loan Bank 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 which are
transferred by this Act [see Tables for classification]; and
"(2) are in effect on the date this Act takes effect [Aug. 9,
1989],
shall continue in effect according to the terms of such orders,
resolutions, determinations, and regulations and shall be
enforceable by or against the Director of the Office of Thrift
Supervision, the Federal Deposit Insurance Corporation, the Federal
Housing Finance Board, or the Resolution Trust Corporation, as the
case may be, until modified, terminated, set aside, or superseded
in accordance with applicable law by the Director of the Office of
Thrift Supervision, the Federal Deposit Insurance Corporation, the
Federal Housing Finance Board, or the Resolution Trust Corporation,
as the case may be, by any court of competent jurisdiction, or by
operation of law.
"(i) Identification of Regulations Which Remain in Effect
Pursuant to This Section. - Before the end of the 60-day period
beginning on the date of the enactment of this Act [Aug. 9, 1989],
the Director of the Office of Thrift Supervision and the
Chairperson of the Federal Deposit Insurance Corporation shall -
"(1) identify the regulations and orders which relate to the
conduct of conservatorships and receiverships in accordance with
the allocation of authority between them under this Act [see
Tables for classification] and the amendments made by this Act;
and
"(2) promptly publish notice of such identification in the
Federal Register.
"SEC. 402. CONTINUATION AND COORDINATION OF CERTAIN REGULATIONS.
"(a) Regulations Relating to Insurance Functions. - All
regulations and orders of the Federal Savings and Loan Insurance
Corporation, or the Federal Home Loan Bank Board (in such Board's
capacity as the board of trustees of such Corporation), which are
in effect on the date of the enactment of this Act [Aug. 9, 1989]
and relate to -
"(1) the provision, rates, or cancellation of insurance of
accounts; or
"(2) the administration of the insurance fund of the Federal
Savings and Loan Insurance Corporation,
shall remain in effect according to the terms of such regulations
and orders and shall be enforceable by the Federal Deposit
Insurance Corporation unless determined otherwise by such
Corporation after consultation with the Director of the Office of
Thrift Supervision and, with respect to regulations and orders
relating to the scope of deposit insurance coverage, pursuant to
subsection (c).
"(b) Identification of Regulations Which Remain in Effect
Pursuant to This Section. - Before the end of the 60-day period
beginning on the date of the enactment of this Act [Aug. 9, 1989],
the Director of the Office of Thrift Supervision and the
Chairperson of the Federal Deposit Insurance Corporation shall -
"(1) identify the regulations and orders referred to in
subsection (a) of this section in accordance with the allocation
of authority between them under this Act [see Tables for
classification] and the amendments made by this Act; and
"(2) promptly publish notice of such identification in the
Federal Register.
"(c) Procedure for Differences in Deposit Insurance Coverage
Between FSLIC and FDIC. -
"(1) Transition rule. - Until the effective date of regulations
prescribed under paragraph (3)(B), any determination of the
amount of any insured deposit in any depository institution which
becomes an insured depository institution as a result of the
amendment made to section 4(a) of the Federal Deposit Insurance
Act [12 U.S.C. 1814(a)] by section 205(1) of this Act shall be
made in accordance with the regulations and interpretations of
the Federal Savings and Loan Insurance Corporation for
determining the amount of an insured account which were in effect
on the day before the date of the enactment of this Act [Aug. 9,
1989].
"(2) Limitation on extent of coverage. - During the period
beginning on the date of the enactment of this Act and ending on
the effective date of regulations prescribed under paragraph
(3)(B), the amount of any insured account which is required to be
treated as an insured deposit pursuant to paragraph (1) shall not
exceed the amount of insurance to which such insured account
would otherwise have been entitled pursuant to the regulations
and interpretations of the Federal Savings and Loan Insurance
Corporation which were in effect on the day before the date of
the enactment of this Act.
"(3) Uniform treatment of insured deposits. - The Federal
Deposit Insurance Corporation shall -
"(A) review its regulations, principles, and interpretations
for deposit insurance coverage and those established by the
Federal Savings and Loan Insurance Corporation; and
"(B) on or before the end of the 270-day period beginning on
the date of the enactment of this Act, prescribe a uniform set
of regulations which shall be applicable to all insured
deposits in insured depository institutions (except to the
extent any provision of this Act, any amendment made by this
Act to the Federal Deposit Insurance Act [12 U.S.C. 1811 et
seq.], or any other provision of law requires or explicitly
permits the Federal Deposit Insurance Corporation to treat
insured deposits of Savings Association Insurance Fund members
differently than insured deposits of Bank Insurance Fund
members).
"(4) Factors required to be considered. - In prescribing
regulations providing for the uniform treatment of deposit
insurance coverage, the Federal Deposit Insurance Corporation
shall consider all relevant factors necessary to promote safety
and soundness, depositor confidence, and the stability of
deposits in insured depository institutions.
"(5) Notice; effective date. - Regulations prescribed under
this subsection shall -
"(A) provide for effective notice to depositors in insured
depository institutions of any change in deposit insurance
coverage which would result under such regulations; and
"(B) take effect on or before the end of the 90-day period
beginning on the date such regulations become final.
"(6) Definitions. - For purposes of this subsection -
"(A) Insured account. - The term 'insured account' has the
meaning given to such term in section 401(c) of the National
Housing Act [former 42 U.S.C. 1724(c)] (as in effect before the
date of the enactment of this Act [Aug. 9, 1989]).
"(B) Insured depository institution. - The term 'insured
depository institution' has the meaning given to such term in
section 3(c)(2) of the Federal Deposit Insurance Act [12 U.S.C.
1813(c)(2)].
"(d) Interim Treatment of Custodial Accounts. -
"(1) In general. - Subject to paragraph (2) and notwithstanding
subsection (a) or any limitation contained in the Federal Deposit
Insurance Act [12 U.S.C. 1811 et seq.] relating to the amount of
deposit insurance available to any 1 borrower, amounts held in
custodial accounts in insured depository institutions (as defined
in section 3(c)(2) of such Act [12 U.S.C. 1813(c)(2)]) for the
payment of principal, interest, tax, and insurance payments for
mortgage borrowers, shall be insured under the Federal Deposit
Insurance Act in the amount of $100,000 per mortgage borrower.
"(2) Treatment after effective date of new regulations. - After
the effective date of the regulations prescribed under subsection
(c) -
"(A) the amount of deposit insurance available for custodial
accounts shall be determined in accordance with such
regulations; and
"(B) paragraph (1) shall cease to apply with respect to such
accounts.
"(e) Treatment of References in Adjustable Rate Mortgage
Instruments. -
"(1) In general. - For purposes of adjustable rate mortgage
instruments that are in effect as of the date of enactment of
this Act [Aug. 9, 1989], any reference in the instrument to the
Federal Savings and Loan Insurance Corporation, the Federal Home
Loan Bank Board, or institutions insured by the Federal Savings
and Loan Insurance Corporation before such date shall be treated
as a reference to the Federal Deposit Insurance Corporation, the
Federal Housing Finance Board, the Office of Thrift Supervision,
or institutions which are members of the Savings Association
Insurance Fund, as appropriate on the basis of the transfer of
functions pursuant to this Act [see Tables for classification],
unless the context of the reference requires otherwise.
"(2) Substitution for indexes. - If any index used to calculate
the applicable interest rate on any adjustable rate mortgage
instrument is no longer calculated and made available as a direct
or indirect result of the enactment of this Act, any index -
"(A) made available by the Director of the Office of Thrift
Supervision, the Chairperson of the Federal Deposit Insurance
Corporation, or the Chairperson of the Federal Housing Finance
Board pursuant to paragraph (3); or
"(B) determined by the Director of the Office of Thrift
Supervision, the Chairperson of the Federal Deposit Insurance
Corporation, or the Chairperson of the Federal Housing Finance
Board, pursuant to paragraph (4), to be substantially similar
to the index which is no longer calculated or made available,
may be substituted by the holder of any such adjustable rate
mortgage instrument upon notice to the borrower.
"(3) Agency action required to provide continued availability
of indexes. - Promptly after the enactment of this subsection
[Aug. 9, 1989], the Director of the Office of Thrift Supervision,
the Chairperson of the Federal Deposit Insurance Corporation, and
the Chairperson of the Federal Housing Finance Board shall take
such action as may be necessary to assure that the indexes
prepared by the Federal Savings and Loan Insurance Corporation,
the Federal Home Loan Bank Board, and the Federal home loan banks
immediately prior to the enactment of this subsection and used to
calculate the interest rate on adjustable rate mortgage
instruments continue to be available.
"(4) Requirements relating to substitute indexes. - If any
agency can no longer make available an index pursuant to
paragraph (3), an index that is substantially similar to such
index may be substituted for such index for purposes of paragraph
(2) if the Director of the Office of Thrift Supervision, the
Chairperson of the Federal Deposit Insurance Corporation, or the
Chairperson of the Federal Housing Finance Board, as the case may
be, determines, after notice and opportunity for comment, that -
"(A) the new index is based upon data substantially similar
to that of the original index; and
"(B) the substitution of the new index will result in an
interest rate substantially similar to the rate in effect at
the time the original index became unavailable.
"SEC. 403. DETERMINATION OF TRANSFERRED FUNCTIONS AND EMPLOYEES.
"(a) All FHLBB and FSLIC Employees Shall Be Transferred. - All
employees of the Federal Home Loan Bank Board and the Federal
Savings and Loan Insurance Corporation shall be identified for
transfer under subsection (b) to the Federal Deposit Insurance
Corporation, the Office of Thrift Supervision, or the Federal
Housing Finance Board.
"(b) Functions and Employees Transferred. -
"(1) In general. - The Director of the Office of Thrift
Supervision, the Chairperson of the Oversight Board of the
Resolution Trust Corporation, the Chairperson of the Federal
Deposit Insurance Corporation, the Chairperson of the Federal
Housing Finance Board, and the Chairman of the Federal Home Loan
Bank Board (as of the day before the date of the enactment of
this Act [Aug. 9, 1989]) shall jointly determine the functions or
activities of the Federal Home Loan Bank Board and the Federal
Savings and Loan Insurance Corporation, and the number of
employees of such Board and Corporation necessary to perform or
support such functions or activities, which are transferred from
the Federal Home Loan Bank Board and the Federal Savings and Loan
Insurance Corporation to the Office of Thrift Supervision, the
Resolution Trust Corporation, the Federal Deposit Insurance
Corporation, or the Federal Housing Finance Board, as the case
may be.
"(2) Allocation of employees. - The Director of the Office of
Thrift Supervision, the Chairperson of the Oversight Board of the
Resolution Trust Corporation, the Chairperson of the Federal
Deposit Insurance Corporation, and the Chairperson of the Federal
Housing Finance Board shall allocate the employees of the Federal
Home Loan Bank Board and the Federal Savings and Loan Insurance
Corporation consistent with the number determined pursuant to
paragraph (1) in a manner which such Director, Chairman, and
Chairpersons, in their sole discretion, deem equitable, except
that, within work units, the agency preferences of individual
employees shall be accommodated as far as possible.
"(c) Federal Home Loan Bank Personnel. - Employees of the Federal
home loan banks or the joint offices of such banks who, on the day
before the date of the enactment of this Act [Aug. 9, 1989], are
performing functions or activities on behalf of the Federal Home
Loan Bank Board or the Federal Savings and Loan Insurance
Corporation shall be treated as employees of the Federal Home Loan
Bank Board or the Federal Savings and Loan Insurance Corporation
for purposes of determining, pursuant to subsection (b)(1), the
number of employees performing or supporting functions or
activities of such Board or Corporation to the extent such
functions or activities are transferred to the Federal Deposit
Insurance Corporation, the Office of Thrift Supervision, the
Resolution Trust Corporation, or the Federal Housing Finance Board.
"(d) FSLIC Employees Engaged in Conservatorship or Receivership
Functions. - Individuals who, on the day before the date of the
enactment of this Act [Aug. 9, 1989], are employed by the Federal
Savings and Loan Insurance Corporation in such Corporation's
capacity as conservator or receiver of any insured depository
institution shall be treated as employees of the Federal Savings
and Loan Insurance Corporation for purposes of determining,
pursuant to subsection (b)(1), the number of employees performing
or supporting functions or activities of such Corporation if such
conservatorship or receivership is transferred to the Federal
Deposit Insurance Corporation or the Resolution Trust Corporation.
"SEC. 404. RIGHTS OF EMPLOYEES OF ABOLISHED AGENCIES.
"All employees identified for transfer under subsection (b) of
section 403 (other than individuals described in subsection (c) or
(d) of such section) shall be entitled to the following rights:
"(1) Each employee so identified shall be transferred to the
appropriate agency or entity for employment no later than 60 days
after the date of the enactment of this Act [Aug. 9, 1989] and
such transfer shall be deemed a transfer of function for the
purpose of section 3503 of title 5, United States Code.
"(2) Each transferred employee shall be guaranteed a position
with the same status, tenure, grade, and pay as that held on the
day immediately preceding the transfer. Each such employee
holding a permanent position shall not be involuntarily separated
or reduced in grade or compensation for 1 year after the date of
transfer, except for cause or, if the employee is a temporary
employee, separated in accordance with the terms of the
appointment.
"(3)(A) In the case of employees occupying positions in the
excepted service or the Senior Executive Service, any appointment
authority established pursuant to law or regulations of the
Office of Personnel Management for filling such positions shall
be transferred, subject to subparagraph (B).
"(B) An agency or entity may decline a transfer of authority
under subparagraph (A) (and the employees appointed pursuant
thereto) to the extent that such authority relates to positions
excepted from the competitive service because of their
confidential, policy-making, policy-determining, or policy-
advocating character, and noncareer positions in the Senior
Executive Service (within the meaning of section 3132(a)(7) of
title 5, United States Code).
"(4) If any agency or entity to which employees are transferred
determines, after the end of the 1-year period beginning on the
date the transfer of functions to such agency or entity is
completed, that a reorganization of the combined work force is
required, that reorganization shall be deemed a 'major
reorganization' for purposes of affording affected employees
retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 5,
United States Code.
"(5) Any employee accepting employment with any agency or
entity (other than the Office of Thrift Supervision) as a result
of such transfer may retain for 1 year after the date such
transfer occurs membership in any employee benefit program of the
Federal Home Loan Bank Board, including insurance, to which such
employee belongs on the date of the enactment of this Act [Aug.
9, 1989] if -
"(A) the employee does not elect to give up the benefit or
membership in the program; and
"(B) the benefit or program is continued by the Director of
the Office of Thrift Supervision.
The difference in the costs between the benefits which would have
been provided by such agency or entity and those provided by this
section shall be paid by the Director of the Office of Thrift
Supervision. If any employee elects to give up membership in a
health insurance program or the health insurance program is not
continued by the Director of the Office of Thrift Supervision,
the employee shall be permitted to select an alternate Federal
health insurance program within 30 days of such election or
notice, without regard to any other regularly scheduled open
season.
"(6) Any employee employed by the Office of Thrift Supervision
as a result of the transfer may retain membership in any employee
benefit program of the Federal Home Loan Bank Board, including
insurance, which such employee has on the date of enactment of
this Act, if such employee does not elect to give up such
membership and the benefit or program is continued by the
Director of the Office of Thrift Supervision. If any employee
elects to give up membership in a health insurance program or the
health insurance program is not continued by the Director of the
Office of Thrift Supervision, such employee shall be permitted to
select an alternate Federal health insurance program within 30
days of such election or discontinuance, without regard to any
other regularly scheduled open season.
"(7) A transferring employee in the Senior Executive Service
shall be placed in a comparable position at the agency or entity
to which such employee is transferred.
"(8) Transferring employees shall receive notice of their
position assignments not later than 120 days after the effective
date of their transfer.
"(9) Upon the termination of the Resolution Trust Corporation
pursuant to section 21A(m)[(o)] of the Federal Home Loan Bank Act
[12 U.S.C. 1441a(o)], any employee of the Federal Deposit
Insurance Corporation assigned to the Resolution Trust
Corporation shall be reassigned to a position within the Federal
Deposit Insurance Corporation in accordance with the provisions
of paragraphs (2) and (4) through (7) of this section, except
that the liability for any difference in the costs of benefits
described in paragraph (5) shall be a liability of the Resolution
Trust Corporation and not the Office of Thrift Supervision.
"SEC. 405. DIVISION OF PROPERTY AND FACILITIES.
"Before the end of the 60-day period beginning on the date of the
enactment of this Act [Aug. 9, 1989], the Director of the Office of
Thrift Supervision, the Chairperson of the Oversight Board of the
Resolution Trust Corporation, the Chairperson of the Federal
Deposit Insurance Corporation, and the Chairperson of the Federal
Housing Finance Board shall jointly divide all property of the
Federal Savings and Loan Insurance Corporation and the Federal Home
Loan Bank Board used to perform functions and activities of the
Federal Home Loan Bank Board among the Office of Thrift
Supervision, the Resolution Trust Corporation, the Federal Deposit
Insurance Corporation, and the Federal Housing Finance Board in
accordance with the division of responsibilities, functions, and
activities effected by this Act [see Tables for classification].
Any disagreement between them in so doing shall be resolved by the
Director of the Office of Management and Budget.
"SEC. 406. REPORT.
"Before the end of the 60-day period beginning on the date of the
enactment of this Act [Aug. 9, 1989], the Chairman of the Federal
Home Loan Bank Board shall provide by written report to the
Secretary of the Treasury, the Director of the Office of Management
and Budget, and the Congress, a final accounting of the finances
and operations of the Federal Savings and Loan Insurance
Corporation."
TRANSFERRED EMPLOYEES OF FEDERAL HOME LOAN BANKS AND JOINT OFFICES
Pub. L. 101-73, title VII, Sec. 722, Aug. 9, 1989, 103 Stat. 426,
provided that:
"(a) In General. - Each employee of the Federal Home Loan Banks
or joint offices of such Banks performing a function identified for
transfer under section 403 of this Act [set out above], including
employees who otherwise would be ineligible for employment by the
United States because of their citizenship, shall be transferred
for employment not later than 60 days after the date of the
enactment of this Act [Aug. 9, 1989].
"(b) Notice to Employees. - Transferring employees shall receive
notice of their position assignments not later than 120 days after
the effective date of their transfer.
"(c) Guaranteed Position. - Each transferred employee shall be
guaranteed a position with the same status and tenure as that held
by such employee on the day immediately preceding the transfer.
Each such employee holding a permanent position shall not be
involuntarily separated for one year after the date of transfer,
except for cause.
"(d) Pay and Benefits. - Each employee transferred under this
section shall be entitled to receive, during the one-year period
immediately following the transfer, pay and benefits comparable to
those received by such employee immediately preceding the transfer.
Where necessary or appropriate to further the safety and soundness
of the thrift industry, the employing agency may continue the pre-
transfer compensation of any transferring employee for up to 2
years beyond the expiration of the period provided for under the
preceding sentence. Such pay and benefits shall be subject to the
comparability provisions of this Act [see Tables for
classification]. Any transferred employee who suffers a reduction
of pay or benefits as a result of such comparability provisions
shall be compensated for such reduction during the 1 year period
following the transfer by assessments from the Federal Home Loan
Bank or joint office of such Banks, from which the employee
transferred. In any event, this subsection shall only apply to a
transferred employee while such employee remains with the agency to
which the employee is transferred.
"(e) Health Insurance. - If the health insurance program of a
transferred employee is not continued by the agency to which the
employee is transferred, such employee may elect to participate in
the agency's health insurance program notwithstanding health
conditions pre-existing at the time of election or enrollment into
an alternate health insurance program of the agency to which he or
she is transferred and without regard to any other regularly
scheduled open season. Such election shall be made within 30 days
of the transfer.
"(f) Equitable Treatment. - The Director of the Office of Thrift
Supervision or the Chairperson of the Federal Housing Finance Board
shall take such action as is necessary on a case-by-case basis so
that employees transferring under this section receive equitable
treatment regarding credit for prior service with a Federal entity
or instrumentality, or with a Federal Home Loan Bank or joint
office of such Banks, with respect to the transferring employees'
retirement accounts and the transferring employees' accrued leave
or vacation time, in recognition of the transferring employees'
supervisory service.
"(g) Special Rule for Certain Annuitants. - An individual who was
a reemployed annuitant on July 26, 1989, and who is transferred
under this section, shall not be subject to the deduction from pay
required by section 8344 or 8468 of title 5, United States Code,
during the 1-year period beginning on the date of enactment of the
Financial Institutions Reform, Recovery, and Enforcement Act of
1989 [Aug. 9, 1989]."
TRANSITIONAL PROVISIONS
Pub. L. 101-73, title VII, Sec. 723, Aug. 9, 1989, 103 Stat. 427,
provided that:
"(a) Federal Home Loan Banks' Share of Administrative Expenses. -
The Federal Home Loan Banks shall pay to the Director of the Office
of Thrift Supervision the amount obtained by multiplying the
administrative expenses of the Office of Thrift Supervision
incurred in connection with functions of the Banks that are
transferred to the Office (less any fees or assessments collected
by the Office) by a fraction -
"(1) the numerator of which is the amount of such expenses of
the Federal Home Loan Bank Board and the Federal Savings and Loan
Insurance Corporation paid by the Banks during the 1-year period
ending on the date of enactment of this Act [Aug. 9, 1989]; and
"(2) the denominator of which is the total expenses of such
Board and Corporation during such period.
No payment under this subsection is required after December 31,
1989.
"(b) Compensation of Supervisory and Examinations Employees. -
The Federal Home Loan Banks shall continue to pay the compensation
of employees of the Federal Home Loan Banks or the joint offices of
such banks who, on the day before the date of the enactment of this
Act [Aug. 9, 1989], are performing supervisory and examination
functions until such supervisory and examination functions are
transferred under this Act [see Tables for classification].
Thereafter, the obligation of the Federal Home Loan Banks hereunder
to pay such applicable compensation shall continue until the later
of -
"(1) the date which is 120 days after the date of transfer of
such supervisory and examination functions to the Office of
Thrift Supervision, or
"(2) March 31, 1990.
Payment of such compensation by the Federal Home Loan Banks shall
be in lieu of, and not in addition to, the payment of compensation
by the Office of Thrift Supervision.
"(c) Facilities and Support Services. - Until December 31, 1990,
the Federal Home Loan Banks, as necessary, shall (with respect to
supervisory and examination functions performed by employees
transferred from the Federal Home Loan Banks or joint offices of
such Banks to the Office of Thrift Supervision), provide the Office
of Thrift Supervision facilities and support services comparable to
those presently provided for the employees of the Federal Home Loan
Banks or joint offices of such Banks performing such supervisory
and examination functions, including office space, furniture and
equipment, computer, personnel, and other support services. With
respect to supervisory and examination functions presently
performed by employees of individual Federal Home Loan Banks, each
such Bank will only be required to provide such facilities and
support services to the extent that the functions continue to be
performed in that Bank's offices.
"(d) Principal Supervisory Agent. - Beginning on the date of
enactment of this Act [Aug. 9, 1989] until the Director of the
Office of Thrift Supervision shall otherwise provide, the Principal
Supervisory Agent for each Federal Home Loan Bank district shall be
the senior supervisory official (other than the President of the
Federal Home Loan Bank) employed by the Federal Home Loan Bank in
such district on the day before the date of the enactment of this
Act, and such employees performing supervisory and examination
functions shall continue to be responsible for the supervision and
examination of savings associations within such district."
SPECIAL ACCOUNT
Pub. L. 101-73, title VII, Sec. 725, Aug. 9, 1989, 103 Stat. 429,
provided that: "At the time of dissolution of the Federal Home Loan
Bank Board, all such moneys and funds as shall remain in the
special deposit account of the Federal Home Loan Bank Board, or
other such accounts, shall become the property of the Federal
Housing Finance Board."
IMPROVEMENTS IN SUPERVISORY PROCESS
Pub. L. 100-86, title IV, Sec. 407(a)-(c), Aug. 10, 1987, 101
Stat. 616, 617, provided that:
"(a) Enhanced Flexibility in the Supervisory Process. - The
Federal Home Loan Bank Board (acting as such under the Federal Home
Loan Bank Act [12 U.S.C. 1421 et seq.] and in the Board's capacity
as the board of trustees of the Federal Savings and Loan Insurance
Corporation under section 402(a) of the National Housing Act [12
U.S.C. 1725(a)]) shall issue guidelines which provide greater
flexibility for supervisory agents, examiners, and other employees
and agents of the Board, the Federal Savings and Loan Insurance
Corporation, and the Federal home loan banks in applying
regulations, standards, and other requirements of the Board or such
Corporation with regard to particular situations or particular
thrift institutions.
"(b) Particular Guidelines Required. - The guidelines issued
under subsection (a) shall contain the following provisions:
"(1) Flexible approval process for renegotiated loans. - A
provision establishing a flexible procedure for obtaining
supervisory approval of the terms of loans renegotiated by thrift
institutions if a supervisory agreement is in effect between such
institution and the principal supervisory agent of the Federal
home loan bank district where such institution is located.
"(2) Recognition of additional financial capability of a
borrower. - A provision permitting examiners and other employees
and agents of the Board, the Federal Savings and Loan Insurance
Corporation, and the Federal home loan banks to take into
account, to the extent consistent with the practices of the
Federal banking agencies, other financial resources of a borrower
(in addition to the financial assets of the borrower which are
pledged to secure a loan) in classifying the assets of the thrift
institution which holds a loan made to such borrower or with
recourse to the borrower.
"(3) Appraisal review. - A provision establishing an appraisal
review system to avoid overly optimistic or conservative
appraisals with the goal of achieving appraisals that are more
consistent in reflecting underlying values.
"(4) 1-to-4 family residences. - A provision eliminating the
scheduled item system except as such system relates to 1-to-4
family residences.
"(c) Definitions. - For purposes of subsections (a) and (b) -
"(1) Thrift institution. - The term 'thrift institution' means -

"(A) any association (within the meaning given to such term
in section 2(d) of the Home Owners' Loan Act of 1933 [12 U.S.C.
1462(d)]);
"(B) any insured institution (within the meaning given to
such term in section 401(a) of the National Housing Act [12
U.S.C. 1724(a)]); and
"(C) any member (within the meaning given to such term in
section 2(4) of the Federal Home Loan Bank Act [12 U.S.C.
1422(4)]).
"(2) Board. - The term 'Board' means the Federal Home Loan Bank
Board.
"(3) Federal banking agency. - The term 'Federal banking
agency' means the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, and the Federal Deposit
Insurance Corporation."
GUIDELINES RESPECTING ACTION ON APPLICATIONS TO BANK BOARD OR
FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION
Pub. L. 100-86, title IV, Sec. 410(a), (c), (d), Aug. 10, 1987,
101 Stat. 620, provided that:
"(a) In General. - The Federal Home Loan Bank Board shall
promulgate guidelines which provide that with respect to each type
of completed application (other than an application under section
408(g) of the National Housing Act [12 U.S.C. 1730a(g)]) by any
person for approval by the Federal Home Loan Bank Board or the
Federal Savings and Loan Insurance Corporation, the application
shall be deemed to be approved as of the end of the period
prescribed under such guidelines unless the Board or the Federal
Savings and Loan Insurance Corporation, as the case may be,
approves or disapproves such application before the end of such
period.
"(c) Report to Congress. - Before the end of the 60-day period
beginning on the date of the enactment of this Act [Aug. 10, 1987],
the Federal Home Loan Bank Board shall submit 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 a report containing the guidelines required to be
promulgated under subsection (a).
"(d) Effective Date. - The guidelines required to be promulgated
under subsection (a) shall take effect at the end of the 60-day
period referred to in subsection (c)."
GUIDELINES FOR ASSET DISPOSITION
Pub. L. 100-86, title IV, Sec. 411, Aug. 10, 1987, 101 Stat. 620,
which directed Federal Home Loan Bank Board to submit, not later
than 6 months after Aug. 10, 1987, to congressional committees a
report containing appropriate new guidelines to prevent dumping of
assets over which it had direct or indirect control and which the
Board was to promulgate at end of such period, ceased to be
effective on date that notice of completion of all net new
borrowing by Financing Corporation is published in Federal Register
(Mar. 30, 1992). See section 416 of Pub. L. 100-86, set out as a
Sunset and Savings Provision note under section 1441 of this title.
EXPANSION OF USE OF UNDERUTILIZED MINORITY THRIFT INSTITUTIONS
Pub. L. 100-86, title IV, Sec. 412, Aug. 10, 1987, 101 Stat. 620,
provided that:
"(a) Consultation on Expanded Use. - The Secretary of the
Treasury shall consult with the Federal Home Loan Bank Board and
the Federal Savings and Loan Insurance Corporation on methods for
increasing the use of underutilized minority thrift institutions as
depositaries or financial agents of Federal agencies.
"(b) Designation of Minority Thrift Institutions Involved in
Capital Recovery Program as Underutilized Thrift. - If the Federal
Home Loan Bank Board approves any plan submitted under regulations
prescribed under section 10 of the Home Owners' Loan Act of 1933
[12 U.S.C. 1467a] (as added by section 404(a) of this title) or
section 416 of the National Housing Act [12 U.S.C. 1730i] (as added
by section 404(c) [404(b)] of this title) by any minority
institution (as defined in each such section), such minority
institution shall be designated by the Board as an underutilized
thrift institution for purposes of increasing the use of such
association as a depositary or financial agent of other Federal
agencies.
"(c) Report to Congress. - Before the end of the 6-month period
beginning on the date of the enactment of this Act [Aug. 10, 1987],
the Secretary of the Treasury, the Federal Home Loan Bank Board,
and the Federal Savings and Loan Insurance Corporation shall each
submit a report to the Congress on actions taken by such Secretary
or agency pursuant to subsection (a) or (b).
"(d) Thrift Institution Defined. - For purposes of this section,
the term 'thrift institution' has the meaning given to such term in
section 407(c)(1) [section 407(c)(1) of Pub. L. 100-86, set out as
a note above]."
CONGRESSIONAL OVERSIGHT
Pub. L. 100-86, title IV, Sec. 415, Aug. 10, 1987, 101 Stat. 622,
provided that:
"(a) Banking Committee Review of Panel Actions. - 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 shall monitor and review the actions taken by
each review panel established pursuant to the amendment made by
section 407(d) of this Act [enacting former section 1442a of this
title].
"(b) Other Congressional Oversight. - The Federal Home Loan Bank
Board shall submit a report to the Committee on Banking, Finance
and Urban Affairs [now Committee on Financial Services] of the
House of Representatives, at the end of the 6-month period
beginning on the date of the enactment of this title [Aug. 10,
1987], at the end of the 1-year period beginning on such date, and
on an annual basis after the end of such 1-year period, containing -

"(1) a description of the Board's existing manpower and talent;
"(2) an estimate of the Board's projected manpower and talent
needs for the year, including the cost of such projected needs;
"(3) a description and explanation of the goals and objectives,
of the Board and all its related entities (including the Federal
Asset Disposition Association), for the coming year and the
management strategies to be employed by such entities in
accomplishing such goals and objectives;
"(4) a summary of the operations, receipts, expenses, and
expenditures, of the Board and all its related entities
(including the Federal Asset Disposition Association), during the
preceding year; and
"(5) a summary of the operations and the aggregate receipts,
expenses, and expenditures of any other person not referred to in
paragraph (4), including receivers, conservators, accountants,
attorneys, and consultants, who is engaged in any activity on
behalf of the Board or any other entity which is referred to in
such paragraph, to the extent such operations, receipts,
expenses, and expenditures are in connection with such activity.
"(c) Appearance. - The Federal Home Loan Bank Board and the
Federal Savings and Loan Insurance Corporation shall, before the
beginning of each fiscal year, appear before the Committee on
Banking, Finance and Urban Affairs [now Committee on Financial
Services] of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate to describe and
explain each such agency's plans and proposals with respect to
administrative expenses for such fiscal year.
"(d) Guidelines for Employment of Outside Accountants, Attorneys,
Conservators, and Other Consultants. - Before the end of the 6-
month period beginning on the date of the enactment of this Act
[Aug. 10, 1987], the Federal Home Loan Bank Board shall submit 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 a report containing guidelines to improve the
management of and control over all outside accountants, attorneys,
conservators, consultants, and other persons whose services are
employed by the Board, the Federal Savings and Loan Insurance
Corporation, the Federal Asset Disposition Association, the
principal supervisory agent for any Federal home loan bank
district, or any other entity created, owned, or controlled by the
Board in connection with any function for which the Board has
direct or indirect regulatory or supervisory responsibility."
STUDY AND REPORTS CONCERNING DIRECT INVESTMENTS
Pub. L. 100-86, title XII, Sec. 1203, Aug. 10, 1987, 101 Stat.
661, provided that:
"(a) Study Required. - The Federal Home Loan Bank Board shall
conduct a study of the effect of direct investment activities on
insured institutions, including comparative analyses of the effect
of direct investment activities on -
"(1) different sized insured institutions;
"(2) State chartered insured institutions;
"(3) federally chartered insured institutions; and
"(4) insured institutions in each of the Supervisory
Examinations Rating Classifications.
"(b) Report Required. - Not later than 18 months after the date
of enactment of this Act [Aug. 10, 1987], the Federal Home Loan
Bank Board shall submit 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, a report
containing the findings and conclusions of the Board with respect
to the study required under subsection (a), including -
"(1) the findings and conclusions of the Board concerning the
losses to the insurance fund and the degree to which such losses
were the result of direct investment activities with respect to
each of the classes of institutions described in subsection (a);
and
"(2) a comparison of the effects of direct investment
activities prior to April 16, 1987, and the effect of such
activities on or after April 16, 1987, for each of the classes of
institutions described in subsection (a) and the losses to the
insurance fund as a result of such activities.
"(c) Prior Reports to Congress on Changes To Direct Investment
Regulations. -
"(1) In general. - Not less than 90 days before final approval
is given by the Federal Home Loan Bank Board to any regulation
which repeals or modifies (or has the effect of repealing or
modifying) any regulation limiting direct investment activities,
the Board shall submit to the Committee on Banking, Finance and
Urban Affairs [now Committee on Financial Services] of the House
of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate a report describing the proposed
regulation and the reasons for the proposed regulation, including
the effect of such regulation on the insurance fund.
"(2) Prospective application of rule. - Paragraph (1) shall not
apply with respect to Board Resolution Numbered 87-215 and Board
Resolution Numbered 87-215A.
"(d) Direct Investment Activity Defined. - For purposes of this
section, the term 'direct investment activities' means activities
which are limited under Board Resolution Numbered 87-215 and Board
Resolution Numbered 87-215A."