12 U.S.C. § 1441a : US Code - Section 1441A: Thrift Depositor Protection Oversight Board and Resolution Trust Corporation

Search 12 U.S.C. § 1441a : US Code - Section 1441A: Thrift Depositor Protection Oversight Board and Resolution Trust Corporation

(a) Thrift Depositor Protection Oversight Board established
(1) In general
There is hereby established the Thrift Depositor Protection
Oversight Board as an instrumentality of the United States with
the powers and authorities herein provided.
(2) Status
The Thrift Depositor Protection Oversight Board shall oversee
and monitor the operations of the Resolution Trust Corporation
(hereinafter referred to in this section as the "Corporation")
and shall be accountable for the duties assigned to the Thrift
Depositor Protection Oversight Board by this chapter. The Thrift
Depositor Protection Oversight Board shall be an "agency" of the
United States for purposes of subchapter II of chapter 5 and
chapter 7 of title 5.
(3) Membership
(A) In general
The Thrift Depositor Protection Oversight Board shall consist
of 7 members -
(i) the Secretary of the Treasury;
(ii) the Chairman of the Board of Governors of the Federal
Reserve System;
(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
(vi) two independent members appointed by the President,
with the advice and consent of the Senate. Such nominations
shall be referred to the Committee on Banking, Housing, and
Urban Affairs of the Senate.
(B) Political affiliation
The independent members shall not be members of the same
political party. No independent member of the Thrift Depositor
Protection Oversight Board shall hold any other appointed
office during his or her term as a member.
(C) Chairperson
The Chairperson of the Thrift Depositor Protection Oversight
Board shall be the Secretary of the Treasury.
(D) Term of office
The term of each member (other than the independent members)
of the Thrift Depositor Protection Oversight Board shall expire
when such member has fulfilled all of his or her
responsibilities under this section and section 1441b of this
title. The term of each independent member shall be 3 years.
(E) Quorum required
A quorum shall consist of 4 members of the Thrift Depositor
Protection Oversight Board and all decisions of the Board shall
require an affirmative vote of at least a majority of the
members voting.
(4) Compensation and expenses
(A) Expenses
Members of the Thrift Depositor Protection Oversight Board
shall receive allowances in accordance with subchapter I of
chapter 57 of title 5 for necessary expenses of travel,
lodging, and subsistence incurred in attending meetings and
other activities of the Thrift Depositor Protection Oversight
Board, as set forth in the bylaws issued by the Thrift
Depositor Protection Oversight Board.
(B) No additional compensation for United States officers or
employees
Members of the Thrift Depositor Protection Oversight Board
(other than independent members) shall receive no additional
pay by reason of service on such Board.
(C) Compensation for independent members
The independent members of the Thrift Depositor Protection
Oversight Board shall be paid at a rate equal to the daily
equivalent of the rate of basic pay for level II of the
Executive Schedule for each day (including travel time) during
which such member is engaged in the actual performance of
duties of the Thrift Depositor Protection Oversight Board.
(5) Powers
The Thrift Depositor Protection Oversight Board shall be a body
corporate that shall have the power to -
(A) adopt, alter, and use a corporate seal;
(B) provide for a principal or executive officer and such
other officers and employees as may be necessary to perform the
functions of the Thrift Depositor Protection Oversight Board,
define their duties, and require surety bonds or make other
provisions against losses occasioned by acts of such persons;
(C) fix the compensation and number of, and appoint,
employees for any position established by the Thrift Depositor
Protection Oversight Board;
(D) set and adjust rates of basic pay for employees of the
Thrift Depositor Protection Oversight Board without regard to
the provisions of chapter 51 or subchapter III of chapter 53 of
title 5;
(E) provide additional compensation and benefits to employees
of the Thrift Depositor Protection Oversight Board if the same
type of compensation or benefits are then being provided by any
other Federal bank regulatory agency or, if not then being
provided, could be provided by such an agency under applicable
provisions of law, rule, or regulation; in setting and
adjusting the total amount of compensation and benefits for
employees of the Thrift Depositor Protection Oversight Board,
the Thrift Depositor Protection Oversight Board shall consult
with and seek to maintain comparability with the other Federal
bank regulatory agencies, except that the Thrift Depositor
Protection Oversight Board shall not in any event exceed the
compensation and benefits provided by the Federal Deposit
Insurance Corporation with respect to any comparable position;
(F) with the consent of any executive agency, department, or
independent agency utilize the information, services, staff,
and facilities of such department or agency, on a reimbursable
(or other) basis, in carrying out this section;
(G) prescribe bylaws that are consistent with law to provide
for the manner in which -
(i) its officers and employees are selected, and
(ii) its general operations are to be conducted;
(H) enter into contracts and modify or consent to the
modification of any contract or agreement;
(I) indemnify, from funds made available to it by the
Corporation, the members, officers, and employees of the Thrift
Depositor Protection Oversight Board on such terms as the
Thrift Depositor Protection 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 person's employment 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, 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;
(J) sue and be sued in courts of competent jurisdiction; and
(K) exercise any and all powers established under this
section and such incidental powers as are necessary to carry
out its powers, duties, and functions under this chapter.
(6) Thrift Depositor Protection Oversight Board duties and
authorities
The Thrift Depositor Protection Oversight Board shall have the
following duties and authorities with respect to the Corporation:
(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 Oversight
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 subsection
(b)(10)(B) of this section.
(B) To approve prior to implementation financial plans,
budgets, and periodic financing requests developed by the
Corporation.
(C) To review all rules, regulations, standards, principles,
procedures, guidelines, and statements that may be adopted or
announced by the Corporation. The provisions of this
subparagraph shall not apply to internal administrative
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 determinations
or actions described in paragraph (8) (!1)
(D) To review the overall performance of the Corporation on a
periodic basis, including its work, management activities, and
internal controls, and the performance of the Corporation
relative to approved budget plans.
(E) To require from the Corporation any reports, documents,
and records it deems necessary to carry out its oversight
responsibilities.
(F) To establish a national advisory board and regional
advisory boards.
(G) To authorize the use of proceeds from any funds provided
by the Treasury to the Corporation and from any financing by
the Resolution Funding Corporation established pursuant to
section 1441b of this title consistent with the approved budget
and financial plans of the Corporation and to oversee the
collection of funds by the Resolution Funding Corporation.
(H) To evaluate audits by the Inspector General and other
congressionally required audits.
(I) To have general oversight over the Resolution Funding
Corporation as provided under section 1441b of this title.
(J) To authorize, as appropriate, the Corporation's sale of
capital certificates to the Resolution Funding Corporation.
(K) To establish the rate of basic pay, benefits, and other
compensation for the chief executive officer of the
Corporation.
(7) Transition policies
Until such time as the Thrift Depositor Protection Oversight
Board and the Corporation (consistent with paragraph (6) and
subsection (b)(11) of this section) adopt strategies, policies,
goals, regulations, rules, operating principles, procedures, or
guidelines, the Corporation may carry out its duties in
accordance with the strategies, policies, goals, regulations,
rules, operating principles, procedures, or guidelines of the
Federal Deposit Insurance Corporation, notwithstanding the
provisions of section 553 of title 5.
(8) Limitation on authority
The Corporation shall have the authority, without any prior
review, approval, or disapproval by the Thrift Depositor
Protection Oversight Board, to make such determinations and take
such actions as it deems appropriate with respect to case-
specific matters involving (i) individual case resolutions, (ii)
asset liquidations, or (iii) day-to-day operations of the
Corporation. The preceding sentence in no way limits the
authority of the Thrift Depositor Protection Oversight Board to
review overall strategies, policies, and goals established by the
Corporation.
(9) Delegation
Except with respect to the meetings required by paragraph (10),
nothing in this section shall preclude a member of the Thrift
Depositor Protection Oversight Board who is a public official
from delegating his or her authority to an employee or officer of
such member's agency or organization, if such employee or officer
has been appointed by the President with the advice and consent
of the Senate. For purposes of the preceding sentence, the
Chairman of the Board of Governors of the Federal Reserve System
may delegate his or her authority to another member of the Board
of Governors.
(10) Open meetings
Not less than 6 times each year, the Thrift Depositor
Protection Oversight Board shall conduct open meetings to review
overall strategies, policies, and goals established by the
Corporation and to consider such other matters as pertain to its
functions under this chapter. The Thrift Depositor Protection
Oversight Board shall maintain a transcript of the board's open
meetings.
(11) Power to remove; jurisdiction
Notwithstanding any other provision of law, any civil action,
suit, or proceeding to which the Thrift Depositor Protection
Oversight Board is a party shall be deemed to arise under the
laws of the United States, and the United States district courts
shall have original jurisdiction. The Thrift Depositor Protection
Oversight Board may, without bond or security, remove any such
action, suit, or proceeding from a State court to a United States
district court or to the United States District Court for the
District of Columbia.
(12) Administrative expenses
The administrative expenses of the Thrift Depositor Protection
Oversight Board shall be paid by the Corporation, upon request of
the Thrift Depositor Protection Oversight Board.
(13) Standards, policies, procedures, guidelines, and statements
The Thrift Depositor Protection Oversight Board may issue
rules, regulations, standards, policies, procedures, guidelines,
and statements as the Thrift Depositor Protection Oversight Board
considers necessary or appropriate to carry out its authorities
and duties under this chapter which shall be promulgated pursuant
to subchapter II of chapter 5 of title 5.
(14) Strategic plan for Corporation operations
(A) In general
The chief executive officer of the Corporation 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.
(B) Provisions of plan
The strategic plan and implementing policies and procedures
required under this paragraph shall at a minimum contain the
following:
(i) Factors the Corporation shall consider in deciding the
order in which failed institutions or categories of failed
institutions will be resolved.
(ii) Standards the Corporation shall use to select the
appropriate resolution action for a failed institution.
(iii) With respect to assisted acquisitions, factors the
Corporation shall consider in deciding whether non-performing
assets of the failed institution will be transferred to the
acquiring institution rather than retained by the Corporation
for management and disposal.
(iv) Plans for the disposition of assets.
(v) Management objectives by which the Corporation's
progress in carrying out its duties under this section can be
measured.
(vi) A plan for the organizational structure and staffing
of the Corporation, including an assessment of the extent to
which the Corporation will perform asset management functions
and other duties through contracts with public and private
entities.
(vii) Consideration of whether incentives should be
included in asset management contracts to promote active and
efficient asset management.
(viii) Standards for adequate competition and fair and
consistent treatment of offerors.
(ix) Standards that prohibit discrimination on the basis of
race, sex, or ethnic group in the solicitation and
consideration of offers.
(x) Procedures for the active solicitation of offers from
minorities and women.
(xi) Procedures requiring that unsuccessful offerors be
notified in writing of the decision within 30 days after the
offer has been rejected.
(xii) Procedures for establishing the market value of
assets based upon standard market analysis, valuation, and
appraisal practices.
(xiii) Procedures requiring the timely evaluation of
purchase offers for an institution.
(xiv) Procedures for bulk sales and auction marketing of
assets.
(xv) Guidelines for determining if the value of an asset
has decreased so that no reasonable recovery is anticipated.
In such cases, the Corporation may consider potential public
uses of such asset including providing housing for lower
income families (including the homeless), day care centers
for the children of low- and moderate-income families, or
such other public purpose designated by the Secretary of
Housing and Urban Development.
(xvi) Guidelines for the conveyance of assets to units of
general local government, States, and public agencies
designated by a unit of general local government or a State,
for use in connection with urban homesteading programs
approved by the Secretary of Housing and Urban Development
under section 1706e of this title.
(xvii) Policies and procedures for avoiding political
favoritism and undue influence in contracts and decisions
made by the Thrift Depositor Protection Oversight Board and
the Corporation.
(15) Reports on any modification to any strategy, policy, or goal
If, pursuant to paragraph (6)(A), the Thrift Depositor
Protection Oversight Board requires the Corporation to modify any
overall strategy, policy, or goal, such board shall submit,
before the end of the 30-day period beginning on the date on
which the board first notifies the Corporation of such
requirement, 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 an explanation of
the grounds which the board determined justified the review and
the reasons why the modification is necessary to satisfy any such
ground.
(16) Termination
The Thrift Depositor Protection Oversight Board shall terminate
not later than 60 days after the Thrift Depositor Protection
Oversight Board fulfills all of its responsibilities under this
chapter.
(b) Resolution Trust Corporation established
(1) Establishment
(A) In general
There is hereby established a Corporation to be known as the
Resolution Trust Corporation which shall be an instrumentality
of the United States.
(B) Status
The Corporation shall be deemed to be an agency of the United
States for purposes of subchapter II of chapter 5 and chapter 7
of title 5 when it is acting as a corporation. The Corporation,
when it is acting as a conservator or receiver of an insured
depository institution, shall be deemed to be an agency of the
United States to the same extent as the Federal Deposit
Insurance Corporation when it is acting as a conservator or
receiver of an insured depository institution.
(C) Management by chief executive officer
The Corporation shall be managed by or under the direction of
its chief executive officer.
(2) Government corporation
Notwithstanding the fact that no Government funds may be
invested in the Corporation, the Corporation shall be treated,
for purposes of sections 9105,(!2) 9107, and 9108 of title 31, as
a mixed-ownership Government corporation which has capital of the
Government.
(3) Duties
The duties of the Corporation shall be to carry out a program,
under the general oversight of the Thrift Depositor Protection
Oversight Board, including:
(A) To manage and resolve all cases involving depository
institutions -
(i) the accounts of which were insured by the Federal
Savings and Loan Insurance Corporation before August 9, 1989;
and
(ii) for which a conservator or receiver is appointed after
December 31, 1988, and before such date as is determined by
the Chairperson of the Thrift Depositor Protection Oversight
Board, but not earlier than January 1, 1995, and not later
than July 1, 1995 (including any institution described in
paragraph (6)).
(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) To conduct the operations of the Corporation in a manner
which -
(i) maximizes the net present value return from the sale or
other disposition of institutions described in subparagraph
(A) or the assets of such institutions;
(ii) minimizes the impact of such transactions on local
real estate and financial markets;
(iii) makes efficient use of funds obtained from the
Funding Corporation or from the Treasury;
(iv) minimizes the amount of any loss realized in the
resolution of cases; and
(v) maximizes the preservation of the availability and
affordability of residential real property for low- and
moderate-income individuals.
(D) To perform any other function authorized under this
section.
(4) Conservatorship, receivership, and assistance powers
(A) In general
Except as provided in paragraph (5) and in addition to any
other provision of this section, the Corporation shall have the
same powers and rights to carry out its duties with respect to
institutions described in paragraph (3)(A) as the Federal
Deposit Insurance Corporation has under sections 1821, 1822,
and 1823 of this title with respect to insured depository
institutions (as defined in section 1813 of this title).
(B) Manner of application of least-cost resolution
For purposes of applying section 1823(c)(4) of this title to
the Corporation under subparagraph (A), the Corporation shall
be treated as the Deposit Insurance Fund.
(C) Appeals
The Corporation shall implement and maintain a program, in a
manner acceptable to the Thrift Depositor Protection Oversight
Board, to provide an appeals process for business and
commercial borrowers to appeal decisions by the Corporation
(when acting as a conservator) which would have the effect of
terminating or otherwise adversely affecting credit or loan
agreements, lines of credit, and similar arrangements with such
borrowers who have not defaulted on their obligations.
(5) Limitation on paragraph (4) powers
The Corporation -
(A) may not obligate the Federal Deposit Insurance
Corporation or any funds of the Federal Deposit Insurance
Corporation; and
(B) in connection with providing assistance to an institution
under this subsection, shall be subject to the limitations
contained in section 1823(c)(4) of this title.
(6) Continuation of RTC receivership or conservatorship
(A) In general
If the Corporation is appointed as conservator or receiver
for any insured depository institution described in paragraph
(3)(A) before such date as is determined by the Chairperson of
the Thrift Depositor Protection Oversight Board under paragraph
(3)(A)(ii), 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 such date as is determined by the Chairperson of the
Thrift Depositor Protection Oversight Board under paragraph
(3)(A)(ii).
(B) Charter conversions
Notwithstanding any other provision of Federal or State law,
if the Federal Deposit Insurance Corporation is appointed as
conservator or receiver for any savings association that has
converted to a bank charter and otherwise meets the criteria in
paragraph (3)(A) or (6)(A), the Federal Deposit Insurance
Corporation may tender such appointment to the Corporation, and
the Corporation shall accept such appointment, if the
Corporation is authorized to accept such appointment under this
section.
(7) Obligations and guarantees
The Corporation's authority to issue obligations and guarantees
shall be subject to general supervision by the Thrift Depositor
Protection Oversight Board under subsection (a) of this section
and shall be consistent with subsection (j) of this section.
(8) Staff
(A) In general
Except for the chief executive officer of the Corporation,
the Corporation itself shall have no employees.
(B) Utilization of personnel of other agencies
(i) FDIC
The Corporation shall use employees (selected by the
Corporation) of the Federal Deposit Insurance Corporation and
the Federal Deposit Insurance Corporation shall provide such
personnel to the Corporation for its use. Notwithstanding the
foregoing, the Federal Deposit Insurance Corporation need not
provide to the Corporation any employee of the Federal
Deposit Insurance Corporation who was employed by the Federal
Deposit Insurance Corporation on December 12, 1991, and who
had not theretofore been provided to the Corporation 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 Insurance Corporation employees provided to the
Corporation 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 immediately prior to December 12, 1991,
shall continue to be provided to the Corporation after
December 12, 1991, 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 Corporation for
the actual costs of providing such services.
(ii) Other agencies
With the agreement of any executive department or agency,
the Corporation may utilize the personnel of any such
executive department or agency on a reimbursable basis to
cover actual and reasonable expenses.
(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.
(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.
(E) Deputy chief executive officer
(i) In general
There is hereby established the position of deputy chief
executive officer of the Corporation.
(ii) Appointment
The deputy chief executive officer of the Corporation shall
-
(I) be appointed by the Chairperson of the Thrift
Depositor Protection Oversight Board, with the
recommendation of the chief executive officer; and
(II) be an employee of the Federal Deposit Insurance
Corporation in accordance with subparagraph (B)(i).
(iii) Duties
The deputy chief executive officer shall perform such
duties as the chief executive officer may require.
(F) Acting chief executive officer
In the event of a vacancy in the position of chief executive
officer or during the absence or disability of the chief
executive officer, the deputy chief executive officer shall
perform the duties of the position as the acting chief
executive officer.
(G) General counsel
There is established the Office of General Counsel of the
Corporation. The chief executive officer, with the concurrence
of the Chairperson of the Thrift Depositor Protection Oversight
Board, may appoint the general counsel, who shall be an
employee of the Federal Deposit Insurance Corporation, in
accordance with subparagraph (B)(i). The general counsel shall
perform such duties as the chief executive officer may require.
(9) Corporate powers
The Corporation shall have the following powers:
(A) To adopt, alter, and use a corporate seal.
(B) To enter into contracts and modify, or consent to the
modification of, any contract or agreement to which the
Corporation is a party or in which the Corporation has an
interest under this section.
(C) To make advance, progress, or other payments.
(D) To acquire, hold, lease, mortgage, maintain, or dispose
of, at public or private sale, real and personal property,
using any legally available private sector methods including
without limitation, securitization of debt or equity, limited
partnerships, mortgage investment conduits, and real estate
investment trusts, and otherwise exercise all the usual
incidents of ownership of property necessary and convenient to
the operations of the Corporation.
(E) To sue and be sued in its corporate capacity in any court
of competent jurisdiction.
(F) To deposit any securities or funds held by the
Corporation in any facility or depositary described in section
1823(b) of this title under the terms and conditions applicable
to the Federal Deposit Insurance Corporation under such section
1823(b) and pay fees thereof and receive interest thereon.
(G) To take warrants, voting and nonvoting equity, or other
participation interests in institutions or assets or properties
of institutions described in paragraph (3)(A) and paragraph
(10)(A)(iv).
(H) To use the United States mails in the same manner and
under the same conditions as other departments and agencies of
the United States.
(I) To prescribe bylaws that shall be consistent with law.
(J) To make loans and, with respect to eligible residential
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.
(K) To prepare reports and provide such reports, documents,
and records to the Thrift Depositor Protection Oversight Board
as required by this section.
(L) To issue capital certificates to the Resolution Funding
Corporation consistent with the provisions of section 1441b of
this title in the following manner:
(i) Authorization to issue
The Corporation is hereby authorized to issue to the
Resolution Funding Corporation nonvoting capital
certificates.
(ii) Requirement relating to the amount of certificates
The amount of certificates issued by the Corporation under
clause (i) shall be equal to the aggregate amount of funds
provided by the Resolution Funding Corporation to the
Corporation under section 1441b of this title.
(iii) Certificates may be issued only to the Resolution
Funding Corporation
Capital certificates issued under clause (i) may be issued
only to the Resolution Funding Corporation in the manner and
to the extent provided in section 1441b of this title and
this section.
(iv) No dividends
The Corporation shall not pay dividends on any capital
certificates issued under this section.
(M) To exercise any other power established under this
section and such incidental powers as are necessary to carry
out its duties and functions under this section. 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 employment 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. 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.
(10) Special powers
(A) In general
In addition to the powers of the Corporation described in
paragraph (9), the Corporation shall have the following powers:
(i) Contracts
The Corporation may enter into contracts with any person,
corporation, or entity, including State housing finance
authorities (as such term is defined in section 1301 of the
Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 [12 U.S.C. 1441a-1]) and insured depository
institutions, which the Corporation determines to be
necessary or appropriate to carry out its responsibilities
under this section. Such contracts shall be subject to the
procedures adopted pursuant to paragraph (11).
(ii) Utilization of private sector
In carrying out the Corporation's duties under this
section, the Corporation and the Federal Deposit Insurance
Corporation shall utilize the services of private persons,
including real estate and loan portfolio asset management,
property management, auction marketing, and brokerage
services, if such services are available in the private
sector and the Corporation determines utilization of such
services are practicable and efficient.
(iii) Mergers and consolidations
The Corporation may require a merger or consolidation of an
institution or institutions over which the Corporation has
jurisdiction, if such merger or consolidation is consistent
with section 1823(c)(4) of this title.
(iv) Organization of savings associations
The Corporation may organize 1 or more Federal savings
associations -
(I) which shall be chartered by the Director of the
Office of Thrift Supervision,
(II) the deposits of which, if any, shall be insured by
the Federal Deposit Insurance Corporation through the
Deposit Insurance Fund, and
(III) which shall operate in accordance with subsection
(e) of this section.
(v) Organization of bridge banks
The Corporation may organize 1 or more bridge banks
pursuant to subsection (i) (!3) of section 1821 of this title
with respect to any institution described in paragraph (3)(A)
which becomes a bank. Such bridge bank shall be subject to
subsection (e) of this section.
(B) Review of prior cases
The Corporation shall -
(i) review and analyze all insolvent institution cases
resolved by the Federal Savings and Loan Insurance
Corporation between January 1, 1988, and August 9, 1989, and
actively review all means by which it can reduce costs under
existing Federal Savings and Loan Insurance Corporation
agreements relating to such cases, including restructuring
such agreements;
(ii) evaluate the costs under existing Federal Savings and
Loan Insurance Corporation agreements with regard to the
following -
(I) capital loss coverage,
(II) yield maintenance guarantees,
(III) forbearances,
(IV) tax consequences, and
(V) any other relevant cost consideration;
(iii) review the bidding procedures used in resolving such
cases in order to determine whether the bidding and
negotiating processes were sufficiently competitive; and
(iv) report to the Thrift Depositor Protection Oversight
Board and the Congress pursuant to subsection (k) of this
section.
(C) Provisions applicable to review of prior cases
(i) In general
The Corporation shall exercise any and all legal rights to
modify, renegotiate, or restructure such agreements where
savings would be realized by such actions. The cost or income
of any modification shall be a liability or an asset of the
Corporation or the FSLIC Resolution Fund as determined by the
Thrift Depositor Protection Oversight Board. Nothing in this
paragraph shall be construed as granting the Corporation any
legal rights to modify, renegotiate, or restructure
agreements between the Federal Savings and Loan Insurance
Corporation and any other party, which did not exist prior to
August 9, 1989.
(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 August 9, 1989, shall carry out its
responsibilities under section 519(a) of the Department of
Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations 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 outlays 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.
(11) Regulations, policies, and procedures
(A) Strategies, policies, and goals
The Corporation shall adopt the rules, regulations,
standards, 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
activities and may issue such rules, regulations, standards,
principles, procedures, guidelines, and statements as the
Corporation considers necessary or appropriate to carry out its
duties.
(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) of this section (with respect to overall
strategies, policies, and goals); and
(iii) shall be promulgated pursuant to subchapter II of
chapter 5 of title 5.
(C) Preparation and maintenance of records relating to
solicitation and acceptance of offers
The Corporation shall -
(i) document decisions made in the solicitation and
selection process and the reasons for the decisions; and
(ii) maintain such documentation in the offices of the
Corporation, as well as any other documentation relating to
the solicitation and selection process.
(D) Distressed areas
(i) In general
In developing its implementing policies, the Corporation
shall take the action described in clause (ii) to avoid
adverse economic impact for those real estate markets that
are distressed.
(ii) Valuation and disposition
The Corporation shall establish an appraisal or other
valuation method for determining the market value of real
property. With respect to a real property asset with a market
value in excess of a certain dollar limit (such limit to be
determined by the chief executive officer of the
Corporation), consideration shall be given to the volume of
assets above such limit and the potential impact of sales in
such distressed areas. The Corporation shall not sell a real
property asset located in a distressed area without obtaining
at least the minimum disposition price, unless a
determination has been made that such a transaction furthers
the objectives set forth in paragraph (3)(C).
(iii) Exception
The provisions of this subparagraph shall not apply to any
property as long as such property is subject to the
requirements of subsection (c) of this section.
(E) Definitions
For the purposes of this subsection -
(i) The term "minimum disposition price" means 95 percent
of the market value established by the Corporation. The chief
executive officer, in the chief executive officer's
discretion, may change the percentage set forth in this
definition from time to time if the chief executive officer
determines that such change does not adversely impact the
objectives set forth in paragraph (3)(C).
(ii) The term "sell a real property asset" means to convey
all title and interest in a piece of tangible real property
in which the Corporation has a fee simple or equivalent
interest. The term "real property" does not include loans
secured by real property, joint ventures, participation
interests, options, or other similar interests. In addition,
the term "sell" does not include hypothecation of assets,
issuance of asset backed securities, issuance of joint
ventures, or participation interests, or other similar
activities.
(iii) The term "distressed area" means the geographic areas
in those political subdivisions designated from time to time
by the chief executive officer as having depressed real
estate markets. Until the chief executive officer designates
otherwise, such distressed areas shall be the States of
Arkansas, Colorado, Louisiana, New Mexico, Oklahoma, and
Texas.
(iv) The term "market value" means the most probable price
which a property should bring in a competitive and open
market if -
(I) all conditions requisite to a fair sale are present,
(II) the buyer and seller are acting prudently and are
knowledgeable, and
(III) the price is not affected by any undue stimulus.
(F) Real Estate Asset Division
The Corporation shall establish a Real Estate Asset Division
to assist and advise the Corporation with respect to the
management, sale, or other disposition of real property assets
of institutions described in paragraph (3)(A). The Real Estate
Asset Division shall have such duties as the Corporation
establishes, including the publication of an inventory of real
property assets of institutions subject to the jurisdiction of
the Corporation. Such inventory shall be published before
January 1, 1990 and updated semiannually thereafter and shall
identify properties with natural, cultural, recreational, or
scientific values of special significance.
(G) Advisory personnel
The Corporation shall maintain an executive-level position
and dedicated staff to assist and advise the Corporation and
other agencies in pursuing cases, civil claims, and
administrative enforcement actions against institution-
affiliated parties of insured depository institutions under
the jurisdiction of the Corporation. These personnel shall have
such duties as the Corporation establishes, including the duty
to compile and publish a report to the Congress on the
coordinated pursuit of claims by all Federal financial
institution regulatory agencies, including the Department of
Justice and the Securities and Exchange Commission. The report
shall be published before December 31, 1990 and updated
semiannually after such date.
(12) Periodic financing requests
The Corporation shall provide the Thrift Depositor Protection
Oversight Board with periodic financing requests which shall
detail -
(A) anticipated funding requirements for operations, case
resolution, and asset liquidation,
(B) anticipated payments on previously issued notes,
guarantees, other obligations, and related activities, and
(C) any proposed use of notes, guarantees or other
obligations.
Such financing requests shall be submitted on a quarterly basis
or such other period as the Thrift Depositor Protection Oversight
Board determines necessary. Following approval by the Thrift
Depositor Protection Oversight Board, such requests shall form
the basis for expending funds provided by the Treasury, for
transferring funds from the Resolution Funding Corporation to the
Corporation and the issuance of capital certificates by the
Corporation in exchange therefor.
(13) Goal for participation of small business concerns
The Corporation shall have an annual goal that presents the
maximum practicable opportunity for small business concerns,
small business concerns owned and controlled by socially and
economically disadvantaged individuals, and qualified HUBZone
small business concerns (as defined in section 632(p) of title
15) to participate in the performance of contracts awarded by the
Corporation.
(14) Extension of statute of limitations
(A) Tort actions for which the prior limitation has run
(i) In general
In the case of any tort claim -
(I) which is described in clause (ii); and
(II) for which the applicable statute of limitations
under section 1821(d)(14)(A)(ii) of this title has expired
before December 17, 1993;
the statute of limitations which shall apply to an action
brought on such claim by the Corporation in the Corporation's
capacity as conservator or receiver of an institution
described in paragraph (3)(A) shall be the period determined
under subparagraph (C).
(ii) Claims described
A tort claim referred to in clause (i)(I) with respect to
an institution described in paragraph (3)(A) is a claim
arising from fraud, intentional misconduct resulting in
unjust enrichment, or intentional misconduct resulting in
substantial loss to the institution.
(B) Tort actions for which the prior limitation has not run
(i) In general
Notwithstanding section 1821(d)(14)(A) of this title, in
the case of any tort claim -
(I) which is described in clause (ii); and
(II) for which the applicable statute of limitations
under section 1821(d)(14)(A)(ii) of this title has not
expired as of December 17, 1993;
the statute of limitations which shall apply to an action
brought on such claim by the Corporation in the Corporation's
capacity as conservator or receiver of an institution
described in paragraph (3)(A) shall be the period determined
under subparagraph (C).
(ii) Claims described
A tort claim referred to in clause (i)(I) with respect to
an institution described in paragraph (3)(A) is a claim
arising from gross negligence or conduct that demonstrates a
greater disregard of a duty of care than gross negligence,
including intentional tortious conduct relating to the
institution.
(C) Determination of period
The period determined under this subparagraph for any claim
to which subparagraph (A) or (B) applies shall be the longer of
-
(i) the period beginning on the date the claim accrues (as
determined pursuant to section 1821(d)(14)(B) of this title)
and ending on December 31, 1995 or ending on the date of the
termination of the Corporation pursuant to subsection (m)(1)
of this section, whichever is later; or
(ii) the period applicable under State law for such claim.
(D) Scope of application
Subparagraphs (A) and (B) shall not apply to any action which
is brought after the date of the termination of the Corporation
under subsection (m)(1) of this section.
(E) Revival of expired State causes of action
In the case of any tort claim described in subparagraph
(A)(ii) for which the statute of limitation applicable under
State law with respect to such claim has expired not more than
5 years before the appointment of the Corporation as
conservator or receiver, the Corporation may bring an action as
conservator or receiver on such claim without regard to the
expiration of the statute of limitation applicable under State
law.
(15) Purchase rights of tenants
(A) Notice
Except as provided in subparagraph (C), the Corporation may
make available for sale a 1- to 4-family residence (including a
manufactured home) to which the Corporation acquires title only
after the Corporation has provided the household residing in
the property notice (in writing and mailed to the property) of
the availability of such property and the preference afforded
such household under subparagraph (B).
(B) Preference
In selling such a property, the Corporation shall give
preference to any bona fide offer made by the household
residing in the property, if -
(i) such offer is substantially similar in amount to other
offers made within such period (or expected by the
Corporation to be made within such period);
(ii) such offer is made during the period beginning upon
the Corporation making such property available and of a
reasonable duration, as determined by the Corporation based
on the normal period for sale of such properties; and
(iii) the household making the offer complies with any
other requirements applicable to purchasers of such property,
including any downpayment and credit requirements.
(C) Exceptions
Subparagraphs (A) and (B) shall not apply to -
(i) any residence transferred in connection with the
transfer of substantially all of the assets of an insured
depository institution for which the Corporation has been
appointed conservator or receiver;
(ii) any eligible single family property (as such term is
defined in subsection (c)(9) of this section); or
(iii) any residence for which the household occupying the
residence was the mortgagor under a mortgage on such
residence and to which the Corporation acquired title
pursuant to default on such mortgage.
(16) Preference for sales for homeless families
Subject to paragraph (15), in selling any real property (other
than eligible residential property and eligible condominium
property, as such terms are defined in subsection (c)(9) of this
section) to which the Corporation acquires title, the Corporation
shall give preference, among offers to purchase the property that
will result in the same net present value proceeds, to any offer
that would provide for the property to be used, during the
remaining useful life of the property, to provide housing or
shelter for homeless persons (as such term is defined in section
103 of the McKinney-Vento Homeless Assistance Act [42 U.S.C.
11302]) or homeless families.
(17) Preferences for sales of certain commercial real properties
(A) Authority
In selling any eligible commercial real properties of the
Corporation, the Corporation shall give preference, among
offers to purchase the property that will result in the same
net present value proceeds, to any offer -
(i) that is made by a public agency or nonprofit
organization; and
(ii) under which the purchaser agrees that the property
shall be used, during the remaining useful life of the
property, for offices and administrative purposes of the
purchaser to carry out a program to acquire residential
properties to provide (I) homeownership and rental housing
opportunities for very-low-, low-, and moderate-income
families, or (II) housing or shelter for homeless persons (as
such term is defined in section 103 of the McKinney-Vento
Homeless Assistance Act [42 U.S.C. 11302]) or homeless
families.
(B) Definitions
For purposes of this paragraph, the following definitions
shall apply:
(i) Eligible commercial real property
The term "eligible commercial real property" means any
property (I) to which the Corporation acquires title, and
(II) that the Corporation, in the discretion of the
Corporation, determines is suitable for use for the location
of offices or other administrative functions involved with
carrying out a program referred to in subparagraph (A)(ii).
(ii) Nonprofit organization and public agency
The terms "nonprofit organization" and "public agency" have
the same meanings as in subsection (c)(9) of this section.
(c) Disposition of eligible residential properties
(1) Purpose
The purpose of this subsection is to provide homeownership and
rental housing opportunities for very low-income, lower-income,
and moderate-income families.
(2) Rules governing disposition of eligible single family
properties
(A) Notice to clearinghouses
Within a reasonable period of time after acquiring title to
an eligible single family property, the Corporation shall
provide written notice to clearinghouses. Such notice shall
contain basic information about the property, including but not
limited to location, condition, and information relating to the
estimated fair market value of the property. Each clearinghouse
shall make such information available, upon request, to other
public agencies, other nonprofit organizations, and qualifying
households. The Corporation shall allow public agencies,
nonprofit organizations, and qualifying households reasonable
access to eligible single family property for purposes of
inspection.
(B) Offers to sell single family properties to nonprofit
organizations, public agencies, and qualifying households
Except as provided in the last sentence of this subparagraph
(!4) for the 3-month and one week period following the date on
which the Corporation makes an eligible single family property
available for sale, the Corporation shall offer to sell the
property to (i) qualifying households (including qualifying
households with members who are veterans), or (ii) public
agencies or nonprofit organizations that agree to (I) make the
property available for occupancy by and maintain it as
affordable for lower-income families (including lower-income
families with members who are veterans) for the remaining
useful life of such property, or (II) make the property
available for purchase 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 writing that the family intends to occupy the property for
at least 12 months. The restrictions described in subclause (I)
of the preceding sentence shall be contained in the deed or
other recorded instrument. If upon the expiration of such 3-
month and one week period, no qualifying household, public
agency, or nonprofit organization has made a bona fide offer to
purchase the property, the Corporation may offer to sell the
property to any purchaser. The Corporation shall actively
market eligible single family properties for sale to lower-
income families and to lower-income families with members who
are veterans. 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.
(C) Recapture of profits from resale
Except as provided in subparagraph (D), if any eligible
single family property sold (i) to a qualifying household, or
(ii) to a lower-income family pursuant to subparagraph
(B)(ii)(II), paragraph (12)(C)(i), or paragraph (13)(B), is
resold by the qualifying 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 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.
(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 residency of a qualifying household under
paragraphs (9)(L)(ii) and (iii), and (II) to any lower-income
family of the requirement under subparagraph (C) and the
residency 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 acquisition 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 title 26) or regulation or
under any sale agreement.
(E) Exception to avoid displacement of existing residents
Notwithstanding the first sentence of subparagraph (B),
during the 180-day period following the date on which the
Corporation makes an eligible single family property available
for sale, the Corporation may sell the property 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 clearinghouses 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.
(3) Rules governing disposition of eligible multifamily housing
properties
Except as provided under paragraph (6)(D), the Corporation
shall dispose of eligible multifamily housing property as
follows:
(A) Notice to clearinghouses
Within a reasonable period of time after acquiring title to
an eligible multifamily housing property, the Corporation shall
provide written notice to clearinghouses. Such notice shall
contain basic information about the property, including but not
limited to location, number of units (identified by number of
bedrooms), and information relating to the estimated fair
market value of the property. The clearinghouses shall make
such information available, upon request, to qualifying
multifamily purchasers. The Corporation shall allow qualifying
multifamily purchasers reasonable access to an eligible
multifamily housing property for purposes of inspection.
(B) Expression of serious interest
Qualifying multifamily purchasers may give written notice of
serious interest in a property during a period ending 90 days
after the time the Corporation provides notice under
subparagraph (A). Such notice of serious interest shall be in
such form and include such information as the Corporation may
prescribe.
(C) Notice of readiness for sale
Upon the expiration of the period referred to in subparagraph
(B) for a property, the Corporation shall provide written
notice to any qualifying multifamily purchaser that has
expressed serious interest in the property. Such notice shall
specify the minimum terms and conditions for sale of the
property.
(D) Offers to purchase
A qualifying multifamily purchaser receiving notice in
accordance with subparagraph (C) shall have 45 days (from the
date notice is received) to make a bona fide offer to purchase
a property. The Corporation shall accept an offer that complies
with the terms and conditions established by the Corporation.
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 purchase 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.
(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
maintained as affordable for lower-income and very low-
income families during the remaining useful life of the
property in which the units are located; and
(II) not less than 20 percent of all dwelling units
purchased shall be made available for occupancy by and
maintained as affordable for very low-income families
(including very low-income families taken into account for
purposes of subclause (I)) during the remaining useful life
of the property in which the units are located.
(ii) Aggregation requirements for multiproperty purchases
With respect to any purchase under subparagraph (D) by a
qualifying multifamily purchaser involving more than one
eligible multifamily housing property as a part of the same
negotiation -
(I) the provisions of clause (i) shall apply in the
aggregate to the properties so purchased; except that
(II) 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 purchased 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 property 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 families
(including very low-income families taken into account for
purposes of subdivision (a) of this subclause) during the
remaining useful life of the property 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.
(F) Sale of multifamily properties to other purchasers
(i) If, upon the expiration of the period referred to in
subparagraph (B), no qualifying multifamily purchaser has
expressed serious interest in a property, the Corporation may
offer to sell the property, individually or in combination with
other properties, to any purchaser.
(ii) The Corporation may not sell in combination with other
properties any property which a qualifying multifamily
purchaser has expressed serious interest in purchasing
individually.
(iii) If, upon the expiration of the period referred to in
subparagraph (D), no qualifying multifamily purchaser has made
an offer to purchase the property, the Corporation may sell the
property, individually or in combination with other properties,
to any purchaser.
(G) Extension of restricted offer periods
Notwithstanding subparagraph (F), the Corporation may provide
notice to clearinghouses regarding, and offer for sale under
the provisions of subparagraphs (A) through (D), any eligible
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.
(H) Exemptions
(i) Continued occupancy of current residents
No purchaser of an eligible multifamily housing property
may terminate the occupancy of any person residing in the
property on the date of purchase for purposes of meeting the
lower-income occupancy requirement applicable to the property
under subparagraph (E). The purchaser shall be in compliance
with this paragraph if each newly vacant dwelling unit is
reserved for lower-income occupancy until the lower-income
occupancy requirement is met.
(ii) Financial infeasibility
The Secretary of Housing and Urban Development or the State
housing finance agency for the State in which the property is
located may temporarily reduce the lower-income occupancy
requirements applicable to any property under subparagraph
(E), if the Secretary or the applicable State housing finance
agency determines that an owner's compliance with such
requirements is no longer financially feasible. The owner of
the property shall make a good-faith effort to return lower-
income occupancy to the level required by subparagraph (E),
and the Secretary of Housing and Urban Development or the
State housing finance agency, as appropriate, shall review
the reduction annually to determine whether financial
infeasibility continues to exist.
(4) Rent limitations
(A) In general
With respect to properties under subparagraph (B), rents
charged to tenants for units 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 for
units 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) Applicability
The rent limitations under this paragraph shall apply to any
eligible single-family property sold pursuant to paragraph
(2)(B)(ii)(I) and to any multifamily housing property sold
pursuant to paragraph (3).
(5) Preference for sales
When selling any eligible multifamily housing property or
combinations of eligible residential properties, the Corporation
shall give preference, among substantially similar offers, to the
offer that would reserve the highest percentage of dwelling units
for occupancy or purchase by very low-income families and lower-
income families and would retain such affordability for the
longest term.
(6) Financing of sale
(A) Assistance by Corporation
(i) Sale price
The Corporation shall establish a market value for each
eligible multifamily housing property. The Corporation shall
sell eligible multifamily 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 condominium
property to qualifying households, nonprofit organizations,
and public agencies without regard to any minimum sale price.
(ii) Purchase loan
The Corporation may provide a loan at market interest rates
to the purchaser of eligible residential property for all or
a portion of the purchase price, which loan shall be secured
by a first or second mortgage on the property. The
Corporation may provide such a loan at below market interest
rates to the extent necessary to facilitate an expedited sale
of eligible residential property and permit (I) a lower-
income family to purchase an eligible single family property
under paragraph (2); or (II) a public agency or nonprofit
organization to comply with the lower-income occupancy
requirements applicable to the purchase of an eligible
residential property under paragraph (2) or (3). The
Corporation shall provide such loan in a form which would
permit its sale or transfer to a subsequent holder. In
providing financing for combinations of eligible multifamily
housing properties under this subsection, the Corporation may
hold a participating share, including a subordinate
participation. The Corporation shall periodically provide, to
a wide range of minority- and women-owned businesses engaged
in providing affordable housing and to nonprofit
organizations, more than 50 percent of the control of which
is held by 1 or more minority individuals, that are engaged
in providing affordable housing, information that is
sufficient to inform such businesses and organizations of the
availability and terms of financing under this clause; such
information may be provided directly, by notices published in
periodicals and other publications that regularly provide
information to such businesses or organizations, and through
persons and organizations that regularly provide information
or services to such businesses or organizations. For purposes
of this clause, the terms "women-owned business" and
"minority-owned business" have the meanings given such terms
in subsection (r) of this section, and the term "minority"
has the meaning given such term in section 1204(c)(3) of the
Financial Institutions Reform, Recovery, and Enforcement Act
of 1989.
(B) Assistance by HUD
The Secretary shall take such action as may be necessary to
expedite the processing of applications for assistance under
section 202 of the Housing Act of 1959 [12 U.S.C. 1701q], the
United States Housing Act of 1937 [42 U.S.C. 1437 et seq.],
title IV of the McKinney-Vento Homeless Assistance Act [42
U.S.C. 11361 et seq.], section 810 (!5) of the Housing and
Community Development Act of 1974 [12 U.S.C. 1706e], and the
National Housing Act [12 U.S.C. 1701 et seq.] to enable any
organization or individual to purchase eligible residential
property.
(C) Assistance by FmHA
The Secretary of Agriculture shall take such actions as may
be necessary to expedite the processing of applications for
assistance under title V of the Housing Act of 1949 [42 U.S.C.
1471 et seq.] to enable any organization or individual to
purchase eligible residential property.
(D) Exception to disposition rules
Notwithstanding the requirements under subparagraphs (A),
(B), (C), (D), (F), and (G) of paragraph (3), the Corporation
may provide for the disposition of eligible multifamily housing
properties as necessary to facilitate purchase of such
properties for use in connection with the section 202 of the
Housing Act of 1959 [12 U.S.C. 1701q].
(E) Urban homesteading acquisition
(i) In providing for bulk acquisition of eligible single
family properties by the Secretary under section 810(l) (!5) of
the Housing and Community Development Act of 1974 [12 U.S.C.
1706e(l)] and by participating jurisdictions for inclusion in
affordable housing activities assisted under title II of the
Cranston-Gonzalez National Affordable Housing Act [42 U.S.C.
12721 et seq.], the Corporation shall agree to an amount to be
paid for acquisition of such properties. The acquisition price
shall include discounts for bulk purchase and for holding of
the property such that the acquisition price for each property
shall not exceed 50 percent of the fair market value of the
property, as valued individually.
(ii) To the extent necessary to facilitate sale of properties
to the Secretary and participating jurisdictions, the
requirements of paragraphs (2), (5), and (6)(A) of this
subsection shall not apply to such transactions and property
involved in such transactions.
(iii) To facilitate acquisitions by the Secretary and
participating jurisdictions, the Corporation shall provide the
Secretary and participating jurisdictions with an inventory of
eligible single family properties, not less than 4 times each
year.
(7) Contracting rules
Contracts entered into under this subsection shall not be
subject to the requirements of subsection (b)(10)(A) of this
section.
(8) Use of secondary market agencies
(A) In general
In the disposition of eligible residential properties, the
Corporation shall, in consultation with the Secretary, explore
opportunities to work with secondary market entities to provide
housing for lower- and moderate-income families.
(B) Credit enhancement
(i) In general
With respect to such Corporation properties, the Secretary
may, consistent with statutory authorities, work through the
Federal Housing Administration, the Government National
Mortgage Association, the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, and
other secondary market entities to develop risk sharing
structures, mortgage insurance, and other credit enhancements
to assist in the provision of property ownership, rental, and
cooperative housing opportunities for lower- and moderate-
income families.
(ii) Certain tax-exempt bonds
The Corporation may provide credit enhancements with
respect to tax-exempt bonds issued on behalf of nonprofit
organizations pursuant to section 103, and subpart A of part
IV of subchapter B of chapter 1, of title 26, with respect to
the disposition of eligible residential properties for the
purposes described in clause (i).
(C) Report
In the annual report submitted by the Secretary to the
Congress, the Secretary shall include a detailed description of
his activities under this paragraph, including recommendations
for such additional authorization as he deems necessary to
implement the provisions of this subsection.
(9) Definitions
For purposes of this subsection -
(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 [42 U.S.C. 1437a(b)].
(B) Clearinghouses
The term "clearinghouses" means -
(i) the State housing finance agency for the State in which
an eligible residential property is located,
(ii) the Office of Community Investment (or other
comparable division) within the Federal Housing Finance
Board, and
(iii) any national nonprofit organizations (!6) (including
any nonprofit entity established by the corporation
established under title IX of the Housing and Community
Development Act of 1968 [42 U.S.C. 3931 et seq.]) that the
Corporation determines has the capacity to act as a
clearinghouse for information.
(C) Corporation
The term "Corporation" means the Resolution Trust
Corporation.
(D) Eligible condominium property
The term "eligible condominium property" means a condominium
unit, as such term is defined in section 3603 of title 15 -
(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 -
(I) $67,500 in the case of a 1-family residence, $76,000
in the case of a 2-family residence, $92,000 in the case of
a 3-family residence, and $107,000 in the case of a 4-
family residence; or
(II) only to the extent or in such amounts as are
provided in appropriation Acts for additional costs and
losses to the Corporation resulting from this subclause
taking effect, the amount provided in section 203(b)(2)(A)
of the National Housing Act [12 U.S.C. 1709(b)(2)(A)],
except that such amount shall not exceed $101,250 in the
case of a 1-family residence, $114,000 in the case of a 2-
family residence, $138,000 in the case of a 3-family
residence, and $160,500 in the case of a 4-family
residence.
(E) Eligible multifamily housing property
(i) Basic definition
The term "eligible multifamily 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 corporation of a
depository institution under receivership, 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,
for such part of the property as may be attributable to
dwelling use (excluding exterior land improvements),
$29,500 per family unit without a bedroom, $33,816 per
family unit with 1 bedroom, $41,120 per family unit with 2
bedrooms, $53,195 per family unit with 3 bedrooms, and
$58,392 per family unit with 4 or more bedrooms.
(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
dwelling 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 receivership, which
subsidiary has as its principal business the ownership of
real property); and
(II) that has an appraised value that does not exceed,
for such part of the property as may be attributable to
dwelling use (excluding exterior land improvements),
$29,500 per family unit without a bedroom, $33,816 per
family unit with 1 bedroom, $41,120 per family unit with 2
bedrooms, $53,195 per family unit with 3 bedrooms, and
$58,392 per family unit with 4 or more bedrooms.
(F) Eligible residential property
The term "eligible residential property" includes eligible
single family properties and eligible multifamily housing
properties.
(G) Eligible single family property
The term "eligible single family property" means a 1- to 4-
family residence (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 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 -
(I) $67,500 in the case of a 1-family residence, $76,000
in the case of a 2-family residence, $92,000 in the case of
a 3-family residence, and $107,000 in the case of a 4-
family residence; or
(II) only to the extent or in such amounts as are
provided in appropriation Acts for additional costs and
losses to the Corporation resulting from this subclause
taking effect, the amount provided in section 203(b)(2)(A)
of the National Housing Act [12 U.S.C. 1709(b)(2)(A)],
except that such amount shall not exceed $101,250 in the
case of a 1-family residence, $114,000 in the case of a 2-
family residence, $138,000 in the case of a 3-family
residence, and $160,500 in the case of a 4-family
residence.
(H) Lower-income families
The term "lower-income families" means families and
individuals whose incomes do not exceed 80 percent of the
median income of the area involved, as determined by the
Secretary, with adjustment for family size.
(I) Net realizable market value
The term "net realizable market value" means a price below
the market value that takes into account (i) any reductions in
holding costs resulting from the expedited sale of a property,
including but not limited to foregone real estate taxes,
insurance, maintenance costs, security costs, and loss of use
of funds, and (ii) the avoidance, where applicable, of fees
paid to real estate brokers, auctioneers, or other individuals
or organizations involved in the sale of property owned by the
Corporation.
(J) Nonprofit organization
The term "nonprofit organization" means a private
organization (including a limited equity cooperative) -
(i) no part of the net earnings of which inures to the
benefit of any member, shareholder, founder, contributor, or
individual; and
(ii) that is approved by the Corporation as to financial
responsibility.
(K) Public agency
The term "public agency" -
(i) means any Federal, State, local, or other governmental
entity; and
(ii) includes any public housing agency.
(L) Qualifying household
The term "qualifying household" means a household (i) who
intends to occupy eligible single family property as a
principle (!7) residence; and (ii) who agrees to occupy the
property as a principal residence for at least 12 months
(except as provided in paragraph (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 (2)(D)); and (iv) whose income does not
exceed 115 percent of the median income for the area, as
determined by the Secretary, with adjustment for family size.
(M) Qualifying multifamily purchaser
The term "qualifying multifamily purchaser" means (i) a
public agency, (ii) a nonprofit organization, or (iii) a for-
profit entity which makes a commitment (for itself or any
related entity) to satisfy the lower-income occupancy
requirements specified under paragraph (3)(E) for any eligible
multifamily property for which an offer to purchase is made
during or after the periods specified under paragraph (3).
(N) Rural area
The term "rural area" has the meaning given such term in
section 520 of the Housing Act of 1949 [42 U.S.C. 1490].
(O) Secretary
The term "Secretary" means the Secretary of the (!8) Housing
and Urban Development.
(P) State housing finance agency
The term "State housing finance agency" means the public
agency, authority, corporation, or other instrumentality of a
State that has the authority to provide residential mortgage
loan financing throughout such State.
(Q) Very low-income families
The term "very-low income families" means families and
individuals whose incomes do not exceed 50 percent of the
median income of the area involved, as determined by the
Secretary, with adjustment for family size.
(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 1813 of
this title), including any sale in connection with a transfer of
all or substantially all of the assets of a closed savings
association (including such property) to an insured depository
institution.
(11) Third party rights
(A) In general
The provisions of this subsection, or any failure by the
Corporation to comply with such provisions, may not be used by
any person to attack or defeat any title to property once it is
conveyed by the Corporation.
(B) Lower-income occupancy
The lower-income occupancy requirements applicable under
paragraphs (2), (3), (12)(C), (13)(B), and (14)(C) shall be
judicially enforceable against purchasers of property under
this subsection or their successors in interest by affected
very low- and lower-income families, State housing finance
agencies, and any agency, corporation, or authority of the
United States Government. The parties specified in the
preceding sentence shall be entitled to reasonable attorney
fees upon prevailing in any such judicial action.
(C) Clearinghouse
A clearinghouse shall not be subject to suit for its failure
to comply with the requirements of this subsection.
(D) Corporation
The Corporation shall not be liable to any depositor,
creditor, or shareholder of any insured depository institution
for which the Corporation has been appointed receiver or
conservator, or of any subsidiary corporation of a depository
institution under conservatorship or receivership, or any
claimant against such an institution or subsidiary, because the
disposition of assets of the institution or the subsidiary
under this subsection affects the amount of return from the
assets.
(12) Transfer of certain eligible residential properties to 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 jurisdiction the property is located.
Transfers of eligible residential 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 properties 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);
(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
acceptable offers, to the offer that would reserve the
highest percentage of dwelling units for occupancy 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 paragraph
(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 affordable to lower-income families based
upon the extent to which the acquisition price of a property
under subparagraph (B) is less than the market value of the
property.
(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 requirements of subparagraphs (A) and (B) of
paragraph (2) and subparagraphs (A) through (D) of paragraph
(3), as applicable, but only to the extent that for the
duration of the suspension the Corporation negotiates the sale
of the property 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) Eligible single family property
Any eligible single family property sold under this
paragraph 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 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 proceeds 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 occupancy
requirements under paragraph (3)(E) and shall be subject to
the rent limitations under paragraph (4)(A).
(14) Rules governing disposition of eligible condominium property
(A) Notice to clearinghouses
Within a reasonable period of time after acquiring title to
an eligible condominium property, the Corporation shall provide
written notice to clearinghouses. Such notice shall contain
basic information 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 to an
eligible condominium property for purposes of inspection.
(B) Offers to sell
For the 180-day period following the date on which the
Corporation makes an eligible condominium property available
for sale, the Corporation may offer to sell the property, at
the discretion of the Corporation, 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 property shall (I) make the
property available for occupancy by and maintain it as
affordable for lower-income families 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 purchases more than 1 eligible condominium property as
a part of the same negotiation or purchase, the Corporation
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 condominium 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 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 (!9) subclause
(I) of the preceding sentence shall be contained in the deed
or other recorded instrument.
(iii) Sale to other purchasers
If, upon the expiration of the 180-day period referred to
in subparagraph (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 provided 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 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 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 Corporation (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
household or lower-income family (under paragraph (9)(L) and
subparagraph (C) of this paragraph, respectively). The
Corporation may grant any such a (!10) 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 Corporation may not sell or offer to sell as part of the
same negotiation or purchase any eligible condominium
properties that are not located in the same condominium project
(as such term is defined in section 3603 of title 15). The
preceding sentence may not be construed to require all eligible
condominium 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 eligible 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.
(15) Reports to Congress
(A) In general
The Corporation shall submit to the Congress semiannual
reports under this paragraph regarding the disposition of
eligible residential properties under this subsection during
the most recently concluded reporting 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 submitted not less than every 6
months after such expiration.
(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 August 9, 1989, and ending on
December 12, 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 follows:
(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 occupying household or is
sold for resale to an occupying household; and
(II) whether the property is reserved for residency 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 property 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 (2)(B).
(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 paragraph shall contain the following
information:
(i) The number of eligible single family properties for
which the offer period referred to in paragraph (2)(B) had
not expired before the conclusion of the applicable reporting
period (or had not yet commenced).
(ii) The number of eligible multifamily housing properties
for which the 90-day period referred to in paragraph (3)(B)
had not expired before the conclusion of the applicable
reporting period (or had not yet commenced).
(16) Notice to clearinghouses regarding ineligible properties
(A) In general
Within a reasonable period of time after acquiring title to
an ineligible residential property, the Corporation shall, to
the extent practicable, provide written notice to
clearinghouses.
(B) Content
For ineligible single family properties, such notice shall
contain the same information about such properties that the
notice required under paragraph (2)(A) contains with respect to
eligible single family properties. For ineligible multifamily
housing properties, such notice shall contain the same
information about such properties that the notice required
under paragraph (3)(A) contains with respect to eligible
multifamily housing properties. For ineligible condominium
properties, such notice shall contain the same information
about such properties that the notice required under paragraph
(14)(A) contains with respect to eligible condominium
properties.
(C) Availability
The clearinghouses shall make such information available,
upon request, to other public agencies, other nonprofit
organizations, qualifying households, qualifying multifamily
purchasers, and other purchasers, as appropriate.
(D) Definitions
For purposes of this paragraph, the following definitions
shall apply:
(i) Ineligible condominium property
The term "ineligible condominium property" means a
condominium unit, as such term is defined in section 3603 of
title 15 -
(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 corporation has as its principal business the
ownership of real property);
(II) that has an appraised value that does not exceed the
applicable dollar amount limitation for the property under
paragraph (9)(D)(ii)(II); and
(III) that is not an eligible condominium property.
(ii) Ineligible multifamily housing property
The term "ineligible multifamily housing property" means a
property consisting of more than 4 dwelling units -
(I) to which the Corporation acquires title in its
capacity as conservator (including its capacity as the sole
owner of a subsidiary corporation of a depository
institution under conservatorship, which subsidiary
corporation has as its principal business the ownership of
real property);
(II) that has an appraised value that does not exceed,
for such part of the property as may be attributable to
dwelling use (excluding exterior land improvements), the
dollar amount limitations under paragraph (9)(E)(i)(II);
and
(III) that is not an eligible multifamily housing
property.
(iii) Ineligible single family property
The term "ineligible single family property" means a 1- to
4-family residence (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 depository
institution under conservatorship or receivership, which
subsidiary corporation has as its principal business the
ownership of real property);
(II) that has an appraised value that does not exceed the
applicable dollar amount limitation for the property under
paragraph (9)(G)(ii)(II); and
(III) that is not an eligible single family property.
(iv) Ineligible residential property
The term "ineligible residential property" includes
ineligible single family properties, ineligible multifamily
housing properties, and ineligible condominium properties.
(17) Unified affordable housing program
(A) In general
Not later than 4 months after December 17, 1993, the
Corporation shall enter into an agreement, as described in
section 1831q(n)(3) of this title, with the Federal Deposit
Insurance Corporation that sets out a plan for the orderly
unification of the Corporation's activities, authorities, and
responsibilities under this subsection with the authorities,
activities, and responsibilities of the Federal Deposit
Insurance Corporation pursuant to section 1831q of this title
in a manner that best achieves an effective and comprehensive
affordable housing program management structure. The agreement
shall be entered into after consultation with the Affordable
Housing Advisory Board under section 14(b) of the Resolution
Trust Corporation Completion Act.
(B) Authority and implementation
The Corporation shall have the authority to carry out the
provisions of the agreement entered into pursuant to
subparagraph (A) and shall implement such agreement as soon as
practicable, but in no event later than 8 months after December
17, 1993.
(C) Transfer of authority
Effective upon October 1, 1995, any remaining authority and
responsibilities of the Corporation under this subsection shall
be carried out by the Federal Deposit Insurance Corporation.
(d) National and regional advisory boards
(1) National advisory board
(A) Establishment
The Thrift Depositor Protection Oversight Board shall
establish a national advisory board to provide information to
the Thrift Depositor Protection Oversight Board, and to advise
that Board on policies and programs for the sale or other
disposition of real property assets of institutions which are
described in subsection (b)(3)(A) of this section.
(B) Membership
The national advisory board shall consist of -
(i) a chairperson appointed by the Thrift Depositor
Protection Oversight Board; and
(ii) the chairpersons of any regional advisory boards
established pursuant to paragraph (3).
(C) Meetings
The national advisory board shall meet 4 times a year, or
more frequently if requested by the Corporation.
(2) [Reserved]
(3) Regional advisory boards
(A) Establishment
The Thrift Depositor Protection Oversight Board shall
establish not less than 6 regional advisory boards to advise
the Corporation on the policies and programs for the sale or
other disposition of real property assets of institutions
described in subsection (b)(3)(A) of this section. Such
regional advisory boards shall be established in any region
where the Thrift Depositor Protection Oversight Board
determines that there exists a significant portfolio of real
property assets of institutions which are described in
subsection (b)(3)(A) of this section.
(B) Membership
(i) Appointment
Each regional advisory board shall consist of 5 members.
Each member shall be appointed by the Thrift Depositor
Protection Oversight Board and shall serve at the pleasure of
the Thrift Depositor Protection Oversight Board. The members
shall be selected from those residents of the region who will
represent the views of low- and moderate-income consumers and
small businesses, or who have knowledge and experience
regarding business, financial, and real estate matters.
(ii) Terms
Each member of a regional advisory board shall serve a term
not to exceed 2 years, except that the Thrift Depositor
Protection Oversight Board may provide for classes of members
so that the terms of not more than 3 members of any such
board shall expire in any 1 year.
(C) Meetings
Each regional advisory board shall meet 4 times a year, or
more frequently if requested by the Corporation. A regional
advisory board shall conduct its meetings in its region.
(4) Prohibition on compensation
Members of the national and regional advisory boards shall
serve without compensation, except that such members shall be
entitled to receive allowances in accordance with subchapter I of
chapter 57 of title 5 for necessary expenses of travel, lodging,
and subsistence incurred in attending official meetings and other
activities of the boards.
(5) Treatment as advisory committee and termination of national
and regional advisory boards
(A) Federal Advisory Committee Act
The national and regional advisory boards shall be subject to
the provisions of the Federal Advisory Committee Act.
(B) Termination
Notwithstanding the provisions of the Federal Advisory
Committee Act, the national advisory board and any regional
advisory board established pursuant to this subsection which is
in existence on the date on which the Corporation terminates
shall also terminate on such date.
(e) Institutions organized by Corporation
(1) Limitations on certain activities
All insured depository institutions (as defined in section 1813
of this title) organized by the Corporation under this section
shall, during the period such institutions are within the control
of the Corporation, be subject to such limitations, restrictions,
and conditions as determined by the Corporation with respect to
the following activities:
(A) Growth of assets.
(B) Lending and borrowing activities.
(C) Asset acquisitions.
(D) Use of brokered deposits.
(E) Payment of deposit rates.
(F) Setting policy or credit standards.
(G) Capital standards.
(2) Applicability of other provisions of law
Except as otherwise provided, all insured depository
institutions (defined in section 1813 of this title) organized by
the Corporation shall -
(A) be subject to all laws and rules otherwise applicable to
them as insured depository institutions, and
(B) shall (!11) be subject to the supervision of the
appropriate Federal banking agency (as that term is defined in
section 1813 of this title).
(f) Limitation on certain Corporation activities
(1) Certain sales prohibited
The Corporation shall prescribe regulations to prohibit the
sale of assets of a failed institution by the Corporation to any
person who -
(A)(i) has defaulted, or was a member of a partnership or an
officer or director of a corporation which has defaulted, on 1
or more obligations the aggregate amount of which exceed
$1,000,000 to such failed institution;
(ii) has been found to have engaged in fraudulent activity in
connection with any obligation referred to in clause (i); and
(iii) proposes to purchase any such asset in whole or in part
through the use of the proceeds of a loan or advance of credit
from the Corporation or from any institution subject to the
jurisdiction of the Corporation pursuant to paragraph (3)(A);
(B) participated, as an officer or director of such failed
institution or of any affiliate of such institution, in a
material way in transactions that resulted in a substantial
loss to such failed institution;
(C) has been removed from, or prohibited from participating
in the affairs of, such failed institution pursuant to any
final enforcement action by an appropriate Federal banking
agency; or
(D) has demonstrated a pattern or practice of defalcation
regarding obligations to such failed institution.
(2) Settlement of claims; definitions
(A) Settlement of claims
Nothing in this subsection shall prohibit the Corporation
from selling or otherwise transferring any asset to any person
if the sale or transfer of the asset resolves or settles, or is
part of the resolution or settlement, of obligations owed by
the person to the failed institution or the Corporation.
(B) Definitions
For purposes of paragraph (1) -
(i) Default
The term "default" means a failure to comply with the terms
of a loan or other obligation to such an extent that the
property securing the obligation is foreclosed upon.
(ii) Affiliate
The term "affiliate" has the meaning given to such term in
section 1841(k) of this title.
(g) Exemption from State and local taxation
The Corporation and the Thrift Depositor Protection Oversight
Board, the capital, reserves, surpluses, and assets of the
Corporation and the Thrift Depositor Protection Oversight Board,
and the income derived from such capital, reserves, surpluses, or
assets shall be exempt from State, municipal, and local taxation
except taxes on real estate held by the Corporation, according to
its value as other similar property held by other persons is taxed.
(h) Guarantees of FSLIC
(1) Assumption by Corporation
On August 9, 1989, the Corporation shall, by operation of law
(and without further action by the Corporation, the Thrift
Depositor Protection Oversight Board, the Federal Housing Finance
Board, the Federal Savings and Loan Insurance Corporation, or any
court), assume all rights and obligations of the Federal Savings
and Loan Insurance Corporation with respect to any guarantee
issued by the Federal Savings and Loan Insurance Corporation
during the period beginning on January 1, 1989, and ending on
August 9, 1989, in connection with any loan to any savings
association by any Federal Reserve bank or Federal Home Loan Bank
(hereinafter in this subsection referred to as a "lender").
(2) Payment by Corporation
Any obligation assumed by the Corporation for any guarantee
described in paragraph (1) to any lender shall be paid by the
Corporation before the end of the 1-year period beginning on
August 9, 1989. Payment shall be made from funds or assets
available to the Corporation.
(3) Priority of claims of lenders
Any claim by a lender with respect to any obligation assumed by
the Corporation for a guarantee described in paragraph (1) shall
have priority over all other secured or unsecured obligations of
the Corporation.
(4) Treasury backup
If the resources of the Corporation are insufficient to pay all
the obligations assumed by the Corporation under paragraph (1)
within the 1-year period, the Secretary of the Treasury shall pay
the amount of any such deficiency. There are hereby appropriated
to the Secretary for fiscal year 1989 and each fiscal year
thereafter, such sums as may be necessary to pay such deficiency.
(i) Funding
(1) Borrowing
(A) In general
The Corporation, upon approval of the Thrift Depositor
Protection Oversight Board, is authorized to borrow from the
Treasury. The Secretary of the Treasury is authorized and
directed to loan to the Corporation, on such terms as may be
fixed by the Secretary of the Treasury, an amount not exceeding
in the aggregate $5,000,000,000 outstanding at any one time.
(B) Interest rate
Each such loan shall bear interest at a rate determined by
the Secretary of the Treasury, taking into consideration
current market yields on outstanding marketable obligations of
the United States of comparable maturities.
(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.
(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.
(4) Conditions on availability of final funding in excess of
$10,000,000,000
(A) Certification required
Of the funds appropriated under paragraph (3) which are
provided after April 1, 1993, any amount in excess of
$10,000,000,000 shall not be available to the Corporation
before the date on which the Secretary of the Treasury
certifies to the Congress that, since December 17, 1993, the
Corporation has taken such action as may be necessary to comply
with the requirements of subsection (w) of this section or
that, as of the date of the certification, the Corporation is
continuing to make adequate progress toward full compliance
with such requirements.
(B) Appearance upon request
The Secretary of the Treasury shall appear before the
Committee on Banking, Finance and Urban Affairs of the House of
Representatives or the Committee on Banking, Housing, and Urban
Affairs of the Senate, upon the request of the chairman of the
committee, to report on any certification made to the Congress
under subparagraph (A).
(5) Return to Treasury
If the aggregate amount of funds transferred to the Corporation
pursuant to this subsection exceeds the amount needed to carry
out the purposes of this section or to meet the requirements of
section 1821(a)(6)(F) (!12) of this title, such excess amount
shall be deposited in the general fund of the Treasury.
(6) Funds only for depositors
Notwithstanding any provision of law other than section
1823(c)(4)(G) of this title, funds appropriated under this
section shall not be used in any manner to benefit any
shareholder of -
(A) any insured depository institution for which the
Corporation has been appointed conservator or receiver, in
connection with any type of resolution by the Corporation;
(B) any other insured depository institution in default or in
danger of default, in connection with any type of resolution by
the Corporation; or
(C) any insured depository institution, in connection with
the provision of assistance under section 1821 or 1823 of this
title with respect to such institution, except that this
subparagraph shall not prohibit assistance to any insured
depository institution that is not in default, or that is not
in danger of default, that is acquiring (as defined in section
1823(f)(8)(B) of this title) another insured depository
institution.
(j) Maximum amount limitations on outstanding obligations
(1) In general
Notwithstanding any other provision of this section, the amount
which is equal to -
(A) the sum of -
(i) the total amount of contributions received from the
Resolution Funding Corporation; and
(ii) the total amount of outstanding obligations of the
Corporation; minus
(B) the sum of -
(i) the amount of cash held by the Corporation; and
(ii) the amount which is equal to 85 percent of the
Corporation's estimate of the fair market value of other
assets held by the Corporation,
may not exceed $50,000,000,000.
(2) "Outstanding obligation" defined
For purposes of this subsection (other than paragraph (3)), the
term "outstanding obligation" includes -
(A) any obligation or other liability assumed by the
Corporation from the Federal Savings and Loan Insurance
Corporation under this section or pursuant to any provision of
the Financial Institutions Reform, Recovery, and Enforcement
Act of 1989;
(B) any guarantee issued by the Corporation;
(C) the total of the outstanding amounts borrowed from the
Secretary of the Treasury pursuant to subsection (i) of this
section; and
(D) any other obligation for which the Corporation has a
direct or contingent liability to pay any amount.
(3) Full faith and credit
The full faith and credit of the United States is pledged to
the payment of any obligation issued by the Corporation, with
respect to both principal and interest, if -
(A) the principal amount of such obligation is stated in the
obligation; and
(B) the term to maturity or the date of maturity of such
obligation is stated in the obligation.
(4) Estimates of costs of contingent liabilities required
(A) In general
The Corporation shall -
(i) estimate the cost to such Corporation of any contingent
liability of the Corporation; and
(ii) at least once each calendar quarter, make such
adjustment as is appropriate in the estimate of such cost.
(B) Inclusion in financial statements and outstanding
obligations
The estimated amount of the cost to the Corporation of any
contingent liability of the Corporation (taking into account
the most recent adjustment to such estimate pursuant to
paragraph (A)(ii)) shall be -
(i) treated as an outstanding obligation of the Corporation
for purposes of this subsection; and
(ii) included in any financial statement of the
Corporation.
(k) Reporting and disclosure obligations
(1) Audits
(A) Annual audit
Notwithstanding section 9105 of title 31, the Comptroller
General shall audit annually the financial statements of the
Corporation in accordance with generally accepted Government
auditing standards. The audited statements shall be transmitted
to the Congress by the Thrift Depositor Protection Oversight
Board not later than 180 days after the end of the
Corporation's fiscal year to which those statements apply.
(B) Access to books and records
All books, records, accounts, reports, files, and property
belonging to or used by the Corporation, or the Thrift
Depositor Protection Oversight Board shall be made available to
the Comptroller General.
(2) Public disclosure of transactions
(A) Disclosure required
Except as otherwise provided in this subsection, the
Corporation shall make available to the public -
(i) any agreement entered into by the Corporation relating
to a transaction for which the Corporation provides
assistance pursuant to section 1823(c) of this title, not
later than 30 days after the first meeting of the Thrift
Depositor Protection Oversight Board after such agreement is
entered into; and
(ii) all agreements relating to cases reviewed by the
Corporation pursuant to subsection (b)(11)(B) of this
section.
(B) Exception for disclosures against the public interest
(i) In general
The Thrift Depositor Protection Oversight Board may
withhold from public disclosure any document or part of a
document if the Thrift Depositor Protection Oversight Board
determines, by a unanimous affirmative vote of the members of
the Board, that disclosure would be contrary to the public
interest.
(ii) Report of determination
A written report shall be made of any determination by the
Thrift Depositor Protection Oversight Board to withhold any
part of a document from public disclosure pursuant to clause
(i). Such report shall contain a full explanation of the
specific reasons for such determination.
(iii) Publication and submission of report
The report prepared pursuant to clause (ii) shall be -
(I) published in the Federal Register; and
(II) transmitted 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.
(C) "Agreement" defined
For purposes of this subsection, the term "agreement"
includes -
(i) all documents which effectuate the terms and conditions
of the assisted transaction;
(ii) a comparison, which the Corporation shall prepare of -

(I) the estimated cost of the transaction, with
(II) the estimated cost of liquidating the insured
institution; and
(iii) a description of any economic or statistical
assumptions on which such estimates are based.
(3) Disclosure to Congress of transactions
(A) Prospective transactions
The Corporation shall make available 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 any agreement entered into by the
Corporation relating to a transaction for which the Corporation
provides assistance pursuant to section 1823(c) of this title
not later than 25 days after the first meeting of the Thrift
Depositor Protection Oversight Board after such agreement is
entered into. The foregoing requirement is in addition to the
Corporation's obligation to make such agreements publicly
available pursuant to paragraph (2).
(B) Prior transactions
The Corporation shall submit a report to the Thrift Depositor
Protection Oversight Board and the Congress containing the
results and conclusions of the review of the 1988 transactions
conducted pursuant to subsection (b)(10)(B) of this section and
such recommendations for legislative action as the Corporation
may determine to be appropriate.
(4) Annual reports
(A) In general
The Thrift Depositor Protection Oversight Board and the
Corporation shall annually submit a full report of their
respective operations, activities, budgets, receipts, and
expenditures for the preceding 12-month period.
(B) Contents
The report required under subparagraph (A) shall include -
(i) audited statements and such information as is necessary
to make known the financial condition and operations of the
Corporation in accordance with generally accepted accounting
principles;
(ii) the Corporation's financial operating plans and
forecasts (including budgets, estimates of actual and future
spending, and estimates of actual and future cash
obligations) taking into account the Corporation's financial
commitments, guarantees, and other contingent liabilities;
(iii) the number of minority and women investors
participating in the bidding process for assisted
acquisitions and the disposition of assets and the number of
successful bids by such investors;
(iv) a list of the properties sold to State housing finance
authorities (as such term is defined in section 1301 of the
Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 [12 U.S.C. 1441a-1]), the individual purchase prices
of such properties, and an estimate of the premium paid by
such authorities for such properties; and
(v) descriptions of the operations and activities of the
national and regional advisory boards established under
subsection (d) of this section and financial statements
detailing the expenses of such boards.
(C) Submission to Congress and the President
The Corporation shall submit each annual report required
under this subsection to the Congress and the President as soon
as practicable after the end of the calendar year for which
such report is made but not later than June 30 of the year
following such calendar year.
(5) Additional reports
(A) Reports required
In addition to the annual report required under paragraph
(4), the Thrift Depositor Protection Oversight Board and the
Corporation shall submit to Congress not later than April 30
and October 31 of each calendar year, a semiannual report on
the activities and efforts of the Corporation, the Federal
Deposit Insurance Corporation, and the Thrift Depositor
Protection Oversight Board for the 6-month period ending on the
last day of the month prior to the month in which such report
is required to be submitted.
(B) Contents of report
Each semiannual report required under subparagraph (A) shall
include the following information with respect to the
Corporation's assets and liabilities and to the assets and
liabilities of institutions described in subsection (b)(3)(A)
of this section:
(i) A statement of the total book value of all assets held
or managed by the Corporation at the beginning and end of the
reporting period.
(ii) A statement of the total book value of such assets
which are under contract to be managed by private persons and
entities at the beginning and end of the reporting period.
(iii) The number of employees of the Corporation, the
Federal Deposit Insurance Corporation, and the Thrift
Depositor Protection Oversight Board at the beginning and end
of the reporting period.
(iv) The total amounts expended on employee wages,
salaries, and overhead, during such period which are
attributable to -
(I) contracting with, supervising, or reviewing the
performance of private contractors, or
(II) managing or disposing of such assets.
(v) A statement of the total amount expended on private
contractors for the management of such assets.
(vi) A statement of the efforts of the Corporation to
maximize the efficient utilization of the resources of the
private sector during the reporting period and in future
reporting periods and a description of the policies and
procedures adopted to ensure adequate competition and fair
and consistent treatment of qualified third parties seeking
to provide services to the Corporation or the Federal Deposit
Insurance Corporation.
(vii) The total book value and total proceeds from such
assets disposed of during the reporting period.
(viii) Summary data on discounts from book value at which
such assets were sold or otherwise disposed of during the
reporting period.
(ix) A list of all of the areas that carried a distressed
area designation during the reporting period (including a
justification for removal of areas from or addition of areas
to the list of distressed areas).
(x) An evaluation of market conditions in distressed areas
and a description of any changes in conditions during the
reporting period.
(xi) Any change adopted by the Thrift Depositor Protection
Oversight Board in a minimum disposition price and the
reasons for such change.
(xii) The valuation method or methods adopted by the Thrift
Depositor Protection Oversight Board or the Corporation to
value assets and the reasons for selecting such methods.
(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 [12 U.S.C. 1833e(a), (b), (c)]
with respect to the employment of and contracting with
minorities, women, and businesses owned or controlled by
minorities 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 corporate capacity and
its capacity as conservator or receiver, to implement the
minority and women outreach programs required by section
1216(c) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 [12 U.S.C. 1833e(c)] and shall set
forth information and data showing -
(I) the extent to which and means by which contract
solicitations have been directed to minorities, 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 Corporation
contracting activity represented thereby (including
contracting activity by the Federal Deposit Insurance
Corporation on behalf of the Corporation);
(III) contracting and outreach activity with respect to
joint ventures and other business arrangements 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 programs have been successful in
maximizing opportunities through the outreach policies
established by the Corporation for participation of
minorities, women, and businesses owned or controlled by
minorities or women in the Corporation's contracting
activities.
(C) Supplemental unaudited financial statements
In addition to the annual report required under paragraph
(4), the Thrift Depositor Protection Oversight Board and the
Corporation shall submit to the Congress, not later than
September 30 of each calendar year, an unaudited financial
statement for the 6-month period ending on June 30 of such
year.
(6) Appearances before Congressional committees
(A) (!13) Semiannual appearance required
Not later than 30 days after submission of the semiannual
reports required by paragraph (5), the Thrift Depositor
Protection Oversight Board shall appear before 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 to -
(i) report on the progress made during such period in
resolving cases involving institutions described in
subsection (b)(3)(A) of this section;
(ii) provide an estimate of the short-term and long-term
cost to the United States Government of obligations issued or
incurred during such period;
(iii) report on the progress made during such period in
selling assets of institutions described in subsection
(b)(3)(A) of this section and the impact such sales are
having on the local markets in which such assets are located;
(iv) describe the costs incurred by the Corporation in
issuing obligations, managing and selling assets acquired by
the Corporation;
(v) provide an estimate of the income of the Corporation
from assets acquired by the Corporation;
(vi) provide an assessment of any potential source of
additional funds for the Corporation; and
(vii) provide an estimate of the remaining exposure of the
United States Government in connection with institutions
described in subsection (b)(3)(A) of this section which, in
the Thrift Depositor Protection Oversight Board's estimation,
will require assistance or liquidation after the end of such
period.
(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 preceding calendar quarter:
(A) Asset sales
The report shall contain the following information with
respect to assets of institutions described in subsection
(b)(3)(A) of this section which were disposed of by the
Corporation 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:
(I) Cash and securities.
(II) Mortgage loans for 1- to 4-family dwellings.
(III) 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 information 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.
(III) 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 quarter, 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 Corporation
which requested seller financing.
(iii) A breakdown of the type of assets sold, according to
the categories listed in subclauses (I) through (VIII) of
subparagraph (B)(vii).
(iv) Projections of the total amount of seller financing
which will be needed during the succeeding 2 quarters.
(8) Operating plans
(A) In general
Before the beginning of each calendar quarter, the Thrift
Depositor Protection 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 principal
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 Director of the Office of Thrift Supervision shall deliver
on a quarterly basis to the Thrift Depositor Protection Oversight
Board a list of savings associations 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 [12 U.S.C. 1461 et
seq.]. The Thrift Depositor Protection Oversight Board shall
report the aggregate number and assets of such savings
associations to Congress within 60 days after June 30 and
December 31 of each calendar year.
(10) Budget reports
(A) In general
Before the end of each calendar quarter, the Thrift Depositor
Protection 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 Thrift Depositor
Protection Oversight Board.
(B) Activities relating to phasing out RTC operations
Beginning with the report due in the 1st quarter of 1994, the
report shall include information on the Corporation'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.
(11) Employee reports
The Corporation shall submit semiannual reports 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:
(A) The total number of employees of the Thrift Depositor
Protection Oversight Board and the total number of individuals
performing services directly on behalf of the Corporation.
(B) The total number of individuals performing services for
the Corporation as employees of the Federal Deposit Insurance
Corporation or any other agency, including the Government
Accountability Office and the number from each such agency.
(C) The total number of individuals employed in each job
classification and employment status, including employment on a
temporary basis or for an agreed upon period of time.
(l) Power to remove; jurisdiction
(1) In general
Notwithstanding any other provision of law, any civil action,
suit, or proceeding to which the Corporation is a party shall be
deemed to arise under the laws of the United States, and the
United States district courts shall have original jurisdiction
over such action, suit, or proceeding.
(2) Corporation as party
The Corporation shall be substituted as a party in any civil
action, suit, or proceeding to which its predecessor in interest
was a party with respect to institutions which are subject to the
management agreement dated February 7, 1989, among the Federal
Savings and Loan Insurance Corporation, the Federal Home Loan
Bank Board and the Federal Deposit Insurance Corporation.
(3) Removal 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
(!14) 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
appointed conservator or receiver if the action, suit, or
proceeding is brought against the institution or the
Corporation 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 Corporation
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 Corporation as conservator or receiver
for that party or 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 any order of remand entered by a
United States district court.
(m) Termination
(1) In general
The Corporation shall terminate not later than December 31,
1995. If at the time of its termination, the Corporation is
acting as a conservator or receiver, the Federal Deposit
Insurance Corporation shall succeed the Corporation as
conservator or receiver.
(2) Case resolutions transferred
Simultaneous with the termination of the Corporation as
provided in paragraph (1), all assets and liabilities of the
Corporation shall be transferred to the FSLIC Resolution Fund.
Thereafter, if there are no liabilities of the Corporation
outstanding, the FSLIC Resolution Fund shall transfer any net
proceeds from the sale of assets to the Resolution Funding
Corporation.
(3) Transfer of personnel and systems
In connection with the assumption by the Federal Deposit
Insurance Corporation of conservatorship and receivership
functions with respect to institutions described in subsection
(b)(3)(A) of this section and the termination of the Corporation
pursuant to paragraph (1) -
(A) any management, resolution, or asset-disposition system
of the Corporation which the Secretary of the Treasury
determines, after considering the recommendations of the
interagency transition task force under section 6(c) of the
Resolution Trust Corporation Completion Act, has been of
benefit to the operations of the Corporation (including any
personal property of the Corporation which is used in operating
any such system) shall, notwithstanding paragraph (2), be
transferred to and used by the Federal Deposit Insurance
Corporation in a manner which preserves the integrity of the
system for so long as such system is efficient and cost-
effective; and
(B) any personnel of the Corporation involved with any such
system who are otherwise eligible to be transferred to the
Federal Deposit Insurance Corporation shall be transferred to
the Federal Deposit Insurance Corporation for continued
employment, subject to section 404(9) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 and
other applicable provisions of this section, with respect to
such system.
(n) Conflict of interest
(1) In general
(A) The Thrift Depositor Protection Oversight Board and the
Corporation shall each be an "agency" for purposes of title 18.
Any individual who, pursuant to a contract or any other
arrangement, performs functions or activities of the Thrift
Depositor Protection Oversight Board or the Corporation, under
the direct supervision of an officer or employee of the Thrift
Depositor Protection Oversight Board or the Corporation, shall be
deemed to be an employee of the Thrift Depositor Protection
Oversight Board or the Corporation for the purposes of title 18
and this chapter.
(B) Any individual who, pursuant to a contract or any other
agreement, acts for or on behalf of the Corporation shall be
deemed to be a public official for the purposes of section 201 of
title 18.
(2) Establishment of rules
The Thrift Depositor Protection Oversight Board and the
Corporation shall, not later than 180 days after August 9, 1989,
promulgate rules and regulations governing conflict of interest,
ethical responsibilities, and post-employment restrictions
applicable to members, officers, and employees of the Thrift
Depositor Protection Oversight Board and the Corporation that
shall be no less stringent than those applicable to the Federal
Deposit Insurance Corporation.
(3) Use of confidential information
The Thrift Depositor Protection Oversight Board and the
Corporation shall, not later than 180 days after August 9, 1989,
promulgate rules and regulations applicable to independent
contractors governing conflicts of interest, ethical
responsibilities, and the use of confidential information
consistent with the goals and purposes of titles 18 and 41.
(4) Post employment
The chief executive officer of the Corporation shall be
prohibited for a period of 1 year after leaving the Corporation
from holding any office, position, or employment with, or
receiving remuneration from, a company (other than the
Corporation) which, during the time the chief executive was
employed by the Corporation, participated in any case resolution
or contract with the Corporation for which such person was either
responsible or in which such person was personally and
substantially involved except that the chief executive officer
may hold any office, position, or employment so long as the chief
executive officer does not, during the 1-year period, provide
advice with respect to, participate in decisions relating to, or
otherwise provide assistance to such entity on the enumerated
matters or receive remuneration with respect thereto from such
company.
(5) Other agency employees
Officers and employees of the Thrift Depositor Protection
Oversight Board and the Corporation who are also subject to the
ethical rules of another agency or Government Corporation (!15)
shall file with the Corporation a copy of any financial
disclosure statement required by such other agency or
corporation.
(6) Disapproval of contractors
(A) In general
The Thrift Depositor Protection Oversight Board shall
prescribe regulations establishing procedures for ensuring that
any individual who is performing, directly or indirectly, any
function or service on behalf of the Corporation meets minimum
standards of competence, experience, integrity, and fitness.
(B) Prohibition from service on behalf of Corporation
The procedures established under subparagraph (A) shall
provide that the Corporation shall prohibit any person who does
not meet the minimum standards of competence, experience,
integrity, and fitness from -
(i) entering into any contract with the Corporation; or
(ii) being employed by the Corporation or any person
performing any service for or on behalf of the Corporation.
(C) Information required to be submitted
The procedures established under subparagraph (A) shall
require that any offer submitted to the Corporation by any
person under this section and any employment application
submitted to the Corporation by any person shall include -
(i) a list and description of any instance during the
preceding 5 years in which the person or company under such
person's control defaulted on a material obligation to an
insured depository institution; and
(ii) such other information as the Board may prescribe by
regulation.
(D) Subsequent submissions
No offer submitted to the Corporation may be accepted unless
the offeror agrees that no person will be employed, directly or
indirectly, by the offeror under any contract with the
Corporation unless all applicable information described in
subparagraph (C) with respect to any such person is submitted
to the Corporation and the Corporation does not disapprove of
the direct or indirect employment of such person. Any decision
made by the Corporation pursuant to this paragraph shall be in
its sole discretion and shall not be subject to review.
(E) Prohibition required in certain cases
The standards established under subparagraph (A) shall
require the Corporation to prohibit any person who has -
(i) been convicted of any felony,
(ii) been removed from, or prohibited from participating in
the affairs of, any insured depository institution pursuant
to any final enforcement action by any appropriate Federal
banking agency,
(iii) demonstrated a pattern or practice of defalcation
regarding obligations to insure depository institutions, or
(iv) caused a substantial loss to the Deposit Insurance
Fund,
from service on behalf of the Corporation.
(7) Abrogation of contracts
The Thrift Depositor Protection Oversight Board or the
Corporation may rescind any contract with a person who -
(A) fails to disclose a material fact to the Thrift Depositor
Protection Oversight Board or the Corporation,
(B) would be prohibited under paragraph (6) from providing
services to, receiving fees from, or contracting with the
Corporation or the Thrift Depositor Protection Oversight Board,
or
(C) has been subject to a final enforcement action by any
Federal bank regulatory agency.
(8) Priority of Thrift Depositor Protection Oversight Board rules
To the extent that the rules established under this subsection
conflict with rules of other agencies or Government corporations,
officers, directors, employees, and independent contractors of
the Corporation or the Thrift Depositor Protection Oversight
Board, who are also subject to the conflict of interest or
ethical rules of another agency or Government corporation, shall
be governed by the rules and regulations established by the
Thrift Depositor Protection Oversight Board under this subsection
when acting for or on behalf of the Corporation.
(9) Definitions
For the purposes of this subsection -
(A) The term "company" has the same meaning as in section
1841(b) of this title.
(B) The term "control" has the same meaning given such term
under regulations promulgated by the Federal Home Loan Bank
Board with respect to savings and loan holding companies as in
effect on the day before August 9, 1989.
(C) The term "Corporation" includes the Resolution Trust
Corporation, the national advisory board, and the regional
advisory boards.
(o) Status of employees
(1) Liability
A member, officer, or employee of the Corporation or of the
Thrift Depositor Protection Oversight Board has no liability
under the Securities Act of 1933 [15 U.S.C. 77a et seq.] 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 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 or of the Thrift Depositor Protection Oversight
Board" includes any officer or employee of the Federal Deposit
Insurance Corporation who performs services for the Corporation.
(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
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.
(p) Management enhancement goals
(1) Action to achieve specific goals
The Corporation, upon March 23, 1991, 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 compliance with Corporation policies and
procedures by conservatorship managing agents, and (iii)
ensuring and monitoring of conservatorship managing agent
performance. 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 identification of
Corporation information and systems needs at all operational
levels.
(D) Securities portfolio management system
The Corporation shall develop within its information
architecture framework, a centralized system for the management
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 develop, 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 valuations 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 developed 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 relationships. The Corporation
shall develop and have in widespread 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.
(2) Report
The Corporation shall, not later than September 30, 1991, file
with 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 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.
(q) RTC, Thrift Depositor Protection Oversight Board, and RTC
contractor employee protection remedy
(1) Prohibition against discrimination
The Corporation, the Thrift Depositor Protection Oversight
Board, and any person who is performing, directly or indirectly,
any function or service on behalf of the Corporation or the
Thrift Depositor Protection Oversight Board may not discharge or
otherwise discriminate against any employee (including any
employee of the Federal Deposit Insurance Corporation on
assignment to the Corporation under this section or any personnel
referred to in subparagraphs (C) and (F) of subsection (a)(5) of
this section) with respect to compensation, terms, conditions, or
privileges of employment because the employee (or any person
acting pursuant to the request of the employee) provided
information to the Corporation, the Thrift Depositor Protection
Oversight Board, the Attorney General, or any appropriate Federal
banking agency (as defined in section 1813q of this title)
regarding -
(A) a possible violation of any law or regulation; or
(B) gross mismanagement, a gross waste of funds, an abuse of
authority, or a substantial and specific danger to public
health or safety;
by the Corporation, the Thrift Depositor Protection Oversight
Board, or such person or any director, officer, or employee of
the Corporation, the Thrift Depositor Protection Oversight Board,
or the person.
(2) Enforcement
Any employee or former employee who believes that such employee
has been discharged or discriminated against in violation of
paragraph (1) may file a civil action in the appropriate United
States district court before the end of the 2-year period
beginning on the date of such discharge or discrimination.
(3) Remedies
If the district court determines that a violation has occurred,
the court may order the Corporation or the person which committed
the violation to -
(A) reinstate the employee to the employee's former position;
(B) pay compensatory damages; or
(C) take other appropriate actions to remedy any past
discrimination.
(4) Limitation
The protections of this section shall not apply to any employee
who -
(A) deliberately causes or participates in the alleged
violation of law or regulation; or
(B) knowingly or recklessly provides substantially false
information to the Corporation, the Attorney General, or any
appropriate Federal banking agency.
(5) Burdens of proof
The legal burdens of proof that prevail under subchapter III of
chapter 12 of title 5 shall govern adjudication of protected
activities under this subsection.
(r) 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 additional 5 percent of the
total cost preference points achievable in 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, the following definitions
shall apply:
(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 business" 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.
(s) Acquisition of branch facilities in minority neighborhoods
(1) In general
In the case of any savings association for which the
Corporation has been appointed conservator or receiver, 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 operation 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, the following definitions
shall apply:
(A) Minority depository institution
The term "minority (!16) institution" means a depository
institution (as defined in section 1813(c) of this title) -
(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's depository institution
The term "women's depository institution" means a depository
institution (as defined in section 1813(c) of this title) -
(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 (!17) and Enforcement Act of 1989.
(t) Assistance under circumstances for acquisition of majority-
owned institutions
(1) In general
In addition to the assistance provided pursuant to the the
(!18) minority capital assistance program established under
subsection (u)(1) of this section, 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 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.
(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 (!17) and Enforcement Act of 1989.
(B) Acquisition
The term "acquisition" means any transaction in which a
savings association is acquired (as defined in section
1823(f)(8)(B) of this title).
(u) Minority interim capital assistance program
(1) In general
The minority interim capital assistance program administered by
the Corporation pursuant to the policy statement entitled the
"Interim Statement of Policy Regarding Resolutions of Minority-
Owned Depository Institutions" adopted by the Corporation on
January 30, 1990 (!17) 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 program 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.
(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, the following definitions
shall apply:
(A) Minority
The term "minority" has the meaning given to such term by
section 1204(c)(3) of the Financial Institutions Reform,
Recovery (!19) and Enforcement Act of 1989.
(B) Acquisition
The term "acquisition" means any transaction in which a
savings association is acquired (as defined in section
1823(f)(8)(B) of this title).
(v) Continuation of obligation to provide services
No person obligated to provide services to an insured depository
institution at the time the Resolution Trust Corporation is
appointed conservator or receiver for the institution shall fail to
provide those services to any person to whom the right to receive
those services was transferred by the Resolution Trust Corporation
after August 9, 1989, unless the refusal is based on the
transferee's failure to comply with any material term or condition
of the original obligation. This subsection does not limit any
authority of the Resolution Trust Corporation as conservator or
receiver under section 1821(e) of this title.
(w) RTC management reforms
(1) Comprehensive business plan
The Corporation shall establish and maintain a comprehensive
business plan covering the operations of the Corporation,
including the disposition of assets, for the remainder of the
Corporation's existence.
(2) Marketing real property on an individual basis
The Corporation shall -
(A) market any undivided or controlling interest in real
property, whether held directly or indirectly by an institution
described in subsection (b)(3)(A) of this section, on an
individual basis, including sales by auction, for no fewer than
120 days before such assets may be made available for sale or
other disposition on a portfolio basis or otherwise included in
a multiasset sales initiative, except that this subparagraph
does not apply to assets that are -
(i) sold simultaneously with a resolution in which a buyer
purchases a significant proportion of the assets and assumes
a significant proportion of the liabilities, or acts as agent
of the Corporation for purposes of paying insured deposits,
of an institution described in subsection (b)(3)(A) of this
section; or
(ii) transferred to a new institution organized pursuant to
section 1821(d)(2)(F) of this title; and
(B) prescribe regulations -
(i) to require that the sale or other disposition of any
asset consisting of real property on a portfolio basis or in
connection with any multiasset sales initiative after the end
of the 120-day period described in subparagraph (A) be
justified in writing; and
(ii) to carry out the requirements of subparagraph (A).
(3) Disposition of real estate related assets
(A) Procedures for disposition of real estate related assets
The Corporation shall not sell real property or any
nonperforming real estate loan which the Corporation has
acquired as receiver or conservator, unless -
(i) the Corporation has assigned responsibility for the
management and disposition of such asset to a qualified
person or entity to -
(I) analyze each asset on an asset-by-asset basis and
consider alternative disposition strategies for such asset;
(II) develop a written management and disposition plan;
and
(III) implement that plan for a reasonable period of
time; or
(ii) the Corporation has made a determination in writing
that a bulk transaction would maximize net recovery to the
Corporation, while providing opportunity for broad
participation by qualified bidders, including minority- and
women-owned businesses.
(B) Definitions
In defining any term for purposes of subparagraph (A), the
Corporation may, by regulation, define -
(i) the term "asset" so as to include properties or loans
which are legally separate and distinct properties or loans,
but which have sufficiently common characteristics such that
they may be logically treated as a single asset; and
(ii) the term "qualified person or entity" so as to include
any employee of the Thrift Depositor Protection Oversight
Board or any employee assigned to the Corporation under
subsection (b)(8) of this section.
(C) Exceptions
This paragraph shall not apply to -
(i) assets that are -
(I) sold simultaneously with a resolution in which a
buyer purchases a significant proportion of the assets and
assumes a significant proportion of the liabilities (or
acts as agent of the Corporation for purposes of paying
insured deposits) of an institution described in subsection
(b)(3)(A) of this section; or
(II) transferred to a new institution organized pursuant
to section 1821(d)(2)(F) of this title;
(ii) nonperforming real estate loans with a book value of
not more than $1,000,000;
(iii) real property with a book value of not more than
$400,000; or
(iv) real property with a book value of more than $400,000
or nonperforming real estate loans with a book value of more
than $1,000,000 for which the Corporation determines, in
writing, that a disposition not in conformity with the
requirements of subparagraph (A) will bring a greater return
to the Corporation.
(D) Coordination with paragraph (2)
No provision of this paragraph shall supersede the
requirements of paragraph (2).
(4) Division of minorities and women programs
(A) In general
The Corporation shall maintain a division of minorities and
women programs.
(B) Vice president
The head of the division shall be a vice president of the
Corporation and a member of the executive committee of the
Corporation.
(5) Chief financial officer
(A) In general
The chief executive officer of the Corporation shall appoint
a chief financial officer for the Corporation.
(B) Authority
The chief financial officer of the Corporation shall -
(i) have no operating responsibilities with respect to the
Corporation other than as chief financial officer;
(ii) report directly to the chief executive officer of the
Corporation; and
(iii) have such authority and duties of chief financial
officers of agencies under section 902 of title 31 as the
Thrift Depositor Protection Oversight Board determines to be
appropriate with respect to the Corporation.
(6) Basic ordering agreements
(A) Revision of procedures
The Corporation shall revise the procedure for reviewing and
qualifying applicants for eligibility for future contracts in a
specified service area (commonly referred to as "basic ordering
agreements" or "task ordering agreements") in such manner as
may be necessary to ensure that small businesses, minorities,
and women are not inadvertently excluded from eligibility for
such contracts.
(B) Review of lists
To ensure the maximum participation level possible of
minority- and women-owned businesses, the Corporation shall -
(i) review all lists of contractors determined to be
eligible for future contracts in a specified service area and
other contracting mechanisms; and
(ii) prescribe appropriate regulations and procedures.
(7) Improvement of contracting systems and contractor oversight
The Corporation shall -
(A) maintain such procedures and uniform standards for -
(i) entering into contracts between the Corporation and
private contractors; and
(ii) overseeing the performance of contractors and
subcontractors under such contracts and compliance by
contractors and subcontractors with the terms of contracts
and applicable regulations, orders, policies, and guidelines
of the Corporation,
as may be appropriate in carrying out the Corporation's
operations in as efficient and economical a manner as may be
practicable;
(B) commit sufficient resources, including personnel, to
contract oversight and the enforcement of all laws,
regulations, orders, policies, and standards applicable to
contracts with the Corporation; and
(C) maintain uniform procurement guidelines for basic goods
and administrative services to prevent the acquisition of such
goods and services at widely different prices.
(8) Audit committee
(A) Establishment
The Thrift Depositor Protection Oversight Board shall
establish and maintain an audit committee.
(B) Duties
The audit committee shall have the following duties:
(i) Monitor the internal controls of the Corporation.
(ii) Monitor the audit findings and recommendations of the
inspector general of the Corporation and the Comptroller
General of the United States and the Corporation's response
to the findings and recommendations.
(iii) Maintain a close working relationship with the
inspector general of the Corporation and the Comptroller
General of the United States.
(iv) Regularly report the findings and any recommendation
of the audit committee to the Corporation and the Thrift
Depositor Protection Oversight Board.
(v) Monitor the financial operations of the Corporation and
report any incipient problem identified by the audit
committee to the Corporation and the Thrift Depositor
Protection Oversight Board.
(C) Federal Advisory Committee Act not applicable
The audit committee is not an advisory committee within the
meaning of section 3(2) of the Federal Advisory Committee Act.
(9) Corrective responses to audit problems
The Corporation shall -
(A) respond to problems identified by auditors of the
Corporation's financial and asset-disposition operations,
including problems identified in audit reports by the inspector
general of the Corporation, the Comptroller General of the
United States, and the audit committee; or
(B) certify to the Thrift Depositor Protection Oversight
Board that no action is necessary or appropriate.
(10) Assistant general counsel for professional liability
(A) Appointment
The Corporation shall appoint, within the division of legal
services of the Corporation, an assistant general counsel for
professional liability.
(B) Duties
The assistant general counsel for professional liability
shall -
(i) direct the investigation, evaluation, and prosecution
of all professional liability claims involving the
Corporation; and
(ii) supervise all legal, investigative, and other
personnel and contractors involved in the litigation of such
claims.
(C) Semiannual reports to the Congress
The assistant general counsel for professional liability
shall submit to the Congress a comprehensive litigation report,
not later than -
(i) April 30 of each year for the 6-month period ending on
March 31 of that year; and
(ii) October 31 of each year for the 6-month period ending
on September 30 of that year.
(D) Contents of reports
The semiannual reports required under subparagraph (C) shall
each address the activities of the counsel for professional
liability under subparagraph (B) and all civil actions -
(i) in which the Corporation is a party, which are filed
against -
(I) directors or officers of depository institutions
described in subsection (b)(3)(A) of this section; or
(II) attorneys, accountants, appraisers, or other
licensed professionals who performed professional services
for such depository institutions; and
(ii) which are initiated or pending during the period
covered by the report.
(11) Management information system
The Corporation shall maintain an effective management
information system capable of providing complete and current
information to the extent the provision of such information is
appropriate and cost-effective.
(12) Internal controls against fraud, waste, and abuse
The Corporation shall maintain effective internal controls
designed to prevent fraud, waste, and abuse, identify any such
activity should it occur, and promptly correct any such activity.
(13) Failure to appoint certain officers of the Corporation
The failure to fill any position established under this section
or any vacancy in any such position, shall be treated as a
failure to comply with the requirements of this subsection for
purposes of subsection (i)(4) of this section.
(14) Reports
(A) Disclosure of expenditures
The Corporation shall include in the annual report submitted
pursuant to subsection (k)(4) of this section an itemization of
the expenditures of the Corporation during the year for which
funds provided pursuant to subsection (i)(3) of this section
were used.
(B) Public disclosure of salaries
The Corporation shall include in the annual report submitted
pursuant to subsection (k)(4) of this section a disclosure of
the salaries and other compensation paid during the year
covered by the report to directors and senior executive
officers at any depository institution for which the
Corporation has been appointed conservator or receiver.
(15) Minority- and women-owned businesses contract parity
guidelines
The Corporation shall establish guidelines for achieving the
goal of a reasonably even distribution of contracts awarded to
the various subgroups of the class of minority- and women-owned
businesses and minority- and women-owned law firms whose total
number of certified contractors comprise not less than 5 percent
of all minority- and women-owned certified contractors. The
guidelines may reflect the regional and local geographic
distributions of minority subgroups. The distribution of
contracts should not be accomplished at the expense of any
eligible minority- or women-owned business or law firm in any
subgroup that falls below the 5 percent threshold in any region
or locality.
(16) Contract sanctions for failure to comply with subcontract
and joint venture requirements
The Corporation shall prescribe regulations which provide
sanctions, including contract penalties and suspensions, for
violations by contractors of requirements relating to
subcontractors and joint ventures.
(17) Minority preference in acquisition of institutions in
predominantly minority neighborhoods
(A) In general
In considering offers to acquire any insured depository
institution, or any branch of an insured depository
institution, located in a predominantly minority neighborhood
(as defined in regulations prescribed under subsection (s) of
this section), the Corporation shall give preference to an
offer from any minority individual, minority-owned business, or
a minority depository institution, over any other offer that
results in the same cost to the Corporation, as determined
under section 1823(c)(4) of this title.
(B) Capital assistance
(i) Eligibility
In order to effectuate the purposes of this paragraph, any
minority individual, minority-owned business, or a minority
depository institution shall be eligible for capital
assistance under the minority interim capital assistance
program established under subsection (u)(1) of this section
and subject to the provisions of subsection (u)(3) of this
section, to the extent that such assistance is consistent
with the application of section 1823(c)(4) of this title.
(ii) Terms and conditions
Subsection (u)(4) of this section shall not apply to
capital assistance provided under this subparagraph.
(C) Performing assets
In the case of an acquisition of any depository institution
or branch described in subparagraph (A) by any minority
individual, minority-owned business, or a minority depository
institution, the Corporation may provide, in connection with
such acquisition and in addition to performing assets of the
depository institution or branch, other performing assets under
the control of the Corporation in an amount (as determined on
the basis of the Corporation's estimate of the fair market
value of the assets) not greater than the amount of net
liabilities carried on the books of the institution or branch,
including deposits, which are assumed in connection with the
acquisition.
(D) First priority for disposition of assets
In the case of an acquisition of any depository institution
or branch described in subparagraph (A) by any minority
individual, minority-owned business, or a minority depository
institution, the disposition of the performing assets of the
depository institution or branch to such individual, business,
or minority depository institution shall have a first priority
over the disposition by the Corporation of such assets for any
other purpose.
(E) Definitions
For purposes of this paragraph, the following definitions
shall apply:
(i) Acquire
The term "acquire" has the same meaning as in section
1823(f)(8)(B) of this title.
(ii) Minority
The term "minority" has the same meaning as in section
1204(c)(3) of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989.
(iii) Minority depository institution
The term "minority depository institution" has the same
meaning as in subsection (s)(2) of this section.
(iv) Minority-owned business
The term "minority-owned business" has the same meaning as
in subsection (r)(4) of this section.
(18) Subcontracts with minority- and women-owned businesses
(A) Goals and procedures
(i) Reasonable goals
The Corporation shall establish reasonable goals for
contractors for services with the Corporation to subcontract
with minority- and women-owned businesses and law firms.
(ii) Procedures
The Corporation may not enter into any contract for the
provision of services to the Corporation, including legal
services, under which the contractor would receive fees or
other compensation in an amount equal to or greater than
$500,000, unless the Corporation requires the contractor to
subcontract with minority- or women-owned businesses,
including law firms, and to pay fees or other compensation to
such businesses in an amount commensurate with the percentage
of services provided by the business.
(iii) Exceptions
The Corporation may exclude a contract from the
requirements of clause (ii) if the Chief Executive Officer of
the Corporation determines in writing that imposing such a
subcontracting requirement would -
(I) substantially increase the cost of contract
performance; or
(II) undermine the ability of the contractor to perform
its obligations under the contract.
(B) Limited waiver authority
(i) In general
The Corporation may grant a waiver from the application of
this paragraph to any contractor with respect to a contract
described in subparagraph (A)(ii), if the contractor
certifies to the Corporation that it has determined that no
eligible minority- or women-owned business is available to
enter into a subcontract (with respect to such contract) and
provides an explanation of the basis for such determination.
(ii) Waiver procedures
Any determination to grant a waiver under clause (i) shall
be made in writing by the Chief Executive Officer of the
Corporation.
(C) Report
Each quarterly report submitted by the Corporation pursuant
to subsection (k)(7) of this section shall contain a
description of each exception granted under subparagraph
(A)(iii) and each waiver granted under subparagraph (B) during
the quarter covered by the report.
(D) Definitions
For purposes of this paragraph, the following definitions
shall apply:
(i) Minority
The term "minority" has the same meaning as in section
1204(c)(3) of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989.
(ii) Minority- and women-owned business
The terms "minority-owned business" and "women-owned
business" have the same meanings as in subsection (r)(4) of
this section.
(19) Contracting procedures
(A) Procedures
In awarding any contract subject to the competitive bidding
process, the Corporation shall apply competitive bidding
procedures that are no less stringent than those in effect on
December 17, 1993.
(B) Cost to taxpayer
Nothing in this chapter, or any other provision of law, shall
supersede the Corporation's primary duty of minimizing costs to
the taxpayer and maximizing the total return to the Government.
(20) Management of legal services
To improve the management of legal services, the Corporation -
(A) shall utilize staff counsel when such utilization would
provide the same level of quality in legal services as the use
of outside counsel at the same or a lower estimated cost; and
(B) may only employ outside counsel -
(i) if the use of outside counsel would provide the most
practicable, efficient, and cost-effective resolution to the
action; and
(ii) under a negotiated fee, contingent fee, or
competitively bid fee agreement.
(21) Client responsiveness units
The Corporation shall ensure that every regional office of the
Corporation contains a client responsiveness unit responsible to
the Corporation's ombudsman.
(x) Limitation on excessive compensation and cash awards
(1) Establishment of performance appraisal system required
The Corporation shall be treated as an agency for purposes of
sections 4302 and 4304 of title 5.
(2) Procedures for payment of cash awards
(A) In general
Sections 4502, 4503, and 4505a of title 5 shall apply with
respect to the Corporation.
(B) Limitation on amount of cash awards
For purposes of determining the amount of any performance-
based cash award payable to any employee of the Corporation
under section 4505a of title 5, the amount of basic pay of the
employee which may be taken into account under such section
shall not exceed the amount which is equal to the annual rate
of basic pay payable for level I of the Executive Schedule.
(3) All other cash awards and bonuses prohibited
Except as provided in paragraph (2), no cash award or bonus may
be made to any employee of the Corporation.
(4) Limitations on cash awards and bonuses
No employee shall receive any cash award or bonus if such
employee has given notice of an intent to resign to take a
position in the private sector before the payment of such cash
award or bonus or accepts employment in the private sector not
later than 60 days after receipt of such award or bonus.
(5) Limitation on excessive compensation
Except as provided in paragraphs (6) and (7), no employee may
receive a total amount of allowances, benefits, basic pay, and
other compensation, including bonuses and other awards, in excess
of the total amount of allowances, benefits, basic pay, and other
compensation, including bonuses and other awards, which are
provided to the chief executive officer of the Corporation.
(6) No reduction in rate of pay
The annual rate of basic pay and benefits, including any
regional pay differential, payable to any employee who was an
employee as of December 17, 1993, for any year ending after
December 17, 1993, shall not be reduced, by reason of paragraph
(5), below the annual rate of basic pay and benefits, including
any regional pay differential, paid to such employee, by reason
of such employment, as of December 17, 1993.
(7) Employees serving in acting or temporary capacity
In the case of any employee who, as of December 17, 1993, is
serving in an acting capacity or is otherwise temporarily
employed at a higher grade than such employee's regular grade or
position of employment -
(A) the annual rate of basic pay and benefits, including any
regional pay differential, payable to such employee in such
capacity or at such higher grade shall not be reduced by reason
of paragraph (5) so long as such employee continues to serve in
such capacity or at such higher grade; and
(B) after such employee ceases to serve in such capacity or
at such higher grade, paragraph (6) shall be applied with
respect to such employee by taking into account only the annual
rate of basic pay and benefits, including any regional pay
differential, payable to such employee in such employee's
regular grade or position of employment.
(8) Definitions
(A) Allowances
For purposes of paragraph (5), the term "allowances" does not
include any allowance for travel and subsistence expenses
incurred by an employee while away from home or designated post
of duty on official business.
(B) Employee
For purposes of this subsection and sections 4302, 4502,
4503, and 4505a of title 5 (as applicable with respect to this
subsection), the term "employee" includes any officer or
employee assigned to the Corporation under subsection (b)(8) of
this section and any officer or employee of the Thrift
Depositor Protection Oversight Board.
(y) Authority to execute contracts
(1) Authorized persons
A person may execute a contract on behalf of the Corporation
for the provision of goods or services only if -
(A) that person -
(i) is a warranted contracting officer appointed by the
Corporation, or is a managing agent of a savings association
under the conservatorship of the Corporation; and
(ii) provides appropriate certification or other
identification, as required by the Corporation in accordance
with paragraph (2);
(B) the notice described in paragraph (4) is included in the
written contract; and
(C) that person has appropriate authority to execute the
contract on behalf of the Corporation in accordance with the
notice published by the Corporation in accordance with
paragraph (5).
(2) Presentation of identification
Prior to executing any contract described in paragraph (1) with
any person, a warranted contracting officer or managing agent
shall present to that person -
(A) a valid certificate of appointment (or such other
identification as may be required by the Corporation) that is
signed by the appropriate officer of the Corporation; or
(B) a copy of such certificate, authenticated by the
Corporation.
(3) Treatment of unauthorized contracts
A contract described in paragraph (1) that fails to meet the
requirements of this section -
(A) shall be null and void; and
(B) shall not be enforced against the Corporation or its
agents by any court.
(4) Inclusion of notice in contract terms
Each written contract described in paragraph (1) shall contain
a clear and conspicuous statement (in boldface type) in immediate
proximity to the space reserved for the signatures of the
contracting parties as follows:
"Only warranted contracting officers appointed by the
Resolution Trust Corporation or managing agents of associations
under the conservatorship of the Resolution Trust Corporation
have the authority to execute contracts on behalf of the
Resolution Trust Corporation. Such persons have certain limits on
their contracting authority. The nature and extent of their
contracting authority levels are published in the Federal
Register.
"A warranted contracting officer or a managing agent must
present identification in the form of a signed certificate of
appointment (or an authenticated copy of such certificate) or
other identification, as required by the Corporation, prior to
executing any contract on behalf of the Resolution Trust
Corporation.
"Any contract that is not executed by a warranted contracting
officer or the managing agent of a savings association under the
conservatorship of the Resolution Trust Corporation, acting in
conformity with his or her contracting authority, shall be null
and void, and will not be enforceable by any court."
(5) Notice of requirements
Not later than 30 days after December 17, 1993, the Corporation
shall publish notice in the Federal Register of -
(A) the requirements for appointment by the Corporation as a
warranted contracting officer; and
(B) the nature and extent of the contracting authority to be
exercised by any warranted contracting officer or managing
agent.
(6) Exception
This section does not apply to -
(A) any contract between the Corporation and any other person
governing the purchase or assumption by that person of -
(i) the ownership of a savings association under the
conservatorship of the Corporation; or
(ii) the assets or liabilities of a savings association
under the conservatorship or receivership of the Corporation;
or
(B) any contract executed by the Inspector General of the
Corporation (or any designee thereof) for the provision of
goods or services to the Office of the Inspector General of the
Corporation.
(7) Execution of contracts
For purposes of this subsection, the execution of a contract
includes all modifications to such contract.
(8) Effective date
The requirements of this subsection shall apply to all
contracts described in paragraph (1) executed on or after the
date which is 45 days after December 17, 1993.
(z) Additional contracting requirements
(1) In general
No person shall execute, on behalf of the Corporation, any
contract, or modification to a contract, for goods or services
exceeding $100,000 in value unless the person executing the
contract or modification states in writing that -
(A) the contract or modification is for a fixed price, the
person has received a written cost estimate for the contract or
modification, or a cost estimate cannot be obtained as a
practical matter with an explanation of why such a cost
estimate cannot be obtained as a practical matter;
(B) the person has received the written statement described
in paragraph (2); and
(C) the person is satisfied that the contract or modification
to be executed has been approved by a person legally authorized
to do so pursuant to a written delegation of authority.
(2) Written delegation of authority
A person who authorizes a contract, or a modification to a
contract, involving the Corporation for goods or services
exceeding $100,000 in value shall state, in writing, that he or
she has been delegated the authority, pursuant to a written
delegation of authority, to authorize that contract or
modification.
(3) Effect of failure to comply
The failure of any person executing a contract, or a
modification of a contract, on behalf of the Corporation, or
authorizing such a contract or modification of a contract, to
comply with the requirements of this subsection shall not void,
or serve as grounds to void or rescind, any otherwise properly
executed contract.