102d CONGRESS
1st Session
H. R. 3435
AN ACT
To provide funding for the resolution of failed savings associations and
working capital for the Resolution Trust Corporation, to restructure the
Oversight Board and the Resolution Trust Corporation, and for other purposes.
HR 3435 EH
102d CONGRESS
1st Session
H. R. 3435
AN ACT
To provide funding for the resolution of failed savings associations and
working capital for the Resolution Trust Corporation, to restructure the
Oversight Board and the Resolution Trust Corporation, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,

f2206c7b758467b29f1bde48fe69e14bbce8ea106a04c69d2eaa99c20efee6dc

This Act may be cited as the `Resolution Trust Corporation Refinancing,
Restructuring, and Improvement Act of 1991'.

c04b88270858a4ed0e9678a45f1e97cc47274d8bacd8bb993f127535c2c914da

Section 21A(i) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(i))
is amended by adding at the end the following new paragraph:
`(3) ADDITIONAL INTERIM FUNDING- In addition to amounts provided under
paragraph (2), the Secretary of the Treasury shall provide to the Corporation
such sums as may be necessary not to exceed $25 billion to carry out the
purposes of this section until April 1, 1992.'.

153111cdc02a03f347a9b3ad053779c3791444801b12e9496137ec7a7b187185

TITLE I

-RESOLUTION TRUST CORPORATION REFINANCING

Section 11(c)(6)(B) of the Federal Deposit Insurance Act (12
U.S.C. 1821(c)(6)(B)) is amended to read as follows:
`(B) RECEIVER- Whenever the Director of the Office of Thrift Supervision
appoints a receiver under the provisions of section 5(d)(2)(C) of the Home
Owners' Loan Act for the purpose of liquidation or winding up any savings
association's affairs--
`(i) before October 1, 1993, the Resolution Trust Corporation shall be
appointed;
`(ii) after September 30, 1993, the Resolution Trust Corporation shall be
appointed if the Resolution Trust Corporation had been placed in control
of the depository institution at any time on or before such date; and
`(iii) after September 30, 1993, the Corporation shall be appointed unless
the Resolution Trust Corporation is required to be appointed under clause
(ii).'.

6d0da3d8057fd54939b5ffd03c0595a861cd5f02d00ea3d6dc5e9ecf31f3baee

(a) IN GENERAL- Section 21A(b)(3)(A)(ii) of the Federal Home Loan Bank Act
(12 U.S.C. 1441a(b)(3)(A)(ii)(II)) is amended to read as follows:
`(ii) for which a conservator or receiver is appointed after December 31,
1988, and before October 1, 1993 (including any institution described in
paragraph (6)).'.
(b) CONTINUATION OF RTC RECEIVERSHIP OR CONSERVATORSHIP- Section 21A(b)(6)
of the Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(6)) is amended to
read as follows:
`(6) CONTINUATION OF RTC RECEIVERSHIP OR CONSERVATORSHIP- If the
Corporation is appointed as conservator or receiver for any insured
depository institution described in paragraph (3)(A) before October 1,
1993, and a conservator or receiver is appointed for such institution on
or after such date, the Corporation may be appointed as conservator or
receiver for such institution on or after October 1, 1993.'.

2c507a5d2537f48bb3bc2dc34ad1f1a8fbf31388953d70b77442e67399132379

Section 21(e)(2) of the Federal Home Loan Bank Act (12 U.S.C. 1441(e)(2))
is amended to read as follows:
`(2) TERMINATION OF BORROWING AUTHORITY- No obligation of the Financing
Corporation shall be issued after the date of enactment of the Resolution
Trust Corporation Thrift Depositor Protection Refinance Act of 1991.'.

71df9a066e69fd9bd0a6173866ab4290d0730941cc4b1c4b391d154c5b2d934a

FUNDS TO REFCORP.
Section 21A(o)(2) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(o)(2))
is amended by inserting after `Thereafter' the following: `, if there are
no liabilities of the Corporation outstanding,'.

efd44c20526f5059becad0b70244a1bb5e196574b85b868b3f3395a254eeda20

AND OTHER MATTERS.
(a) QUARTERLY REPORTS- Section 21A(k)(7) of the Federal Home Loan Bank Act
(12 U.S.C. 1441a(k)(7)) is amended to read as follows:
`(7) QUARTERLY REPORTS- Not later than May 31, August 31, November 30,
and the last day of February of each year, the Corporation shall submit
a report to the Committee on Banking, Finance and Urban Affairs of the
House of Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate containing the following information for the quarter
ending on the last day of the month ending before the month in which such
report is required to be submitted:
`(A) ASSET SALES- The report shall contain the following information with
respect to assets of institutions described in subsection (b)(3)(A) which
were disposed of by the 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.'.
(b) SEMIANNUAL REPORT ON NATIONAL AND REGIONAL ADVISORY BOARDS- Section
21A(k)(4)(B) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(k)(4)(B))
is amended--
(1) by striking `and' at the end of clause (iii);
(2) by striking the period at the end of clause (iv) and inserting `;
and'; and
(3) by inserting after clause (iv) the following new clause:
`(v) descriptions of the operations and activities of the national and
regional advisory boards established under subsection (d) and financial
statements detailing the expenses of such boards.'.
(c) RTC AND OVERSIGHT BOARD BUDGET REPORTS- Section 21A(k) of the Federal
Home Loan Bank Act (12 U.S.C. 1441a(k)) is amended by adding at the end
the following new paragraph:
`(10) Budget reports-
`(A) IN GENERAL- Before the end of each calendar quarter, the Oversight
Board and the Corporation shall submit a report to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the Senate containing the complete
annual budget, as approved by the Oversight Board.
`(B) ACTIVITIES RELATING TO PHASING OUT RTC 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.'.
(d) EMPLOYEE REPORTS- Section 21A(k) of the Federal Home Loan Bank Act
(12 U.S.C. 1441a(k)) is amended by inserting after paragraph (10) (as
added by subsection (c) of this section) the following new paragraph:
`(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 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 an employee of the Federal Deposit Insurance Corporation or any other
agency, including the Government Accounting Office and the number from
each such agency.
`(C) The total number of individuals employed in each job classification
and employment status, including employment on a temporary basis or for
an agreed upon period of time.'.
(e) Supplemental Unaudited Financial Statements-
(1) INTERIM FINANCIAL STATEMENTS- Section 21A(k)(5) of the Federal Home
Loan Bank Act (12 U.S.C. 1441a(k)(5)) is amended by inserting at the end
the following new subparagraph:
`(C) SUPPLEMENTAL UNAUDITED FINANCIAL STATEMENTS- In addition to the
annual report required under paragraph (4), the Oversight Board and the
Corporation shall submit to the Congress, not later than September 30
of each calendar year, an unaudited financial statement for the 6-month
period ending on June 30 of such year.'.
(2) EFFECTIVE DATE- The amendment made by this subsection shall apply with
respect to annual reports required to be submitted after the end of the
90-day period beginning on the date of the enactment of this Act.

2322ca37c209dbf08bfd29ff42eeeaad9cab2d8d8b5ad16817f7256235edf44a

Section 21A(b)(9) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(9))
is amended--
(1) in subparagraph (B), by amending clause (i) to read as follows:
`(i) FDIC- The Corporation shall use employees (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 the date of enactment of the
Resolution Trust Corporation Thrift Depositor Protection Refinance Act of
1991  and who had not theretofore been provided to the 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 the date of enactment of
the Resolution Trust Corporation Thrift Depositor Protection Refinance Act
of 1991  shall continue to be provided to the Corporation after that date
unless the Corporation determines the services of any such employee to be
unnecessary, in which case such employee shall be returned to a similar
position performing services on behalf of the Federal Deposit Insurance
Corporation.  In any ensuing reduction-in-force or reorganization within
the Federal Deposit Insurance Corporation, any such employee shall compete
with the same rights as any other Federal Deposit Insurance Corporation
employee.  The Corporation may use administrative services of the Federal
Deposit Insurance Corporation and, if it does so, shall reimburse the
Federal Deposit Insurance Corporation for the actual costs of providing
such services. Any employee or officer in the executive service of the
Federal Deposit Insurance Corporation who was performing services on
behalf of the Corporation at level E-4 or above immediately prior to the
date of enactment of the Resolution Trust Corporation Thrift Depositor
Protection Refinance Act of 1991 shall continue to be assigned to perform
substantially similar services on behalf of the Corporation after such
date unless the Corporation--
`(I) determines that the services of any such employees are unnecessary, or
`(II) reassigns or substantially alters the responsibilities or duties of
any such employees.
If an action described in subclause (I) or (II) occurs, any such employee
with at least 20 years of service, as defined by chapter 83 or chapter 84 of
title 5, United States Code, shall be entitled to an annuity under section
8336(d) or section 8414(b)(1) of title 5, United States Code, notwithstanding
the fact that such employee has not attained the age of 50 years or has
declined another position with the Federal Deposit Insurance Corporation,
and the annuity of such employee shall not be reduced because of the age of
such employee. The Federal Deposit Insurance Corporation shall reimburse the
appropriate retirement insurance fund for any increased costs it incurs as
a result of the annuities authorized pursuant to this clause.'; and
(2) by adding at the end thereof the following new subparagraph:
`(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.'.

7990aaad7b1e12fb382a4c8838c141bb7fcbc96afc2d6612e2b974c306a2f8d7

TITLE II

-RESTRUCTURING AND IMPROVEMENT OF THE RESOLUTION TRUST CORPORATION

(a) TREASURY PAYMENTS TO FUND- Section 11(a)(6)(E) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)(6)(E)) is amended--
(1) by striking `1992' and inserting `1993'; and
(2) by striking `1999' and inserting `2000'.
(b) AUTHORIZATION OF APPROPRIATIONS- Section 11(a)(6)(J) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)(6)(J)) is amended--
(1) by striking `1991' each place it appears and inserting `1992';
(2) by striking `1992' and inserting `1993'; and
(3) by striking `1999' and inserting `2000'.
(c) FSLIC RESOLUTION FUND- Section 11A(a)(2)(B) of the Federal Deposit
Insurance Act (12 U.S.C. 1821a(a)(2)(B)) is amended by striking `1991'
and inserting `1992'.
(d) SOURCE OF FUNDS- Section 11A(b)(4) of the Federal Deposit Insurance Act
(12 U.S.C. 1821a(b)(4)) is amended by striking `1991' and inserting `1992'.

0008942b663dc82ce68b2eb76104e9036c3166028be5fedad4a2f2155340d526

This title may be cited as the `Resolution Trust Corporation Thrift
Depositor Protection Reform Act of 1991'.

878b7e5b77c94157a728ee6aacb4864f736f3ee96944e55ea67fd7d0856a1141

TITLE III

-REFORM OF THE RTC

IN THE FEDERAL HOME LOAN BANK ACT.
(a) REDESIGNATION- The Oversight Board, as established by section 21A(a)(1)
of the Federal Home Loan Bank Act (12 U.S.C. 1441a(a)(1)), is redesignated
the Thrift Depositor Protection Oversight Board.
(b) IN GENERAL- Except as provided in subsection (c), the Federal Home
Loan Bank Act (12 U.S.C. 1421 et seq.) is amended by striking `Oversight
Board' each place it appears and inserting `Thrift Depositor Protection
Oversight Board'.
(c) EXCEPTION- Subsection (b) does not apply to section 21A(k)(7) of the
Federal Home Loan Bank Act (12 U.S.C. 1441a(k)(7)).

a10cb08a932ea89d3a5cf09e4e40c6f1ecf2e2dcb15b999d5b599d60c3c6372f

Section 21A(a)(2) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(a)(2))
is amended--
(1) by striking `be accountable for' and inserting `monitor the operations
of'; and
(2) after `(hereinafter referred to in this section as the `Corporation'),'
by inserting `and shall be accountable for the duties assigned to the
Thrift Depositor Protection Oversight Board by this Act.'.

c80792b54c79e35d7bfa8055256344256faf1c7353e4a8d0ccef7bcb9f59a211

Section 21A(a)(3) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(a)(3))
is amended--
(1) in subparagraph (A)--
(A) by striking `5 members' and inserting `7 members';
(B) by striking clause (iii);
(C) by redesignating clause (iv) as clause (vi); and
(D) by inserting after clause (ii) the following:
`(iii)  the Director of the Office of Thrift Supervision;
`(iv) the Chairperson of the Board of Directors of the Federal Deposit
Insurance Corporation;
`(v) the chief executive officer of the Corporation; and'; and
(2) in subparagraph (E) by striking `3 members' and inserting `4 members'.

a0cb60dae6ebe1d8345daae397da4ffe8c8c9fee3ab69305bcdbb1e0e9ae92d7

BOARD.
Section 21A(a)(6) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(a)(6))
is amended--
(1) by amending subparagraph (A) to read as follows:
`(A) To review overall strategies, policies, and goals established by
the Corporation for its activities, which shall include such items as
the Thrift Depositor Protection 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).';
(2) in subparagraph (B), by inserting `financial plans, budgets, and'
after `implementation'; and
(3) by amending subparagraph (C) to read as follows:
`(C) To review all rules, regulations, standards, 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) of this
subsection: Provided, That if the Thrift Depositor Protection Oversight
Board requires the modification of any overall strategies, policies and
goals, it shall, within 30 days of the date at which it directs the RTC
make such modification, provide the House and Senate Banking Committees
with an explanation that identifies which ground justifies the review and
giving reasons why the modification is necessary to satisfy these grounds.'.

7c6e19c5ec06225aec64dbd1693292eef018acb9248461a8f105de63918095c5

BOARD.
Section 21A(a)(8)(A) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(a)(8)(A)) is amended--
(1) by striking `(i) involving' and inserting `involving (i)'; and
(2) by striking `provide general policies and procedures' and inserting
`review overall strategies, policies, and goals established by the
Corporation'.

fa38f2f9af86719fa4e6e26bfd354b19e2194c760e81363c2e08c88e69333931

Section 21A(c)(10) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(10))
is amended--
(1) by striking `4' and inserting `6'; and
(2) by adding a sentence at the end, to read as follows: `The Thrift
Depositor Protection Oversight Board shall maintain a transcript of its
open meetings.'.

1919d65e1bec06a1efdbe08a35e4fbb71aaea2524fe3f9ff96979fb6eef6dfb4

Section 21A(a)(14)(A) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(a)(14)(A)) is amended to read as follows:
`(A) IN GENERAL- The chief executive officer of the 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.'.

ea814f6469aaa813bc379af9b3bdc04eee9ebbae91eaae6c03d65df10f46364f

(a) MANAGEMENT- Section 21A(b)(1)(C) of the Federal Home Loan Bank Act
(12 U.S.C. 1441a(b)(1)(C)) is amended to read as follows:
`(C) MANAGEMENT BY CHIEF EXECUTIVE OFFICER- The Corporation shall be
managed by or under the direction of its chief executive officer.'.
(b) DUTIES- Section 21A(b)(3)(B) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(b)(3)(B)) is amended to read as follows:
`(B) To develop and establish overall strategies, policies, and goals
for the Corporation, subject to review by the Thrift Depositor Protection
Oversight Board pursuant to subsection (a)(6)(A) of this section.'.
(c) REAL AND PERSONAL PROPERTY- Section 21A(b)(10)(E) is amended by
adding after `real and personal property,' the following: `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,'.

571068830c663ff84ec4e59e2a8b5a482e52b103d345484e6fe732a938541e01

Section 21A(b) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(b))
is amended by striking paragraph (8) and redesignating paragraphs (9),
(10), (11), (12), (13), and (14) as paragraphs (8), (9), (10), (11),
(12), and (13), respectively.

2833d81a6826fff5b014adf2cfe1862099b8248ce303e9d1e46eaffa986f303f

CORPORATION; CONSULTATION.
Section 21A(b)(8) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(9)),
as redesignated, is amended--
(1) in subparagraph (A), by striking `Unless the Oversight Board  exercises
its authority under subsection (m) of this section' and inserting `Except
for its chief executive officer'; and
(2) by adding, after subparagraph (C), the following new subparagraph:
`(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.'.

1ae603ca1aaf8050fbc8fc3c5754501977b84720bf7444055ef9a1624ad55875

Section 21A(d) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(d))
is amended--
(1) by redesignating paragraphs (2) through (4) as paragraphs (3) through
(5), respectively;
(2)  by inserting after paragraph (1) the following new paragraph:
`(2) NATIONAL HOUSING ADVISORY BOARD-
`(A) ESTABLISHMENT- The Thrift Depositor Protection Oversight Board shall
establish a National Housing Advisory Board to advise the Thrift Depositor
Protection Oversight Board on policies and programs related to the provision
of affordable housing.
`(B) MEMBERSHIP- The National Housing Advisory Board shall consist of--
`(i) the Secretary of Housing and Urban Development; and
`(ii) the chairpersons of any regional advisory boards established pursuant
to paragraph (3).
`(C) MEETINGS- The National Housing Advisory Board shall meet 4 times a
year, or more frequently if requested by the Thrift Depositor Protection
Oversight Board.'.

55dbf38801821695aeed6371a726b243b5063003f1c33cdf30a6d349806e2f18

The Financial Institutions Reform, Recovery, and Enforcement Act of 1989
is amended--
(1) in section 404(9)--
(A) by striking `of such Corporation shall be transferred to' and inserting
`of the Federal Deposit Insurance Corporation assigned to the Resolution
Trust Corporation shall be reassigned to a position within'; and
(B) by striking `of this subsection' and inserting `of this section'; and
(2) in section 404(2)--
(A) by inserting `grade,' after `status, tenure,'; and
(B) by inserting `or, if the employee is a temporary employee, separated
in accordance with the terms of the appointment' after `cause'.

fc6f2bbf3089514cb5f0920171c34ba175222188e9bb560170d12d3e1907be92

BANK ACT.
Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) is amended--
(1) in subsection (a)--
(A) in paragraph (7), by striking `(b)(12)' and inserting `(b)(11)';
(B) in paragraph (8)--
(i) by striking `(A)'; and
(ii) by striking subparagraph (B); and
(C) in paragraph (10)--
(i) by striking `establish and review the general policy of' and inserting
`review overall strategies, policies, and goals established by'; and
(ii) by striking `standards, policies, and procedures necessary to carry
out' and inserting `matters as pertain to';
(2) in subsection (b)--
(A) in paragraph (3), by striking `and through the Federal Deposit Insurance
Corporation (or any replacement authorized pursuant to subsection (m))';
(B) in paragraph (9) as redesignated--
(i) by striking subparagraph (B) and redesignating subparagraphs (C)
through (N) as subparagraphs (B) through (M), respectively;
(ii) in subparagraph (M), as redesignated, by striking `on behalf of the
Federal Deposit Insurance Corporation, acting as exclusive manager'; and
(C) in paragraph (11), as redesignated--
(i) by amending subparagraph (A) to read as follows:
`(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.';
(ii) by amending subparagraph (B) to read as follows:
`(B) REVIEW, ETC- Such overall strategies, policies,  and goals, and
such rules, regulations, standards, principles, procedures, guidelines,
and statements--
`(i) shall be provided by the Corporation to the Thrift Depositor Protection
Oversight Board promptly or prior to publication or announcement to the
extent practicable;
`(ii) shall be subject to the review of the Thrift Depositor Protection
Oversight Board as provided in subsection (a)(6)(A) (with respect  to
overall strategies, policies, and goals); and
`(iii) shall be promulgated pursuant to subchapter II of chapter 5 of
title 5, United States Code.'; and
(iii) in subparagraphs (D) and (E), by striking `Board of Directors'
each place it appears and inserting `chief executive officer';
(3) by striking subsections (m) and (n) and redesignating subsections (o),
(p), (q), and (r) as subsections (m), (n), (o), and (p) respectively;
(4) in subsection (n), as redesignated, in paragraph (5), by striking
`Directors, officers,' and inserting  `Officers'; and
(5) in subsection (o), as redesignated--
(A) in paragraph (1) by striking `director,'; and
(B) in paragraph (2)--
(i) by striking `- ';
(ii) by striking subparagraph (A);
(iii) by striking the designation `(B)'; and
(iv) by striking `on behalf of the Federal Deposit Insurance Corporation,
acting as exclusive manager'.

7d5a79332be37fae83567c1f06c9c62fdba6221172a7a03e1931f227fe99d6c9

(a) INSPECTOR GENERAL ACT- Section 11(1) of the Inspector General Act of
1978 (5 U.S.C. App.) is amended by striking `the Oversight Board and the
Board of Directors of the Resolution Trust Corporation' and inserting `;
the Chairperson of the Thrift Depositor Protection Oversight Board and
the chief executive officer of the Resolution Trust Corporation'.
(b) THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD- Section 5313 of title 5,
United States Code, is amended by striking `Oversight Board, Resolution Trust
Corporation' and inserting `Thrift Depositor Protection Oversight Board'.
(c) CHIEF EXECUTIVE OFFICER- Section 5314 of title 5, United States Code,
is amended by adding at the end the following: `chief executive officer,
Resolution Trust Corporation.'.
(d) RESOLUTION TRUST CORPORATION FUNDING ACT OF 1991- Section 102(c)(1)
of the Resolution Trust Corporation Funding Act of 1991 (12 U.S.C. 1441a
note) is amended by striking `Chairman of the Resolution Trust Corporation'
and inserting `chief executive officer of the Resolution Trust Corporation'.

2bbfd0a461b8d753a457806be85743f30603cec356f61482175578c8613e048b

Section 21A(l)(3) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(l)(3))
is amended to read as follows:
`(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 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 of the filing of such other pleading informing the court that the
Corporation has been appointed conservator or receiver for such party.
`(C) APPEAL- The Corporation may appeal any order of remand entered by a
United States district court.'.

7454d727fc8ab02fa9ce2b5c404d95e8c00b308306843f692710a6ebe1430c28

(a) Savings Provisions-
(1) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS NOT AFFECTED- This title shall
not affect the validity of any right, duty, or obligation of the United
States, the Corporation, the Oversight Board, or any other person, that--
(A) arises under or pursuant to the Federal Home Loan Bank Act, or  any
other provision of law applicable with respect to the Oversight Board; and
(B) existed on the day before the effective date of the Resolution Trust
Corporation Thrift Depositor Protection Reform Act of 1991.
(2) CONTINUATION OF SUITS- No action or other proceeding commenced by or
against the Oversight Board, with respect to any function of the Oversight
Board, shall abate by reason of the enactment of this Act, except that
the Thrift Depositor Protection Oversight Board shall continue as party
to any such action or proceeding, notwithstanding the change of name of
the Oversight Board.
(b) CONTINUATION OF ORDERS, RESOLUTIONS, DETERMINATIONS, AND REGULATIONS-
All orders, resolutions, determinations, and regulations that--
(1) have been issued, made, prescribed, or allowed to become effective
by the Oversight Board (including orders, resolutions, determinations,
and regulations which relate to the conduct of conservatorships and
receiverships), or by a court of competent jurisdiction, in the performance
of functions under the Federal Home Loan Bank Act; and
(2) are in effect on the effective date of the Resolution Trust Corporation
Thrift Depositor Protection Reform Act of 1991,
shall continue in effect according to the terms of such orders, resolutions,
determinations, and regulations, and shall be enforceable by or against
the Thrift Depositor Protection Oversight Board, or the Resolution Trust
Corporation, by any court of competent jurisdiction, or by operation of law,
notwithstanding the change of name of the Oversight Board.

d85334cd1563d707a9dc9fc6c5105fd144d6f097933bb69799aea1ae4af57e3e

The effective date of the Resolution Trust Corporation Thrift Depositor
Protection Reform Act of 1991 shall be February 1, 1992.

88bf685ad078752b375298bd12ae483f4ef6f4276616766ed93774c8d1be0a69

PROCESS.
Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) is amended
by inserting after subsection (s) (as added by section 227 of this Act)
the following new subsection:
`(t) REVIEW AND EVALUATION PROCEDURE FOR CONTRACTS-
`(1) IN GENERAL- In the review and evaluation of proposals, the Corporation
shall provide additional incentives to minority- or women-owned businesses by
awarding any such business an additional 10 percent of the total technical
points and an 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-
`(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.'.

c7c68e6703b014df9fee58ce8eaf74d8dc72f20644c03160cb1638cb94009aff

TITLE IV

-MINORITIES, WOMEN, AND SMALL BUSINESS PROVISIONS

(a) ACQUISITION OF BRANCH FACILITIES FROM THE RTC- Section 21A of the Federal
Home Loan Bank Act (12 U.S.C. 1441a) is amended by inserting after subsection
(t) (as added by section 301 of this title) the following new subsection:
`(u) ACQUISITION OF BRANCH FACILITIES IN MINORITY 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--
`(A) MINORITY DEPOSITORY INSTITUTION- The term `minority institution'
means a depository institution (as defined in section 3(c) of the Federal
Deposit Insurance Act)--
`(i) more than 50 percent of the ownership or control of which is held by
1 or more minority individuals; and
`(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 3(c)
of the Federal Deposit Insurance Act)--
`(i) more than 50 percent of the ownership or control of which is held by
1 or more women;
`(ii) more than 50 percent of the net profit or loss of which accrues to
1 or more women; and
`(iii) a significant percentage of senior management positions of which
are held by women.
`(C) MINORITY- The term `minority' has the meaning given to such term
by section 1204(c)(3) of the Financial Institutions Reform, Recovery and
Enforcement Act of 1989.'.
(b) COMMUNITY REINVESTMENT CREDIT FOR DEPOSITORY INSTITUTIONS PROVIDING
ASSISTANCE- The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et
seq.) is amended by adding at the end the following new section:
`SEC. 808. OPERATION OF BRANCH FACILITIES BY MINORITIES AND WOMEN.
`(a) IN GENERAL- In the case of any depository institution which donates,
sells on favorable terms (as determined by the appropriate Federal financial
supervisory agency), or makes available on a rent-free basis any branch of
such institution which is located in any predominantly minority neighborhood
to any minority depository institution or women's depository institution,
the amount of the contribution or the amount of the loss incurred in
connection with such activity shall be treated as meeting the credit needs
of the institution's community for purposes of this title.
`(b) DEFINITIONS- For purposes of this section--
`(1) MINORITY DEPOSITORY INSTITUTION- The term `minority institution'
means a depository institution (as defined in section 3(c) of the Federal
Deposit Insurance Act)--
`(A) more than 50 percent of the ownership or control of which is held by
1 or more minority individuals; and
`(B) more than 50 percent of the net profit or loss of which accrues to
1 or more minority individuals.
`(2) WOMEN'S DEPOSITORY INSTITUTION- The term `women's depository
institution' means a depository institution (as defined in section 3(c)
of the Federal Deposit Insurance Act)--
`(A) more than 50 percent of the ownership or control of which is held by
1 or more women;
`(B) more than 50 percent of the net profit or loss of which accrues to
1 or more women; and
`(C) a significant percentage of senior management positions of which are
held by women.
`(3) MINORITY- The term `minority' has the meaning given to such term
by section 1204(c)(3) of the Financial Institutions Reform, Recovery and
Enforcement Act of 1989.'.

da3fada59e48bfd60a815415062633f27c9cd258d21c73c37a75f03fe84a35d8

INSTITUTIONS.
Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) is amended
by inserting after subsection (u) (as added by section 302 of this title)
the following new subsection:
`(v) ASSISTANCE UNDER CIRCUMSTANCES FOR ACQUISITION OF MAJORITY-OWNED
INSTITUTIONS-
`(1) IN GENERAL- In addition to the assistance provided pursuant to the
minority interim capital assistance program established by the Oversight
Board by regulation pursuant to the strategic plan under subsection (a),
the Corporation may provide assistance for minority-owned depository
institutions and minority investors for the acquisition of any savings
association for which the Corporation has been appointed 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 and
Enforcement Act of 1989.
`(B) ACQUISITION- The term `acquisition' means any transaction in which
a savings association is acquired (as defined in section 13(c)(8) of the
Federal Deposit Insurance Act).'.

3ba9e2086b1122f12b73f58691c1e9c7b8d4565cb08a615a55be8055a430d732

Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) is amended
by inserting after subsection (v) (as added by section 303 of this title)
the following new subsection:
`(w) MINORITY INTERIM CAPITAL ASSISTANCE PROGRAM-
`(1) IN GENERAL- The minority interim capital assistance program established
by the Oversight Board by regulation pursuant to the strategic plan under
subsection (a) is hereby established by law.
`(2) ASSISTANCE UNDER CIRCUMSTANCES FOR ACQUISITION OF MAJORITY-OWNED
INSTITUTIONS- In addition to the assistance provided pursuant to the
program established under paragraph (1), the Corporation shall provide
assistance under such 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--
`(A) MINORITY- The term `minority' has the meaning given to such term
by section 1204(c)(3) of the Financial Institutions Reform, Recovery and
Enforcement Act of 1989.
`(B) ACQUISITION- The term `acquisition' means any transaction in which
a savings association is acquired (as defined in section 13(c)(8) of the
Federal Deposit Insurance Act).'.

649d29ed3426320ff38571353eefc93e0db27aa02b02ad7f362357ecd95c0466

Section 21A(b)(14) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(14))
is amended to read as follows:
`(14) GOAL FOR PARTICIPATION OF SMALL BUSINESS CONCERNS- The Corporation
shall have an annual goal that presents the maximum practicable opportunity
for small business concerns and small business concerns owned and controlled
by socially and economically disadvantaged individuals to participate in
the performance of contracts awarded by the Corporation.'.
SEC. 501- (a) Credit Enhancement To Provide Housing Opportunities for
Low-Income Persons-
(1) IN GENERAL- Section 21A(b)(10)(K) of the Federal Home Loan Bank Act
(12 U.S.C. 1441a(b)(10)(K)) is amended to read as follows:
`(K) To make loans and, with respect to eligible 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.'.
(2) CREDIT ENHANCEMENT FOR CERTAIN TAX-EXEMPT BONDS- Section 21A(c)(8)(B)
of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(8)(B)) is amended--
(A) by striking `(B) CREDIT ENHANCEMENT- With respect to' and inserting
the following:
`(B) Credit enhancement-
`(i) IN GENERAL- With respect to'; and
(B) by adding at the end the following new clause:
`(ii) CERTAIN TAX-EXEMPT BONDS- The Corporation may provide credit
enhancements with respect to tax-exempt bonds issued on behalf of nonprofit
organizations pursuant to section 103, and subpart A of part IV of subchapter
A of chapter 1, of the Internal Revenue Code of 1986, with respect to the
disposition of eligible residential properties for the purposes described
in clause (i).'.

783face2890dc3cd2df6b3d8f6cfabbbf93fbdc4b63621273f88c027ffcb9911

Section 21A(c)(9) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(9))
is amended--
(1) by striking subparagraphs (C) and (D) and inserting the following
new subparagraphs:
`(C) CORPORATION- The term `Corporation' means the Resolution Trust
Corporation.
`(D) ELIGIBLE MULTIFAMILY HOUSING PROPERTY-
`(i) BASIC DEFINITION- The term `eligible 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 the applicable
dollar amount set forth in section 221(d)(3)(ii) of the National Housing
Act for elevator-type structures (without regard to any increase of such
amount for high-cost areas).
`(ii) EXPANDED DEFINITION- Notwithstanding clause (i), to the extent or in
such amounts as are provided in appropriations Acts for additional costs
and losses to the Corporation resulting from this clause taking effect,
the term `eligible multifamily housing property' shall mean a property
consisting of more than 4 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 the applicable
dollar amount set forth in section 221(d)(3)(ii) of the National Housing
Act for elevator-type structures (without regard to any increase of such
amount for high-cost areas).'; and
(2) by striking subparagraph (F) and inserting the following new
subparagraph:
`(F) ELIGIBLE SINGLE FAMILY PROPERTY- The term `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 the applicable
dollar amount set forth in the first sentence of section 203(b)(2) of the
National Housing Act (without regard to any increase of such amount for
high-cost areas).'.

5037415aa1d3e573070fb255967321cb9db4e6c0a6dafa7eac6064e76f60b23d

TITLE VI

-RESOLUTION TRUST CORPORATION AFFORDABLE HOUSING PROGRAM

Section 21A(c)(2)(B) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(c)(2)(B)), as amended by Public Law 102-139, is amended--
(1) in the first sentence, by striking `For' and inserting `Except as
provided in the last sentence of this subparagraph for'; and
(2) by adding at the end the following new sentence: `To the extent or in
such amounts as are provided in appropriations Acts for additional costs
and losses to the Corporation resulting from this sentence taking effect,
for purposes of this subsection the period referred to in the first and
third sentences shall be considered to be the 180-day period following
the date on which the Corporation first makes an eligible single family
property available for sale.'.

fe1d03aa4cf7da29a6539a163f0e385734615eee589f3113edd0303c5e4b6554

VETERANS.
Section 21A(c)(2)(B) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(c)(2)(B)) is amended--
(1) in clause (i) of the first sentence, by inserting `(including qualifying
households with members who are veterans)' after `households';
(2) in subclause (I) of clause (ii) of the first sentence, by inserting
`(including lower-income families with members who are veterans)' after
`lower-income families'; and
(3) in the fourth sentence, by inserting `and to lower-income families
with members who are veterans' before the period.

f071131ba7ceb96b89ff22fb9464d039a4444d0f6018e759c6d08d3eb7dbd7a7

(a) RESIDENCY REQUIREMENTS-
(1) QUALIFYING HOUSEHOLDS- Section 21A(c)(9)(K) of the Federal Home Loan
Bank Act (12 U.S.C. 1441a(c)(9)(K)) is amended by striking `and (ii)
whose adjusted income' and inserting the following: `(ii) who agrees
to occupy the property as a principal residence for at least 12 months
(except as provided in 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'.
(2) LOWER-INCOME FAMILIES- The first sentence of section 21A(c)(2)(B) of the
Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(2)) is amended by striking
`by such families.' and inserting the following: `by any such family who,
except as provided in subparagraph (D), agrees to occupy the property as
a principal residence for at least 12 months and who certifies in writing
that the family intends to occupy the property for at least 12 months.'.
(b) RECAPTURE OF PROFITS FROM RESALE- Section 21A(c)(2) of the Federal
Home Loan Bank Act (12 U.S.C. 1441a(c)(2)) is amended by adding at the
end the following new subparagraphs:
`(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 the Internal Revenue Code of 1986)
or regulation or under any sale agreement.'.

a3a3f2847bc74f1b2caa540dbb223247319f25e320f3dff243f89348c9b5d018

PROGRAM.
Section 21A(c)(2) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(2))
is amended by adding after subparagraph (D) (as added by section 504(b)
of this Act) the following new subparagraph:
`(E) EXCEPTION TO AVOID DISPLACEMENT OF EXISTING 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.'.

221bf7c23b57e527bdb88b0a5de6c948699b0ef3af3df3a8b5452ca60e7953ed

FOR ELIGIBLE MULTIFAMILY HOUSING PROPERTY.
Section 21A(c)(3) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(3))
is amended--
(1) in the first sentence of subparagraph (B), by striking the first comma
and all that follows through `first';
(2) in subparagraph (C), by striking `determining that a property is
ready for sale' and inserting the following: `the expiration of the period
referred to in subparagraph (B) for a property,'; and
(3) in subparagraph (D), by inserting after the period at the end the
following new sentence: `If, before the expiration of such 45-day period,
any offer to purchase a property initially accepted by the Corporation
is subsequently rejected or fails (for any reason), the Corporation shall
accept another offer to 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.'.

cd4fad50e43e35b5174c37fc90b0b9297f6b6629d8043b067787265959687079

HOUSING PROPERTY.
Section 21A(c)(3)(E) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(c)(3)(E)) is amended to read as follows:
`(E) LOWER-INCOME OCCUPANCY REQUIREMENTS-
`(i) SINGLE PROPERTY PURCHASES- With respect to any purchase of a single
eligible multifamily housing property by a qualifying multifamily purchaser
under subparagraph (D)--
`(I) not less than 35 percent of all dwelling units purchased shall be made
available for occupancy by and maintained as affordable for lower-income and
very low-income families during the remaining useful life of the building
property structure in which the units are located: Provided, That
`(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 during the remaining useful life of the building or
structure in which the units are located.
`(ii) AGGREGATION REQUIREMENTS FOR MULTIPROPERTY PURCHASES- With respect to
any purchase under subparagraph (D) by a qualifying multifamily 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 building property structure in which the
units are located, (b) 20 percent of the aggregate number of all dwelling
units purchased shall be made available for occupancy by and maintained
as affordable for very low-income families during the remaining useful
life of the building property structure in which the units are located,
and (c) not less than 10 percent of the dwelling units in each separate
property purchased shall be made available for occupancy by and maintained
as affordable for lower-income families during the remaining useful life
of the property in which the units are located.
The requirements of this subparagraph shall be contained in the deed or
other recorded instrument.'.

7b506ed0efb45123a65e0c1349745a6958b6c30e25a90385d20e60305864fa4a

HOUSING PROPERTY.
Section 21A(c)(3) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(3))
is amended--
(1) by redesignating subparagraph (G) as subparagraph (H); and
(2) by inserting after subparagraph (F) the following new subparagraph:
`(G) EXTENSION OF RESTRICTED OFFER PERIODS- 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.'.

5dd35e3b5c3e5d9373c984d1d2243501394502fbba06d55301e1141a3db1258b

Section 21A(c)(6)(A)(i) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(c)(6)(A)(i)) is amended to read as follows:
`(i) SALE PRICE- The Corporation 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.'.

d9ca79cb5d9afffc48441e3b1eaa8c92fc18ee667af4f823046998066b5037dd

Section 21A(c)(6)(A)(ii) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(c)(6)(A)(ii)) is amended by adding at the end the following new
sentence: `In providing financing for combinations of eligible multifamily
housing properties under this subsection, the Corporation may hold a
participating share, including a subordinate participation.'.

23c468e1ab533300106288ce2c64865118320fe0d1fb8f188a6176f4b326f2e9

Section 21A(c)(8)(B) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(c)(8)(B)) is amended--
(1) by striking `(B) CREDIT ENHANCEMENT- With respect to' and inserting
the following:
`(B) Credit enhancement-
`(i) IN GENERAL- With respect to'; and
(2) by adding at the end the following new clause:
`(ii) CERTAIN TAX-EXEMPT BONDS- The Corporation may provide credit
enhancements with respect to tax-exempt bonds issued on behalf of nonprofit
organizations pursuant to section 103, and subpart A of part IV of subchapter
A of chapter 1, of the Internal Revenue Code of 1986, with respect to the
disposition of eligible residential properties for the purposes described
in clause (i).'.

c926cfddc9eb6eb4eaeadb2259220f2bd368fe081cf443c0f7f6251d26c4be52

DEPOSITORY INSTITUTIONS.
Notwithstanding section 203 of the Resolution Trust Corporation Funding
Act of 1991, the amendment made by section 201(b) of such Act shall apply
on and after the date of the enactment of this Act.

af02a2336683f73e8ecfa8454eab3d37cc2771c3fd9e3f27e24fb18c88a5ccd1

HOUSING AGENCIES FOR DISPOSITION.
Section 21A(c) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c))
is amended by adding at the end the following new paragraph:
`(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.'.

1f41cdf3cc584dfc3b9e901b6809ff808f925dfef17ea15a592637d8a85316fe

PROPERTY TO NONPROFIT ORGANIZATIONS AND PUBLIC AGENCIES.
Section 21A(c) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)) is
amended by adding after paragraph (12) (as added by section 513 of this Act)
the following new paragraph:
`(13) Exception for sales to nonprofit organizations and public agencies-
`(A) SUSPENSION OF OFFER PERIODS- With respect to any eligible residential
property, the Corporation may (in the discretion of the Corporation)
suspend any of the 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).'.

2f7282f56a3eb2a492035f64c71950bdfb59f8a3b3b959f75f124900d8a6a883

(a) IN GENERAL- Section 21A(c) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(c)) is amended by adding after paragraph (13) (as added by
section 514 of this Act) the following new paragraph:
`(14) Rules governing disposition of eligible condominium property-
`(A) NOTICE TO CLEARINGHOUSES- Within a reasonable period of time after
acquiring title to an eligible 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 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 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 604 of the Housing and Community
Development Act of 1980). 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.'.
(b) CONFORMING AMENDMENT- Section 21A(c)(11)(B) of the Federal Home Loan
Bank Act (12 U.S.C. 1441a(c)(11)(B)) is amended by striking `specified
under paragraphs (2) and (3)' and inserting `applicable under paragraphs
(2), (3), (12)(C), (13)(B), and (14)(C)'.

588703257edc4f712a1229a4e4a1582597f34dc1fe94752d50432d4ae2204e52

Section 21A(c) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)) is
amended by adding after paragraph (14) (as added by section 515 of this Act)
the following new paragraph:
`(15) Reports to congress-
`(A) IN GENERAL- The Corporation shall submit to the Congress semiannual
reports under this paragraph 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 the date of the enactment of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 and ending on the date of the enactment of the
Resolution Trust Corporation Refinancing, Restructuring, and Improvement Act
of 1991. Each successive reporting period shall begin upon the conclusion
of the preceding reporting period.
`(C) INFORMATION REGARDING PROPERTIES SOLD- Each report under this paragraph
shall contain information regarding each eligible residential property
sold by the Corporation during the applicable reporting period, as 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).'.

f0fa5cd5b6c1012455f8da93f48c1c8d6f990b387de5c7ab27b56a1297f0b2f6

Section 21A(c)(9) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(9)),
as amended by sections 501 and 504(a)(1) of this Act, is further amended--
(1) by striking subparagraph (A) and inserting the following new
subparagraph:
`(A) ADJUSTED INCOME AND INCOME- The terms `adjusted income' and `income'
shall have the meaning given such terms in section 3(b) of the United
States Housing Act of 1937.';
(2) by redesignating subparagraphs (D) through (P) as subparagraphs (E)
through (Q), respectively; and
(3) by inserting after subparagraph (C) the following new subparagraph:
`(D) ELIGIBLE CONDOMINIUM PROPERTY- The term `eligible condominium property'
means a condominium unit, as such term is defined in section 604 of the
Housing and Community Development Act of 1980--
`(i) to which the Corporation acquires title in its corporate capacity,
its capacity as conservator, or its capacity as receiver (including its
capacity as the sole owner of a subsidiary corporation of a depository
institution under conservatorship or receivership, which subsidiary has
as its principal business the ownership of real property); and
`(ii) that has an appraised value that does not exceed the applicable
dollar amount set forth in the first sentence of section 203(b)(2) of the
National Housing Act (without regard to any increase of such amount for
high cost areas).'.

c1df979c3c90c0d2571a8a7f5648569e3a895910af7f7e9e7dde60c16ef7301e

(a) SINGLE FAMILY HOUSING LOANS-
(1) 50 PERCENT RISK-WEIGHTED CLASSIFICATION-
(A) IN GENERAL- To provide consistent regulatory treatment of loans
made for the construction of single family housing, not later than the
expiration of the 120-day period beginning on the date of this Act each
Federal banking agency shall amend the regulations and guidelines of the
agency establishing minimum acceptable capital levels to provide that any
single family residence construction loan described under subparagraph (B)
shall be considered as a loan within the 50 percent risk-weighted category.
(B) REQUIREMENTS- Subparagraph (A) shall apply to any construction loan--
(i) made for the construction of a residence consisting of 1 to 4 dwelling
units;
(ii) under which the lender has acquired from the lender originating the
mortgage loan for purchase of the residence, before the making of the
construction loan--
(I) documentation demonstrating that the buyer of the residence intends
to purchase the residence and has the ability to obtain a mortgage loan
sufficient to purchase the residence; and
(II) any other documentation from the mortgage lender that the appropriate
Federal banking agency may consider appropriate to provide assurance of
the buyer's intent to purchase the property (including written commitments
and letters of intent);
(iii) under which the borrower requires the buyer of the residence to make
a nonrefundable deposit to the borrower in an amount (as determined by
the appropriate Federal banking agency) of not less than 1 percent of the
principal amount of mortgage loan obtained by the borrower for purchase of
the residence, for use in defraying any costs relating to any cancellation
of the purchase contract of the buyer; and
(iv) that meets any other underwriting characteristics that the appropriate
Federal banking agency may establish, consistent with the purposes of
the minimum acceptable capital requirements to maintain the safety and
soundness of financial institutions.
(2) 100 PERCENT RISK-WEIGHTED CLASSIFICATION- Not later than the expiration
of the 120-day period beginning on the date of this Act each Federal
banking agency shall amend the regulations and guidelines of the agency
establishing minimum acceptable capital levels to provide that--
(A) any single family residence construction loan for a residence for
which the purchase contract is canceled shall be considered as a loan
within the 100 percent risk-weighted category; and
(B) the lender of any single family residence construction loan shall
promptly notify the appropriate Federal banking agency of any such
cancellation.
(b) MULTIFAMILY HOUSING LOANS-
(1) 50 PERCENT RISK-WEIGHTED CLASSIFICATION-
(A) IN GENERAL- To provide consistent regulatory treatment of loans
made for the purchase of multifamily rental and homeowner properties,
not later than the expiration of the 120-day period beginning on the date
of this Act each Federal banking agency shall amend the regulations and
guidelines of the agency establishing minimum acceptable capital levels
to provide that any multifamily housing loan described under subparagraph
(B) and any security collateralized by such a loan shall be considered as
a loan or security within the 50 percent risk-weighted category.
(B) REQUIREMENTS- Subparagraph (A) shall apply to any loan--
(i) secured by a first lien on a residence consisting of more than 4
dwelling units;
(ii) under which--
(I)(a) the rate of interest does not change over the term of the loan,
(b) the principal obligation does not exceed 80 percent of the appraised
value of the property, and (c) the ratio of annual net operating income
generated by the property (before payment of any debt service on the loan)
to annual debt service on the loan is not less than 120 percent; or
(II)(a) the rate of interest changes over the term of the loan, (b) the
principal obligation does not exceed 75 percent of the appraised value of
the property, and (c) the ratio of annual net operating income generated
by the property (before payment of any debt service on the loan) to annual
debt service on the loan is not less than 115 percent;
(iii) under which--
(I) amortization of principal and interest occurs over a period of not
more than 30 years;
(II) the minimum maturity for repayment of principal is not less than 7
years; and
(III) timely payment of all principal and interest, in accordance with
the terms of the loan, occurs for a period of not less than 1 year; and
(iv) that meets any other underwriting characteristics that the appropriate
Federal banking agency may establish, consistent with the purposes of
the minimum acceptable capital requirements to maintain the safety and
soundness of financial institutions.
(2) SALE PURSUANT TO PRO RATA LOSS SHARING ARRANGEMENTS- Not later than
the expiration of the 120-day period beginning on the date of this Act,
each Federal banking agency shall amend the regulations and guidelines
of the agency establishing minimum acceptable capital levels to provide
that any loan fully secured by a first lien on a multifamily housing
property that is sold subject to a pro rata loss sharing arrangement by an
institution subject to the jurisdiction of the agency shall be treated as
sold to the extent that loss is incurred by the purchaser of the loan. For
purposes of this paragraph, the term `pro rata loss sharing arrangement'
means an agreement providing that the purchaser of a loan shares in any
loss incurred on the loan with the selling institution on a pro rata basis.
(3) SALE PURSUANT TO OTHER ARRANGEMENTS FOR LOSS- Not later than the
expiration of the 180-day period beginning on the date of the enactment
of this Act, each Federal banking agency shall amend the regulations and
guidelines of the agency establishing minimum acceptable capital levels
to take into account other loss sharing arrangements, in connection with
the sale by an institution subject to the jurisdiction of the agency of
any loan that is fully secured by a first lien on multifamily housing
property, for purposes of determining the extent to which such loans shall
be treated as sold. For purposes of this paragraph, the term `other loss
sharing arrangement' means an agreement providing that the purchaser of a
loan shares in any loss incurred on the loan with the selling institution
on other than a pro rata basis.
(c) APPROPRIATE FEDERAL BANKING AGENCY- For purposes of this section, the
term `Federal banking agency' means the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation, the Comptroller
of the Currency, and the Director of the Office of Thrift Supervision.

d5b5462e9975bd392de17853f200c04b17eaae0dd29dc92c2626fac371bb1b63

The amendments made by this title shall not apply to any eligible
residential property or eligible condominium property of the Resolution
Trust Corporation, that is subject to an agreement for sale entered into
by the Corporation before the date of the enactment of this Act.

fcc0edfdd6f5db607b5bc990c952d13990303158261ae4edaa37cd4c3b2227c3

(a) CERTIFICATION AND LICENSING REQUIREMENTS- Section 1116 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3345)
is amended by adding at the end the following new subsection:
`(e) AUTHORITY OF THE APPRAISAL SUBCOMMITTEE- The Appraisal Subcommittee
shall not set qualifications or experience requirements for the States
in licensing real estate appraisers. Recommendations of the Subcommittee
shall be nonbinding on the States.
(b) Use of State Certified and State Licensed Appraisers-
(1) EFFECTIVE DATE FOR USE- Section 1119(a)(1) of the Financial Institutions
Reform, Recovery and Enforcement Act of 1989 (12 U.S.C. 3348(a)(1)) is
amended by striking `July 1, 1991' and inserting `December 31, 1992'.
(2) EXTENSION OF EFFECTIVE DATE- Section 1119(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3348(b)) is amended--
(A) in the first sentence, by striking `leading to inordinate delays'
and inserting `, or in any geographical political subdivision of a State,
leading to significant delays'; and
(B) in the second sentence, by striking `inordinate' and inserting
`significant'.
Passed the House of Representatives November 27 (legislative day, November
26), 1991.
Attest:
Clerk.
HR 3435 EH----2
HR 3435 EH----3
HR 3435 EH----4
HR 3435 EH----5
HR 3435 EH----6

948f7ed53a3863fdc70ed97f1d45c024bb2fa38d12248220a633e6afbd62f286

Resolution Trust Corporation Refinancing Act

Other Sections

TITLE I

TITLE II

TITLE III

TITLE IV

TITLE VI

TITLE VII

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