§ 1437. — Repealed.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1437]
TITLE 12--BANKS AND BANKING
CHAPTER 11--FEDERAL HOME LOAN BANKS
Sec. 1437. Repealed. Pub. L. 101-73, title VII, Sec. 703(a),
Aug. 9, 1989, 103 Stat. 415
Section, acts July 22, 1932, ch. 522, Sec. 17, 47 Stat. 736; 1947
Reorg. Plan No. 3, eff. July 27, 1947, 12 F.R. 4981, 61 Stat. 954; Aug.
11, 1955, ch. 783, title I, Sec. 109(a)(3), 69 Stat. 640; June 29, 1977,
Pub. L. 95-56, 91 Stat. 252; Aug. 4, 1977, Pub. L. 95-90, Secs. 1, 2, 91
Stat. 564; Oct. 15, 1982, Pub. L. 97-320, title I, Sec. 127, 96 Stat.
1486; Jan. 12, 1983, Pub. L. 97-457, Sec. 8, 96 Stat. 2507; Nov. 30,
1983, Pub. L. 98-181, title VII, Sec. 702(b), 97 Stat. 1267, set forth
powers and duties, etc., of Federal Home Loan Bank Board.
Transfer of Functions, Personnel, and Property of Federal Savings and
Loan Insurance Corporation and Federal Home Loan Bank Board
Pub. L. 101-73, title IV, Secs. 401-406, Aug. 9, 1989, 103 Stat.
354-363, as amended by Pub. L. 102-233, title III, Sec. 313, Dec. 12,
1991, 105 Stat. 1770, provided that:
``SEC. 401. FSLIC AND FEDERAL HOME LOAN BANK BOARD ABOLISHED.
``(a) In general.--
``(1) FSLIC.--Effective on the date of the enactment of this Act
[Aug. 9, 1989], the Federal Savings and Loan Insurance Corporation
established under section 402 of the National Housing Act [former 12
U.S.C. 1725] is abolished.
``(2) FHLBB.--Effective at the end of the 60-day period
beginning on the date of the enactment of this Act, the Federal Home
Loan Bank Board and the position of Chairman of the Federal Home
Loan Bank Board are abolished.
``(b) Disposition of Affairs.--
``(1) In general.--During the 60-day period beginning on the
date of the enactment of this Act [Aug. 9, 1989], the Chairman of
the Federal Home Loan Bank Board--
``(A) shall, solely for the purpose of winding up the
affairs of the Federal Savings and Loan Insurance Corporation
and the Federal Home Loan Bank Board--
``(i) manage the employees of the Board and provide for
the payment of the compensation and benefits of any such
employee which accrue before the effective date of the
transfer of such employee pursuant to section 403; and
``(ii) manage any property of the Board and the
Corporation until such property is transferred pursuant to
section 405; and
``(B) may take any other action necessary for the purpose of
winding up the affairs of the Corporation and the Board.
``(2) Availability of funds in fslic resolution fund on a
reimbursable basis.--
``(A) Availability of funds.--Notwithstanding any provision
of section 11A of the Federal Deposit Insurance Act [12 U.S.C.
1821a] (as added by section 215 of this Act), funds in the FSLIC
Resolution Fund shall be available to the Chairman of the
Federal Home Loan Bank Board to pay any expense incurred in
carrying out the requirements of paragraph (1).
``(B) Payment by fdic.--Upon the request of the Chairman of
the Federal Home Loan Bank Board, the Federal Deposit Insurance
Corporation shall pay to the Chairman from the FSLIC Resolution
Fund the amounts requested for expenses described in
subparagraph (A).
``(C) Exclusive source of funds.--No funds or other property
of the Federal Home Loan Bank Board or the Federal Savings and
Loan Insurance Corporation (other than the FSLIC Resolution
Fund) may be used by the Chairman of the Federal Home Loan Bank
Board to pay any expense incurred in carrying out any provision
of this title [see Tables for classification].
``(D) Reimbursement by successor agencies.--Disbursements
from the FSLIC Resolution Fund pursuant to subparagraph (A)
which are attributable to employees described in paragraph
(1)(A)(i) and property described in paragraph (1)(A)(ii) shall
be reimbursed by the agency to which any such employee or
property is transferred.
``(c) Authority and Status of Chairman of the Federal Home Loan Bank
Board.--
``(1) In general.--Notwithstanding the repeal of section 17 of
the Federal Home Loan Bank Act [12 U.S.C. 1437] by section 703 of
this Act, the repeal of section 402(c) of the National Housing Act
[12 U.S.C. 1725(c)] by section 407 of this title, the abolishment of
the Federal Savings and Loan Insurance Corporation under section 401
of this title, the Chairman of the Federal Home Loan Bank Board
shall have any authority vested in the Chairman or the Board before
such date of enactment [Aug. 9, 1989] which is necessary for the
Chairman to carry out the requirements of this section, paragraphs
(1) and (2) of section 403(b), and section 405(a) during the 60-day
period beginning on such date.
``(2) Other provisions.--For purposes of paragraph (1), the
Chairman of the Federal Home Loan Bank Board shall continue to be--
``(A) treated as an officer of the United States during the
60-day period referred to in such subparagraph; and
``(B) entitled to compensation at the annual rate of basic
pay payable for level III of the Executive Schedule [5 U.S.C.
5314].
``(3) No additional compensation if appointed director.--During
the 60-day period beginning on the date of the enactment of this Act
[Aug. 9, 1989], the Chairman of the Federal Home Loan Bank Board
shall not be entitled to any additional compensation by reason of
his appointment as Director of the Office of Thrift Supervision.
``(d) Status of Employees Before Transfer.--
``(1) Employees of fslic.--Any employee of the Federal Savings
and Loan Insurance Corporation shall be treated as an employee of
the Federal Home Loan Bank Board for purposes of subsection
(b)(1)(A)(i).
``(2) Rule of construction.--The repeal of section 17 of the
Federal Home Loan Bank Act [12 U.S.C. 1437] by section 703 of this
Act, the repeal of section 402(c) of the National Housing Act [12
U.S.C. 1725(c)] by section 407 of this title, and the abolishment of
the Federal Savings and Loan Insurance Corporation under section 401
of this title, shall not be construed as affecting the status of
employees of such Corporation or of the Federal Home Loan Bank Board
as employees of an agency of the United States for purposes of any
other provision of law before the effective date of the transfer of
any such employee pursuant to section 403.
``(e) Continuation of Services.--
``(1) In general.--The Director of the Office of Thrift
Supervision, the Chairperson of the Oversight Board of the
Resolution Trust Corporation, the Chairperson of the Federal Deposit
Insurance Corporation, and the Chairperson of the Federal Housing
Finance Board may use the services of employees and other personnel
and the property of the Federal Home Loan Bank Board and the Federal
Savings and Loan Insurance Corporation, on a reimbursable basis, to
perform functions which have been transferred to such agencies for
such time as is reasonable to facilitate the orderly transfer of
functions transferred pursuant to any other provision of this Act
[see Tables for classification] or any amendment made by this Act to
any other provision of law.
``(2) Reimbursement.--The reimbursement required under paragraph
(1) with respect to employees, personnel, and property described in
such paragraph shall be made to the FSLIC Resolution Fund and shall
be taken into account in determining the amount of any reimbursement
required under subsection (b)(2)(D).
``(3) Agency services.--Any agency, department, or other
instrumentality of the United States (including any Federal home
loan bank), and any successor to any such agency, department, or
instrumentality, which was providing supporting services to the
Federal Home Loan Bank Board or the Federal Savings and Loan
Insurance Corporation before the enactment of this Act [Aug. 9,
1989] in connection with functions that are transferred to the
Office of Thrift Supervision, the Resolution Trust Corporation, the
Federal Deposit Insurance Corporation, or the Federal Housing
Finance Board shall--
``(A) continue to provide such services, on a reimbursable
basis, until the transfer of such functions is complete; and
``(B) consult with any such agency to coordinate and
facilitate a prompt and reasonable transition.
``(f) Savings Provisions Relating to FSLIC.--
``(1) Existing rights, duties, and obligations not affected.--
Subsection (a) shall not affect the validity of any right, duty, or
obligation of the United States, the Federal Savings and Loan
Insurance Corporation, or any other person, which--
``(A) arises under or pursuant to any section of title IV of
the National Housing Act [former 12 U.S.C. 1724 et seq.]; and
``(B) existed on the day before the date of the enactment of
this Act [Aug. 9, 1989].
``(2) Continuation of suits.--No action or other proceeding
commenced by or against the Federal Savings and Loan Insurance
Corporation, or any Federal home loan bank with respect to any
function of the Corporation which was delegated to employees of such
bank, shall abate by reason of the enactment of this Act [see Tables
for classification], except that the appropriate successor to the
interests of such Corporation shall be substituted for the
Corporation or the Federal home loan bank as a party to any such
action or proceeding.
``(g) Savings Provisions Relating to FHLBB.--
``(1) Existing rights, duties, and obligations not affected.--
Subsection (a) shall not affect the validity of any right, duty, or
obligation of the United States, the Federal Home Loan Bank Board,
or any other person, which--
``(A) arises under or pursuant to the Federal Home Loan Bank
Act [12 U.S.C. 1421 et seq.], the Home Owners' Loan Act of 1933
[12 U.S.C. 1461 et seq.], or any other provision of law
applicable with respect to such Board (other than title IV of
the National Housing Act [former 12 U.S.C. 1724 et seq.]); and
``(B) existed on the day before the date of the enactment of
this Act [Aug. 9, 1989].
``(2) Continuation of suits.--
``(A) [sic] In general.--No action or other proceeding
commenced by or against the Federal Home Loan Bank Board, or any
Federal home loan bank with respect to any function of the Board
which was delegated to employees of such bank, shall abate by
reason of the enactment of this Act [see Tables for
classification], except that the appropriate successor to the
interests of such Board shall be substituted for the Board or
the Federal home loan bank as a party to any such action or
proceeding.
``(h) Continuation of Orders, Resolutions, Determinations, and
Regulations.--Subject to section 402, all orders, resolutions,
determinations, and regulations, which--
``(1) have been issued, made, prescribed, or allowed to become
effective by the Federal Savings and Loan Insurance Corporation or
the Federal Home Loan Bank Board (including orders, resolutions,
determinations, and regulations which relate to the conduct of
conservatorships and receiverships), or by a court of competent
jurisdiction, in the performance of functions which are transferred
by this Act [see Tables for classification]; and
``(2) are in effect on the date this Act takes effect [Aug. 9,
1989],
shall continue in effect according to the terms of such orders,
resolutions, determinations, and regulations and shall be enforceable by
or against the Director of the Office of Thrift Supervision, the Federal
Deposit Insurance Corporation, the Federal Housing Finance Board, or the
Resolution Trust Corporation, as the case may be, until modified,
terminated, set aside, or superseded in accordance with applicable law
by the Director of the Office of Thrift Supervision, the Federal Deposit
Insurance Corporation, the Federal Housing Finance Board, or the
Resolution Trust Corporation, as the case may be, by any court of
competent jurisdiction, or by operation of law.
``(i) Identification of Regulations Which Remain in Effect Pursuant
to This Section.--Before the end of the 60-day period beginning on the
date of the enactment of this Act [Aug. 9, 1989], the Director of the
Office of Thrift Supervision and the Chairperson of the Federal Deposit
Insurance Corporation shall--
``(1) identify the regulations and orders which relate to the
conduct of conservatorships and receiverships in accordance with the
allocation of authority between them under this Act [see Tables for
classification] and the amendments made by this Act; and
``(2) promptly publish notice of such identification in the
Federal Register.
``SEC. 402. CONTINUATION AND COORDINATION OF CERTAIN REGULATIONS.
``(a) Regulations Relating to Insurance Functions.--All regulations
and orders of the Federal Savings and Loan Insurance Corporation, or the
Federal Home Loan Bank Board (in such Board's capacity as the board of
trustees of such Corporation), which are in effect on the date of the
enactment of this Act [Aug. 9, 1989] and relate to--
``(1) the provision, rates, or cancellation of insurance of
accounts; or
``(2) the administration of the insurance fund of the Federal
Savings and Loan Insurance Corporation,
shall remain in effect according to the terms of such regulations and
orders and shall be enforceable by the Federal Deposit Insurance
Corporation unless determined otherwise by such Corporation after
consultation with the Director of the Office of Thrift Supervision and,
with respect to regulations and orders relating to the scope of deposit
insurance coverage, pursuant to subsection (c).
``(b) Identification of Regulations Which Remain in Effect Pursuant
to This Section.--Before the end of the 60-day period beginning on the
date of the enactment of this Act [Aug. 9, 1989], the Director of the
Office of Thrift Supervision and the Chairperson of the Federal Deposit
Insurance Corporation shall--
``(1) identify the regulations and orders referred to in
subsection (a) of this section in accordance with the allocation of
authority between them under this Act [see Tables for
classification] and the amendments made by this Act; and
``(2) promptly publish notice of such identification in the
Federal Register.
``(c) Procedure for Differences in Deposit Insurance Coverage
Between FSLIC and FDIC.--
``(1) Transition rule.--Until the effective date of regulations
prescribed under paragraph (3)(B), any determination of the amount
of any insured deposit in any depository institution which becomes
an insured depository institution as a result of the amendment made
to section 4(a) of the Federal Deposit Insurance Act [12 U.S.C.
1814(a)] by section 205(1) of this Act shall be made in accordance
with the regulations and interpretations of the Federal Savings and
Loan Insurance Corporation for determining the amount of an insured
account which were in effect on the day before the date of the
enactment of this Act [Aug. 9, 1989].
``(2) Limitation on extent of coverage.--During the period
beginning on the date of the enactment of this Act and ending on the
effective date of regulations prescribed under paragraph (3)(B), the
amount of any insured account which is required to be treated as an
insured deposit pursuant to paragraph (1) shall not exceed the
amount of insurance to which such insured account would otherwise
have been entitled pursuant to the regulations and interpretations
of the Federal Savings and Loan Insurance Corporation which were in
effect on the day before the date of the enactment of this Act.
``(3) Uniform treatment of insured deposits.--The Federal
Deposit Insurance Corporation shall--
``(A) review its regulations, principles, and
interpretations for deposit insurance coverage and those
established by the Federal Savings and Loan Insurance
Corporation; and
``(B) on or before the end of the 270-day period beginning
on the date of the enactment of this Act, prescribe a uniform
set of regulations which shall be applicable to all insured
deposits in insured depository institutions (except to the
extent any provision of this Act, any amendment made by this Act
to the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.],
or any other provision of law requires or explicitly permits the
Federal Deposit Insurance Corporation to treat insured deposits
of Savings Association Insurance Fund members differently than
insured deposits of Bank Insurance Fund members).
``(4) Factors required to be considered.--In prescribing
regulations providing for the uniform treatment of deposit insurance
coverage, the Federal Deposit Insurance Corporation shall consider
all relevant factors necessary to promote safety and soundness,
depositor confidence, and the stability of deposits in insured
depository institutions.
``(5) Notice; effective date.--Regulations prescribed under this
subsection shall--
``(A) provide for effective notice to depositors in insured
depository institutions of any change in deposit insurance
coverage which would result under such regulations; and
``(B) take effect on or before the end of the 90-day period
beginning on the date such regulations become final.
``(6) Definitions.--For purposes of this subsection--
``(A) Insured account.--The term `insured account' has the
meaning given to such term in section 401(c) of the National
Housing Act [former 42 U.S.C. 1724(c)] (as in effect before the
date of the enactment of this Act [Aug. 9, 1989]).
``(B) Insured depository institution.--The term `insured
depository institution' has the meaning given to such term in
section 3(c)(2) of the Federal Deposit Insurance Act [12 U.S.C.
1813(c)(2)].
``(d) Interim Treatment of Custodial Accounts.--
``(1) In general.--Subject to paragraph (2) and notwithstanding
subsection (a) or any limitation contained in the Federal Deposit
Insurance Act [12 U.S.C. 1811 et seq.] relating to the amount of
deposit insurance available to any 1 borrower, amounts held in
custodial accounts in insured depository institutions (as defined in
section 3(c)(2) of such Act [12 U.S.C. 1813(c)(2)]) for the payment
of principal, interest, tax, and insurance payments for mortgage
borrowers, shall be insured under the Federal Deposit Insurance Act
in the amount of $100,000 per mortgage borrower.
``(2) Treatment after effective date of new regulations.--After
the effective date of the regulations prescribed under subsection
(c)--
``(A) the amount of deposit insurance available for
custodial accounts shall be determined in accordance with such
regulations; and
``(B) paragraph (1) shall cease to apply with respect to
such accounts.
``(e) Treatment of References in Adjustable Rate Mortgage
Instruments.--
``(1) In general.--For purposes of adjustable rate mortgage
instruments that are in effect as of the date of enactment of this
Act [Aug. 9, 1989], any reference in the instrument to the Federal
Savings and Loan Insurance Corporation, the Federal Home Loan Bank
Board, or institutions insured by the Federal Savings and Loan
Insurance Corporation before such date shall be treated as a
reference to the Federal Deposit Insurance Corporation, the Federal
Housing Finance Board, the Office of Thrift Supervision, or
institutions which are members of the Savings Association Insurance
Fund, as appropriate on the basis of the transfer of functions
pursuant to this Act [see Tables for classification], unless the
context of the reference requires otherwise.
``(2) Substitution for indexes.--If any index used to calculate
the applicable interest rate on any adjustable rate mortgage
instrument is no longer calculated and made available as a direct or
indirect result of the enactment of this Act, any index--
``(A) made available by the Director of the Office of Thrift
Supervision, the Chairperson of the Federal Deposit Insurance
Corporation, or the Chairperson of the Federal Housing Finance
Board pursuant to paragraph (3); or
``(B) determined by the Director of the Office of Thrift
Supervision, the Chairperson of the Federal Deposit Insurance
Corporation, or the Chairperson of the Federal Housing Finance
Board, pursuant to paragraph (4), to be substantially similar to
the index which is no longer calculated or made available,
may be substituted by the holder of any such adjustable rate
mortgage instrument upon notice to the borrower.
``(3) Agency action required to provide continued availability
of indexes.--Promptly after the enactment of this subsection [Aug.
9, 1989], the Director of the Office of Thrift Supervision, the
Chairperson of the Federal Deposit Insurance Corporation, and the
Chairperson of the Federal Housing Finance Board shall take such
action as may be necessary to assure that the indexes prepared by
the Federal Savings and Loan Insurance Corporation, the Federal Home
Loan Bank Board, and the Federal home loan banks immediately prior
to the enactment of this subsection and used to calculate the
interest rate on adjustable rate mortgage instruments continue to be
available.
``(4) Requirements relating to substitute indexes.--If any
agency can no longer make available an index pursuant to paragraph
(3), an index that is substantially similar to such index may be
substituted for such index for purposes of paragraph (2) if the
Director of the Office of Thrift Supervision, the Chairperson of the
Federal Deposit Insurance Corporation, or the Chairperson of the
Federal Housing Finance Board, as the case may be, determines, after
notice and opportunity for comment, that--
``(A) the new index is based upon data substantially similar
to that of the original index; and
``(B) the substitution of the new index will result in an
interest rate substantially similar to the rate in effect at the
time the original index became unavailable.
``SEC. 403. DETERMINATION OF TRANSFERRED FUNCTIONS AND EMPLOYEES.
``(a) All FHLBB and FSLIC Employees Shall Be Transferred.--All
employees of the Federal Home Loan Bank Board and the Federal Savings
and Loan Insurance Corporation shall be identified for transfer under
subsection (b) to the Federal Deposit Insurance Corporation, the Office
of Thrift Supervision, or the Federal Housing Finance Board.
``(b) Functions and Employees Transferred.--
``(1) In general.--The Director of the Office of Thrift
Supervision, the Chairperson of the Oversight Board of the
Resolution Trust Corporation, the Chairperson of the Federal Deposit
Insurance Corporation, the Chairperson of the Federal Housing
Finance Board, and the Chairman of the Federal Home Loan Bank Board
(as of the day before the date of the enactment of this Act [Aug. 9,
1989]) shall jointly determine the functions or activities of the
Federal Home Loan Bank Board and the Federal Savings and Loan
Insurance Corporation, and the number of employees of such Board and
Corporation necessary to perform or support such functions or
activities, which are transferred from the Federal Home Loan Bank
Board and the Federal Savings and Loan Insurance Corporation to the
Office of Thrift Supervision, the Resolution Trust Corporation, the
Federal Deposit Insurance Corporation, or the Federal Housing
Finance Board, as the case may be.
``(2) Allocation of employees.--The Director of the Office of
Thrift Supervision, the Chairperson of the Oversight Board of the
Resolution Trust Corporation, the Chairperson of the Federal Deposit
Insurance Corporation, and the Chairperson of the Federal Housing
Finance Board shall allocate the employees of the Federal Home Loan
Bank Board and the Federal Savings and Loan Insurance Corporation
consistent with the number determined pursuant to paragraph (1) in a
manner which such Director, Chairman, and Chairpersons, in their
sole discretion, deem equitable, except that, within work units, the
agency preferences of individual employees shall be accommodated as
far as possible.
``(c) Federal Home Loan Bank Personnel.--Employees of the Federal
home loan banks or the joint offices of such banks who, on the day
before the date of the enactment of this Act [Aug. 9, 1989], are
performing functions or activities on behalf of the Federal Home Loan
Bank Board or the Federal Savings and Loan Insurance Corporation shall
be treated as employees of the Federal Home Loan Bank Board or the
Federal Savings and Loan Insurance Corporation for purposes of
determining, pursuant to subsection (b)(1), the number of employees
performing or supporting functions or activities of such Board or
Corporation to the extent such functions or activities are transferred
to the Federal Deposit Insurance Corporation, the Office of Thrift
Supervision, the Resolution Trust Corporation, or the Federal Housing
Finance Board.
``(d) FSLIC Employees Engaged in Conservatorship or Receivership
Functions.--Individuals who, on the day before the date of the enactment
of this Act [Aug. 9, 1989], are employed by the Federal Savings and Loan
Insurance Corporation in such Corporation's capacity as conservator or
receiver of any insured depository institution shall be treated as
employees of the Federal Savings and Loan Insurance Corporation for
purposes of determining, pursuant to subsection (b)(1), the number of
employees performing or supporting functions or activities of such
Corporation if such conservatorship or receivership is transferred to
the Federal Deposit Insurance Corporation or the Resolution Trust
Corporation.
``SEC. 404. RIGHTS OF EMPLOYEES OF ABOLISHED AGENCIES.
``All employees identified for transfer under subsection (b) of
section 403 (other than individuals described in subsection (c) or (d)
of such section) shall be entitled to the following rights:
``(1) Each employee so identified shall be transferred to the
appropriate agency or entity for employment no later than 60 days
after the date of the enactment of this Act [Aug. 9, 1989] and such
transfer shall be deemed a transfer of function for the purpose of
section 3503 of title 5, United States Code.
``(2) Each transferred employee shall be guaranteed a position
with the same status, tenure, grade, and pay as that held on the day
immediately preceding the transfer. Each such employee holding a
permanent position shall not be involuntarily separated or reduced
in grade or compensation for 1 year after the date of transfer,
except for cause or, if the employee is a temporary employee,
separated in accordance with the terms of the appointment.
``(3)(A) In the case of employees occupying positions in the
excepted service or the Senior Executive Service, any appointment
authority established pursuant to law or regulations of the Office
of Personnel Management for filling such positions shall be
transferred, subject to subparagraph (B).
``(B) An agency or entity may decline a transfer of authority
under subparagraph (A) (and the employees appointed pursuant
thereto) to the extent that such authority relates to positions
excepted from the competitive service because of their confidential,
policy-making, policy-determining, or policy-advocating character,
and noncareer positions in the Senior Executive Service (within the
meaning of section 3132(a)(7) of title 5, United States Code).
``(4) If any agency or entity to which employees are transferred
determines, after the end of the 1-year period beginning on the date
the transfer of functions to such agency or entity is completed,
that a reorganization of the combined work force is required, that
reorganization shall be deemed a `major reorganization' for purposes
of affording affected employees retirement under section 8336(d)(2)
or 8414(b)(1)(B) of title 5, United States Code.
``(5) Any employee accepting employment with any agency or
entity (other than the Office of Thrift Supervision) as a result of
such transfer may retain for 1 year after the date such transfer
occurs membership in any employee benefit program of the Federal
Home Loan Bank Board, including insurance, to which such employee
belongs on the date of the enactment of this Act [Aug. 9, 1989] if--
``(A) the employee does not elect to give up the benefit or
membership in the program; and
``(B) the benefit or program is continued by the Director of
the Office of Thrift Supervision.
The difference in the costs between the benefits which would have
been provided by such agency or entity and those provided by this
section shall be paid by the Director of the Office of Thrift
Supervision. If any employee elects to give up membership in a
health insurance program or the health insurance program is not
continued by the Director of the Office of Thrift Supervision, the
employee shall be permitted to select an alternate Federal health
insurance program within 30 days of such election or notice, without
regard to any other regularly scheduled open season.
``(6) Any employee employed by the Office of Thrift Supervision
as a result of the transfer may retain membership in any employee
benefit program of the Federal Home Loan Bank Board, including
insurance, which such employee has on the date of enactment of this
Act, if such employee does not elect to give up such membership and
the benefit or program is continued by the Director of the Office of
Thrift Supervision. If any employee elects to give up membership in
a health insurance program or the health insurance program is not
continued by the Director of the Office of Thrift Supervision, such
employee shall be permitted to select an alternate Federal health
insurance program within 30 days of such election or discontinuance,
without regard to any other regularly scheduled open season.
``(7) A transferring employee in the Senior Executive Service
shall be placed in a comparable position at the agency or entity to
which such employee is transferred.
``(8) Transferring employees shall receive notice of their
position assignments not later than 120 days after the effective
date of their transfer.
``(9) Upon the termination of the Resolution Trust Corporation
pursuant to section 21A(m)[(o)] of the Federal Home Loan Bank Act
[12 U.S.C. 1441a(o)], any employee of the Federal Deposit Insurance
Corporation assigned to the Resolution Trust Corporation shall be
reassigned to a position within the Federal Deposit Insurance
Corporation in accordance with the provisions of paragraphs (2) and
(4) through (7) of this section, except that the liability for any
difference in the costs of benefits described in paragraph (5) shall
be a liability of the Resolution Trust Corporation and not the
Office of Thrift Supervision.
``SEC. 405. DIVISION OF PROPERTY AND FACILITIES.
``Before the end of the 60-day period beginning on the date of the
enactment of this Act [Aug. 9, 1989], the Director of the Office of
Thrift Supervision, the Chairperson of the Oversight Board of the
Resolution Trust Corporation, the Chairperson of the Federal Deposit
Insurance Corporation, and the Chairperson of the Federal Housing
Finance Board shall jointly divide all property of the Federal Savings
and Loan Insurance Corporation and the Federal Home Loan Bank Board used
to perform functions and activities of the Federal Home Loan Bank Board
among the Office of Thrift Supervision, the Resolution Trust
Corporation, the Federal Deposit Insurance Corporation, and the Federal
Housing Finance Board in accordance with the division of
responsibilities, functions, and activities effected by this Act [see
Tables for classification]. Any disagreement between them in so doing
shall be resolved by the Director of the Office of Management and
Budget.
``SEC. 406. REPORT.
``Before the end of the 60-day period beginning on the date of the
enactment of this Act [Aug. 9, 1989], the Chairman of the Federal Home
Loan Bank Board shall provide by written report to the Secretary of the
Treasury, the Director of the Office of Management and Budget, and the
Congress, a final accounting of the finances and operations of the
Federal Savings and Loan Insurance Corporation.''
Transferred Employees of Federal Home Loan Banks and Joint Offices
Pub. L. 101-73, title VII, Sec. 722, Aug. 9, 1989, 103 Stat. 426,
provided that:
``(a) In General.--Each employee of the Federal Home Loan Banks or
joint offices of such Banks performing a function identified for
transfer under section 403 of this Act [set out above], including
employees who otherwise would be ineligible for employment by the United
States because of their citizenship, shall be transferred for employment
not later than 60 days after the date of the enactment of this Act [Aug.
9, 1989].
``(b) Notice to Employees.--Transferring employees shall receive
notice of their position assignments not later than 120 days after the
effective date of their transfer.
``(c) Guaranteed Position.--Each transferred employee shall be
guaranteed a position with the same status and tenure as that held by
such employee on the day immediately preceding the transfer. Each such
employee holding a permanent position shall not be involuntarily
separated for one year after the date of transfer, except for cause.
``(d) Pay and Benefits.--Each employee transferred under this
section shall be entitled to receive, during the one-year period
immediately following the transfer, pay and benefits comparable to those
received by such employee immediately preceding the transfer. Where
necessary or appropriate to further the safety and soundness of the
thrift industry, the employing agency may continue the pre-transfer
compensation of any transferring employee for up to 2 years beyond the
expiration of the period provided for under the preceding sentence. Such
pay and benefits shall be subject to the comparability provisions of
this Act [see Tables for classification]. Any transferred employee who
suffers a reduction of pay or benefits as a result of such comparability
provisions shall be compensated for such reduction during the 1 year
period following the transfer by assessments from the Federal Home Loan
Bank or joint office of such Banks, from which the employee transferred.
In any event, this subsection shall only apply to a transferred employee
while such employee remains with the agency to which the employee is
transferred.
``(e) Health Insurance.--If the health insurance program of a
transferred employee is not continued by the agency to which the
employee is transferred, such employee may elect to participate in the
agency's health insurance program notwithstanding health conditions pre-
existing at the time of election or enrollment into an alternate health
insurance program of the agency to which he or she is transferred and
without regard to any other regularly scheduled open season. Such
election shall be made within 30 days of the transfer.
``(f) Equitable Treatment.--The Director of the Office of Thrift
Supervision or the Chairperson of the Federal Housing Finance Board
shall take such action as is necessary on a case-by-case basis so that
employees transferring under this section receive equitable treatment
regarding credit for prior service with a Federal entity or
instrumentality, or with a Federal Home Loan Bank or joint office of
such Banks, with respect to the transferring employees' retirement
accounts and the transferring employees' accrued leave or vacation time,
in recognition of the transferring employees' supervisory service.
``(g) Special Rule for Certain Annuitants.--An individual who was a
reemployed annuitant on July 26, 1989, and who is transferred under this
section, shall not be subject to the deduction from pay required by
section 8344 or 8468 of title 5, United States Code, during the 1-year
period beginning on the date of enactment of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 [Aug. 9, 1989].''
Transitional Provisions
Pub. L. 101-73, title VII, Sec. 723, Aug. 9, 1989, 103 Stat. 427,
provided that:
``(a) Federal Home Loan Banks' Share of Administrative Expenses.--
The Federal Home Loan Banks shall pay to the Director of the Office of
Thrift Supervision the amount obtained by multiplying the administrative
expenses of the Office of Thrift Supervision incurred in connection with
functions of the Banks that are transferred to the Office (less any fees
or assessments collected by the Office) by a fraction--
``(1) the numerator of which is the amount of such expenses of
the Federal Home Loan Bank Board and the Federal Savings and Loan
Insurance Corporation paid by the Banks during the 1-year period
ending on the date of enactment of this Act [Aug. 9, 1989]; and
``(2) the denominator of which is the total expenses of such
Board and Corporation during such period.
No payment under this subsection is required after December 31, 1989.
``(b) Compensation of Supervisory and Examinations Employees.--The
Federal Home Loan Banks shall continue to pay the compensation of
employees of the Federal Home Loan Banks or the joint offices of such
banks who, on the day before the date of the enactment of this Act [Aug.
9, 1989], are performing supervisory and examination functions until
such supervisory and examination functions are transferred under this
Act [see Tables for classification]. Thereafter, the obligation of the
Federal Home Loan Banks hereunder to pay such applicable compensation
shall continue until the later of--
``(1) the date which is 120 days after the date of transfer of
such supervisory and examination functions to the Office of Thrift
Supervision, or
``(2) March 31, 1990.
Payment of such compensation by the Federal Home Loan Banks shall be in
lieu of, and not in addition to, the payment of compensation by the
Office of Thrift Supervision.
``(c) Facilities and Support Services.--Until December 31, 1990, the
Federal Home Loan Banks, as necessary, shall (with respect to
supervisory and examination functions performed by employees transferred
from the Federal Home Loan Banks or joint offices of such Banks to the
Office of Thrift Supervision), provide the Office of Thrift Supervision
facilities and support services comparable to those presently provided
for the employees of the Federal Home Loan Banks or joint offices of
such Banks performing such supervisory and examination functions,
including office space, furniture and equipment, computer, personnel,
and other support services. With respect to supervisory and examination
functions presently performed by employees of individual Federal Home
Loan Banks, each such Bank will only be required to provide such
facilities and support services to the extent that the functions
continue to be performed in that Bank's offices.
``(d) Principal Supervisory Agent.--Beginning on the date of
enactment of this Act [Aug. 9, 1989] until the Director of the Office of
Thrift Supervision shall otherwise provide, the Principal Supervisory
Agent for each Federal Home Loan Bank district shall be the senior
supervisory official (other than the President of the Federal Home Loan
Bank) employed by the Federal Home Loan Bank in such district on the day
before the date of the enactment of this Act, and such employees
performing supervisory and examination functions shall continue to be
responsible for the supervision and examination of savings associations
within such district.''
Special Account
Pub. L. 101-73, title VII, Sec. 725, Aug. 9, 1989, 103 Stat. 429,
provided that: ``At the time of dissolution of the Federal Home Loan
Bank Board, all such moneys and funds as shall remain in the special
deposit account of the Federal Home Loan Bank Board, or other such
accounts, shall become the property of the Federal Housing Finance
Board.''
Improvements in Supervisory Process
Pub. L. 100-86, title IV, Sec. 407(a)-(c), Aug. 10, 1987, 101 Stat.
616, 617, provided that:
``(a) Enhanced Flexibility in the Supervisory Process.--The Federal
Home Loan Bank Board (acting as such under the Federal Home Loan Bank
Act [12 U.S.C. 1421 et seq.] and in the Board's capacity as the board of
trustees of the Federal Savings and Loan Insurance Corporation under
section 402(a) of the National Housing Act [12 U.S.C. 1725(a)]) shall
issue guidelines which provide greater flexibility for supervisory
agents, examiners, and other employees and agents of the Board, the
Federal Savings and Loan Insurance Corporation, and the Federal home
loan banks in applying regulations, standards, and other requirements of
the Board or such Corporation with regard to particular situations or
particular thrift institutions.
``(b) Particular Guidelines Required.--The guidelines issued under
subsection (a) shall contain the following provisions:
``(1) Flexible approval process for renegotiated loans.--A
provision establishing a flexible procedure for obtaining
supervisory approval of the terms of loans renegotiated by thrift
institutions if a supervisory agreement is in effect between such
institution and the principal supervisory agent of the Federal home
loan bank district where such institution is located.
``(2) Recognition of additional financial capability of a
borrower.--A provision permitting examiners and other employees and
agents of the Board, the Federal Savings and Loan Insurance
Corporation, and the Federal home loan banks to take into account,
to the extent consistent with the practices of the Federal banking
agencies, other financial resources of a borrower (in addition to
the financial assets of the borrower which are pledged to secure a
loan) in classifying the assets of the thrift institution which
holds a loan made to such borrower or with recourse to the borrower.
``(3) Appraisal review.--A provision establishing an appraisal
review system to avoid overly optimistic or conservative appraisals
with the goal of achieving appraisals that are more consistent in
reflecting underlying values.
``(4) 1-to-4 family residences.--A provision eliminating the
scheduled item system except as such system relates to 1-to-4 family
residences.
``(c) Definitions.--For purposes of subsections (a) and (b)--
``(1) Thrift institution.--The term `thrift institution' means--
``(A) any association (within the meaning given to such term
in section 2(d) of the Home Owners' Loan Act of 1933 [12 U.S.C.
1462(d)]);
``(B) any insured institution (within the meaning given to
such term in section 401(a) of the National Housing Act [12
U.S.C. 1724(a)]); and
``(C) any member (within the meaning given to such term in
section 2(4) of the Federal Home Loan Bank Act [12 U.S.C.
1422(4)]).
``(2) Board.--The term `Board' means the Federal Home Loan Bank
Board.
``(3) Federal banking agency.--The term `Federal banking agency'
means the Comptroller of the Currency, the Board of Governors of the
Federal Reserve System, and the Federal Deposit Insurance
Corporation.''
Guidelines Respecting Action on Applications to Bank Board or Federal
Savings and Loan Insurance Corporation
Pub. L. 100-86, title IV, Sec. 410(a), (c), (d), Aug. 10, 1987, 101
Stat. 620, provided that:
``(a) In General.--The Federal Home Loan Bank Board shall promulgate
guidelines which provide that with respect to each type of completed
application (other than an application under section 408(g) of the
National Housing Act [12 U.S.C. 1730a(g)]) by any person for approval by
the Federal Home Loan Bank Board or the Federal Savings and Loan
Insurance Corporation, the application shall be deemed to be approved as
of the end of the period prescribed under such guidelines unless the
Board or the Federal Savings and Loan Insurance Corporation, as the case
may be, approves or disapproves such application before the end of such
period.
``(c) Report to Congress.--Before the end of the 60-day period
beginning on the date of the enactment of this Act [Aug. 10, 1987], the
Federal Home Loan Bank Board shall submit to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate a report
containing the guidelines required to be promulgated under subsection
(a).
``(d) Effective Date.--The guidelines required to be promulgated
under subsection (a) shall take effect at the end of the 60-day period
referred to in subsection (c).''
Guidelines for Asset Disposition
Pub. L. 100-86, title IV, Sec. 411, Aug. 10, 1987, 101 Stat. 620,
which directed Federal Home Loan Bank Board to submit, not later than 6
months after Aug. 10, 1987, to congressional committees a report
containing appropriate new guidelines to prevent dumping of assets over
which it had direct or indirect control and which the Board was to
promulgate at end of such period, ceased to be effective on date that
notice of completion of all net new borrowing by Financing Corporation
is published in Federal Register (Mar. 30, 1992). See section 416 of
Pub. L. 100-86, set out as a Sunset and Savings Provision note under
section 1441 of this title.
Expansion of Use of Underutilized Minority Thrift Institutions
Pub. L. 100-86, title IV, Sec. 412, Aug. 10, 1987, 101 Stat. 620,
provided that:
``(a) Consultation on Expanded Use.--The Secretary of the Treasury
shall consult with the Federal Home Loan Bank Board and the Federal
Savings and Loan Insurance Corporation on methods for increasing the use
of underutilized minority thrift institutions as depositaries or
financial agents of Federal agencies.
``(b) Designation of Minority Thrift Institutions Involved in
Capital Recovery Program as Underutilized Thrift.--If the Federal Home
Loan Bank Board approves any plan submitted under regulations prescribed
under section 10 of the Home Owners' Loan Act of 1933 [12 U.S.C. 1467a]
(as added by section 404(a) of this title) or section 416 of the
National Housing Act [12 U.S.C. 1730i] (as added by section 404(c)
[404(b)] of this title) by any minority institution (as defined in each
such section), such minority institution shall be designated by the
Board as an underutilized thrift institution for purposes of increasing
the use of such association as a depositary or financial agent of other
Federal agencies.
``(c) Report to Congress.--Before the end of the 6-month period
beginning on the date of the enactment of this Act [Aug. 10, 1987], the
Secretary of the Treasury, the Federal Home Loan Bank Board, and the
Federal Savings and Loan Insurance Corporation shall each submit a
report to the Congress on actions taken by such Secretary or agency
pursuant to subsection (a) or (b).
``(d) Thrift Institution Defined.--For purposes of this section, the
term `thrift institution' has the meaning given to such term in section
407(c)(1) [section 407(c)(1) of Pub. L. 100-86, set out as a note
above].''
Congressional Oversight
Pub. L. 100-86, title IV, Sec. 415, Aug. 10, 1987, 101 Stat. 622,
provided that:
``(a) Banking Committee Review of Panel Actions.--The Committee on
Banking, Finance and Urban Affairs of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of the Senate shall
monitor and review the actions taken by each review panel established
pursuant to the amendment made by section 407(d) of this Act [enacting
former section 1442a of this title].
``(b) Other Congressional Oversight.--The Federal Home Loan Bank
Board shall submit a report to the Committee on Banking, Finance and
Urban Affairs [now Committee on Financial Services] of the House of
Representatives, at the end of the 6-month period beginning on the date
of the enactment of this title [Aug. 10, 1987], at the end of the 1-year
period beginning on such date, and on an annual basis after the end of
such 1-year period, containing--
``(1) a description of the Board's existing manpower and talent;
``(2) an estimate of the Board's projected manpower and talent
needs for the year, including the cost of such projected needs;
``(3) a description and explanation of the goals and objectives,
of the Board and all its related entities (including the Federal
Asset Disposition Association), for the coming year and the
management strategies to be employed by such entities in
accomplishing such goals and objectives;
``(4) a summary of the operations, receipts, expenses, and
expenditures, of the Board and all its related entities (including
the Federal Asset Disposition Association), during the preceding
year; and
``(5) a summary of the operations and the aggregate receipts,
expenses, and expenditures of any other person not referred to in
paragraph (4), including receivers, conservators, accountants,
attorneys, and consultants, who is engaged in any activity on behalf
of the Board or any other entity which is referred to in such
paragraph, to the extent such operations, receipts, expenses, and
expenditures are in connection with such activity.
``(c) Appearance.--The Federal Home Loan Bank Board and the Federal
Savings and Loan Insurance Corporation shall, before the beginning of
each fiscal year, appear before the Committee on Banking, Finance and
Urban Affairs [now Committee on Financial Services] of the House of
Representatives and the Committee on Banking, Housing, and Urban Affairs
of the Senate to describe and explain each such agency's plans and
proposals with respect to administrative expenses for such fiscal year.
``(d) Guidelines for Employment of Outside Accountants, Attorneys,
Conservators, and Other Consultants.--Before the end of the 6-month
period beginning on the date of the enactment of this Act [Aug. 10,
1987], the Federal Home Loan Bank Board shall submit to the Committee on
Banking, Finance and Urban Affairs of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of the Senate a
report containing guidelines to improve the management of and control
over all outside accountants, attorneys, conservators, consultants, and
other persons whose services are employed by the Board, the Federal
Savings and Loan Insurance Corporation, the Federal Asset Disposition
Association, the principal supervisory agent for any Federal home loan
bank district, or any other entity created, owned, or controlled by the
Board in connection with any function for which the Board has direct or
indirect regulatory or supervisory responsibility.''
Study and Reports Concerning Direct Investments
Pub. L. 100-86, title XII, Sec. 1203, Aug. 10, 1987, 101 Stat. 661,
provided that:
``(a) Study Required.--The Federal Home Loan Bank Board shall
conduct a study of the effect of direct investment activities on insured
institutions, including comparative analyses of the effect of direct
investment activities on--
``(1) different sized insured institutions;
``(2) State chartered insured institutions;
``(3) federally chartered insured institutions; and
``(4) insured institutions in each of the Supervisory
Examinations Rating Classifications.
``(b) Report Required.--Not later than 18 months after the date of
enactment of this Act [Aug. 10, 1987], the Federal Home Loan Bank Board
shall submit to the Committee on Banking, Finance and Urban Affairs of
the House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate, a report containing the findings and
conclusions of the Board with respect to the study required under
subsection (a), including--
``(1) the findings and conclusions of the Board concerning the
losses to the insurance fund and the degree to which such losses
were the result of direct investment activities with respect to each
of the classes of institutions described in subsection (a); and
``(2) a comparison of the effects of direct investment
activities prior to April 16, 1987, and the effect of such
activities on or after April 16, 1987, for each of the classes of
institutions described in subsection (a) and the losses to the
insurance fund as a result of such activities.
``(c) Prior Reports to Congress on Changes To Direct Investment
Regulations.--
``(1) In general.--Not less than 90 days before final approval
is given by the Federal Home Loan Bank Board to any regulation which
repeals or modifies (or has the effect of repealing or modifying)
any regulation limiting direct investment activities, the Board
shall submit to the Committee on Banking, Finance and Urban Affairs
[now Committee on Financial Services] of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate a report describing the proposed regulation
and the reasons for the proposed regulation, including the effect of
such regulation on the insurance fund.
``(2) Prospective application of rule.--Paragraph (1) shall not
apply with respect to Board Resolution Numbered 87-215 and Board
Resolution Numbered 87-215A.
``(d) Direct Investment Activity Defined.--For purposes of this
section, the term `direct investment activities' means activities which
are limited under Board Resolution Numbered 87-215 and Board Resolution
Numbered 87-215A.''
