§ 1441b. — Resolution Funding Corporation established.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1441b]
TITLE 12--BANKS AND BANKING
CHAPTER 11--FEDERAL HOME LOAN BANKS
Sec. 1441b. Resolution Funding Corporation established
(a) Purpose
The purpose of the Resolution Funding Corporation is to provide
funds to the Resolution Trust Corporation to enable the Resolution Trust
Corporation to carry out the provisions of this chapter.
(b) Establishment
There is established a corporation to be known as the Resolution
Funding Corporation.
(c) Management of Funding Corporation
(1) Directorate
The Funding Corporation shall be under the management of a
Directorate composed of 3 members as follows:
(A) The director of the Office of Finance of the Federal
Home Loan Banks (or the head of any successor office).
(B) 2 members selected by the Thrift Depositor Protection
Oversight Board from among the presidents of the Federal Home
Loan Banks.
(2) Terms
Of the 2 members appointed under paragraph (1)(B), 1 shall be
appointed for an initial term of 2 years and 1 shall be appointed
for an initial term of 3 years. Thereafter, such members shall be
appointed for a term of 3 years.
(3) Vacancy
If any member leaves the office in which such member was serving
when appointed to the Directorate--
(A) such member's service on the Directorate shall terminate
on the date such member leaves such office; and
(B) the successor to the office of such member shall serve
the remainder of such member's term.
(4) Equal representation of banks
No president of a Federal Home Loan Bank may be appointed to
serve an additional term on the Directorate until such time as the
presidents of each of the other Federal Home Loan Banks have served
as many terms as the president of such bank.
(5) Chairperson
The Thrift Depositor Protection Oversight Board shall select the
chairperson of the Directorate from among the 3 members of the
Directorate.
(6) Staff
(A) No paid employees
The Funding Corporation shall have no paid employees.
(B) Powers
The Directorate may, with the approval of the Federal
Housing Finance Board authorize the officers, employees, or
agents of the Federal Home Loan Banks to act for and on behalf
of the Funding Corporation in such manner as may be necessary to
carry out the functions of the Funding Corporation.
(7) Administrative expenses
(A) In general
All administrative expenses of the Funding Corporation,
including custodian fees, shall be paid by the Federal Home Loan
Banks.
(B) Pro rata distribution
The amount each Federal Home Loan Bank shall pay under
subparagraph (A) shall be determined by the Thrift Depositor
Protection Oversight Board by multiplying the total
administrative expenses for any period by the percentage arrived
at by dividing--
(i) the aggregate amount the Thrift Depositor Protection
Oversight Board required such bank to invest in the Funding
Corporation (as of the time of such determination) under
paragraphs (4) and (5) of subsection (e) of this section
(computed without regard to paragraphs (3) or (6) of such
subsection); by
(ii) the aggregate amount the Thrift Depositor
Protection Oversight Board required all Federal Home Loan
Banks to invest (as of the time of such determination) under
such paragraphs.
(8) Regulation by Thrift Depositor Protection Oversight
Board
The Directorate of the Funding Corporation shall be subject to
such regulations, orders, and directions as the Thrift Depositor
Protection Oversight Board may prescribe.
(9) No compensation from Funding Corporation
Members of the Directorate of the Funding Corporation shall
receive no pay, allowance, or benefit from the Funding Corporation
for serving on the Directorate.
(d) Powers of Funding Corporation
The Funding Corporation shall have only the powers described in
paragraphs (1) through (9), subject to the other provisions of this
section and such regulations, orders, and directions as the Thrift
Depositor Protection Oversight Board may prescribe:
(1) Issue stock
To issue nonvoting capital stock to the Federal Home Loan Banks.
(2) Purchase capital stock; transfer amounts
To purchase capital certificates issued by the Resolution Trust
Corporation under section 1441a of this title, and to transfer
amounts to the Resolution Trust Corporation pursuant to subsection
(e)(8) of this section.
(3) Issue obligations
To issue debentures, bonds, or other obligations, and to borrow,
to give security for any amount borrowed, and to pay interest on
(and any redemption premium with respect to) any such obligation or
amount.
(4) Impose assessments
To impose assessments in accordance with subsection (e)(7) of
this section.
(5) Corporate seal
To adopt, alter, and use a corporate seal.
(6) Succession
To have succession until dissolved.
(7) Contracts
To enter into contracts.
(8) Authority to sue
To sue and be sued in its corporate capacity, and to complain
and defend in any action brought by or against the Funding
Corporation in any State or Federal court of competent jurisdiction.
(9) Incidental powers
To exercise such incidental powers not inconsistent with the
provisions of this section and section 1441a of this title as are
necessary and appropriate to carry out the provisions of this
section.
(e) Capitalization of Funding Corporation, etc.
(1) In general
(A) Amount required
The Thrift Depositor Protection Oversight Board shall ensure
that the aggregate of the amounts obtained under this subsection
shall be sufficient so that--
(i) the Funding Corporation may transfer the amounts
required under paragraph (8); and
(ii) the total of the face amounts (the amount of
principal payable at maturity) of noninterest bearing
instruments in the Funding Corporation Principal Fund are
equal to the aggregate amount of principal on the
obligations of the Funding Corporation.
(B) Purchases of stock by Federal Home Loan Banks
Each Federal Home Loan Bank shall purchase stock in the
Funding Corporation at times and in amounts prescribed by the
Thrift Depositor Protection Oversight Board.
(2) Par value; transferability
Each share of stock issued by the Funding Corporation to a
Federal Home Loan Bank shall have a par value in an amount
determined by the Thrift Depositor Protection Oversight Board and
shall be transferable at not less than par value only among the
Federal Home Loan Banks in the manner and to the extent prescribed
by the Thrift Depositor Protection Oversight Board.
(3) Maximum investment amount limitation for each Federal
Home Loan Bank
The cumulative amount of funds invested in nonvoting capital
stock of the Funding Corporation by each Federal Home Loan Bank
under paragraph (1) shall not at any time exceed the sum of the
amounts calculated under subparagraphs (A) and (B), as adjusted in
subparagraph (C), as follows:
(A) Reserves and undivided profits on December 31, 1988
The sum on December 31, 1988, of--
(i) the reserves maintained by such Bank pursuant to the
reserve requirement contained in the first 2 sentences of
section 1436 of this title (as in effect on December 31,
1988); and
(ii) the undivided profits of such Bank, minus the
amounts invested in the capital stock of the Financing
Corporation pursuant to section 1441 of this title.
(B) Subsequent additions to reserves and undivided profits
The amount, calculated until the date on which the Funding
Corporation Principal Fund is fully funded, equal to--
(i) the sum of--
(I) the amounts added to reserves by such Bank after
December 31, 1988, pursuant to the reserve requirement
contained in the first 2 sentences of section 1436 of
this title (as in effect on December 31, 1988); and
(II) the quarterly additions to undivided profits of
the Bank after December 31, 1988; minus
(ii) the amounts invested by such Bank in the capital
stock of the Financing Corporation after December 31, 1988,
pursuant to the requirement contained in section 1441 of
this title.
(C) Annual adjustment
The amounts in subparagraph (B) shall be adjusted as
follows:
(i) Increase in limit
If the aggregate amount for all Federal Home Loan Banks
determined under subparagraph (B)(i) is less than
$300,000,000 per year, the limit for each Bank shall be
increased by an amount determined by the Thrift Depositor
Protection Oversight Board by multiplying the aggregate
deficiency by the percentage applicable to such Bank arrived
at in the manner described in paragraph (5).
(ii) Decrease in limit
If the aggregate amount for all Federal Home Loan Banks
determined under subparagraph (B)(i) is more than
$300,000,000 per year, the limit for each Bank shall be
decreased by an amount determined by the Thrift Depositor
Protection Oversight Board by multiplying the aggregate
excess by the percentage applicable to such Bank arrived at
in the manner described in paragraph (5).
(4) Pro rata distribution of first $1,000,000,000 invested
in Funding Corporation by Federal Home Loan Banks
Of the first $1,000,000,000 of the aggregate that the Federal
Housing Finance Board (pursuant to section 1441 of this title) or
the Thrift Depositor Protection Oversight Board (under this section)
may require the Federal Home Loan Banks collectively to invest in
the capital stock of the Financing Corporation or invest in the
capital stock of the Funding Corporation, respectively, the amount
which each Federal Home Loan Bank (or any successor to the Bank)
shall invest shall be determined by the Federal Housing Finance
Board or the Thrift Depositor Protection Oversight Board (as the
case may be) by multiplying the aggregate amount of such investment
by all Banks by the percentage appearing in the following table for
each such Bank:
BankPercentage
Federal Home Loan Bank of Boston...............................
1.8629
Federal Home Loan Bank of New York.............................
9.1006
Federal Home Loan Bank of Pittsburgh...........................
4.2702
Federal Home Loan Bank of Atlanta............................. 14.4007
Federal Home Loan Bank of Cincinnati...........................
8.2653
Federal Home Loan Bank of Indianapolis.........................
5.2863
Federal Home Loan Bank of Chicago..............................
9.6886
Federal Home Loan Bank of Des Moines...........................
6.9301
Federal Home Loan Bank of Dallas...............................
8.8181
Federal Home Loan Bank of Topeka...............................
5.2706
Federal Home Loan Bank of San Francisco....................... 19.9644
Federal Home Loan Bank of Seattle..............................
6.1422
(5) Pro rata distribution of amounts required to be invested
in excess of $1,000,000,000
Of any amount which the Thrift Depositor Protection Oversight
Board may require the Federal Home Loan Banks to invest in capital
stock of the Funding Corporation under this subsection in excess of
the $1,000,000,000 amount referred to in paragraph (4), the amount
which each Federal Home Loan Bank (or any successor to such Bank)
shall invest shall be determined by the Thrift Depositor Protection
Oversight Board by multiplying the excess amount by the percentage
arrived at by dividing--
(A) the sum of the total assets (as of the most recent
December 31) held by all Savings Association Insurance Fund
members which are members of such Bank; by
(B) the sum of the total assets (as of such date) held by
all Savings Association Insurance Fund members which are members
of a Federal Home Loan Bank.
(6) Special provisions relating to maximum amount
limitations
(A) In general
If the amount of any Federal Home Loan Bank's allocation
under paragraph (5) exceeds the maximum amount applicable with
respect to such Bank (in this paragraph referred to as a
``deficient Bank'') under paragraph (3) at the time of such
determination (in this paragraph referred to as the ``excess
amount'')--
(i) the Thrift Depositor Protection Oversight Board
shall require each Federal Home Loan Bank that is not
allocated an amount under paragraph (5) that exceeds its
maximum under paragraph (3) (in this paragraph referred to
as a ``remaining Bank'') to purchase stock in the Funding
Corporation (in addition to the amount determined under
paragraph (5) for such remaining Bank and subject to the
maximum amount applicable with respect to such remaining
Bank under paragraph (3) at the time of such determination)
on behalf of the deficient Bank the amount determined under
subparagraph (B);
(ii) the Thrift Depositor Protection Oversight Board
shall require the deficient Bank to subsequently reimburse
the remaining Banks out of its net earnings (or
reimbursements received from other Banks) in the manner
described in subparagraphs (C) and (D); and
(iii) the requirements contained in subparagraph (D)
relating to the use of net earnings shall apply to the
deficient Bank until such Bank has reimbursed the remaining
Banks for all of the excess amount.
(B) Allocation of excess amount among remaining Federal Home
Loan Banks
(i) In general
The amount of stock each remaining Federal Home Loan
Bank shall be required to purchase under subparagraph (A)(i)
is the amount determined by the Thrift Depositor Protection
Oversight Board by multiplying the excess amount by the
percentage arrived at by dividing--
(I) the cumulative amount of stock in the Funding
Corporation purchased under this subsection by such
remaining Bank at the time of such determination; by
(II) the aggregate of the cumulative amounts
invested under this subsection by all remaining Banks at
such time.
(ii) Reallocation
If the allocation under this subparagraph results in a
remaining Bank exceeding its maximum amount under paragraph
(3), such excess amount shall be reallocated to the other
remaining Bank in accordance with this subparagraph.
(C) Reimbursement procedure
(i) In general
A Bank on whose behalf stock is purchased under
subparagraph (A)(i) shall make payments annually from
amounts, if any, in its reserve account (as described in
subparagraph (D)) to each Bank that made payments on its
behalf until a full reimbursement has been completed. A full
reimbursement shall require repayment of the excess amounts
invested by other Banks plus interest which shall accrue at
a rate equal to the annual average cost of funds in the most
recent year to all Federal Home Loan Banks and which shall
begin to accrue 2 years after the investments under
subparagraph (A)(i) are made.
(ii) Determination of amounts
The Thrift Depositor Protection Oversight Board shall
annually determine the dollar amounts of such reimbursements
by distributing the amount available for such reimbursements
(at the time of such determination) from the reimbursing
Bank to the Banks that made purchases on its behalf
according to the shares of the reimbursing Bank's excess
amount that the other Banks invested.
(D) Transfer to account for reimbursements required
(i) In general
Of the net earnings for any year of a Bank on whose
behalf a purchase is made under subparagraph (A)(i) and any
reimbursements received from other Banks, the amount
necessary to make the reimbursements required under
subparagraph (A)(ii) shall be placed in a reserve account
(established in the manner prescribed by the Thrift
Depositor Protection Oversight Board), which shall be
available only for such reimbursements.
(ii) Limitation
The total amount placed in such reserve account in any
year by any Bank shall not exceed an amount equal to 20
percent of the net earnings of such Bank for such year.
(7) Additional sources
If each Federal Home Loan Bank has exhausted the amount
applicable with respect to the Bank under paragraph (3) after
purchases under paragraphs (4), (5), and (6), the amounts necessary
to provide additional funding for the Funding Corporation Principal
Fund shall be obtained from the following sources:
(A) Assessments
The Funding Corporation, with the approval of the Board of
Directors of the Federal Deposit Insurance Corporation, shall
assess against each Savings Association Insurance Fund member an
assessment (in the same manner as assessments are assessed
against such members by the Federal Deposit Insurance
Corporation pursuant to section 1817 of this title) except
that--
(i) the maximum amount of the aggregate amount assessed
shall be the amount of additional funds necessary to fund
the Funding Corporation Principal Fund;
(ii) the sum of--
(I) the amount assessed under this subparagraph; and
(II) the amount assessed by the Financing
Corporation under section 1441 of this title;
shall not exceed the amount authorized to be assessed against
Savings Association Insurance Fund members pursuant to
section 1817 of this title;
(iii) the Financing Corporation shall have first
priority to make the assessment; and
(iv) the amount of the applicable assessment determined
under such section 1817 of this title shall be reduced by
the sum described in clause (ii) of this subparagraph.
(B) Receivership proceeds
To the extent the amounts available pursuant to subparagraph
(A) are insufficient to fund the Funding Corporation Principal
Fund, the Federal Deposit Insurance Corporation shall transfer
amounts to the Funding Corporation from the liquidating
dividends and payments made on claims received by the FSLIC
Resolution Fund from receiverships.
(8) Transfer to RTC
The Funding Corporation shall transfer to the Resolution Trust
Corporation $1,200,000,000 in fiscal year 1989.
(f) Obligations of Funding Corporation
(1) Issuance
The Funding Corporation may issue bonds, notes, debentures, and
similar obligations in an aggregate amount not to exceed
$30,000,000,000. No obligation may be issued under this paragraph
unless, at the time of issuance, the face amounts (the amount of
principal payable at maturity) of noninterest bearing instruments in
the Funding Corporation Principal Fund are equal to the aggregate
amount of principal on the obligations of the Funding Corporation
that will be outstanding following such issuance.
(2) Interest payments
The Funding Corporation shall pay the interest due on such
obligations from funds obtained for such interest payments from the
following sources:
(A) Earnings on certain assets
Earnings on assets of the Funding Corporation which are not
invested in the Funding Corporation Principal Fund shall be used
for interest payments on outstanding debt of the Funding
Corporation.
(B) Proceeds from Resolution Trust Corporation
To the extent the amounts available pursuant to subparagraph
(A) are insufficient to cover the amount of interest payments,
the Resolution Trust Corporation shall pay to the Funding
Corporation--
(i) the liquidating dividends and payments made on
claims received by the Resolution Trust Corporation from
receiverships to the extent such proceeds are determined by
the Thrift Depositor Protection Oversight Board to be in
excess of funds presently necessary for resolution costs;
and
(ii) any proceeds from warrants and participations
acquired by the Resolution Trust Corporation.
(C) Payments by Federal home loan banks
(i) In general
To the extent that the amounts available pursuant to
subparagraphs (A) and (B) are insufficient to cover the
amount of interest payments, each Federal home loan bank
shall pay to the Funding Corporation in each calendar year,
20.0 percent of the net earnings of that Bank (after
deducting expenses relating to section 1430(j) of this title
and operating expenses).
(ii) Annual determination
The Board annually shall determine the extent to which
the value of the aggregate amounts paid by the Federal home
loan banks exceeds or falls short of the value of an annuity
of $300,000,000 per year that commences on the issuance date
and ends on the final scheduled maturity date of the
obligations, and shall select appropriate present value
factors for making such determinations, in consultation with
the Secretary of the Treasury.
(iii) Payment term alterations
The Board shall extend or shorten the term of the
payment obligations of a Federal home loan bank under this
subparagraph as necessary to ensure that the value of all
payments made by the Banks is equivalent to the value of an
annuity referred to in clause (ii).
(iv) Term beyond maturity
If the Board extends the term of payment obligations
beyond the final scheduled maturity date for the
obligations, each Federal home loan bank shall continue to
pay 20.0 percent of its net earnings (after deducting
expenses relating to section 1430(j) of this title and
operating expenses) to the Treasury of the United States
until the value of all such payments by the Federal home
loan banks is equivalent to the value of an annuity referred
to in clause (ii). In the final year in which the Federal
home loan banks are required to make any payment to the
Treasury under this subparagraph, if the dollar amount
represented by 20.0 percent of the net earnings of the
Federal home loan banks exceeds the remaining obligation of
the Banks to the Treasury, the Finance Board shall reduce
the percentage pro rata to a level sufficient to pay the
remaining obligation.
(D) Proceeds from sale of assets
To the extent the amounts available pursuant to
subparagraphs (A), (B), and (C) are insufficient to cover the
amount of interest payments, the FSLIC Resolution Fund shall
transfer to the Funding Corporation any net proceeds from the
sale of assets received from the Resolution Trust Corporation,
which shall be used by the Funding Corporation to pay such
interest.
(E) Treasury backup
(i) In general
To the extent the amounts available pursuant to
subparagraphs (A), (B), (C), and (D) are insufficient to
cover the amount of interest payments, the Secretary of the
Treasury shall pay to the Funding Corporation the additional
amount due, which shall be used by the Funding Corporation
to pay such interest.
(ii) Liability of Funding Corporation
In each instance where the Secretary is required to make
a payment under this subparagraph to the Funding
Corporation, the amount of the payment shall become a
liability of the Funding Corporation to be repaid to the
Secretary upon dissolution of the Funding Corporation (to
the extent the Funding Corporation may have any remaining
assets).
(iii) Appropriation of funds
There are hereby appropriated to the Secretary, for
fiscal year 1989 and each fiscal year thereafter, such sums
as may be necessary to carry out clause (i).
(3) Principal payments
On maturity of an obligation issued under this subsection, the
obligation shall be repaid by the Funding Corporation from the
liquidation of noninterest bearing instruments held in the Funding
Corporation Principal Fund.
(4) Proceeds to be transferred to Resolution Trust
Corporation
Subject to terms and conditions approved by the Thrift Depositor
Protection Oversight Board, the proceeds (less any discount, plus
any premium, net of issuance costs) of any obligation issued by the
Funding Corporation shall be used to--
(A) purchase the capital certificates issued by the
Resolution Trust Corporation under section 1441a of this title;
or
(B) refund any previously issued obligation the proceeds of
which were transferred in the manner described in subparagraph
(A).
(5) Investment of United States funds in obligations
Obligations issued under this section by the Funding
Corporation, at the direction of the Thrift Depositor Protection
Oversight Board shall be lawful investments, and may be accepted as
security, for all fiduciary, trust, and public funds the investment
or deposit of which shall be under the authority or control of the
United States or any officer of the United States.
(6) Market for obligations
All persons having the power to invest in, sell, underwrite,
purchase for their own accounts, accept as security, or otherwise
deal in obligations of the Federal Home Loan Banks shall also have
the power to do so with respect to obligations of the Funding
Corporation.
(7) Tax exempt status
(A) In general
Except as provided in subparagraph (B), obligations of the
Funding Corporation shall be exempt from tax both as to
principal and interest to the same extent as any obligation of a
Federal Home Loan Bank is exempt from tax under section 1433 of
this title.
(B) Exception
The Funding Corporation, like the Federal Home Loan Banks,
shall be treated as an agency of the United States for purposes
of the first sentence of section 3124(b) of title 31 (relating
to determination of tax status of interest on obligations).
(8) Obligations not exempt securities
(A) In general
For purposes of the laws administered by the Securities and
Exchange Commission, obligations of the Funding Corporation--
(i) shall not be considered to be securities issued or
guaranteed by a person controlled or supervised by, or
acting as an instrumentality of, the Government of the
United States; and
(ii) shall not be considered to be ``exempted
securities'' within the meaning of section 78c(a)(12)(A)(i)
of title 15, except that such obligations shall be
considered to be exempted securities for purposes of section
78o of title 15.
(B) Authority of Commission
Notwithstanding subparagraph (A), the Securities and
Exchange Commission may, by rule or order, consistent with the
public interest and the protection of investors, exempt
securities issued by the Funding Corporation from the
registration requirements of the Securities Act of 1933 [15
U.S.C. 77a et seq.], subject to such terms and conditions as the
Commission may prescribe.
(9) Minority participation in public or negotiated offerings
The Thrift Depositor Protection Oversight Board and the
Directorate shall ensure that minority owned or controlled
commercial banks, investment banking firms, underwriters, and bond
counsels throughout the United States have an opportunity to
participate to a significant degree in any public or negotiated
offering of obligations issued under this section.
(10) No full faith and credit of the United States
Obligations of the Funding Corporation shall not be obligations
of, or guaranteed as to principal by, the Federal Home Loan Bank
System, the Federal Home Loan Banks, the United States, or the
Resolution Trust Corporation and the obligations shall so plainly
state. The Secretary shall pay interest on such obligations as
required pursuant to this subsection.
(g) Use and disposition of assets of Funding Corporation not transferred
to Resolution Trust Corporation
(1) In general
Subject to regulations, restrictions, and limitations prescribed
by the Thrift Depositor Protection Oversight Board, assets of the
Funding Corporation which are not required to be invested in capital
certificates issued by the Resolution Trust Corporation under
section 1441a of this title and are not needed for current interest
payments shall be invested in direct obligations of the United
States issued by the Secretary.
(2) Separate account for zero coupon instruments held to
ensure payment of principal
Except as provided in subsection (e)(8) of this section, the
Funding Corporation shall invest amounts received pursuant to
subsection (e) of this section in, and hold in a separate account to
be known as the Funding Corporation Principal Fund, noninterest
bearing instruments--
(A) which are direct obligations of the United States issued
by the Secretary; and
(B) the total of the face amounts (the amount of principal
payable at maturity) of which is approximately equal to the
aggregate amount of principal on the obligations of the Funding
Corporation.
(h) Miscellaneous provisions
(1) Treatment for certain purposes
Except as provided in subsection (f)(7)(B) of this section, the
Funding Corporation shall be treated as a Federal Home Loan Bank for
purposes of section 1433 of this title (to the extent such section
relates to State, municipal, and local taxation) and section 1443 of
this title.
(2) Federal Reserve banks as depositaries and fiscal agents
The Federal Reserve banks are authorized to act as depositaries
for or fiscal agents or custodians of the Funding Corporation.
(3) Applicability of certain provisions relating to
Government corporations
The Funding Corporation shall be treated, for purposes of
sections 9105,\1\ 9107, and 9108 of title 31, as a mixed-ownership
Government corporation which has capital of the Government.
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(4) Jurisdiction and power to remove
(A) Federal court jurisdiction
Notwithstanding any other provision of law, any civil
action, suit, or proceeding to which the Funding Corporation is
a party shall be deemed to arise under the laws of the United
States, and the United States district courts shall have
original jurisdiction over such action, suit, or proceeding.
(B) Removal
The Funding Corporation may, without bond or security,
remove any such action, suit, or proceeding from a State court
to the United States District Court for the District of
Columbia.
(i) Annual report
(1) In general
The Thrift Depositor Protection Oversight Board shall annually
submit a full report of the operations, activities, budget,
receipts, and expenditures of the Funding Corporation for the
preceding 12-month period.
(2) Contents
The report required under paragraph (1) shall include--
(A) audited statements and any information necessary to make
known the financial condition and operations of the Funding
Corporation in accordance with generally accepted accounting
principles;
(B) the financial operating plans and forecasts (including
estimates of actual and future spending, and estimates of actual
and future cash obligations) of the Funding Corporation taking
into account its financial commitments, guarantees, and other
contingent liabilities; and
(C) the results of the annual audit of the financial
transactions of the Funding Corporation conducted by the
Comptroller General pursuant to section 9105(a) of title 31.
(3) Submission to Congress and President
The Thrift Depositor Protection Oversight Board shall submit
each annual report required under this subsection to the Congress
and the President as soon as practicable after the end of the
calendar year for which the report is made, but not later than June
30 of the year following such calendar year.
(j) Termination of Funding Corporation
(1) In general
The Funding Corporation shall be dissolved, as soon as
practicable, after the maturity and full payment of all obligations
issued by the Funding Corporation under this section.
(2) Authority of Thrift Depositor Protection Oversight Board
to conclude affairs of Funding Corporation
Effective on the date of the dissolution of the Funding
Corporation under paragraph (1), the Thrift Depositor Protection
Oversight Board may exercise on behalf of the Funding Corporation
any power of the Funding Corporation which the Thrift Depositor
Protection Oversight Board determines to be necessary to settle and
conclude the affairs of the Funding Corporation.
(k) Definitions
For purposes of this section:
(1) Administrative expenses
The term ``administrative expenses'' does not include--
(A) any interest on, or any redemption premium with respect
to, any obligation of the Funding Corporation; or
(B) issuance costs.
(2) Custodian fee
The term ``custodian fee'' means--
(A) any fee incurred by the Funding Corporation in
connection with the transfer of any security to, or the
maintenance of any security in, the segregated account
established under subsection (g) of this section; and
(B) any other expense incurred by the Funding Corporation in
connection with the establishment or maintenance of such
account.
(3) Funding Corporation
The term ``Funding Corporation'' means the Resolution Funding
Corporation established in subsection (b) of this section.
(4) Funding Corporation Principal Fund
The term ``Funding Corporation Principal Fund'' means the
separate account established under subsection (g)(2) of this
section.
(5) Issuance costs
The term ``issuance costs''--
(A) means issuance fees and commissions incurred by the
Funding Corporation in connection with the issuance or servicing
of any obligation of the Funding Corporation; and
(B) includes legal and accounting expenses, trustee and
fiscal and paying agent charges, costs incurred in connection
with preparing and printing offering materials, and advertising
expenses, to the extent that any such cost or expense is
incurred by the Funding Corporation in connection with issuing
any obligation.
(6) Net earnings
The term ``net earnings'' means net earnings without reduction
for chargeoffs or expenses incurred by a Federal Home Loan Bank for
the purchase of capital stock of the Financing Corporation or
payments relating to the Funding Corporation required by the Thrift
Depositor Protection Oversight Board under subsections (e) and (f)
of this section.
(7) Thrift Depositor Protection Oversight Board
The term ``Thrift Depositor Protection Oversight Board'' means--
(A) the Thrift Depositor Protection Oversight Board of the
Resolution Trust Corporation under section 1441a of this title;
and
(B) after the termination of the Resolution Trust
Corporation--
(i) the Secretary of the Treasury;
(ii) the Chairman of the Board of Governors of the
Federal Reserve System; and
(iii) the Secretary of Housing and Urban Development.
(8) Savings Association Insurance Fund member
The term ``Savings Association Insurance Fund member'' means a
Savings Association Insurance member as such term is defined by
section 1817(l) of this title.
(9) Secretary
The term ``Secretary'' means the Secretary of the Treasury.
(10) Undivided profits
The term ``undivided profits'' means earnings retained after
dividends have been paid minus the sum of--
(A) that portion required to be added to reserves maintained
pursuant to the first 2 sentences of section 1436 of this title;
and
(B) the dollar amounts held by the respective Federal Home
Loan Banks in special dividend stabilization reserves on
December 31, 1985, as determined by the table set forth in
section 1441(d)(7) of this title.
(l) Regulations
The Thrift Depositor Protection Oversight Board may prescribe any
regulations necessary to carry out this section.
(July 22, 1932, ch. 522, Sec. 21B, as added Pub. L. 101-73, title V,
Sec. 511(a), Aug. 9, 1989, 103 Stat. 394; amended Pub. L. 102-233, title
III, Sec. 302(b), Dec. 12, 1991, 105 Stat. 1767; Pub. L. 102-550, title
XVI, Sec. 1613(a)(7), (9), Oct. 28, 1992, 106 Stat. 4092; Pub. L. 104-
208, div. A, title II, Sec. 2704(d)(5), (11)(E), (F), Sept. 30, 1996,
110 Stat. 3009-488, 3009-489; Pub. L. 106-102, title VI, Sec. 607(a),
Nov. 12, 1999, 113 Stat. 1455.)
References in Text
The Securities Act of 1933, referred to in subsec. (f)(8)(B), is act
May 27, 1933, ch. 38, title I, 48 Stat. 74, as amended, which is
classified generally to subchapter I (Sec. 77a et seq.) of chapter 2A of
Title 15, Commerce and Trade. For complete classification of this Act to
the Code, see section 77a of Title 15 and Tables.
Section 9105 of title 31, referred to in subsec. (h)(3), was amended
generally by Pub. L. 101-576, title III, Sec. 305, Nov. 15, 1990, 104
Stat. 2853, and, as so amended, no longer contains provisions relating
to mixed-ownership Government corporations having capital of the
Government.
Amendments
1999--Subsec. (f)(2)(C). Pub. L. 106-102 amended subpar. (C)
generally, substituting present provisions for provisions requiring
Federal Home Loan Banks to pay to the Funding Corporation each calendar
year an amount sufficient to cover amount of interest payments made by
the Corporation in that year, and provisions relating to determination
of each Bank's individual share of such annual amount.
1996--Subsec. (e). Pub. L. 104-208, Sec. 2704(d)(11)(E), which
directed the amendment of subsec. (e) by inserting, in par. (5), ``as of
the date of funding'' after ``Savings Association Insurance Fund
members'' in two places and by striking par. (7) and redesignating par.
(8) as (7), was not executed. See Effective Date of 1996 Amendment note
below.
Subsec. (f)(2)(C)(ii)(I), (II). Pub. L. 104-208, Sec. 2704(d)(5),
which directed the amendment of subcls. (I) and (II) by substituting
``to insured depository institutions, and their successors, which were
Savings Association Insurance Fund members on September 1, 1995'' for
``to Savings Associations Insurance Fund members'', was not executed.
See Effective Date of 1996 Amendment note below.
Subsec. (k)(8) to (10). Pub. L. 104-208, Sec. 2704(d)(11)(F), which
directed the amendment of subsec. (k) by striking par. (8) and
redesignating pars. (9) and (10) as (8) and (9), respectively, was not
executed. See Effective Date of 1996 Amendment note below.
1992--Subsecs. (c)(8), (j)(2). Pub. L. 102-550, Sec. 1613(a)(7),
inserted ``Thrift Depositor Protection'' before ``Oversight'' in
headings.
Subsec. (k)(7). Pub. L. 102-550, Sec. 1613(a)(9), substituted
``Thrift Depositor Protection Oversight'' for ``Oversight'' in heading.
1991--Pub. L. 102-233 substituted ``Thrift Depositor Protection
Oversight Board'' for ``Oversight Board'' wherever appearing in text.
Effective Date of 1999 Amendment
Pub. L. 106-102, title VI, Sec. 607(b), Nov. 12, 1999, 113 Stat.
1456, provided that: ``The amendment made by subsection (a) [amending
this section] shall become effective on January 1, 2000. Payments made
by a Federal home loan bank before that effective date shall be counted
toward the total obligation of that Bank under section 21B(f)(2)(C) of
the Federal Home Loan Bank Act [12 U.S.C. 1441b(f)(2)(C)], as amended by
this section.''
Effective Date of 1996 Amendment
Amendment by Pub. L. 104-208 effective Jan. 1, 1999, if no insured
depository institution is a savings association on that date, see
section 2704(c) of Pub. L. 104-208, set out as a note under section 1821
of this title.
Effective Date of 1992 Amendment
Amendment by Pub. L. 102-550 effective as if included in the
Resolution Trust Corporation Refinancing, Restructuring, and Improvement
Act of 1991, Pub. L. 102-233, as of Dec. 12, 1991, see section 1618 of
Pub. L. 102-550, set out as a note under section 1441 of this title.
Effective Date of 1991 Amendment
Amendment by Pub. L. 102-233 effective Feb. 1, 1992, see section 318
of Pub. L. 102-233, set out as a note under section 1441 of this title.
Abolition of Thrift Depositor Protection Oversight Board
Thrift Depositor Protection Oversight Board abolished, see section
14(a)-(d) of Pub. L. 105-216, set out as a note under section 1441a of
this title.
Section Referred to in Other Sections
This section is referred to in sections 1422, 1426, 1430, 1436,
1441, 1441a, 1821a of this title; title 26 section 501.
