[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 714 Engrossed in Senate (ES)]

103d CONGRESS

  1st Session

                                 S. 714

_______________________________________________________________________

                                 AN ACT

 To provide funding for the resolution of failed savings associations, 
                        and for other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
103d CONGRESS
  1st Session
                                 S. 714

_______________________________________________________________________

                                 AN ACT


 
 To provide funding for the resolution of failed savings associations, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Thrift Depositor Protection Act of 
1993''.

SEC. 2. THRIFT RESOLUTION FUNDING PROVISIONS.

    Section 21A(i) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(i)) is amended--
            (1) in paragraph (3), by striking ``until April 1, 1992''; 
        and
            (2) by adding at the end the following new paragraphs:
            ``(4) Release of rtc funds contingent on certification by 
        the chairperson of the thrift depositor protection oversight 
        board.--Of the amount appropriated under paragraph (3), not 
        more than $10,000,000,000 shall be paid after the date of 
        enactment of the Thrift Depositor Protection Act of 1993 by the 
        Secretary of the Treasury to the Corporation until the 
        Chairperson of the Thrift Depositor Protection Oversight Board 
        (hereafter in this subsection referred to as the `Chairperson') 
        has certified under paragraph (5) to the Congress that a 
        program that meets the criteria specified in paragraph (5) has 
        been put into place to curb waste, fraud, and abuse at the 
        Corporation.
            ``(5) Certification.--The Chairperson shall certify to the 
        Congress that--
                    ``(A) the Corporation has formulated and is 
                implementing, in a manner acceptable to the 
                Chairperson, a program to--
                            ``(i) strengthen internal controls against 
                        waste, fraud, and abuse;
                            ``(ii) respond to problems identified by 
                        auditors;
                            ``(iii) prepare a comprehensive business 
                        plan for the balance of the Corporation's 
                        mission;
                            ``(iv) expand opportunities for minorities 
                        and women by, among other things, elevating the 
                        director of minority and women's programs to a 
                        vice presidential position and voting member of 
                        the executive committee and by reviewing and 
                        restructuring the use of basic ordering 
                        agreements to ensure that minorities and women 
                        are not inadvertently excluded;
                            ``(v) improve the professional liability 
                        section of the Corporation by, among other 
                        things, appointing a senior attorney, at the 
                        assistant general counsel level or above, 
                        responsible for the professional liability 
                        section;
                            ``(vi) improve management information 
                        systems to provide complete and current 
                        information on a cost-effective basis;
                            ``(vii) strengthen contractor systems and 
                        contractor oversight, including contracting for 
                        legal services, by, among other things, 
                        appointing a senior officer whose 
                        responsibilities shall include setting uniform 
                        standards for contracting and enforcement and 
                        who shall be a voting member of the executive 
                        committee;
                            ``(viii) provide for the appointment of a 
                        chief financial officer who does not have other 
                        operating responsibilities and who will report 
                        directly to the chief executive officer of the 
                        Corporation and who will comply with the 
                        provisions of sections 9105 and 9106 of title 
                        31, United States Code;
                            ``(ix) improve the management of legal 
                        services by--
                                    ``(I) utilizing staff counsel when 
                                such utilization would provide the same 
                                level of quality in legal services as 
                                the use of outside counsel at a lower 
                                estimated cost; and
                                    ``(II) employing outside counsel, 
                                in accordance with section 1216 of the 
                                Financial Institutions Reform, 
                                Recovery, and Enforcement Act of 1989, 
                                subsection (t) of this Act, and 
                                regulations promulgated under those 
                                provisions, under a negotiated fee, 
                                contingent fee, or competitively bid 
                                fee agreement, if the use of outside 
                                counsel under such agreement or fee 
                                would provide the most cost-effective 
                                and appropriate resolution to the 
                                action; and
                            ``(x) ensure that every regional office of 
                        the Corporation contains a client 
                        responsiveness unit responsible to the 
                        Corporation's ombudsman; and
                    ``(B) the Thrift Depositor Oversight Board has 
                provided for the appointment of an audit committee.
        The certification shall be accompanied by a report that 
        describes in detail the implementation of the program specified 
        in the certification, including the specific measures that have 
        been and are being undertaken to correct the problems 
        identified.
            ``(6) Testimony.--The Chairperson shall notify the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Banking, Finance and Urban Affairs of the 
        House of Representatives 30 days prior to the expected 
        expenditure of any funds requiring a certification under 
        paragraph (4). The Chairperson shall, at the request of either 
        committee, testify before such committee during the 30 days 
        following the notification.
            ``(7) Inability to certify.--If the Chairperson is unable 
        to make a certification required by paragraph (4), the 
        Chairperson shall notify the Congress and the Corporation of 
        the reasons for the inability to provide the certification. 
        Upon such notification, the Corporation shall--
                    ``(A) begin to correct any deficiencies in the 
                program described in paragraph (5), or explain why it 
                is not possible to take such action; and
                    ``(B) request that the Chairperson provide the 
                certification.''.

SEC. 3. SAVINGS ASSOCIATION INSURANCE FUND PROVISIONS.

    Section 11(a)(6) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(a)(6)) is amended--
            (1) by striking subparagraph (E) and inserting the 
        following:
                    ``(E) Treasury payments to fund.--
                            ``(i) In general.--To provide sufficient 
                        funding for the Savings Association Insurance 
                        Fund to carry out subparagraph (F), the 
                        Secretary of the Treasury shall pay to such 
                        Fund not later than September 30, 1998, out of 
                        moneys in the Treasury not otherwise 
                        appropriated, such amounts as the Secretary of 
                        the Treasury may find necessary, not to exceed 
                        $8,500,000,000.
                            ``(ii) Certification required.--No funds 
                        shall be paid under clause (i) in any fiscal 
                        year unless the Chairperson of the Federal 
                        Deposit Insurance Corporation has first made a 
                        certification to the Congress in that year that 
                        further increases in the deposit insurance 
                        premiums paid by members of the Fund could 
                        create a substantial risk that losses due to 
                        additional failures caused by the increases 
                        would exceed the increased premium income or 
                        such increases would threaten the ability of 
                        the thrift industry to maintain or raise 
                        adequate capital and continue to provide 
                        financial services on a competitive basis.'';
            (2) in subparagraph (F)--
                    (A) by striking ``The Secretary'' and all that 
                follows through the colon and inserting the following: 
                ``From amounts provided in subparagraph (E), the 
                Secretary of the Treasury shall pay to the Savings 
                Association Insurance Fund, for each fiscal year 
                described in the following table, such amounts as the 
                Corporation and the Secretary of the Treasury determine 
                are necessary to pay insurance losses at failed 
                institutions, unless, after deducting losses 
                anticipated during that fiscal year, the Fund is 
                expected to meet the minimum net worth referred to in 
                such table in the applicable fiscal year:'';
            (3) by striking subparagraph (H) and inserting the 
        following:
                    ``(H) Discretionary rtc payments to the saif.--
                            ``(i) In general.--Upon request by the 
                        Corporation and not later than 2 years after 
                        the date on which the Resolution Trust 
                        Corporation terminates pursuant to section 
                        21A(m) of the Federal Home Loan Bank Act, the 
                        Secretary of the Treasury may pay to the 
                        Savings Association Insurance Fund to carry out 
                        subparagraph (F), or to the FSLIC Resolution 
                        Fund, any funds made available by section 
                        21A(i) of the Federal Home Loan Bank Act to be 
                        paid to the Resolution Trust Corporation that 
                        the Secretary of the Treasury determines are 
                        not required to meet the obligations of the 
                        Resolution Trust Corporation.
                            ``(ii) Use of funds by saif.--Funds paid to 
                        the Savings Association Insurance Fund under 
                        clause (i) may only be used to resolve 
                        institutions that the Director of the Office of 
                        Thrift Supervision has identified, not later 
                        than October 1, 1993, as problem 
                        institutions.'';
            (4) in subparagraph (J)--
                    (A) by striking ``and'' at the end of clause (i);
                    (B) by striking the period at the end of clause 
                (ii) and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                            ``(iii) the amount in clause (ii) shall be 
                        reduced by any funds provided in subparagraph 
                        (E).''; and
            (5) by adding at the end the following:
                    ``(K) Release of saif funds contingent on 
                certification by the secretary of the treasury and the 
                chairperson of the federal deposit insurance 
                corporation.--
                            ``(i) Initial certification.--No funds 
                        appropriated in subparagraph (E) or made 
                        available under subparagraph (H) shall be paid 
                        by the Secretary of the Treasury to the Savings 
                        Association Insurance Fund until--
                                    ``(I) the Secretary of the 
                                Treasury, in consultation with the 
                                Chairperson of the Federal Deposit 
                                Insurance Corporation has certified to 
                                the Congress that such additional funds 
                                are needed to meet obligations of such 
                                Fund to depositors, as set forth in 
                                subparagraph (F); and
                                    ``(II) the Chairperson of the 
                                Federal Deposit Insurance Corporation 
                                has certified to the Congress that--
                                            ``(aa) further increases in 
                                        the deposit insurance premiums 
                                        paid by members of the Fund 
                                        could create a substantial risk 
                                        that losses due to additional 
                                        failures caused by the 
                                        increases would exceed the 
                                        increased premium income or 
                                        such increases would threaten 
                                        the ability of the thrift 
                                        industry to maintain or raise 
                                        adequate capital and continue 
                                        to provide financial services 
                                        on a competitive basis;
                                            ``(bb) such Fund is 
                                        implementing a program to 
                                        operate efficiently;
                                            ``(cc) such Fund is 
                                        implementing a program to 
                                        prevent waste, fraud, and abuse 
                                        in its operations;
                                            ``(dd) the Corporation has 
                                        provided for the appointment of 
                                        a chief financial officer who 
                                        does not have other operating 
                                        responsibilities and who will 
                                        report directly to the 
                                        Chairperson of the Corporation, 
                                        comply with the provisions of 
                                        sections 9105 and 9106 of title 
                                        31, United States Code, and 
                                        take appropriate steps to 
                                        respond to any recommendations 
                                        of the Comptroller General of 
                                        the United States in the most 
                                        recent audit of such Fund 
                                        conducted under section 17(d), 
                                        or certify that such action is 
                                        not necessary or appropriate;
                                            ``(ee) the Corporation has 
                                        provided for the appointment of 
                                        a senior officer whose 
                                        responsibilities shall include 
                                        setting uniform standards for 
                                        contracting and contracting 
                                        enforcement in connection with 
                                        the administration of the Fund;
                                            ``(ff) the Corporation is 
                                        implementing the minority 
                                        outreach provisions mandated by 
                                        section 1216 of the Financial 
                                        Institutions Reform, Recovery, 
                                        and Enforcement Act of 1989;
                                            ``(gg) the Corporation has 
                                        provided for the appointment of 
                                        a senior attorney, at the 
                                        assistant general counsel level 
                                        or above, responsible for 
                                        professional liability cases; 
                                        and
                                            ``(hh) the Corporation is 
                                        taking steps to improve the 
                                        management of legal services by 
                                        utilizing staff counsel when 
                                        such utilization would provide 
                                        the same level of quality in 
                                        legal services as the use of 
                                        outside counsel at a lower 
                                        estimated cost, and, if the use 
                                        of outside counsel would 
                                        provide the most cost-effective 
                                        and appropriate resolution to 
                                        the action, employing such 
                                        counsel, in accordance with 
                                        section 1216 of the Financial 
                                        Institutions Reform, Recovery, 
                                        and Enforcement Act of 1989, 
                                        and regulations promulgated 
                                        under those sections, under a 
                                        negotiated fee, contingent fee, 
                                        or competitively bid fee 
                                        agreement.
                            ``(ii) Second certification.--No funds in 
                        excess of $8,500,000,000 of the amount 
                        appropriated in subparagraph (E) or made 
                        available under subparagraph (H) shall be paid 
                        by the Secretary of the Treasury to the Savings 
                        Association Insurance Fund until--
                                    ``(I) the Secretary of the 
                                Treasury, in consultation with the 
                                Chairperson of the Federal Deposit 
                                Insurance Corporation has certified to 
                                the Congress that such additional funds 
                                are expected to be needed to meet 
                                obligations of such Fund to depositors, 
                                as set forth in subparagraph (F); and
                                    ``(II) the Chairperson of the 
                                Federal Deposit Insurance Corporation 
                                has certified to the Congress that--
                                            ``(aa) further increases in 
                                        the deposit insurance premiums 
                                        paid by members of the Fund 
                                        could create a substantial risk 
                                        that losses due to additional 
                                        failures caused by the 
                                        increases would exceed the 
                                        increased premium income or 
                                        such increases would threaten 
                                        the ability of the thrift 
                                        industry to maintain or raise 
                                        adequate capital and continue 
                                        to provide financial services 
                                        on a competitive basis;
                                            ``(bb) such Fund is 
                                        implementing a program to 
                                        operate efficiently;
                                            ``(cc) such Fund is 
                                        implementing a program to 
                                        prevent waste, fraud, and abuse 
                                        in its operations;
                                            ``(dd) the Corporation has 
                                        provided for the appointment of 
                                        a chief financial officer who 
                                        does not have other operating 
                                        responsibilities and who will 
                                        report directly to the 
                                        Chairperson of the Corporation, 
                                        comply with the provisions of 
                                        sections 9105 and 9106 of title 
                                        31, United States Code, and 
                                        take appropriate steps to 
                                        respond to any recommendations 
                                        of the Comptroller General of 
                                        the United States in the most 
                                        recent audit of such Fund 
                                        conducted under section 17(d), 
                                        or certify that such action is 
                                        not necessary or appropriate;
                                            ``(ee) the Corporation has 
                                        provided for the appointment of 
                                        a senior officer whose 
                                        responsibilities shall include 
                                        setting uniform standards for 
                                        contracting and contracting 
                                        enforcement in connection with 
                                        the administration of the Fund;
                                            ``(ff) the Corporation is 
                                        implementing the minority 
                                        outreach provisions mandated by 
                                        section 1216 of the Financial 
                                        Institutions Reform, Recovery, 
                                        and Enforcement Act of 1989;
                                            ``(gg) the Corporation has 
                                        provided for the appointment of 
                                        a senior attorney, at the 
                                        assistant general counsel level 
                                        or above, responsible for 
                                        professional liability cases; 
                                        and
                                            ``(hh) the Corporation is 
                                        taking steps to improve the 
                                        management of legal services by 
                                        utilizing staff counsel when 
                                        such utilization would provide 
                                        the same level of quality in 
                                        legal services as the use of 
                                        outside counsel at a lower 
                                        estimated cost, and, if the use 
                                        of outside counsel would 
                                        provide the most cost-effective 
                                        and appropriate resolution to 
                                        the action, employing such 
                                        counsel, in accordance with 
                                        section 1216 of the Financial 
                                        Institutions Reform, Recovery, 
                                        and Enforcement Act of 1989, 
                                        and regulations promulgated 
                                        under those sections, under a 
                                        negotiated fee, contingent fee, 
                                        or competitively bid fee 
                                        agreement.
                        The certifications required by this clause 
                        shall be made not later than 30 days before the 
                        date by which such additional funds are 
                        expected to be needed.
                    ``(L) Testimony.--The Secretary of the Treasury 
                shall notify the Committee on Banking, Housing, and 
                Urban Affairs of the Senate and the Committee on 
                Banking, Finance and Urban Affairs of the House of 
                Representatives 30 days prior to the expected payment 
                of any funds requiring a certification under 
                subparagraph (K). The Secretary of the Treasury and the 
                Chairperson of the Corporation shall, at the request of 
                either committee, testify before such committee during 
                the 30 days following the notification.''.
                    ``(M) Independent report by the general accounting 
                office.--No funds appropriated in subparagraph (E) or 
                made available under subparagraph (H) shall be paid 
                pursuant to a certification under clause (i) or (ii) of 
                subparagraph (K) by the Secretary of the Treasury to 
                the Savings Association Insurance Fund for 60 days 
                after such certifications are made, unless the 
                Secretary determines, and notifies the Congress that an 
                emergency exists. During such 60 day period, the 
                Comptroller General of the United States shall transmit 
                a report to the Congress that--
                            ``(i) states whether such certifications 
                        have been verified; and
                            ``(ii) states whether--
                                    ``(I) further increases in the 
                                deposit insurance premiums paid by 
                                Savings Association Insurance Fund 
                                members could create a substantial risk 
                                that losses due to additional failures 
                                caused by the increases would exceed 
                                the increased premium income;
                                    ``(II) Savings Association 
                                Insurance Fund members, in the 
                                aggregate, are unable to pay additional 
                                semiannual assessments under section 
                                7(b) during such year at the assessment 
                                rate which would be required in order 
                                to meet the repayment schedule required 
                                under section 14(c) for any amount 
                                borrowed under section 14(a) to cover 
                                losses incurred by the Fund during such 
                                year; and
                                    ``(III) an increase in the 
                                assessment rate for Savings Association 
                                Insurance Fund members to meet any such 
                                repayment schedule could reasonably be 
                                expected to result in greater losses to 
                                the Government (through an increase in 
                                the number of institutions in 
                                default).''.

SEC. 4. APPEALS PROCEDURE.

    Section 21A(b)(4) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(b)(4)) is amended by adding at the end the following new 
subparagraph:
                    ``(C) Appeals.--The Chairperson of the Thrift 
                Depositor Protection Oversight Board shall certify to 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate and the Committee on Banking, Finance and 
                Urban Affairs of the House of Representatives that the 
                Corporation has formulated and is implementing, in a 
                manner acceptable to the Chairperson, a program to 
                provide an appeals process for business and commercial 
                borrowers to appeal decisions by the Corporation (when 
                acting as a conservator) to terminate or otherwise 
                adversely affect credit or loan agreements, lines of 
                credit, and similar arrangements with such borrowers 
                who have not defaulted on their obligations.''.

SEC. 5. FINAL REPORT ON RTC AND SAIF FUNDING.

    (a) In General.--The Secretary of the Treasury shall prepare and 
transmit to the Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Banking, Finance and Urban Affairs of the 
House of Representatives final reports relating to the use of the funds 
provided by this Act to the Resolution Trust Corporation and the 
Savings Association Insurance Fund. Each such report shall contain a 
detailed description of the purposes for which the funds were used.
    (b) Time for Submission.--The reports described in subsection (a) 
shall be transmitted--
            (1) not later than 45 days after the final expenditure of 
        funds under this Act by the Resolution Trust Corporation; and
            (2) not later than 45 days after the final expenditure of 
        funds under this Act by the Savings Association Insurance Fund.

SEC. 6. THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD AUDIT COMMITTEE 
              ESTABLISHED.

    Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) is 
amended by adding at the end the following new subsection:
    ``(w) Thrift Depositor Protection Oversight Board Audit Committee 
Established.--
            ``(1) In general.--There is hereby established the Thrift 
        Depositor Protection Oversight Board Audit Committee (hereafter 
        referred to in this section as the `Committee'), the members of 
        which shall be appointed by the Chairperson of the Thrift 
        Depositor Protection Oversight Board.
            ``(2) Federal advisory committee act not applicable.--The 
        Committee shall not be deemed an `advisory committee' within 
        the meaning of section 3(2) of the Federal Advisory Committee 
        Act (5 U.S.C. App.).''.

SEC. 7. INDIVIDUAL SALES OF REAL PROPERTY BY THE RESOLUTION TRUST 
              CORPORATION.

    Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) is 
amended by adding at the end the following new subsection:
    ``(x) Individual Sales of Real Property.--
            ``(1) In general.--For 90 days after acquiring title to any 
        real property, whether held directly or indirectly by an 
        institution described in subsection (b)(3)(A) for which the 
        Corporation is acting as receiver, the Corporation may sell any 
        such property only on an individual basis.
            ``(2) Exception for certain resolutions.--Notwithstanding 
        paragraph (1), the Corporation shall not be required to set 
        aside real property for a 90-day period for individual sales if 
        such property is sold simultaneously with a resolution in which 
        a buyer purchases assets and assumes liabilities (or acts as 
        agent of the Corporation for purposes of paying insured 
        deposits) of an institution described in subsection (b)(3)(A) 
        or in which assets are transferred to a new institution 
        organized pursuant to the provisions of section 11(d)(2)(F) of 
        the Federal Deposit Insurance Corporation Act (12 U.S.C. 
        1821(d)(2)(F)).''.

SEC. 8. INDIVIDUAL SALES OF REAL PROPERTY BY THE FEDERAL DEPOSIT 
              INSURANCE CORPORATION.

    Section 11(d) of the Federal Deposit Insurance Corporation Act (12 
U.S.C. 1821(d)) is amended by adding at the end the following new 
paragraph:
            ``(20) Individual sales of real property.--
                    ``(A) In general.--For 90 days after acquiring 
                title to any real property, whether held directly or 
                indirectly by an institution for which the Corporation 
                has been appointed receiver pursuant to subsection (c), 
                the Corporation may sell any such property only on an 
                individual basis.
                    ``(B) Exception for certain resolutions and bridge 
                bank purchases.--Notwithstanding subparagraph (A), the 
                Corporation shall not be required to set aside real 
                property for a 90-day period for individual sales if 
                such property is sold simultaneously with a resolution 
                in which a buyer purchases assets and assumes 
                liabilities (or acts as agent of the Corporation for 
                purposes of paying insured deposits) of an institution 
                for which the Corporation has been appointed receiver 
                pursuant to subsection (c) or in which assets are 
                transferred to--
                            ``(i) a bridge bank organized in accordance 
                        with the provisions of subsection (n);
                            ``(ii) a new national bank organized in 
                        accordance with the provisions of subsection 
                        (m); or
                            ``(iii) a new institution organized 
                        pursuant to the provisions of paragraph (2)(F) 
                        of this subsection.''.

SEC. 9. LIMITATION ON CASH BONUSES.

    Section 1206 of the Financial Institutions Reform, Recovery, and 
Enforcement Act (12 U.S.C. 1833b) is amended--
            (1) by inserting ``(a) In General.--'' before ``The Federal 
        Deposit Insurance Corporation''; and
            (2) by adding at the end the following subsection:
    ``(b) Limitations on Cash Bonuses by the Federal Deposit Insurance 
Corporation.--Notwithstanding the provisions of subsection (a)--
            ``(1) no executive-level employee of the Federal Deposit 
        Insurance Corporation who is on assignment to the Resolution 
        Trust Corporation or whose work is allocable to the Savings 
        Association Insurance Fund shall receive a cash bonus in excess 
        of that which may be awarded to a Senior Executive Service 
        employee pursuant to chapter 53 of title 5, United States Code; 
        and
            ``(2) no employee of the Federal Deposit Insurance 
        Corporation on assignment to the Resolution Trust Corporation 
        or whose work is allocable to the Savings Association Insurance 
        Fund shall receive any cash bonus if such employee has given 
        notice of an intent to resign to take a position in the private 
        sector before the payment of such cash bonus or accepts 
        employment in the private sector not later than 60 days after 
        receipt of such bonus.''.

SEC. 10. WHISTLE BLOWER PROTECTION.

    (a) Amendments to the Federal Home Loan Bank Act.--Section 21A(q) 
of the Federal Home Loan Bank Act (12 U.S.C. 1441a(q)) is amended--
            (1) in paragraph (1), by striking ``regarding'' and all 
        that follows through the end of the sentence and inserting the 
        following:
        ``regarding--
                    ``(A) a possible violation of any law or 
                regulation; or
                    ``(B) gross mismanagement, a gross waste of funds, 
                an abuse of authority, or a substantial and specific 
                danger to public health or safety;
        by the Corporation, the Oversight Board, or such person or any 
        director, officer, or employee of the Corporation, the 
        Oversight Board, or the person.''; and
            (2) by inserting after paragraph (4) the following:
            ``(5) Burdens of proof.--The legal burdens of proof that 
        prevail under subchapter III of chapter 12 of title 5, United 
        States Code, shall govern adjudication of protected activities 
        under this subsection.''.
    (b) Amendments to the Federal Deposit Insurance Act.--Section 33 of 
the Federal Deposit Insurance Act (12 U.S.C. 1831j) is amended--
            (1) in subsection (a)(1), by striking ``regarding'' and all 
        that follows through the end of the sentence and inserting the 
        following:
        ``regarding--
                    ``(A) a possible violation of any law or 
                regulation; or
                    ``(B) gross mismanagement, a gross waste of funds, 
                an abuse of authority, or a substantial and specific 
                danger to public health or safety;
        by the depository institution or any director, officer, or 
        employee of the institution.''; and
            (2) by adding at the end the following:
    ``(f) Burdens of Proof.--The legal burdens of proof that prevail 
under subchapter III of chapter 12 of title 5, United States Code, 
shall govern adjudication of protected activities under this 
section.''.

SEC. 11. DEPUTY CHIEF EXECUTIVE OFFICER.

    Section 21A(b)(8) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(b)(8)) is amended by adding at the end the following new 
subparagraphs:
                    ``(E) Deputy chief executive officer.--There is 
                established the office of deputy chief executive 
                officer of the Corporation. The Chairperson of the 
                Thrift Depositor Protection Oversight Board, with the 
                recommendation of the chief executive officer, may 
                appoint the deputy chief executive officer, who shall 
                be an employee of the Federal Deposit Insurance 
                Corporation in accordance with subparagraph (B)(i) of 
                this paragraph. The deputy chief executive officer 
                shall perform such duties as the chief executive 
                officer may require.
                    ``(F) Acting chief executive officer.--
                            ``(i) In general.--Subject to subparagraph 
                        (C), the chief executive officer may designate 
                        the deputy chief executive officer to act as 
                        chief executive officer if the chief executive 
                        officer dies, resigns, or is sick or absent; or 
                        if the chief executive office fails to make 
                        such a designation or is unable to make such a 
                        designation due to death or disability, the 
                        Chairperson of the Thrift Depositor Protection 
                        Oversight Board may designate the deputy chief 
                        executive officer to act as chief executive 
                        officer if the chief executive officer dies, 
                        resigns, or is sick or absent.
                            ``(ii) Powers.--An acting chief executive 
                        officer designated under clause (i) shall 
                        possess the power to perform the duties vested 
                        in the chief executive officer pursuant to 
                        subparagraph (D).''.

SEC. 12. GENERAL COUNSEL OF THE RESOLUTION TRUST CORPORATION.

    Section 21A(b)(8) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(b)(8)), as amended by section 11 of this Act, is amended by 
adding at the end the following new subparagraph:
                    ``(G) General counsel.--There is established the 
                office of general counsel of the Corporation. The chief 
                executive officer, with the concurrence of the 
                Chairperson of the Thrift Depositor Protection 
                Oversight Board, may appoint the general counsel, who 
                shall be an employee of the Federal Deposit Insurance 
                Corporation in accordance with subparagraph (B)(i). The 
                general counsel shall perform such duties as the chief 
                executive officer may require.''.

SEC. 13. INSPECTOR GENERAL OF FEDERAL DEPOSIT INSURANCE CORPORATION.

    (a) Amendments to the Inspector General Act of 1978.--The Inspector 
General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in section 11--
                    (A) in paragraph (1), by striking ``the chief 
                executive officer of the Resolution Trust 
                Corporation;'' and inserting ``the chief executive 
                officer of the Resolution Trust Corporation; and the 
                Chairperson of the Federal Deposit Insurance 
                Corporation;''; and
                    (B) in paragraph (2), by inserting ``the Federal 
                Deposit Insurance Corporation,'' after ``Resolution 
                Trust Corporation,'';
            (2) by inserting after section 8B the following new 
        section:

``SEC. 8C. SPECIAL PROVISIONS CONCERNING THE FEDERAL DEPOSIT INSURANCE 
              CORPORATION.

    ``(a) Delegation.--The Chairperson of the Federal Deposit Insurance 
Corporation may delegate the authority specified in the second sentence 
of section 3(a) to the Vice Chairperson of the Board of Directors of 
the Federal Deposit Insurance Corporation, but may not delegate such 
authority to any other officer or employee of the Corporation.
    ``(b) Personnel.--Notwithstanding paragraphs (7) and (8) of section 
6(a), the Inspector General of the Federal Deposit Insurance 
Corporation may select, appoint, and employ such officers and employees 
as may be necessary for carrying out the functions, powers, and duties 
of the Office of Inspector General and to obtain the temporary or 
intermittent services of experts or consultants or an organization of 
experts or consultants, subject to the applicable laws and regulations 
that govern such selections, appointments, and employment, and the 
obtaining of such services, within the Federal Deposit Insurance 
Corporation.'';
            (3) by redesignating sections 8C through 8F as sections 8D 
        through 8G, respectively; and
            (4) in section 8F(a)(2), as redesignated, by striking ``the 
        Federal Deposit Insurance Corporation,''.
    (b) Position at Level IV of the Executive Schedule.--Section 5315 
of title 5, United States Code, is amended by inserting after 
``Inspector General, Small Business Administration.'' the following:
    ``Inspector General, Federal Deposit Insurance Corporation.''.
    (c) Transition Period.--The individual serving as the Inspector 
General of the Federal Deposit Insurance Corporation before the 
effective date of this section may continue to serve in such position 
until and unless the President appoints a successor under section 3(a) 
of the Inspector General Act of 1978, except as otherwise provided by 
law. For the purposes of the preceding sentence, the term ``successor'' 
may include the individual holding the position of Inspector General of 
the Federal Deposit Insurance Corporation on or after the date of 
enactment of this section.

SEC. 14. AUTHORITY TO EXECUTE CONTRACTS.

    Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) is 
amended by adding at the end the following new subsection:
    ``(y)  Authority To Execute Contracts.--
            ``(1) Authorized persons.--A person may execute a contract 
        on behalf of the Corporation for the provision of goods or 
        services only if--
                    ``(A) that person--
                            ``(i) is a warranted contracting officer 
                        appointed by the Corporation, or is a managing 
                        agent of a savings association under the 
                        conservatorship of the Corporation; and
                            ``(ii) provides appropriate certification 
                        or other identification, as required by the 
                        Corporation in accordance with paragraph (2);
                    ``(B) the notice described in paragraph (4) is 
                included in the written contract; and
                    ``(C) that person has appropriate authority to 
                execute the contract on behalf of the Corporation in 
                accordance with the notice published by the Corporation 
                in accordance with paragraph (5).
            ``(2) Presentation of identification.--Prior to executing 
        any contract described in paragraph (1) with any person, a 
        warranted contracting officer or managing agent shall present 
        to that person--
                    ``(A) a valid certificate of appointment (or such 
                other identification as may be required by the 
                Corporation) and signed by the appropriate officer of 
                the Corporation; or
                    ``(B) a copy of such certificate, authenticated by 
                the Corporation.
            ``(3) Treatment of unauthorized contracts.--A contract 
        described in paragraph (1) that fails to meet the requirements 
        of this section--
                    ``(A) shall be null and void; and
                    ``(B) shall not be enforced against the Corporation 
                or its agents by any court.
            ``(4) Inclusion of notice in contract terms.--Each written 
        contract described in paragraph (1) shall contain a clear and 
        conspicuous statement (in boldface type) in immediate proximity 
        to the space reserved for the signatures of the contracting 
        parties as follows:
            `` `Only warranted contracting officers appointed by the 
        Resolution Trust Corporation or managing agents of associations 
        under the conservatorship of the Resolution Trust Corporation 
        have the authority to execute contracts on behalf of the 
        Resolution Trust Corporation. Such persons have certain limits 
        on their contracting authority. The nature and extent of their 
        contracting authority levels are published in the Federal 
        Register.
            `` `A warranted contracting officer or a managing agent 
        must present identification in the form of a signed certificate 
        of appointment (or an authenticated copy of such certificate) 
        or other identification, as required by the Corporation, prior 
        to executing any contract on behalf of the Resolution Trust 
        Corporation.
            `` `ANY CONTRACT THAT IS NOT EXECUTED BY A WARRANTED 
        CONTRACT OFFICER OR THE MANAGING AGENT OF A SAVINGS ASSOCIATION 
        UNDER THE CONSERVATORSHIP OF THE RESOLUTION TRUST CORPORATION, 
        ACTING IN CONFORMITY WITH HIS OR HER CONTRACTING AUTHORITY, 
        SHALL BE NULL AND VOID, AND WILL NOT BE ENFORCEABLE BY ANY 
        COURT.'.
            ``(5) Notice of requirements.--Not later than 30 days after 
        the date of enactment of this Act, the Corporation shall 
        publish notice in the Federal Register of--
                    ``(A) the requirements for appointment by the 
                Corporation as a warranted contracting officer; and
                    ``(B) the nature and extent of the contracting 
                authority to be exercised by any warranted contracting 
                officer or managing agent.
            ``(6) Exception.--This section does not apply to--
                    ``(A) any contract between the Corporation and any 
                other person governing the purchase or assumption by 
                that person of--
                            ``(i) the ownership of a savings 
                        association under the conservatorship of the 
                        Corporation; or
                            ``(ii) the assets or liabilities of a 
                        savings association under the conservatorship 
                        or receivership of the Corporation; or
                    ``(B) any contract executed by the Inspector 
                General of the Corporation (or any designee thereof) 
                for the provision of goods or services to the Office of 
                the Inspector General of the Corporation.
            ``(7) Execution of contracts.--For purposes of this 
        subsection, the execution of a contract includes all 
        modifications to such contract.
            ``(8) Effective date.--The requirements of this subsection 
        shall apply to all contracts described in paragraph (1) 
        executed on or after the date which is 45 days after the date 
        of enactment of this subsection.''.

SEC. 15. TERMINATION DATE OF THE CORPORATION.

    Section 21A(m)(1) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(m)(1)) is amended by striking ``December 31, 1996'' and inserting 
``December 31, 1995''.

SEC. 16. ASSISTANT GENERAL COUNSEL FOR PROFESSIONAL LIABILITY.

    Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) is 
amended by adding at the end the following new subsection:
    ``(z) Assistant general counsel for professional liability.--
            ``(1) Appointment.--The Corporation shall appoint, within 
        the Division of Legal Services of the Corporation, an Assistant 
        General Counsel for Professional Liability who shall report to 
        the Associate General Counsel for Litigation and the chief 
        executive officer of the Corporation.
            ``(2) Duties.--The Assistant General Counsel for 
        Professional Liability appointed under paragraph (1) shall--
                    ``(A) direct the investigation, evaluation, and 
                prosecution of all professional liability cases 
                involving the Corporation; and
                    ``(B) supervise all legal, investigative, and other 
                personnel and contractors involved in the litigation of 
                such claims.
            ``(3) Reports to the congress.--The Assistant General 
        Counsel for Professional Liability shall submit semiannual 
        reports to the Congress not later than April 30 and October 31 
        of each year concerning the activities of the Assistant General 
        Counsel.''.

SEC. 17. DEFINITION OF PROPERTY.

    (a) Section 9102(e) of the Department of Defense Appropriations 
Act, 1990 (16 U.S.C. 396f note) is amended by striking ``real, 
personal,'' and inserting ``real, personal (including intangible assets 
sold or offered by the Federal Deposit Insurance Corporation or the 
Resolution Trust Corporation, such as financial instruments, notes, 
loans, and bonds),''.
    (b) Section 12(b)(7)(vii) of Public Law 94-204 (43 U.S.C. 1611 
note) is amended by striking ``real, personal,'' and inserting ``real, 
personal (including intangible assets sold or offered by the Federal 
Deposit Insurance Corporation or the Resolution Trust Corporation, such 
as financial instruments, notes, loans, and bonds),''.

SEC. 18. CIVIL STATUTE OF LIMITATIONS FOR TORT ACTIONS BROUGHT BY THE 
              RTC.

    (a) Resolution Trust Corporation.--Section 11(d)(14) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821(d)(14)) is amended--
            (1) in subparagraph (A)(ii), by inserting ``except as 
        provided in subparagraph (B),'' before ``in the case of'';
            (2) by redesignating subparagraph (B) as subparagraph (C);
            (3) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) Tort actions brought by the resolution trust 
                corporation.--The applicable statute of limitations 
                with regard to any action in tort brought by the 
                Resolution Trust Corporation in its capacity as 
                conservator or receiver of a failed savings association 
                shall by the longer of--
                            ``(i) the 5-year period beginning on the 
                        date the claim accrues; or
                            ``(ii) the period applicable under State 
                        law.''; and
            (4) in subparagraph (C), as redesignated--
                    (A) by striking ``subparagraph (A)'' and inserting 
                ``subparagraphs (A) and (B)''; and
                    (B) by striking ``such subparagraph'' and inserting 
                ``such subparagraphs''.
    (b) Effective Date; Termination; FDIC as Successor.--
            (1) Effective date.--The amendments made by subsection (a) 
        shall be construed to have the same effective date as section 
        212 of the Financial Institutions Reform, Recovery, and 
        Enforcement Act of 1989.
            (2) Termination.--The amendments made by subsection (a) 
        shall remain in effect only until the termination of the 
        Resolution Trust Corporation.
            (3) FDIC as successor to the rtc.--The Federal Deposit 
        Insurance Corporation, as successor to the Resolution Trust 
        Corporation, shall have the right to pursue any tort action 
        that was properly brought by the Resolution Trust Corporation 
        prior to the termination of the Resolution Trust Corporation.

SEC. 19. COST EFFECTIVENESS OF FEDERAL PROPERTY MANAGEMENT.

    (a) Findings.--The Congress finds that--
            (1) the Federal Government owns over 400,000 buildings that 
        cost the taxpayers hundreds of billions of dollars;
            (2) the Federal Government is the largest single tenant and 
        builder of office space in the United States;
            (3) the Federal Government currently has $11,400,000,000 of 
        construction in the works which, when completed, will add 
        approximately 23,000,000 square feet of office space;
            (4) the Federal Government is constructing, or entering 
        into long-term leases for buildings constructed expressly for 
        the Federal Government, in areas with building vacancy rates as 
        high as 30 percent;
            (5) significant budget savings can be achieved if, before 
        considering new construction, Federal agencies aggressively 
        explore the possibilities of purchasing or leasing suitable 
        office buildings available in the market or acquiring suitable 
        real estate under the control of the Federal Deposit Insurance 
        Corporation or Resolution Trust Corporation;
            (6) the physical space requirements of Federal agencies and 
        the Judiciary are too often overstated and inflexible and, 
        therefore, do not permit the acquisition or lease of existing 
        properties which may be suitable and cost-effective;
            (7) current scorekeeping rules may be discouraging agencies 
        from entering into the most responsible arrangements for 
        securing office space (for example, in some cases, a lease/
        purchase agreement may be most cost-effective but current 
        scorekeeping rules require that the budget authority and 
        outlays for the entire obligation, paid over a period of years, 
        be scored in the year the contract is signed); and
            (8) the Federal Buildings Fund, established in 1972 as a 
        revolving fund to cover the General Services Administration's 
        cost of rent, repairs, renovations, and to pay for the 
        construction of new Federal buildings, and funded by the rent 
        agencies pay to the General Services Administration, has failed 
        to be self-sustaining and has required billions in 
        appropriations to finance new construction.
    (b) Comprehensive Review of Federal Property Management.--
            (1) In general.--The Director of the Office of Management 
        and Budget shall conduct a comprehensive review of Federal 
        property management policies and procedures and make 
        recommendations to promote better coordination between 
        Government agencies, maximize efficiency, and encourage 
        flexibility to make decisions which are in the best interest of 
        the Federal Government.
            (2) Included in review.--The review required by this 
        subsection shall include--
                    (A) recommendations requiring the General Services 
                Administration, the Department of Defense, the Postal 
                Service and all other Federal agencies and the 
                Judiciary, when appropriate, to develop or modify 
                existing building requirements in such a way as to 
                allow for--
                            (i) the purchase, lease, lease/purchase of 
                        existing buildings at market rates; and
                            (ii) the purchase of Resolution Trust 
                        Corporation-owned and Federal Deposit Insurance 
                        Corporation-owned real estate rather than new 
                        construction of buildings;
                    (B) in conjunction with the Director of the 
                Congressional Budget Office, developing recommendations 
                to revise scorekeeping rules for Federal property 
                leasing, lease/purchase, construction, and acquisition 
                to encourage flexibility and decisions which are in the 
                best interest of the Federal Government; and
                    (C) recommendations on whether the Federal 
                Buildings Fund should be maintained, alternatives for 
                meeting the Fund's objectives, and changes to the Fund 
                that will enable it to meet its objectives and become 
                self-sustaining.
    (c) Report.--Not later than two months after the date of enactment 
of this Act, the Director of the Office of Management and Budget shall 
report the recommendations developed pursuant to this section to--
            (1) the Senate Committees on Governmental Affairs, Budget, 
        Appropriations, and Environment and Public Works; and
            (2) the House of Representatives Committees on Government 
        Operations, Appropriations, and Public Works and 
        Transportation.

SEC. 20. SENSE OF THE SENATE RELATING TO PARCIPATION OF DISABLED 
              AMERICANS IN CONTRACTING FOR DELIVERY OF SERVICES TO 
              FINANCIAL INSTITUTION REGULATORY AGENCIES.

    (a) Findings.--the Senate finds the following--
            (1) Congress, in adopting the Americans with Disabilities 
        Act of 1990, section 12101, of title 42, United States Code, 
        (the ADA) specifically found that--
                    (A) some 43,000,000 Americans have one or more 
                physical or mental disabilities, and this number is 
                increasing;
                    (B) discrimination against individuals with 
                disabilities persists in such critical areas as 
                employment, housing, public accommodations, education, 
                transportation, commmunication, recreation, 
                institutionalization, health services, voting, and 
                access to public services;
                    (C) individuals with disabilities continually 
                encounter various forms of discrimination, including 
                outright intentional exclusion, the discriminatory 
                effects of architectural, transportation, and 
                communication barriers, overprotective rules and 
                policies, failure to make modifications to existing 
                facilities and practices, exclusionary qualification 
                standards and criteria, segregation, and relegation to 
                lesser services, programs, activities, benefits, jobs, 
                or other opportunities;
                    (D) census data, national polls, and other studies 
                have documented that people with disabilities, as a 
                group, occupy an inferior status in our society, and 
                are severely disadvantaged socially, vocationally, 
                economically, and educationally;
                    (E) individuals with disabilities are a discrete 
                and insular minority who have been faced with 
                restrictions and limitations, subjected to a history of 
                purposeful unequal treatment, and relegated to a 
                position of political powerlessness in our society, 
                based on characteristics that are beyond the control of 
                such individuals and resulting from stereotyphic 
                assumptions not truly indicative of the individual 
                ability of such individuals to participate in, and 
                contribute to, society;
                    (F) the Nation's proper goals regarding individuals 
                with disabilities are to assure equality of 
                opportunity, full participation, independent living, 
                and economic self-sufficiency for such individuals; and
                    (G) the continuing existence of unfair and 
                unnecessary discrimination and prejudice denies people 
                with disabilities the opportunity to compete on an 
                equal basis and to pursue those opportunities for which 
                our free society is justifiably famous, and costs the 
                United States billions of dollars in unnecessary 
                expenses resulting from dependency and nonproductivity.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
chief executive officer of the Resolution Trust Corporation, the Office 
of Thrift Supervision, the Federal Deposit Insurance Corporation, the 
Comptroller of the Currency, the Federal Housing Finance Board shall 
take all necessary steps within each such agency to ensure that 
individuals with disabilities and entities owned by individuals with 
disabilities, including financial institutions, investment banking 
firms, underwriters, asset managers, accountants, and providers of 
legal services, are availed of all oportunities to compete in a manner 
which, at a minimum, does not discriminate on the basis of their 
disability for contracts entered into by the agency to manage the 
institutions and their assets for which the agency is responsible or to 
perform such other functions anthorized under any law applicable to 
such agency.

SEC. 21. RTC CONTRACTING.

    (a) No person shall execute, on behalf of the Corporation, any 
contract, or modification to a contract, for goods or services 
exceeding $100,000 in value unless the person executing the contract or 
modification states in writing that--
            (1) the contract or modification is for a fixed price, the 
        person has received a written cost estimate for the contract or 
        modification, or a cost estimate cannot be obtained as a 
        practical matter with an explanation of why such a cost 
        estimate cannot be obtained as a practical matter;
            (2) the person has received the written statement described 
        in paragraph (b);
            (3) the person is satisfied that the contract or 
        modification to be executed has been approved by a person 
        legally authorized to do so pursuant to a written delegation of 
        authority.
    (b) A person who authorizes a contract, or a modification to a 
contract, for goods or services exceeding $100,000, shall state, in 
writing, that he or she has been delegated the authority, pursuant to a 
written delegation of authority, to authorize that contract or 
modification.
    (c) The failure of any person executing a contract, or a 
modification of a contract, on behalf of the Corporation, or 
authorizing such a contract or modification of a contract, to comply 
with the requirements of this section shall not void, or be grounds to 
void or rescind, any otherwise properly executed contract.

SEC. 22. REPORT TO CONGRESS BY SPECIAL COUNSEL.

    (a) Report.--Not later than 90 days after the date of enactment of 
this Act, the Special Counsel appointed under section 2537 of the Crime 
Control Act of 1990 (28 U.S.C. 509 note) shall submit to the Committee 
on Banking, Housing, and Urban Affairs of the Senate and the Committee 
on Banking, Finance and Urban Affairs of the House of Representatives a 
report on the status of its efforts to monitor and improve the 
collection of fines and restitution in cases involving fraud and other 
criminal activity in and against the financial services industry.
    (b) Contents.--The report required under subsection (a) shall 
include--
            (1) information on the amount of fines and restitution 
        assessed in cases involving fraud and other criminal activity 
        in and against the financial services industry, the amount of 
        such fines and restitution collected, and an explanation of any 
        difference in those amounts;
            (2) an explanation of the procedures for collecting and 
        monitoring restitution assessed in cases involving fraud and 
        other criminal activity in and against the financial services 
        industry and any suggested improvements to such procedures;
            (3) an explanation of the availability under any provision 
        of law of punitive measures if restitution and fines assessed 
        in such cases are not paid;
            (4) information concerning the efforts by the Department of 
        Justice to comply with guidelines for fine and restitution 
        collection and reporting procedures developed by the 
        interagency group established by the Attorney General in 
        accordance with section 2539 of the Crime Control Act of 1990;
            (5) any recommendations for additional resources or 
        legislation necessary to improve collection efforts; and
            (6) information concerning the status of the National Fine 
        Center of the Administrative Office of the United States 
        Courts.

SEC. 23. REPORTING REQUIREMENTS.

    The Resolution Trust Corporation shall provide semi-annual reports 
to the Senate Committee on Banking, Housing, and Urban Affairs and the 
House Committee on Banking, Finance and Urban Affairs. Such reports 
shall--
            (1) detail procedures for expediting the registration and 
        contracting for selecting auctioneers for asset sales with 
        anticipated gross proceeds of $1,500,000 or less;
            (2) list by name and geographic area the number of auction 
        contractors which have been registered and qualified to perform 
        services for the Resolution Trust Corporation; and
            (3) list by name, address of home office, location of 
        assets disposed, and gross proceeds realized, the number of 
        auction contractors which have been awarded contracts.

            Passed the Senate May 13 (legislative day, April 19), 1993.

            Attest:






                                                             Secretary.

S 714 ES----2
S 714 ES----3
S 714 ES----4
S 714 ES----5