[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 714 Placed on Calendar Senate (PCS)]

                                                        Calendar No. 53

103d CONGRESS

  1st Session

                                 S. 714

                          [Report No. 103-36]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                April 1 (legislative day, March 3), 1993

                 Read twice and placed on the calendar





                                                        Calendar No. 53
103d CONGRESS
  1st Session
                                 S. 714

                          [Report No. 103-36]

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                April 1 (legislative day, March 3), 1993

Mr. Riegle, from the Committee on Banking, Housing, and Urban Affairs, 
 reported the following original bill; which was read twice and placed 
                            on the calendar

_______________________________________________________________________

                                 A BILL


 
 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 by adding at the end the following new paragraphs:
            ``(4) Additional funding.--In addition to amounts provided 
        under paragraphs (2) and (3), the Secretary of the Treasury 
        shall pay to the Corporation, out of moneys in the Treasury not 
        otherwise appropriated, such amounts as may be necessary, not 
        to exceed $28,000,000,000, to carry out the purposes of this 
        section.
            ``(5) Release of rtc funds contingent on certification by 
        the chairperson of the thrift depositor protection oversight 
        board.--
                    ``(A) Funds in excess of $10,000,000,000.--No funds 
                in excess of $10,000,000,000 of the amount appropriated 
                in paragraph (4) shall be paid 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 (6) to the 
                Congress and, if requested by the Committee on Banking, 
                Housing, and Urban Affairs of the Senate or the 
                Committee on Banking, Finance and Urban Affairs of the 
                House of Representatives, has appeared to testify, that 
                a program that meets the criteria specified in 
                paragraph (6) has been put into place to curb waste, 
                fraud, and abuse at the Corporation.
                    ``(B) Funds in excess of $20,000,000,000.--No funds 
                in excess of $20,000,000,000 of the amount appropriated 
                in paragraph (4) shall be paid by the Secretary of the 
                Treasury to the Corporation unless the Chairperson has 
                made a second certification to the Congress and, if 
                requested by the Committee on Banking, Housing, and 
                Urban Affairs of the Senate or the Committee on 
                Banking, Finance and Urban Affairs of the House of 
                Representatives, has appeared to testify, that the 
                program described in subparagraph (A) continues to meet 
                the criteria specified in paragraph (6). The 
                Chairperson shall make the second certification within 
                30 days of the date on which such additional funds are 
                needed.
            ``(6) 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 flagged by 
                        auditors;
                            ``(iii) prepare a comprehensive business 
                        plan for the balance of the cleanup;
                            ``(iv) expand opportunities for minorities 
                        and women;
                            ``(v) improve the professional liability 
                        section of the Corporation;
                            ``(vi) improve management information 
                        systems;
                            ``(vii) strengthen contractor systems and 
                        contractor oversight; and
                            ``(viii) provide for the appointment of a 
                        chief financial officer who does not have other 
                        operating responsibilities; and
                    ``(B) the Thrift Depositor Protection 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.
            ``(7) Inability to certify.--If the Chairperson is unable 
        to make the certification required by paragraph (6), 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) correct any deficiencies in the program 
                described in paragraph (6), 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 FUNDING 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.--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, 2000, out of moneys in the 
                Treasury not otherwise appropriated, such amounts as 
                the Secretary may find necessary, not to exceed 
                $17,000,000,000.'';
            (2) in subparagraph (F)--
                    (A) by striking ``The Secretary'' and inserting 
                ``From amounts provided in subparagraph (E), the 
                Secretary''; and
                    (B) by striking ``any additional'' and inserting 
                ``such'';
            (3) by striking subparagraph (H) and inserting the 
        following:
                    ``(H) Discretionary rtc payments.--Upon application 
                by the Corporation and not later than two years from 
                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.'';
            (4) by striking subparagraph (J) and inserting the 
        following:
                    ``(J) Release of saif funds contingent on 
                certification by the secretary of the treasury.--
                            ``(i) Initial certification.--No funds 
                        appropriated in subparagraph (E) shall be paid 
                        by the Secretary of the Treasury to the Savings 
                        Association Insurance Fund until the Secretary 
                        of the Treasury, in consultation with the 
                        Chairman of the Federal Deposit Insurance 
                        Corporation, has certified to the Congress and, 
                        if requested by the Committee on Banking, 
                        Housing, and Urban Affairs of the Senate or the 
                        Committee on Banking, Finance and Urban Affairs 
                        of the House of Representatives, has appeared 
                        to testify, that--
                                    ``(I) such additional funds are 
                                needed to meet the obligations of such 
                                Fund to depositors or to comply with 
                                the minimum net worth requirements set 
                                forth in subparagraph (F);
                                    ``(II) such Fund is being operated 
                                in an efficient manner;
                                    ``(III) such Fund has implemented a 
                                program to prevent waste, fraud, and 
                                abuse in its operations; and
                                    ``(IV) the Corporation is taking 
                                action to correct problems identified 
                                by the Comptroller General of the 
                                United States in the most recent audit 
                                of such Fund conducted under section 
                                17(d), or that such action is not 
                                necessary or appropriate.
                            ``(ii) Second certification.--No funds in 
                        excess of $10,000,000,000 of the amount 
                        appropriated in subparagraph (E) shall be paid 
                        by the Secretary of the Treasury to the Savings 
                        Association Insurance Fund until the Secretary 
                        of the Treasury, in consultation with the 
                        Chairman of the Federal Deposit Insurance 
                        Corporation, has certified to the Congress and, 
                        if requested by the Committee on Banking, 
                        Housing, and Urban Affairs of the Senate or the 
                        Committee on Banking, Finance and Urban Affairs 
                        of the House of Representatives, has appeared 
                        to testify, that--
                                    ``(I) such additional funds are 
                                needed to meet the obligations of such 
                                Fund to depositors or to comply with 
                                the minimum net worth requirements set 
                                forth in subparagraph (F);
                                    ``(II) such Fund is being operated 
                                in an efficient manner;
                                    ``(III) such Fund is implementing a 
                                program to prevent waste, fraud, and 
                                abuse in its operations; and
                                    ``(IV) the Corporation is taking 
                                action to correct problems identified 
                                by the Comptroller General of the 
                                United States in the most recent audit 
                                of such Fund conducted under section 
                                17(d), or that such action is not 
                                necessary or appropriate.
                        The Secretary shall make the second 
                        certification within 30 days of the date on 
                        which such additional funds are needed.''; and
            (5) by adding at the end the following:
                    ``(K) Inability to certify.--If the Secretary of 
                the Treasury is unable to make the certification 
                required by subparagraph (J), the Secretary shall 
                notify the Congress and the Corporation of the reasons 
                for the inability to provide the certification. Upon 
                such notification, the Corporation shall--
                            ``(i) correct any deficiencies or explain 
                        why it is not possible to take such action; and
                            ``(ii) request that the Secretary provide a 
                        certification in accordance with subparagraph 
                        (J).''.

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.