Federal Register, Volume 60 Issue 246 (Friday, December 22, 1995)

[Federal Register Volume 60, Number 246 (Friday, December 22, 1995)]
[Rules and Regulations]
[Pages 66483-66484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31120]



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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Chapter III

RESOLUTION TRUST CORPORATION

12 CFR Chapter XVI


Effectiveness of RTC Regulations After RTC Termination

AGENCIES: Federal Deposit Insurance Corporation and Resolution Trust 
Corporation.

ACTION: Joint notification of status of regulations.

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SUMMARY: The Resolution Trust Corporation (RTC) and the Federal Deposit 
Insurance Corporation (FDIC) are issuing this joint document to inform 
the public regarding the effectiveness of the RTC's regulations after 
RTC termination. In accordance with the Federal Home Loan Bank Act, the 
RTC will terminate on December 31, 1995, and the FDIC will succeed the 
RTC as receiver for any remaining RTC receiverships and will be 
responsible for managing any remaining assets and liabilities of the 
RTC transferred to the FSLIC Resolution Fund. Congress did not include 
any provision transferring the RTC's regulations to the FDIC. The two 
corporations have considered these issues and are publishing this 
document to inform the public that, when the FDIC assumes 
responsibility for the RTC's functions at termination, the RTC's 
regulations generally will not govern the FDIC's performance of these 
functions for occurrences that arise post-termination, and that the 
FDIC's regulatory scheme generally will govern former RTC activities on 
a prospective basis.

EFFECTIVE DATE: December 31, 1995.

FOR FURTHER INFORMATION CONTACT: Jamey Basham, Counsel, Legal Division, 
Federal Deposit Insurance Corporation, 550 17th Street NW., Washington, 
DC 20429, (202) 898-7265, or Karen L. Main, Senior Attorney, Legal 
Division, Resolution Trust Corporation, 1717 H Street NW., Washington, 
DC 20006, (202) 736-3096.

SUPPLEMENTARY INFORMATION:

A. General Rule

    Section 21A(m)(1) of the Federal Home Loan Bank Act (FHLBA), 12 
U.S.C. 1441a(m)(1), provides that the RTC will terminate on December 
31, 1995. At that time, the FDIC shall succeed the RTC as receiver of 
any remaining RTC receiverships. Id. In addition, the FDIC will be 
responsible for managing any remaining RTC assets and liabilities, all 
of which are transferred to the FSLIC Resolution Fund. Section 
21A(m)(2) of the FHLBA, 12 U.S.C. 1441a(m)(2). However, Congress did 
not include provisions transferring the RTC's regulations, 12 CFR 
Chapter XVI, to the FDIC. In similar situations when Congress has 
intended an agency's rules to survive transfer of its functions to a 
successor, Congress expressly so provided by statute. Therefore, after 
the RTC terminates on December 31, 1995 and its functions are 
transferred to the FDIC, the RTC's regulations generally will not 
govern the FDIC's performance of such functions in dealing with 
occurrences that arise post-termination. When the FDIC assumes 
responsibility from the RTC for such functions, the FDIC's regulations 
generally will govern matters arising on a prospective basis.
    However, the termination of the RTC in and of itself does not 
affect rights or obligations of the RTC or third parties that have 
arisen under the RTC's regulations as a result of factual occurrences 
prior to the RTC's termination. The legal consequences of pre-
termination conduct governed by the RTC's regulations will continue to 
be determined under such regulations.

B. The RTC's Affordable Housing Disposition Program

    In contrast, the RTC's affordable housing disposition program 
(AHDP) regulations at 12 CFR part 1609 will continue to govern the sale 
of the remaining RTC AHDP inventory and other related responsibilities 
assumed by the FDIC even after the RTC termination date. Since Congress 
has directed the FDIC to carry out such functions under the provisions 
of the RTC AHDP statute, section 21A(c) of the FHLBA, 12 U.S.C. 
1441a(c),^{1 the RTC's AHDP regulations which refine and 

[[Page 66484]]

implement this authority will continue to govern these functions.

    \1\ Section 21A(c)(17)(C) of the FHLBA provides, inter alia, 
that the FDIC shall carry out any remaining authority and 
responsibilities of the RTC ``under this subsection.'' 12 U.S.C. 
1441a(c)(17)(C). Moreover, section 40(n)(4) of the Federal Deposit 
Insurance Act provides that the FDIC shall carry out the remaining 
responsibilities and authority of the RTC as set forth in section 
1441a(c) of title 12. 12 U.S.C. 1831q(n)(4).
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    By order of the Deputy and Acting Chief Executive Officer.

    Dated at Washington, D.C., this 15th day of December, 1995.

Resolution Trust Corporation.
John M. Buckley, Jr.,
Secretary.

    By order of the Board of Directors.

    Dated at Washington, D.C., this 15th day of December, 1995.

Federal Deposit Insurance Corporation.
Jerry L. Langley,
Executive Secretary.

    Editorial note: The Federal Home Loan Bank Act, as codified at 12 
U.S.C. 1441a(m)(1), provides that the Resolution Trust Corporation 
(RTC) will terminate on December 31, 1995. Accordingly, the RTC's 
regulations in chapter XVI of title 12 of the Code of Federal 
Regulations will be removed and the chapter vacated as of January 1, 
1996 pursuant to the authority of the Office of the Federal Register to 
establish and maintain an orderly system of codification (44 U.S.C. 
1510 and 1 CFR part 8).

[FR Doc. 95-31120 Filed 12-21-95; 8:45 am]
BILLING CODE 6714-01-P}