§ 1506.16 - Resolution Trust Corporation as conservator.

(a) Contractors of an association for which the Resolution Trust Corporation is conservator that are in effect as of the effective date of this regulation or the appointment of the conservator shall not be subject to the requirements of this part. Except as provided in paragraph (b) of this section, any such contract that may be terminated under its terms without penalty shall be terminated no later than the later of six months from the effective date of this regulation or the appointment of the conservator, and no such contract may be renewed, unless such contract is in or brought into compliance with this part.

(b) During the period that terminates on the later of the date six months from the effective date of this regulation or the date six months from the appointment of the Resolution Trust Corporation as conservator, the conservator may enter into or renew a contract that does not comply with the requirements of this part, or fail to terminate a terminable contract in accordance with paragraph (a) of this section, provided that the conservator determines with respect to any such contract that:

(1) It is necessary for the operations of the association; and

(2) No qualified contractor is available to contract for similar services on reasonable financial terms.

The conservator shall not authorize or permit the term of any such contract to extend beyond the close of that period during which the contractor will be necessary for the operations of the association and a qualified contract for similar services on reasonable financial terms is not available, as determined by the conservator.

(c) The Corporation shall establish a reporting system for the contracts described in this section that are not in compliance with the requirements of this part. Reports shall be forwarded to the Board of Directors of the Corporation and the Oversight Board.