[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]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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).
---------------------------------------------------------------------------
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
