The Resolution Funding Corporation (REFCORP) is a government-sponsored enterprise that provides funds to the Resolution Trust Corporation, which was established to finance the bailout of savings and loan associations in the wake of the savings and loan crisis of the 1980s in the United States.[1][2] It was established by the United States Congress in the summer of 1989, as part of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.[3] The Resolution Funding Corporation is a 501(c)(1) organization.[4] As of July 1997, the Resolution Funding Corporation's debt stood at $30 billion.[5]
On August 5, 2011, the Federal Housing Finance Agency announced that the Federal Home Loan Banks had repaid all of the interest on the Resolution Funding Corporation bonds. The Banks were required to pay 20 percent of their profits (after payments to the Affordable Housing Program) toward the RefCorp bond payments. These moneys will now be paid into a restricted retained earnings account until the Bank's account equals one percent of that Bank's outstanding consolidated obligations.[6]
References
edit- ^ Dowd, Maureen (1989-02-07). "BUSH SAVINGS PLAN CALLS FOR SHARING THE COST BROADLY; Big Sale Of Bonds". The New York Times. Retrieved 2010-05-22.
- ^ Gilpin, Kenneth N. (1989-09-25). "CREDIT MARKETS; Details Expected on Rescue Bonds". The New York Times. Retrieved 2010-05-22.
- ^ "Public Law 101-73: Financial Institutions Reform, Recovery and Enforcement Act of 1989". The Library of Congress. 1989-08-09. Archived from the original on 2012-12-15. Retrieved 2009-04-16.
- ^ "Section 501(l)". Internal Revenue Code. Legal Information Institute. Cornell University Law School. Retrieved June 21, 2017.
- ^ Leggett, Keith J.; Strand, Robert W. (Fall 1997). "The Financing Corporation, Government-Sponsored Enterprises, and Moral Hazard" (PDF). Cato Journal. 17 (2). Cato Institute. Archived from the original (PDF) on 2011-03-28.
- ^ "FHFA Announces Completion of RefCorp Obligation and Approves FHLB Plans to Build Capital" (Press release). Federal Housing Finance Agency. 5 August 2011. Retrieved 20 May 2014.
See also
edit- Financing Corporation (FICO)
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