PART 1510—RESOLUTION FUNDING CORPORATION OPERATIONS Authority: 12 U.S.C. 1441b; Sec. 14(d), Pub. L. 105-216, 112 Stat. 910. Source: 65 FR 12069, Mar. 8, 2000, unless otherwise noted. § 1510.1 Authority, purpose, and scope. (a) Authority. (b) Purpose and scope. (c) Authority of the Funding Corporation. § 1510.2 Definitions. The following definitions apply to terms used in this part unless the context requires otherwise: Act et seq. Administrative expenses Bank Custodian fee Directorate FDIC et seq. Finance Board FSLIC Resolution Fund et seq. Funding Corporation Funding Corporation Principal Fund Interest payment due date Net earnings Obligations RTC Secretary § 1510.3 How does the Funding Corporation pay administrative expenses? (a) The Directorate proposes a budget. (b) The Secretary approves the budget. (c) Budget changes must be approved by the Secretary. (d) The Funding Corporation collects funds from the Banks to pay its administrative expenses. § 1510.4 Who may act as the depositary and fiscal agent for the Funding Corporation? (a) In general, the Federal Reserve Banks. (b) For administrative accounts, insured depository institutions. § 1510.5 How does the Funding Corporation make interest payments on its obligations? (a) The Funding Corporation must obtain funds from up to four sources. (1) Earnings on assets of the Funding Corporation not invested in the Funding Corporation Principal Fund. (2) To the extent funds identified in paragraph (a)(1) of this section are insufficient, the Funding Corporation must obtain from each Bank in each calendar year payments totaling 20 percent of the net earnings of the Bank. The Funding Corporation must not obtain funds from a Bank under this paragraph after the date upon which the term of the Bank's payment obligation has ended, as determined by the Finance Board pursuant to section 21B(f)(2)(C)(iii) of the Act. (3) To the extent funds identified in paragraphs (a)(1) and (2) of this section are insufficient, the Funding Corporation must obtain from the FSLIC Resolution Fund amounts available from any net proceeds from the sale of assets received from the RTC by the FSLIC Resolution Fund. (4) To the extent that funds from the sources identified in paragraphs (a)(1) through (3) of this section are insufficient, the Funding Corporation must obtain from the Secretary the additional amount due. (b) The Funding Corporation must obtain projections of funds availability from the Banks and the FSLIC Resolution Fund. (1) The Funding Corporation must obtain from each Bank a statement signed by an officer of such Bank containing sufficient information on the Banks net earnings to enable the Funding Corporation to make quarterly projections of funds available from the Bank for the current quarter and the next three quarters; and (2) The Funding Corporation must obtain from an authorized representative of the FSLIC Resolution Fund projections of the amount of funds available in the current quarter and the next three quarters from the net proceeds from the sale of received from the RTC. (c) The Funding Corporation must report funding projections to the Secretary. (1) The aggregate amounts of each of the next four quarterly interest payments due on obligations; and (2) The amounts projected to be available to fund such payments from: (i) Earnings on assets of the Funding Corporation not invested in the Funding Corporation Principal Fund; (ii) Payments from the Banks; and (iii) Funds transferred from the FSLIC Resolution Fund. (d) The Funding Corporation must request funds from the Banks, the FSLIC Resolution Fund, and the Secretary Requests to the Banks. (2) Request to the FSLIC Resolution Fund. (i) Notify the FSLIC Resolution Fund in writing of: (A) The interest payment due date; (B) The aggregate amount of the quarterly interest payment due on that date; and (C) The amount of the quarterly interest payment that will be funded by earnings on assets of the Funding Corporation not invested in the Funding Corporation Principal Fund and payments due from the Banks; and (ii) Request that the FSLIC Resolution Fund transfer to the Funding Corporation by noon on the third business day prior to the interest payment due date any funds available from the net proceeds from the sale of assets received from the RTC, to the extent funds identified in paragraphs (a)(1) and (2) of this section are insufficient to pay the interest due. (3) Request to the Secretary. [65 FR 12069, Mar. 8, 2000, as amended at 66 FR 47071, Sept. 11, 2001] § 1510.6 What must the Funding Corporation do with surplus funds? If the Funding Corporation has funds that are not needed for current interest payments on obligations, it must invest the funds in obligations of the United States issued by the Secretary, in accordance with an investment policy approved by the Secretary. § 1510.7 What are the Funding Corporation's reporting requirements? In addition to the budget submission required by § 1510.3 and the funding projection reports required by § 1510.5, the Funding Corporation must prepare such reports as the Secretary may require, including reports necessary to assist the Secretary in making the annual report to Congress and the President on the Funding Corporation under section 21B(i) of the Act. § 1510.8 What are the audit requirements for the Funding Corporation? The Funding Corporation must obtain an audit of its books and records by an independent external auditor at least annually.