REFCORP


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Resolution Funding Corporation (RefCorp)

A government agency established by Congress in 1989 to issue bailout bonds and raise funds for the activities of the Resolution Trust Corporation, as well as to administer struggling institutions inherited from the disbanded Federal Savings and Loan Corporation.

Resolution Funding Corporation

An agency established by the Financial Institutions Reform, Recovery and Enforcement Act of 1989 to fund the Resolution Trust Corporation, which in turn was charged with bailing out insolvent savings & loan associations. REFCORP funded its own activities by issuing zero-coupon bonds through the US Treasury.

REFCORP

References in periodicals archive ?
(43.) Refcorp bonds differ from most other agency bonds in that their principal is fully collateralized by Treasury bonds and full payment of coupons is guaranteed by the Treasury under the provisions of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
In spite of the substantial obligation in the form the REFCORP payment, interest in System membership remains strong.
Moreover, switching the REFCORP payments from a flat-rate to an income-related payment might generate incentives for Congress to expand the remit of the System, as increased payments would allow increased discretionary spending in other areas on current pay-as-you-go budgetary rules.
Many of the new GSEs were created to assist other GSEs: FICO and Refcorp (Resolution Funding Corporation) were created to help provide funds needed by FSLIC to close insolvent thrifts, and the Farm Credit System Financial Assistance Corporation to help the Farm Credit System's banks.
Another is that the yields on Resolution Funding Corporation (Refcorp) bonds, which are guaranteed by the Treasury, (5) are nonetheless substantially higher than yields on ordinary Treasury securities of comparable maturity.