Resolution Trust Corporation (RTC) Law and Legal Definition
Resolution Trust Corporation or RTC was a temporary federal agency established to act as a receiver for insolvent federal savings and loan associations and to transfer or liquidate those associations' assets. It was created by Congress in the wake of the 1980s savings and loan crisis, in which hundreds of depository institutions slipped into insolvency due to unsound banking practices. The RTC was established on 9 August 1989, when the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) was signed into law. The law provided for a major restructuring of the nation's thrift industry and a reorganization of the federal agencies that oversaw the industry.
The RTC's mission was mainly to sell defunct savings and loan assets to recoup as much money as possible; to minimize the impact of such transactions on local real estate and financial markets and to maximize the availability and affordability of residential real estate for low and moderate income individuals.
Later, Congress passed the RTC Completion Act of 1993 to structure RTC’s dismantling. The act called for a transition of records and responsibilities from the RTC to the Federal Deposit Insurance Corporation (FDIC), which assumed all of the RTC's assets and liabilities.
