Understanding the Federal Savings and Loan Insurance Corporation Resolution Fund

Definition & Meaning

The Federal Savings and Loan Insurance Corporation Resolution Fund (FRF) is a federal entity established to take over the responsibilities and assets of the former Federal Savings and Loan Insurance Corporation (FSLIC). The FRF was created under the Financial Institutions Reform, Recovery and Enforcement Act of 1989, which aimed to reform the savings and loan industry. It manages the assets and liabilities inherited from the FSLIC and ensures the continuation of its duties, primarily focused on protecting depositors and maintaining stability within the financial system.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A savings association fails due to insolvency. The FRF steps in to manage the closure process, ensuring that depositors receive their insured funds in a timely manner.

Example 2: A depositor files a claim with the FRF after a savings association goes under, seeking reimbursement for their insured deposits (hypothetical example).

Comparison with related terms

Term Definition Key Differences
Federal Savings and Loan Insurance Corporation (FSLIC) The former insurance entity for savings and loan institutions. Replaced by the FRF under the 1989 Act; no longer operational.
Savings Association Insurance Fund (SAIF) A fund that insures deposits at savings associations. Operates alongside the FRF but is distinct in its focus on savings associations.

What to do if this term applies to you

If you are dealing with a failed savings association or have claims related to the FRF, consider the following steps:

  • Gather all relevant documentation regarding your deposits and the failed institution.
  • Contact the FRF or visit their website for information on filing a claim.
  • Utilize legal templates from US Legal Forms to assist in preparing necessary documents.
  • If your situation is complex, consult a legal professional for tailored advice.

Quick facts

Attribute Details
Established 1989
Primary Purpose Manage assets and liabilities of the FSLIC
Legal Framework Financial Institutions Reform, Recovery and Enforcement Act of 1989

Key takeaways

Frequently asked questions

The FRF manages the assets and liabilities of the former FSLIC and ensures depositor protection.