BANKING & FINANCE - July 21, 1992

RTC to Screen Buyers of Failed S&Ls; for Loan Defaults: The savings and loan cleanup agency is putting the squeeze on old debtors of failed S&Ls; before it will sell them new assets. Officials of the Resolution Trust Corp. agreed to require buyers of assets larger than $500,000 to certify that they haven’t defaulted on loans to failed S&Ls; or banks before the agency will close any new sales. The policy won’t take effect until Jan. 1 to give big companies time to go through their records and those of affiliates and begin settlement talks with the agency if outstanding debts are discovered. In the meantime, if the RTC is aware of past defaults by would-be purchasers, it may continue to seek settlement of the debt before closing a sale.