Resolution Funding Corp.

A government agency created by Congress in 1989 to fund the financial cleanup of failed savings and loans institutions. The agency issues bonds, called REFCORPs, which are zero-coupon bonds that were sold to private investors in order to reimburse the government for its costs of paying depositors of the failed savings and loans. The Resolution Funding Corp. worked in conjunction with the Resolution Trust Corp., which was the government agency created to merge or close failed savings and loans from 1989 until 1992.