To amend the Federal Deposit Insurance Act and the Federal Home Loan Bank Act to provide for the payment of Financing Corporation interest obligations from balances in the deposit insurance funds in excess of an established ratio and, after such obligations are satisfied, to provide for rebates to insured depository institutions of such excess reserves.

Summary: Deposit Insurance Fairness and Economic Opportunity Act - Amends the Federal Deposit Insurance Act to set forth a schedule under which the Board of Directors of the Federal Deposit Insurance Corporation shall transfer annually to the Financing Corporation (FICO), for payment of FICO interest obligations, such amounts as exceed 1.40 percent of the total estimated deposits insured by the Bank Insurance Fund and the Savings Association Insurance Fund, respectively, when amounts in both Funds exceed that percentage.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Deposit Insurance Fairness and 
Economic Opportunity Act''.

SEC. 2. USE OF EXCESS DEPOSIT FUND RESERVES TO PAY FICO INTEREST 
              OBLIGATIONS AND MAKE REBATES.

    (a) In General.--Section 7(b)(2) of the Federal Deposit Insurance 
Act (12 U.S.C. 1817(b)(2)) is amended--
            (1) by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) Use of excess deposit insurance funds 
                initially to pay fico interest obligations and then for 
                other purposes.--Notwithstanding subsection (e)(2), 
                beginning January 1, 2002, and annually thereafter, the 
                Board of Directors shall, when amounts in both the Bank 
                Insurance Fund and the Savings Association Insurance 
                Fund, respectively, exceed the amount which is equal to 
                1.40 percent of the estimated insured deposits insured 
                by such Fund (or such higher percentage as may have 
                been established as the designated reserve ratio for 
                the respective Fund pursuant to subparagraph 
                (A)(iv)(II)) transfer from such Funds the amounts in 
                excess of the amount that is equal to that percentage 
                of estimated insured deposits as follows:
                            ``(i) Years 2002 through 2017.--In years 
                        2002 through 2017, to the Financing Corporation 
                        in such amount as is necessary to pay, for such 
                        year, the interest payments, issuance costs, 
                        and custodial fees described in section 21(f) 
                        of the Federal Home Loan Bank Act with regard 
                        to obligations issued by the Financing 
                        Corporation.
                            ``(ii) Years after 2017.--In years 
                        beginning after December 31, 2017--
                                    ``(I) to the Financing Corporation 
                                for the purposes described in clause 
                                (i); and
                                    ``(II) if the amount required to be 
                                transferred under this subparagraph 
                                exceeds the amount required by the 
                                Financing Corporation for the purposes 
                                described in clause (i), to insured 
                                depository institutions, the allocation 
                                of which to be made on such basis as 
                                the Board of Directors determines to be 
                                appropriate, taking into account the 
                                factors considered under the risk-based 
                                assessment system.''; and
            (2) by adding at the end the following new subparagraph:
                    ``(I) Payment limitation for certain 
                institutions.--No amount may be paid under subparagraph 
                (D)(ii)(II) to any insured depository institution 
                described in clause (v) of subsection (b)(2)(A).''.
    (b) Technical and Conforming Amendments.--
            (1) Section 21(f) of the Federal Home Loan Bank Act (12 
        U.S.C. 1441) is amended--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively;
                    (B) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Excess deposit insurance fund balances.--In addition 
        to the amounts obtained pursuant to paragraph (1), the 
        Financing Corporation shall have available the amounts 
        transferred by the Board of Directors of the Federal Deposit 
        Insurance Corporation pursuant to section 7(b)(2)(D) of the 
        Federal Deposit Insurance Act.'';
                    (C) in paragraph (3) (as so redesignated by 
                paragraph (2) of this subsection), by striking ``In 
                addition to the amounts obtained pursuant to paragraph 
                (1),'' and inserting ``To the extent the amounts 
                available under paragraphs (1) and (2) are insufficient 
                to cover the amount of interest payments, issuance 
                costs, and custodial fees,''; and
                    (D) in paragraph (4) (as so redesignated by 
                paragraph (2) of this subsection), by striking ``(1) 
                and (2)'' and inserting ``(1), (2), and (3)''.
            (2) Section 2703(c)(2) of the Deposit Insurance Funds Act 
        of 1996 (12 U.S.C. 1441 nt.) is amended--
                    (A) by striking ``21(f)(2)'' and inserting 
                ``21(f)(3)''; and
                    (B) by inserting ``and redesignated by section 
                2(b)(1)(A) of the Deposit Insurance Fairness and 
                Economic Opportunity Act'' after ``as amended by 
                subsection (a)''.