Bank Insurance Fund and the Savings Association Insurance Fund Merger Act of 1995

Summary: Bank Insurance Fund and the Savings Association Insurance Fund Merger Act of 1995 - Amends the Federal Deposit Insurance Act (FDIA) to:  (1) establish the deposit insurance fund for insured depository institutions; (2) abolish the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF); (3) transfer such Funds' assets and liabilities to the deposit insurance fund; and (4) deposit into such fund all amounts assessed against insured depository institutions. 
Prescribes guidelines under which the Federal Deposit Insurance Corporation (FDIC) shall keep a full and complete accounting of all costs, expenses, and receipts. 
Sets forth an assessments schedule for former BIF members capped at rates applicable before the funds' merger. 
Limits the average assessment rate differential between former BIF and SAIF members to a maximum of nine basis points.  Repeals the guidelines pertaining to moratorium on conversion transactions and to exit fees. 
Amends the Federal Home Loan Bank Act to reflect amendments made by this Act regarding payment of Financing Corporation costs by all FDIC-insured depository institutions. 
Amends the FDIA to direct the Secretary of the Treasury, upon FDIC request, to lend funds to the deposit insurance fund out of funds appropriated to the Resolution Trust Corporation and not expended by it. 
Authorizes the FDIC to impose a one-time special SAIF capitalization assessment.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bank Insurance Fund and the Savings 
Association Insurance Fund Merger Act of 1995''.

SEC. 2. MERGER OF FDIC INSURANCE FUNDS IN 1998.

    (a) In General.--Section 11(a) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821(a)) is amended--
            (1) by striking paragraphs (5) and (6) and inserting the 
        following new paragraphs:
            ``(5) Deposit insurance fund.--
                    ``(A) Establishment.--There is hereby established a 
                fund to be known as the deposit insurance fund.
                    ``(B) Transfer to fund.--On the date of the 
                enactment of the Deposit Insurance Fund Merger Act of 
                1995, the Bank Insurance Fund and the Savings 
                Association Insurance Fund shall be abolished and all 
                assets and liabilities of each such fund shall be 
                transferred to the deposit insurance fund.
                    ``(C) Uses.--The deposit insurance fund shall be 
                available to the Corporation for use with respect to 
                insured depository institutions.
                    ``(D) Deposits.--All amounts assessed against 
                insured depository institutions under this Act shall be 
                deposited in the deposit insurance fund.
            ``(6) Accounting requirements.--
                    ``(A) Accounting for use of facilities and 
                resources.--The Corporation shall keep a full and 
                complete accounting of all costs and expenses 
                associated with the use of any facility or resource 
                used in the course of conducting supervisory, 
                regulatory, conservatorship, receivership, or 
                liquidation functions with respect to insured 
                depository institutions.
                    ``(B) Accounting for holding and managing assets 
                and liabilities.--The Corporation shall keep a full and 
                complete accounting of all costs and expenses 
                associated with the holding and management of any asset 
                or liability belonging to insured depository 
                institutions in conservatorship or receivership.
                    ``(C) Accounting for disposition of assets and 
                liabilities.--The Corporation shall keep a full and 
                complete accounting of all expenses and receipts 
                associated with the disposition of any asset or 
                liability belonging to insured depository institutions 
                in conservatorship or receivership.'';
            (2) by striking subparagraph (A) of paragraph (4); and
            (3) by striking paragraph (7) and redesignating paragraph 
        (8) as paragraph (7).
    (b) Assessments of Former BIF Members Capped at Rates Applicable 
Before Merger of Funds.--Section 7(b)(2) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(b)(2)) is amended by inserting after 
subparagraph (G) the following new subparagraphs:
                    ``(H) Reduced assessment rates continue to apply to 
                former bif members.--Until the deposit insurance fund 
                first meets or exceeds the designated reserve ratio, 
                the average assessment rates applicable under the risk-
                based assessment system for any semiannual period with 
                respect to insured depository institutions which were 
                Bank Insurance Fund members on the day before the date 
                of the enactment of the Deposit Insurance Fund Merger 
                Act of 1995 shall not exceed the greater of--
                            ``(i) the average of the assessment rates 
                        which would be applicable to such institutions 
                        under this section for any semiannual period if 
                        the amendments made by such Act had not been 
                        enacted; or
                            ``(ii) 6 basis points.
                    ``(I) Schedule for meeting designated reserve 
                ratio.--Notwithstanding paragraph (3), upon the 
                enactment of the Deposit Insurance Fund Merger Act of 
                1995, the Corporation shall prescribe a schedule in the 
                manner provided in paragraph (3)(B) which culminates in 
a reserve ratio that is equal to or greater than the designated reserve 
ratio not later than 5 years after the date of the enactment of such 
Act.''.
    (c) Limit on Differential Between Assessment Rates Imposed on 
Former BIF Members and Former SAIF Members.--Section 7(b)(2) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)) is amended by 
inserting after subparagraph (I) (as added by subsection (b) of this 
section) the following new subparagraph:
                    ``(J) Cap on differential between former bif and 
                saif members.--The average assessment rate under the 
                risk-based assessment system for insured depository 
                institutions which, as of December 31, 1994, were 
                Savings Association Insurance Fund members, including 
                the special assessment under paragraph (9), shall not 
                exceed the average assessment rate under the risk-based 
                assessment system for insured depository institutions 
                which, as of December 31, 1994, were Bank Insurance 
                Fund members by more than 9 basis points.''.
    (d) Repeal of Conversion Moratorium, Exit Fee, and ``Oakar Bank'' 
Provisions.--Section 5(d) of the Federal Deposit Insurance Act (12 
U.S.C. 1815(d)) is amended by striking paragraphs (2) and (3).
    (e) Technical and Conforming Amendments.--
            (1) Section 5(d)(1) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1815(d)(1)) is amended by striking ``Bank Insurance 
        Fund and the Savings Association Insurance Fund'' and inserting 
        ``deposit insurance fund''.
            (2) Section 7(b) of the Federal Deposit Insurance Act (12 
        U.S.C. 1817(b)) is amended--
                    (A) in paragraph (1)(D), by striking ``each'' and 
                inserting ``the'';
                    (B) in paragraph (2)(A)(i)(I), by striking ``each'' 
                and inserting ``the'';
                    (C) in paragraph (2)(A)(iii), by striking ``a 
                deposit'' and inserting ``the deposit'';
                    (D) in paragraph (2)(A)(iv), by striking ``each'' 
                and inserting ``the'';
                    (E) by striking subparagraph (B) of paragraph (2);
                    (F) in paragraph (2)(C), by striking ``each'' and 
                inserting ``the'';
                    (G) by striking subparagraphs (E) and (F) of 
                paragraph (2);
                    (H) in paragraph (2)(G), by striking ``a deposit'' 
                and inserting ``the deposit'';
                    (I) in paragraph (3)(A), by striking ``any 
                deposit'' and inserting ``the deposit'';
                    (J) by striking subparagraphs (C) and (D) of 
                paragraph (3);
                    (K) in paragraph (6)(A)(ii), by striking ``Bank 
                Insurance Fund members'' and inserting ``insured 
                depository institutions''; and
                    (L) by striking subparagraph (B) of paragraph (6).
            (3) Section 7 of the Federal Deposit Insurance Act (12 
        U.S.C. 1817) is amended by striking subsection (l).
            (4) Section 11(f)(1) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(f)(1)) is amended by striking ``, except that--
        '' and all that follows through the period at the end and 
        inserting a period.
            (5) Section 11(i)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(i)(3)) is amended by striking subparagraph (B) 
        and by redesignating subparagraph (C) as subparagraph (B).
            (6) Section 11A(a) of the Federal Deposit Insurance Act (12 
        U.S.C. 1821A(a)) is amended--
                    (A) in paragraph (2)(B), by striking ``Savings 
                Association Insurance Fund'' and inserting ``deposit 
                insurance fund''; and
                    (B) in paragraph (3), by striking ``Bank Insurance 
                Fund, the Savings Association Insurance Fund,'' and 
                inserting ``deposit insurance fund''.
            (7) Section 13 of the Federal Deposit Insurance Act (12 
        U.S.C. 1823) is amended--
                    (A) in subsection (a)(1) by striking ``Bank 
                Insurance Fund, Savings Association Insurance Fund,'' 
                and inserting ``deposit insurance fund'';
                    (B) by striking paragraph (11) of subsection (c);
                    (C) in subsection (k)(4)(B)(ii), by striking 
                ``Savings Association Insurance Fund member'' and 
                inserting ``savings association''; and
                    (D) in subsection (k)(5)(A), by striking ``Savings 
                Association Insurance Fund members'' and inserting 
                ``savings associations''.
            (8) Section 14 of the Federal Deposit Insurance Act (12 
        U.S.C. 1824) is amended--
                    (A) in subsection (a), by striking ``Bank Insurance 
                Fund or the Savings Association Insurance Fund'' and 
                inserting ``deposit insurance fund'';
                    (B) in subsection (a), by striking ``Bank Insurance 
                Fund or Savings Association Insurance Fund'' and 
                inserting ``deposit insurance fund'';
                    (C) in subsection (c), by striking paragraph (3); 
                and
                    (D) in subsection (d)--
                            (i) by striking ``Bank Insurance Fund 
                        members'' each place such term appears and 
                        inserting ``insured depository institutions'';
                            (ii) by striking ``Bank Insurance Fund 
                        member'' each place such term appears and 
                        inserting ``insured depository institution''; 
                        and
                            (iii) by striking ``Bank Insurance Fund'' 
                        each place such term appears (other than in 
                        connection with a term referred to in clause 
                        (i) or (ii)) and inserting ``deposit insurance 
                        fund''.
            (9) Section 15(c)(5) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1825(c)(5)) is amended--
                    (A) by striking ``Bank Insurance Fund or Savings 
                Association Insurance Fund, respectively,'' each place 
                such term appears and inserting ``deposit insurance 
                fund''; and
                    (B) by striking ``Bank Insurance Fund or the 
                Savings Association Insurance Fund, respectively,'' 
                each place such term appears and inserting ``deposit 
                insurance fund''.
            (10) Section 17 of the Federal Deposit Insurance Act (12 
        U.S.C. 1827) is amended by striking ``Bank Insurance Fund, 
        Savings Association Insurance Fund,'' each place such term 
        appears and inserting ``deposit insurance fund''.
            (11) Section 18(m)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1828(m)(3)) is amended--
                    (A) in subparagraph (A)--
                            (i) by inserting ``of an insured savings 
                        association or a subsidiary of any such 
                        association'' after ``specific activity'';
                            (ii) by striking ``Savings Association 
                        Insurance Fund.'' and inserting ``deposit 
                        insurance fund.''; and
                            (iii) by striking ``that Savings 
                        Association Insurance Fund member'' and 
                        inserting ``such savings association''; and
                    (B) in subparagraph (C), by striking ``Savings 
                Association Insurance Fund or the Bank Insurance Fund'' 
                and inserting ``deposit insurance fund''.
            (12) Section 31 of the Federal Deposit Insurance Act (12 
        U.S.C. 1831h) is amended--
                    (A) in subsection (a), by striking ``Insurance 
                Fund''; and
                    (B) in subsection (b)(2), by striking ``Savings 
                Association Insurance Fund members'' and inserting 
                ``savings associations''.
            (13) Section 38(o)(1)(B) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1831o(o)(1)(B)) is amended by striking ``Savings 
        Association Insurance Fund'' and inserting ``deposit insurance 
        fund''.

SEC. 3. FICO PAYMENTS BY ALL FDIC-INSURED DEPOSITORY INSTITUTIONS.

    Section 21(f) of the Federal Home Loan Bank Act (12 U.S.C. 
1441(f)(2)) is amended--
            (1) in the portion of paragraph (2) which precedes 
        subparagraph (A) of such paragraph--
                    (A) by striking ``each Savings Association 
                Insurance Fund member'' and inserting ``each insured 
                depository institution (as defined in section 3(c)(2) 
                of the Federal Deposit Insurance Act); and
                    (B) by striking ``such member'' and inserting 
                ``such institution'';
            (2) in paragraph (2)(A), by striking ``Savings Association 
        Insurance Fund members'' and inserting ``insured depository 
        institutions''; and
            (3) in paragraph (2)(C) by inserting ``, except with 
        respect to insured depository institutions which were Bank 
        Insurance Fund members on the day before the date of the 
        enactment of the Deposit Insurance Fund Merger Act of 1995'' 
        before the period at the end.

SEC. 4. AVAILABILITY OF RTC FUNDS TO LEND TO FDIC TO RECAPITALIZE 
              DEPOSIT INSURANCE FUND.

    (a) In General.--Section 7(b) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(b)) is amended by adding at the end the following new 
paragraph:
            ``(8) Availability of rtc funding.--
                    ``(A) Loans to fdic.--At the request of the Board 
                of Directors of the Federal Deposit Insurance 
                Corporation, the Secretary of the Treasury shall lend, 
out of funds appropriated to the Resolution Trust Corporation pursuant 
to section 21A(i)(3) of the Federal Home Loan Bank Act and not expended 
by the Resolution Trust Corporation, to the deposit insurance fund such 
amounts as may be requested by the Board of Directors to recapitalize 
such fund and are not needed by the Resolution Trust Corporation.
                    ``(B) Terms and conditions to ensure repayment.--
                The Secretary of the Treasury may establish such terms 
                and conditions to ensure the repayment of any loan 
                under subparagraph (A) as the Secretary determines to 
                be appropriate.
                    ``(C) Other terms.--The annual repayment terms and 
                the length of time for which the loan is made shall be 
                established by the Federal Deposit Insurance 
                Corporation in consultation with the Secretary of the 
                Treasury.
                    ``(D) Termination of lending authority.--No 
                additional advances may be made to the Federal Deposit 
                Insurance Corporation under this paragraph after the 
                reserve ratio of the deposit insurance fund first meets 
                or exceeds the designated reserve ratio.''.
    (b) Special 1-time assessment to repay loans.--Section 7(b) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817(b)) is amended by 
inserting after paragraph (8) (as added by subsection (a) of this 
section) the following new paragraphs:
            ``(9) Special 1-time assessment to recapitalize saif.--
                    ``(A) In general.--The Corporation may, in the 
                discretion of the Board of Directors, impose a special 
                assessment on any designated insured depository 
                institution in an amount not greater than 0.40 percent 
                of the assessment base on which assessments are imposed 
                under the risk-based assessment system established 
                pursuant to paragraph (1).
                    ``(B) Use of proceeds to repay loans.--The proceeds 
                of any assessment imposed under subparagraph (A) shall 
                be used to repay any recapitalization loan under 
                paragraph (8).
                    ``(C) Imposition over period of years.--The 
                assessment authorized under subparagraph (A) may be 
                imposed incrementally over such period of years as the 
                Board of Directors may determine to be appropriate, 
                except the larger percentage of any such incremental 
                assessment shall be allocated to the first year of the 
                effective period for such assessment.
                    ``(D) Abatement for troubled institutions.--The 
                Board of Directors may abate any portion of any 
                assessment under this paragraph in the case of any 
                undercapitalized institution or any institution which 
                would become undercapitalized as a result of the 
                imposition of such assessment.
            ``(10) Designated insured depository institution defined.--
        For purposes of paragraph (9), the term `designated insured 
        depository institution'--
                    ``(A) means any insured depository institution 
                which, as of January 1, 1995, or at any time after such 
                date, was a Savings Association Insurance Fund member 
                under the Federal Deposit Insurance Act (as in effect 
                on the day before the date of the enactment of the 
                Deposit Insurance Fund Merger Act of 1995); and
                    ``(B) includes any other insured depository 
                institution which acquires (as defined in section 
                13(f)(8)(B) of the Federal Deposit Insurance Act) such 
                insured depository institution or is otherwise a 
                successor in interest to such institution.''.