Deposit Insurance Reduction Act of 1993

Summary: Deposit Insurance Reduction Act of 1993 - Amends the Federal Deposit Insurance Act and the Federal Credit Union Act to reduce the amount of insured deposits from $100,000 to $25,000.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Deposit Insurance Reduction Act of 
1993''.

SEC. 2. REDUCTION IN DEPOSIT INSURANCE FROM $100,000 TO $25,000.

    (a) FDIC Insured Depository Institutions.--
            (1) In general.--Section 11(a)(1)(B) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1821(a)(1)(B)) is amended by striking 
        ``$100,000'' and inserting ``$25,000''.
            (2) Trust funds.--
                    (A) In general.--Section 7(i) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1817(i)) is amended by 
                striking ``$100,000'' and inserting ``$25,000''.
                    (B) Subsequent amendment.--Effective on the 
                effective date of the amendment made by section 
                311(b)(3) of the Federal Deposit Insurance Corporation 
                Improvement Act of 1991, section 7(i)(1) of the Federal 
                Deposit Insurance Act (as amended by such section 
                311(b)(3)) is amended by striking ``$100,000'' and 
                inserting ``$25,000''.
            (3) Other limits on deposit insurance.--
                    (A) In general.--Paragraphs (2)(A) and (3) of 
                section 11(a) of the Federal Deposit Insurance Act (12 
                U.S.C. 1821(a)) are amended by striking ``$100,000'' 
                each place such term appears and inserting ``$25,000''.
                    (B) Subsequent amendment.--Effective on the 
                effective date of the amendment made by section 
                311(b)(2) of the Federal Deposit Insurance Corporation 
                Improvement Act of 1991, section 11(a)(3)(A) of the 
                Federal Deposit Insurance Act (as amended by such 
                section 311(b)(2)) is amended by striking ``$100,000'' 
                and inserting ``$25,000''.
            (4) Effective date.--The amendments made by paragraphs (1), 
        (2), and (3) shall take effect at the end of the 60-day period 
        beginning on the date of the enactment of this Act.
            (5) Transition period.--Notwithstanding the amendments made 
        by paragraphs (1), (2), and (3), if the total amount of insured 
        deposits of any depositor at any insured depository institution 
        (determined as of the close of business on the day before the 
        effective date of such amendments under paragraph (4)) exceeds 
        $25,000, such excess amount may continue to be treated, in 
        accordance with regulations which the Federal Deposit Insurance 
        Corporation shall prescribe, as insured deposits in the manner 
        provided in section 8(a)(7) of the Federal Deposit Insurance 
        Act during the 1-year period beginning on such effective date.
            (6) Notice.--The Federal Deposit Insurance Corporation 
        shall require, by regulation, each insured depository 
        institution to provide notice to each accountholder at such 
        institution before the end of the 60-day period described in 
        paragraph (4) of--
                    (A) the reduction in the amount of deposit 
                insurance available on deposits at the institution; and
                    (B) the transition rules prescribed pursuant to 
                paragraph (5).
            (7) Enforcement.--For purposes of enforcing any requirement 
        of this subsection or any regulation prescribed by the Federal 
        Deposit Insurance Corporation pursuant to this subsection, such 
        Corporation shall be treated as the appropriate Federal banking 
        agency for any insured depository institution.
            (8) Insured depository institutions defined.--For purposes 
        of this subsection, the term ``insured depository institution'' 
        has the meaning given to such term in section 3(c)(2) of the 
        Federal Deposit Insurance Act.
    (b) NCUA Insured Credit Unions.--
            (1) In general.--Paragraphs (1), (2)(A), and (3) of section 
        207(k) of the Federal Credit Union Act (12 U.S.C. 1787(k)) are 
        amended by striking ``$100,000'' each place such term appears 
        and inserting ``$25,000''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect at the end of the 60-day period beginning on 
        the date of the enactment of this Act.
            (3) Transition period.--Notwithstanding the amendments made 
        by paragraph (1), if the total amount of insured deposits of 
        any accountholder at any insured credit union (determined as of 
        the close of business on the day before the effective date of 
        such amendments under paragraph (2)) exceeds $25,000, such 
        excess amount may continue to be treated, in accordance with 
        regulations which the National Credit Union Administration 
        shall prescribe, as insured deposits in the manner provided in 
        section 206(d)(1) of the Federal Credit Union Act during the 1-
        year period beginning on such effective date.
            (4) Notice.--The National Credit Union Administration shall 
        require, by regulation, each insured credit union to provide 
        notice to each accountholder at such credit union before the 
        end of the 60-day period described in paragraph (2) of--
                    (A) the reduction in the amount of deposit 
                insurance available on deposits at the credit union; 
                and
                    (B) the transition rules prescribed pursuant to 
                paragraph (3).
    (c) Regulations.--The Board of Directors of the Federal Deposit 
Insurance Corporation and the National Credit Union Administration 
Board shall prescribe regulations necessary to carry out this section.