# Federal Deposit Insurance Corporation Improvement Act of 1991

Note: This is the original legislation as it was initially enacted. Any subsequent amendments hosted on Wikisource may be listed using What Links Here.
An Act To require the least-cost resolution of insured depository institutions, to improve supervision and examinations, to provide additional resources to the Bank Insurance Fund, and for other purposes.
    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

### Section 1. Short Title; Table of Contents.

    (a) Short Title.—
       This Act may be cited as the ``Federal Deposit Insurance Corporation Improvement Act of 1991´´.
    (b) Table of Contents.—
       Sec. 1. Short Title; Table of Contents.
       TITLE I — SAFETY AND SOUNDNESS
          Subtitle A — Deposit Insurance Funds
             Sec. 101. Funding for the Federal deposit insurance funds.
             Sec. 102. Limitation on outstanding borrowing.
             Sec. 103. Repayment schedule.
             Sec. 104. Recapitalizing the Bank Insurance Fund.
             Sec. 105. Borrowing for BIF from BIF members.
          Subtitle B — Supervisory Reforms
             Sec. 111. Improved examinations.
             Sec. 112. Independent annual audits of insured depository institutions.
             Sec. 113. Assessments required to cover costs of examinations.
             Sec. 114. Examination and supervision fees for national banks and savings associations.
             Sec. 115. Application to FDIC required for insurance.
          Subtitle C — Accounting Reforms
             Sec. 121. Accounting objectives, standards, and requirements.
             Sec. 122. Small business and small farm loan information.
             Sec. 123. FDIC property disposition standards.
          Subtitle D — Prompt Corrective Action
             Sec. 131. Prompt corrective action.
             Sec. 132. Standards for safety and soundness.
             Sec. 133. Conservatorship and receivership amendments to facilitate prompt corrective action.
          Subtitle E — Least-Cost Resolution
             Sec. 141. Least-cost resolution.
             Sec. 142. Federal Reserve discount window advances.
             Sec. 143. Early resolution.
          Subtitle F — Depository Institutions Lacking Federal Deposit Insurance
             Sec. 151. Depository institutions lacking Federal deposit insurance.
          Subtitle G — Technical Corrections
             Sec. 161. Technical corrections and clarifications.
       TITLE II — REGULATORY IMPROVEMENT
          Subtitle A — Regulation of Foreign Banks
             Sec. 201. Short title.
             Sec. 202. Regulation of foreign bank operations.
             Sec. 203. Conduct and coordination of examinations.
             Sec. 204. Supervision of the representative offices of foreign banks.
             Sec. 205. Reporting of stock loans.
             Sec. 206. Cooperation with foreign supervisors.
             Sec. 207. Approval required for acquisition by foreign banks of shares of United States banks.
             Sec. 208. Penalties.
             Sec. 209. Powers of agencies respecting applications, examinations, and other proceedings.
             Sec. 210. Clarification of managerial standards in Bank Holding Company Act of 1956.
             Sec. 211. Standards and factors in the Home Owners' Loan Act.
             Sec. 212. Authority of Federal banking agencies to enforce consumer statutes.
             Sec. 213. Criminal penalty for violating the International Banking Act of 1978.
             Sec. 214. Miscellaneous amendments to the International Banking Act of 1978.
             Sec. 215. Study and report on subsidiary requirements for foreign banks.
          Subtitle B — Customer and Consumer Provisions
             Sec. 221. Study on regulatory burden.
             Sec. 222. Discussion of lending data.
             Sec. 223. Enforcement of Equal Credit Opportunity Act.
             Sec. 224. Home Mortgage Disclosure Act.
             Sec. 225. Notice of safeguard exception.
             Sec. 226. Delegated processing.
             Sec. 227. Deposits at nonproprietary automated teller machines.
             Sec. 228. Notice of branch closure.
          Subtitle C — Bank Enterprise Act
             Sec. 231. Short title.
             Sec. 232. Reduced assessment rate for deposits attributable to lifeline accounts.
             Sec. 233. Assessment credits for qualifying activities relating to distressed communities.
             Sec. 234. Community development organizations.
          Subtitle D — FDIC Property Disposition
             Sec. 241. FDIC affordable housing program.
          Subtitle E — Whistleblower Protections
             Sec. 251. Additional whistleblower protections.
          Subtitle F — Truth in Savings
             Sec. 261. Short title.
             Sec. 262. Findings and purpose.
             Sec. 263. Disclosure of interest rates and terms of accounts.
             Sec. 264. Account schedule.
             Sec. 265. Disclosure requirements for certain accounts.
             Sec. 266. Distribution of schedules.
             Sec. 267. Payment of interest.
             Sec. 268. Periodic statements.
             Sec. 269. Regulations.
             Sec. 270. Administrative enforcement.
             Sec. 271. Civil liability.
             Sec. 272. Credit unions.
             Sec. 273. Effect on State law.
             Sec. 274. Definitions.
       TITLE III — FEDERAL DEPOSIT INSURANCE REFORM
          Subtitle A — Activities
             Sec. 301. Limitations on brokered deposits and deposit solicitations.
             Sec. 302. Risk-based assessments.
             Sec. 303. Restrictions on insured State bank activities.
             Sec. 304. Restrictions on real estate lending.
             Sec. 305. Improving capital standards.
             Sec. 306. Safeguards against insider abuse.
             Sec. 307. FDIC back-up enforcement authority.
             Sec. 308. Interbank liabilities.
          Subtitle B — Coverage
             Sec. 311. Deposit and pass-through insurance.
             Sec. 312. Foreign deposits.
             Sec. 313. Penalty for false assessment reports.
          Subtitle C — Demonstration Project and Studies
             Sec. 321. Feasibility study on authorizing insured and uninsured deposit accounts.
             Sec. 322. Private reinsurance study.
       TITLE IV — MISCELLANEOUS PROVISIONS
          Subtitle A — Payment System Risk Reduction
             Sec. 401. Findings and purpose.
             Sec. 402. Definitions.
             Sec. 403. Bilateral netting.
             Sec. 404. Clearing organization netting.
             Sec. 405. Preemption.
             Sec. 406. Relationship to other payments systems.
             Sec. 407. National emergencies.
          Subtitle B — Right to Financial Privacy Act of 1978
             Sec. 411. Amendments to the Right to Financial Privacy Act of 1978.
          Subtitle C — Final Settlement Payment Procedure
             Sec. 416. Final settlement payment procedure.
          Subtitle D — Miscellaneous Committees, Studies, and Reports
             Sec. 421. Amendments relating to Federal Reserve Board reserve requirements.
             Sec. 422. Permanent authorization of Credit Standards Advisory Committee.
          Subtitle E — Utilization of Private Sector
             Sec. 426. Utilization of private sector.
             Sec. 427. Reporting.
          Subtitle F — Emergency Assistance for Rhode Island
             Sec. 431. Emergency loan guarantee.
          Subtitle G — Qualified Thrift Lender Test Improvements
             Sec. 436. Short title.
             Sec. 437. Adjustment of compliance periods for purposes of qualified thrift lender test.
             Sec. 438. Increase in amount of liquid assets excludable from portfolio assets.
             Sec. 439. Additional investments included in definition of qualified thrift assets.
             Sec. 440. Prudent diversification of assets.
             Sec. 441. Consumer lending by Federal savings associations.
          Subtitle H — Prohibition on Entering Secrecy Agreements and Protective Orders
             Sec. 446. Prohibition on entering into secrecy agreements and protective orders.
          Subtitle I — Bank and Thrift Employee Provisions
             Sec. 451. Continuation of health plan coverage in cases of failed financial institutions.
          Subtitle J — Sense of the Congress Regarding the Credit Crisis
             Sec. 456. Credit crunch.
          Subtitle K — Acquisition of Insolvent Savings Associations
             Sec. 461. Acquisition of insolvent savings associations.
          Subtitle L — Creditability of Service
             Sec. 466. Creditability of service.
          Subtitle M — Other Miscellaneous Provisions
             Sec. 471. Providing services to insured depository institutions.
             Sec. 472. Real estate appraisals.
             Sec. 473. Emergency liquidity.
             Sec. 474. Discrimination against reorganized debtors.
             Sec. 475. Purchased mortgage servicing rights.
             Sec. 476. Limitation on securities private rights of action.
             Sec. 477. Modified small business lending disclosure.
             Sec. 478. Special insured deposits.
          Subtitle N—Severability
             Sec. 481. Severability.
       TITLE V — DEPOSITORY INSTITUTION CONVERSIONS
          Sec. 501. Mergers and acquisitions of insured depository institutions during conversion moratorium.
          Sec. 502. Mergers, consolidations, and other acquisitions authorized.´´.
Approved December 19, 1991.

## Legislative History

* S. 543, (H.R. 3768)
   * HOUSE REPORTS:
   ** No. 102-330 (Comm. on Banking, Finance, and Urban Affairs)
   ** No. 102-407 (Comm. of Conference)
   * SENATE REPORTS:
   ** No. 102-167 (Comm. on Banking, Housing, and Urban Affairs)
   * CONGRESSIONAL RECORD, Vol. 137 (1991):
   ** Nov. 21, considered and passed Senate with an amendment.
   ** Nov. 23, considered and passed House with an amendment.
   ** Nov. 25, Senate disagreed to the House amendment by Voice Vote.
   ** Nov. 27, Conference report filed.
   ** Nov. 27, House agreed to conference report.
   ** Nov. 27, Senate agreed to conference report.

## Notes

* ↑ The original enacted text did not include a table of contents and is added here strictly for editorial use and navigational ease. A table of contents, however, was officially added later via an amendment to the Act by Section 1601 of Subtitle A, Title XVI of the Housing and Community Development Act of 1992.
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