IA

104TH CONGRESS

2D SESSION H. J. RES. 175

Making further continuing appropriations for the fiscal year 1996, and for

other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 23, 1996

Mr. LIVINGSTON introduced the following joint resolution; which was referred

to the Committee on Appropriations, and in addition to the Committees

on Banking and Financial Services, and the Budget, for a period to be

subsequently determined by the Speaker, in each case for consideration

of such provisions as fall within the jurisdiction of the committee concerned

JOINT RESOLUTION

Making further continuing appropriations for the fiscal year

1996, and for other purposes.

1 Resolved by the Senate and House of Representatives

2 of the United States of America in Congress assembled,

3 TITLE I—CONTINUING APPROPRIATIONS

4 SEC. 101. Public Law 104–99 is further amended by

5 striking out ‘‘April 24, 1996’’ in sections 106(c), 112,

6 126(c), 202(c), and 214 and inserting in lieu thereof

7 ‘‘April 25, 1996’’; and that Public Law 104–92 is further
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1 amended by striking out ‘‘April 24, 1996’’ in section

2 106(c) and inserting in lieu thereof ‘‘April 25, 1996’’.

3 TITLE II—DEPOSIT INSURANCE FUNDS

4 SEC. 201. SHORT TITLE.

5 This title may be cited as the ‘‘Deposit Insurance

6 Funds Act of 1996’’.

7 SEC. 202. SPECIAL ASSESSMENT TO CAPITALIZE SAIF.

8 (a) IN GENERAL.—Except as provided in subsections

9 (f) and (k), the Board of Directors shall impose a special

10 assessment on the SAIF-assessable deposits of each in11 sured depository institution at a rate applicable to all such

12 institutions that the Board of Directors, in its sole discre13 tion, determines (after taking into account the adjust14 ments described in subsections (g) through (j)) will cause

15 the Savings Association Insurance Fund to achieve the

16 designated reserve ratio on the first business day of the

17 1st month beginning after the date of the enactment of

18 this Act.

19 (b) FACTORS TO BE CONSIDERED.—In carrying out

20 subsection (a), the Board of Directors shall base its deter21 mination on—

22 (1) the monthly Savings Association Insurance

23 Fund balance most recently calculated;

24 (2) data on insured deposits reported in the

25 most recent reports of condition filed not later than
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1 70 days before the date of enactment of this Act by

2 insured depository institutions; and

3 (3) any other factors that the Board of Direc4 tors deems appropriate.

5 (c) DATE OF DETERMINATION.—For purposes of

6 subsection (a), the amount of the SAIF-assessable depos7 its of an insured depository institution shall be determined

8 as of March 31, 1995.

9 (d) DATE PAYMENT DUE.—Except as provided in

10 subsection (g), the special assessment imposed under this

11 section shall be—

12 (1) due on the first business day of the 1st

13 month beginning after the date of the enactment of

14 this Act; and

15 (2) paid to the Corporation on the later of—

16 (A) the first business day of the 1st month

17 beginning after such date of enactment; or

18 (B) such other date as the Corporation

19 shall prescribe, but not later than 60 days after

20 the date of enactment of this Act.

21 (e) ASSESSMENT DEPOSITED IN SAIF.—Notwith22 standing any other provision of law, the proceeds of the

23 special assessment imposed under this section shall be de24 posited in the Savings Association Insurance Fund.

25 (f) EXEMPTIONS FOR CERTAIN INSTITUTIONS.—
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1 (1) EXEMPTION FOR WEAK INSTITUTIONS.—

2 The Board of Directors may, by order, in its sole

3 discretion, exempt any insured depository institution

4 that the Board of Directors determines to be weak,

5 from paying the special assessment imposed under

6 this section if the Board of Directors determines

7 that the exemption would reduce risk to the Savings

8 Association Insurance Fund.

9 (2) GUIDELINES REQUIRED.—Not later than 30

10 days after the date of enactment of this Act, the

11 Board of Directors shall prescribe guidelines setting

12 forth the criteria that the Board of Directors will

13 use in exempting institutions under paragraph (1).

14 Such guidelines shall be published in the Federal

15 Register.

16 (3) EXEMPTION FOR CERTAIN NEWLY CHAR17 TERED AND OTHER DEFINED INSTITUTIONS.—

18 (A) IN GENERAL.—In addition to the insti19 tutions exempted from paying the special as20 sessment under paragraph (1), the Board of

21 Directors shall exempt any insured depository

22 institution from payment of the special assess23 ment if the institution—
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1 (i) was in existence on October 1,

2 1995, and held no SAIF-assessable depos3 its prior to January 1, 1993;

4 (ii) is a Federal savings bank which—

5 (I) was established de novo in

6 April 1994 in order to acquire the de7 posits of a savings association which

8 was in default or in danger of default;

9 and

10 (II) received minority interim

11 capital assistance from the Resolution

12 Trust Corporation under section

13 21A(w) of the Federal Home Loan

14 Bank Act in connection with the ac15 quisition of any such savings associa16 tion; or

17 (iii) is a savings association, the de18 posits of which are insured by the Savings

19 Association Insurance Fund, which—

20 (I) prior to January 1, 1987, was

21 chartered as a Federal savings bank

22 insured by the Federal Savings and

23 Loan Insurance Corporation for the

24 purpose of acquiring all or substan25 tially all of the assets and assuming
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1 all or substantially all of the deposit

2 liabilities of a national bank in a

3 transaction consummated after July

4 1, 1986; and

5 (II) as of the date of that trans6 action, had assets of less than

7 $150,000,000.

8 (B) DEFINITION.—For purposes of this

9 paragraph, an institution shall be deemed to

10 have held SAIF-assessable deposits prior to

11 January 1, 1993, if—

12 (i) it directly held SAIF-assessable in13 sured deposits before that date; or

14 (ii) it succeeded to, acquired, pur15 chased, or otherwise holds any SAIF-as16 sessable deposits as of the date of enact17 ment of this Act that were SAIF-assess18 able deposits before January 1, 1993.

19 (4) EXEMPT INSTITUTIONS REQUIRED TO PAY

20 ASSESSMENTS AT FORMER RATES.—

21 (A) PAYMENTS TO SAIF AND DIF.—Any in22 sured depository institution that the Board of

23 Directors exempts under this subsection from

24 paying the special assessment imposed under

25 this section shall pay semiannual assessments—
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1 (i) during calendar years 1996 and

2 1997, into the Savings Association Insur3 ance Fund, based on SAIF-assessable de4 posits of that institution, at assessment

5 rates calculated under the schedule in ef6 fect for Savings Association Insurance

7 Fund members on June 30, 1995; and

8 (ii) during calendar years 1998 and

9 1999—

10 (I) into the Deposit Insurance

11 Fund, based on SAIF-assessable de12 posits of that institution as of Decem13 ber 31, 1997, at assessment rates cal14 culated under the schedule in effect

15 for Savings Association Insurance

16 Fund members on June 30, 1995; or

17 (II) in accordance with clause (i),

18 if the Bank Insurance Fund and the

19 Savings Association Insurance Fund

20 are not merged into the Deposit In21 surance Fund.

22 (B) OPTIONAL PRO RATA PAYMENT OF

23 SPECIAL ASSESSMENT.—This paragraph shall

24 not apply with respect to any insured depository

25 institution (or successor insured depository in-
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1 stitution) that has paid, during any calendar

2 year from 1997 through 1999, upon such terms

3 as the Corporation may announce, an amount

4 equal to the product of—

5 (i) 12.5 percent of the special assess6 ment that the institution would have been

7 required to pay under subsection (a), if the

8 Board of Directors had not exempted the

9 institution; and

10 (ii) the number of full semiannual pe11 riods remaining between the date of the

12 payment and December 31, 1999.

13 (g) SPECIAL ELECTION FOR CERTAIN INSTITUTIONS

14 FACING HARDSHIP AS A RESULT OF THE SPECIAL AS15 SESSMENT.—

16 (1) ELECTION AUTHORIZED.—If—

17 (A) an insured depository institution, or

18 any depository institution holding company

19 which, directly or indirectly, controls such insti20 tution, is subject to terms or covenants in any

21 debt obligation or preferred stock outstanding

22 on September 13, 1995; and

23 (B) the payment of the special assessment

24 under subsection (a) would pose a significant

25 risk of causing such depository institution or
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1 holding company to default or violate any such

2 term or covenant,

3 the depository institution may elect, with the ap4 proval of the Corporation, to pay such special as5 sessment in accordance with paragraphs (2) and (3)

6 in lieu of paying such assessment in the manner re7 quired under subsection (a).

8 (2) 1ST ASSESSMENT.—An insured depository

9 institution which makes an election under paragraph

10 (1) shall pay an assessment of 50 percent of the

11 amount of the special assessment that would other12 wise apply under subsection (a), by the date on

13 which such special assessment is payable under sub14 section (d).

15 (3) 2D ASSESSMENT.—An insured depository

16 institution which makes an election under paragraph

17 (1) shall pay a 2d assessment, by the date estab18 lished by the Board of Directors in accordance with

19 paragraph (4), in an amount equal to the product of

20 51 percent of the rate determined by the Board of

21 Directors under subsection (a) for determining the

22 amount of the special assessment and the SAIF-as23 sessable deposits of the institution on March 31,

24 1996, or such other date in calendar year 1996 as

25 the Board of Directors determines to be appropriate.
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1 (4) DUE DATE OF 2D ASSESSMENT.—The date

2 established by the Board of Directors for the pay3 ment of the assessment under paragraph (3) by a

4 depository institution shall be the earliest practicable

5 date which the Board of Directors determines to be

6 appropriate, which is at least 15 days after the date

7 used by the Board of Directors under paragraph (3).

8 (5) SUPPLEMENTAL SPECIAL ASSESSMENT.—

9 An insured depository institution which makes an

10 election under paragraph (1) shall pay a supple11 mental special assessment, at the same time the pay12 ment under paragraph (3) is made, in an amount

13 equal to the product of—

14 (A) 50 percent of the rate determined by

15 the Board of Directors under subsection (a) for

16 determining the amount of the special assess17 ment; and

18 (B) 95 percent of the amount by which the

19 SAIF-assessable deposits used by the Board of

20 Directors for determining the amount of the 1st

21 assessment under paragraph (2) exceeds, if any,

22 the SAIF-assessable deposits used by the Board

23 for determining the amount of the 2d assess24 ment under paragraph (3).
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1 (h) ADJUSTMENT OF SPECIAL ASSESSMENT FOR

2 CERTAIN BANK INSURANCE FUND MEMBER BANKS.—

3 (1) IN GENERAL.—For purposes of computing

4 the special assessment imposed under this section

5 with respect to a Bank Insurance Fund member

6 bank, the amount of any deposits of any insured de7 pository institution which section 5(d)(3) of the Fed8 eral Deposit Insurance Act treats as insured by the

9 Savings Association Insurance Fund shall be re10 duced by 20 percent—

11 (A) if the adjusted attributable deposit

12 amount of the Bank Insurance Fund member

13 bank is less than 50 percent of the total domes14 tic deposits of that member bank as of June 30,

15 1995; or

16 (B) if, as of June 30, 1995, the Bank In17 surance Fund member—

18 (i) had an adjusted attributable de19 posit amount equal to less than 75 percent

20 of the total assessable deposits of that

21 member bank;

22 (ii) had total assessable deposits

23 greater than $5,000,000,000; and

24 (iii) was owned or controlled by a

25 bank holding company that owned or con-
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1 trolled insured depository institutions hav2 ing an aggregate amount of deposits in3 sured or treated as insured by the Bank

4 Insurance Fund greater than the aggre5 gate amount of deposits insured or treated

6 as insured by the Savings Association In7 surance Fund.

8 (2) ADJUSTED ATTRIBUTABLE DEPOSIT

9 AMOUNT.—For purposes of this subsection, the ‘‘ad10 justed attributable deposit amount’’ shall be deter11 mined in accordance with section 5(d)(3)(C) of the

12 Federal Deposit Insurance Act.

13 (i) ADJUSTMENT TO THE ADJUSTED ATTRIBUTABLE

14 DEPOSIT AMOUNT FOR CERTAIN BANK INSURANCE FUND

15 MEMBER BANKS.—Section 5(d)(3) of the Federal Deposit

16 Insurance Act (12 U.S.C. 1815(d)(3)) is amended—

17 (1) in subparagraph (C), by striking ‘‘The ad18 justed attributable deposit amount’’ and inserting

19 ‘‘Except as provided in subparagraph (K), the ad20 justed attributable deposit amount’’; and

21 (2) by adding at the end the following new sub22 paragraph:

23 ‘‘(K) ADJUSTMENT OF ADJUSTED ATTRIB24 UTABLE DEPOSIT AMOUNT.—The amount deter25 mined under subparagraph (C)(i) for deposits
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1 acquired by March 31, 1995, shall be reduced

2 by 20 percent for purposes of computing the

3 adjusted attributable deposit amount for the

4 payment of any assessment for any semiannual

5 period that begins after the date of the enact6 ment of the Deposit Insurance Funds Act of

7 1996 (other than the special assessment im8 posed under section 202(a) of such Act), for a

9 Bank Insurance Fund member bank that, as of

10 June 30, 1995—

11 ‘‘(i) had an adjusted attributable de12 posit amount that was less than 50 percent

13 of the total deposits of that member bank;

14 or

15 ‘‘(ii)(I) had an adjusted attributable

16 deposit amount equal to less than 75 per17 cent of the total assessable deposits of that

18 member bank;

19 ‘‘(II) had total assessable deposits

20 greater than $5,000,000,000; and

21 ‘‘(III) was owned or controlled by a

22 bank holding company that owned or con23 trolled insured depository institutions hav24 ing an aggregate amount of deposits in25 sured or treated as insured by the Bank
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1 Insurance Fund greater than the aggre2 gate amount of deposits insured or treated

3 as insured by the Savings Association In4 surance Fund.’’.

5 (j) ADJUSTMENT OF SPECIAL ASSESSMENT FOR

6 CERTAIN SAVINGS ASSOCIATIONS.—

7 (1) SPECIAL ASSESSMENT REDUCTION.—For

8 purposes of computing the special assessment im9 posed under this section, in the case of any con10 verted association, the amount of any deposits of

11 such association which were insured by the Savings

12 Association Insurance Fund as of March 31, 1995,

13 shall be reduced by 20 percent.

14 (2) CONVERTED ASSOCIATION.—For purposes

15 of this subsection, the term ‘‘converted association’’

16 means—

17 (A) any Federal savings association—

18 (i) that is a member of the Savings

19 Association Insurance Fund and that has

20 deposits subject to assessment by that

21 fund which did not exceed $4,000,000,000,

22 as of March 31, 1995; and

23 (ii) that had been, or is a successor by

24 merger, acquisition, or otherwise to an in25 stitution that had been, a State savings
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1 bank, the deposits of which were insured

2 by the Federal Deposit Insurance Corpora3 tion prior to August 9, 1989, that con4 verted to a Federal savings association

5 pursuant to section 5(i) of the Home Own6 ers’ Loan Act prior to January 1, 1985;

7 (B) a State depository institution that is a

8 member of the Savings Association Insurance

9 Fund that had been a State savings bank prior

10 to October 15, 1982, and was a Federal savings

11 association on August 9, 1989;

12 (C) an insured bank that—

13 (i) was established de novo in order to

14 acquire the deposits of a savings associa15 tion in default or in danger of default;

16 (ii) did not open for business before

17 acquiring the deposits of such savings as18 sociation; and

19 (iii) was a Savings Association Insur20 ance Fund member as of the date of enact21 ment of this Act; and

22 (D) an insured bank that—

23 (i) resulted from a savings association

24 before December 19, 1991, in accordance
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1 with section 5(d)(2)(G) of the Federal De2 posit Insurance Act; and

3 (ii) had an increase in its capital in

4 conjunction with the conversion in an

5 amount equal to more than 75 percent of

6 the capital of the institution on the day be7 fore the date of the conversion.

8 (k) EXEMPTION FOR CERTAIN INSTITUTIONS PAYING

9 EXIT AND ENTRANCE FEES.—The Board of Directors of

10 the Federal Deposit Insurance Corporation may, in the

11 sole discretion of the Board of Directors, exempt any in12 sured depository institution from paying the special as13 sessment imposed under subsection (a) if—

14 (1) the institution participated in a conversion

15 transaction pursuant to section 5(d)(2)(C) of the

16 Federal Deposit Insurance Act during the period be17 ginning on March 31, 1995, and ending on the date

18 of the enactment of this Act;

19 (2) exit and entrance fees have been assessed in

20 connection with such conversion transaction in ac21 cordance with subparagraphs (E) and (F) of section

22 5(d)(2) of the Federal Deposit Insurance Act; and

23 (3) as of the date of the enactment of this Act,

24 the institution—
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1 (A) has paid, in whole or in part, the

2 amount of such exit and entrance fees; and

3 (B) is obligated to pay the balance of any

4 unpaid portion of any such fee in accordance

5 with a schedule agreed to by such Corporation.

6 SEC. 203. FINANCING CORPORATION ASSESSMENTS

7 SHARED PROPORTIONALLY BY ALL INSURED

8 DEPOSITORY INSTITUTIONS.

9 (a) IN GENERAL.—Section 21 of the Federal Home

10 Loan Bank Act (12 U.S.C. 1441) is amended—

11 (1) in subsection (f)(2)—

12 (A) in the matter immediately preceding

13 subparagraph (A)—

14 (i) by striking ‘‘Savings Association

15 Insurance Fund member’’ and inserting

16 ‘‘insured depository institution’’; and

17 (ii) by striking ‘‘members’’ and insert18 ing ‘‘institutions’’; and

19 (B) by striking ‘‘, except that—’’ and all

20 that follows through the end of the paragraph

21 and inserting ‘‘, except that—

22 ‘‘(A) the Financing Corporation shall have

23 first priority to make the assessment; and

24 ‘‘(B) no limitation under clause (i) or (iii)

25 of section 7(b)(2)(A) of the Federal Deposit In-
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1 surance Act shall apply for purposes of this

2 paragraph.’’; and

3 (2) in subsection (k)—

4 (A) by striking ‘‘section—’’ and inserting

5 ‘‘section, the following definitions shall apply:’’;

6 (B) by striking paragraph (1);

7 (C) by redesignating paragraphs (2) and

8 (3) as paragraphs (1) and (2), respectively; and

9 (D) by adding at the end the following new

10 paragraph:

11 ‘‘(3) INSURED DEPOSITORY INSTITUTION.—The

12 term ‘insured depository institution’ has the same

13 meaning as in section 3 of the Federal Deposit In14 surance Act.’’.

15 (b) CONFORMING AMENDMENT.—Section 7(b)(2) of

16 the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2))

17 is amended by striking subparagraph (D).

18 (c) EFFECTIVE DATE.—Subsections (a) and (b) and

19 the amendments made by such subsections shall apply

20 with respect to semiannual periods which begin after De21 cember 31, 1996.

22 (d) APPLICABILITY OF FICO ASSESSMENTS TO CER23 TAIN SAIF-ASSESSABLE DEPOSITS.—In the case of any

24 insured depository institution which has SAIF-assessable

25 deposits, such SAIF-assessable deposits shall be subject
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1 to assessments under section 21(f)(2) of the Federal

2 Home Loan Bank Act as a Savings Association Insurance

3 Fund member (with respect to such deposits) during the

4 period beginning on the 1st day of the 1st quarter which

5 begins after the date of the enactment of this Act and

6 ending on December 31, 1996.

7 SEC. 204. MERGER OF BIF AND SAIF.

8 (a) IN GENERAL.—

9 (1) MERGER.—The Bank Insurance Fund and

10 the Savings Association Insurance Fund shall be

11 merged into the Deposit Insurance Fund established

12 by section 11(a)(4) of the Federal Deposit Insurance

13 Act, as amended by this section.

14 (2) DISPOSITION OF ASSETS AND LIABIL15 ITIES.—All assets and liabilities of the Bank Insur16 ance Fund and the Savings Association Insurance

17 Fund shall be transferred to the Deposit Insurance

18 Fund.

19 (3) NO SEPARATE EXISTENCE.—The separate

20 existence of the Bank Insurance Fund and the Sav21 ings Association Insurance Fund shall cease.

22 (b) SPECIAL RESERVE OF THE DEPOSIT INSURANCE

23 FUND.—

24 (1) IN GENERAL.—Immediately before the

25 merger of the Bank Insurance Fund and the Sav-
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1 ings Association Insurance Fund, if the reserve ratio

2 of the Savings Association Insurance Fund exceeds

3 the designated reserve ratio, the amount by which

4 that reserve ratio exceeds the designated reserve

5 ratio shall be placed in the Special Reserve of the

6 Deposit Insurance Fund, established under section

7 11(a)(5) of the Federal Deposit Insurance Act, as

8 amended by this section.

9 (2) DEFINITION.—For purposes of this sub10 section, the term ‘‘reserve ratio’’ means the ratio of

11 the net worth of the Savings Association Insurance

12 Fund to the aggregate estimated amount of deposits

13 insured by the Savings Association Insurance Fund.

14 (c) EFFECTIVE DATE.—This section and the amend15 ments made by this section shall become effective on Janu16 ary 1, 1998, if no insured depository institution is a sav17 ings association on that date.

18 (d) TECHNICAL AND CONFORMING AMENDMENTS.—

19 (1) DEPOSIT INSURANCE FUND.—Section

20 11(a)(4) of the Federal Deposit Insurance Act (12

21 U.S.C. 1821(a)(4)) is amended—

22 (A) by redesignating subparagraph (B) as

23 subparagraph (C);

24 (B) by striking subparagraph (A) and in25 serting the following:
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1 ‘‘(A) ESTABLISHMENT.—There is estab2 lished the Deposit Insurance Fund, which the

3 Corporation shall—

4 ‘‘(i) maintain and administer;

5 ‘‘(ii) use to carry out its insurance

6 purposes in the manner provided by this

7 subsection; and

8 ‘‘(iii) invest in accordance with section

9 13(a).

10 ‘‘(B) USES.—The Deposit Insurance Fund

11 shall be available to the Corporation for use

12 with respect to Deposit Insurance Fund mem13 bers.’’; and

14 (C) by striking ‘‘(4) GENERAL PROVISIONS

15 RELATING TO FUNDS.—’’ and inserting the fol16 lowing:

17 ‘‘(4) ESTABLISHMENT OF THE DEPOSIT INSUR18 ANCE FUND.—’’.

19 (2) OTHER REFERENCES.—Section 11(a)(4)(C)

20 of the Federal Deposit Insurance Act (12 U.S.C.

21 1821(a)(4)(C), as redesignated by paragraph (1) of

22 this subsection) is amended by striking ‘‘Bank In23 surance Fund and the Savings Association Insur24 ance Fund’’ and inserting ‘‘Deposit Insurance

25 Fund’’.
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1 (3) DEPOSITS INTO FUND.—Section 11(a)(4) of

2 the Federal Deposit Insurance Act (12 U.S.C.

3 1821(a)(4)) is amended by adding at the end the

4 following new subparagraph:

5 ‘‘(D) DEPOSITS.—All amounts assessed

6 against insured depository institutions by the

7 Corporation shall be deposited in the Deposit

8 Insurance Fund.’’.

9 (4) SPECIAL RESERVE OF DEPOSITS.—Section

10 11(a)(5) of the Federal Deposit Insurance Act (12

11 U.S.C. 1821(a)(5)) is amended to read as follows:

12 ‘‘(5) SPECIAL RESERVE OF DEPOSIT INSUR13 ANCE FUND.—

14 ‘‘(A) ESTABLISHMENT.—

15 ‘‘(i) IN GENERAL.—There is estab16 lished a Special Reserve of the Deposit In17 surance Fund, which shall be administered

18 by the Corporation and shall be invested in

19 accordance with section 13(a).

20 ‘‘(ii) LIMITATION.—The Corporation

21 shall not provide any assessment credit, re22 fund, or other payment from any amount

23 in the Special Reserve.

24 ‘‘(B) EMERGENCY USE OF SPECIAL RE25 SERVE.—Notwithstanding subparagraph (A)(ii),
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1 the Corporation may, in its sole discretion,

2 transfer amounts from the Special Reserve to

3 the Deposit Insurance Fund, for the purposes

4 set forth in paragraph (4), only if—

5 ‘‘(i) the reserve ratio of the Deposit

6 Insurance Fund is less than 50 percent of

7 the designated reserve ratio; and

8 ‘‘(ii) the Corporation expects the re9 serve ratio of the Deposit Insurance Fund

10 to remain at less than 50 percent of the

11 designated reserve ratio for each of the

12 next 4 calendar quarters.

13 ‘‘(C) EXCLUSION OF SPECIAL RESERVE IN

14 CALCULATING RESERVE RATIO.—Notwithstand15 ing any other provision of law, any amounts in

16 the Special Reserve shall be excluded in cal17 culating the reserve ratio of the Deposit Insur18 ance Fund under section 7.’’.

19 (5) FEDERAL HOME LOAN BANK ACT.—Section

20 21B(f)(2)(C)(ii) of the Federal Home Loan Bank

21 Act (12 U.S.C. 1441b(f)(2)(C)(ii)) is amended—

22 (A) in subclause (I), by striking ‘‘to Sav23 ings Associations Insurance Fund members’’

24 and inserting ‘‘to insured depository institu25 tions, and their successors, which were Savings
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1 Association Insurance Fund members on Sep2 tember 1, 1995’’; and

3 (B) in subclause (II), by striking ‘‘to Sav4 ings Associations Insurance Fund members’’

5 and inserting ‘‘to insured depository institu6 tions, and their successors, which were Savings

7 Association Insurance Fund members on Sep8 tember 1, 1995’’.

9 (6) REPEALS.—

10 (A) SECTION 3.—Section 3(y) of the Fed11 eral Deposit Insurance Act (12 U.S.C. 1813(y))

12 is amended to read as follows:

13 ‘‘(y) DEFINITIONS RELATING TO THE DEPOSIT IN14 SURANCE FUND.—

15 ‘‘(1) DEPOSIT INSURANCE FUND.—The term

16 ‘Deposit Insurance Fund’ means the fund estab17 lished under section 11(a)(4).

18 ‘‘(2) RESERVE RATIO.—The term ‘reserve ratio’

19 means the ratio of the net worth of the Deposit In20 surance Fund to aggregate estimated insured depos21 its held in all insured depository institutions.

22 ‘‘(3) DESIGNATED RESERVE RATIO.—The des23 ignated reserve ratio of the Deposit Insurance Fund

24 for each year shall be—
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1 ‘‘(A) 1.25 percent of estimated insured de2 posits; or

3 ‘‘(B) a higher percentage of estimated in4 sured deposits that the Board of Directors de5 termines to be justified for that year by cir6 cumstances raising a significant risk of sub7 stantial future losses to the fund.

8 (B) SECTION 7.—Section 7 of the Federal

9 Deposit Insurance Act (12 U.S.C. 1817) is

10 amended—

11 (i) by striking subsection (l);

12 (ii) by redesignating subsections (m)

13 and (n) as subsections (l) and (m), respec14 tively;

15 (iii) in subsection (b)(2), by striking

16 subparagraphs (B) and (F), and by redes17 ignating subparagraphs (C), (E), (G), and

18 (H) as subparagraphs (B) through (E), re19 spectively.

20 (C) SECTION 11.—Section 11(a) of the

21 Federal Deposit Insurance Act (12 U.S.C.

22 1821(a)) is amended—

23 (i) by striking paragraphs (6) and (7);

24 and
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1 (ii) by redesignating paragraph (8) as

2 paragraph (6).

3 (7) SECTION 5136 OF THE REVISED STAT4 UTES.—Paragraph Eleventh of section 5136 of the

5 Revised Statutes (12 U.S.C. 24) is amended in the

6 fifth sentence, by striking ‘‘affected deposit insur7 ance fund’’ and inserting ‘‘Deposit Insurance

8 Fund’’.

9 (8) INVESTMENTS PROMOTING PUBLIC WEL10 FARE; LIMITATIONS ON AGGREGATE INVEST11 MENTS.—The 23d undesignated paragraph of sec12 tion 9 of the Federal Reserve Act (12 U.S.C. 338a)

13 is amended in the fourth sentence, by striking ‘‘af14 fected deposit insurance fund’’ and inserting ‘‘De15 posit Insurance Fund’’.

16 (9) ADVANCES TO CRITICALLY UNDERCAPITAL17 IZED DEPOSITORY INSTITUTIONS.—Section

18 10B(b)(3)(A)(ii) of the Federal Reserve Act (12

19 U.S.C. 347b(b)(3)(A)(ii)) is amended by striking

20 ‘‘any deposit insurance fund in’’ and inserting ‘‘the

21 Deposit Insurance Fund of’’.

22 (10) AMENDMENTS TO THE BALANCED BUDGET

23 AND EMERGENCY DEFICIT CONTROL ACT OF 1985.—

24 Section 255(g)(1)(A) of the Balanced Budget and
27

•HJ 175 IH

1 Emergency Deficit Control Act of 1985 (2 U.S.C.

2 905(g)(1)(A)) is amended—

3 (A) by striking ‘‘Bank Insurance Fund’’

4 and inserting ‘‘Deposit Insurance Fund’’; and

5 (B) by striking ‘‘Federal Deposit Insur6 ance Corporation, Savings Association Insur7 ance Fund;’’.

8 (11) FURTHER AMENDMENTS TO THE FEDERAL

9 HOME LOAN BANK ACT.—The Federal Home Loan

10 Bank Act (12 U.S.C. 1421 et seq.) is amended—

11 (A) in section 11(k) (12 U.S.C.

12 1431(k))—

13 (i) in the subsection heading, by strik14 ing ‘‘SAIF’’ and inserting ‘‘THE DEPOSIT

15 INSURANCE FUND’’; and

16 (ii) by striking ‘‘Savings Association

17 Insurance Fund’’ each place such term ap18 pears and inserting ‘‘Deposit Insurance

19 Fund’’;

20 (B) in section 21A(b)(4)(B) (12 U.S.C.

21 1441a(b)(4)(B)), by striking ‘‘affected deposit

22 insurance fund’’ and inserting ‘‘Deposit Insur23 ance Fund’’;

24 (C) in section 21A(b)(6)(B) (12 U.S.C.

25 1441a(b)(6)(B))—
28

•HJ 175 IH

1 (i) in the subparagraph heading, by

2 striking ‘‘SAIF-INSURED BANKS’’ and in3 serting ‘‘CHARTER CONVERSIONS’’; and

4 (ii) by striking ‘‘Savings Association

5 Insurance Fund member’’ and inserting

6 ‘‘savings association’’;

7 (D) in section 21A(b)(10)(A)(iv)(II) (12

8 U.S.C. 1441a(b)(10)(A)(iv)(II)), by striking

9 ‘‘Savings Association Insurance Fund’’ and in10 serting ‘‘Deposit Insurance Fund’’;

11 (E) in section 21B(e) (12 U.S.C.

12 1441b(e))—

13 (i) in paragraph (5), by inserting ‘‘as

14 of the date of funding’’ after ‘‘Savings As15 sociation Insurance Fund members’’ each

16 place such term appears;

17 (ii) by striking paragraph (7); and

18 (iii) by redesignating paragraph (8) as

19 paragraph (7); and

20 (F) in section 21B(k) (12 U.S.C.

21 1441b(k))—

22 (i) by striking paragraph (8); and

23 (ii) by redesignating paragraphs (9)

24 and (10) as paragraphs (8) and (9), re25 spectively.
29

•HJ 175 IH

1 (12) AMENDMENTS TO THE HOME OWNERS’

2 LOAN ACT.—The Home Owners’ Loan Act (12

3 U.S.C. 1461 et seq.) is amended—

4 (A) in section 5 (12 U.S.C. 1464)—

5 (i) in subsection (c)(5)(A), by striking

6 ‘‘that is a member of the Bank Insurance

7 Fund’’;

8 (ii) in subsection (c)(6), by striking

9 ‘‘As used in this subsection—’’ and insert10 ing ‘‘For purposes of this subsection, the

11 following definitions shall apply:’’;

12 (iii) in subsection (o)(1), by striking

13 ‘‘that is a Bank Insurance Fund member’’;

14 (iv) in subsection (o)(2)(A), by strik15 ing ‘‘a Bank Insurance Fund member until

16 such time as it changes its status to a Sav17 ings Association Insurance Fund member’’

18 and inserting ‘‘insured by the Deposit In19 surance Fund’’;

20 (v) in subsection (t)(5)(D)(iii)(II), by

21 striking ‘‘affected deposit insurance fund’’

22 and inserting ‘‘Deposit Insurance Fund’’;

23 (vi) in subsection (t)(7)(C)(i)(I), by

24 striking ‘‘affected deposit insurance fund’’
30

•HJ 175 IH

1 and inserting ‘‘Deposit Insurance Fund’’;

2 and

3 (vii) in subsection (v)(2)(A)(i), by

4 striking ‘‘, the Savings Association Insur5 ance Fund’’ and inserting ‘‘or the Deposit

6 Insurance Fund’’; and

7 (B) in section 10 (12 U.S.C. 1467a)—

8 (i) in subsection (e)(1)(A)(iii)(VII), by

9 adding ‘‘or’’ at the end;

10 (ii) in subsection (e)(1)(A)(iv), by

11 adding ‘‘and’’ at the end;

12 (iii) in subsection (e)(1)(B), by strik13 ing ‘‘Savings Association Insurance Fund

14 or Bank Insurance Fund’’ and inserting

15 ‘‘Deposit Insurance Fund’’;

16 (iv) in subsection (e)(2), by striking

17 ‘‘Savings Association Insurance Fund or

18 the Bank Insurance Fund’’ and inserting

19 ‘‘Deposit Insurance Fund’’; and

20 (v) in subsection (m)(3), by striking

21 subparagraph (E), and by redesignating

22 subparagraphs (F), (G), and (H) as sub23 paragraphs (E), (F), and (G), respectively.
31

•HJ 175 IH

1 (13) AMENDMENTS TO THE NATIONAL HOUSING

2 ACT.—The National Housing Act (12 U.S.C. 1701

3 et seq.) is amended—

4 (A) in section 317(b)(1)(B) (12 U.S.C.

5 1723i(b)(1)(B)), by striking ‘‘Bank Insurance

6 Fund for banks or through the Savings Asso7 ciation Insurance Fund for savings associa8 tions’’ and inserting ‘‘Deposit Insurance Fund’’;

9 and

10 (B) in section 526(b)(1)(B)(ii) (12 U.S.C.

11 1735f–14(b)(1)(B)(ii)), by striking ‘‘Bank In12 surance Fund for banks and through the Sav13 ings Association Insurance Fund for savings as14 sociations’’ and inserting ‘‘Deposit Insurance

15 Fund’’.

16 (14) FURTHER AMENDMENTS TO THE FEDERAL

17 DEPOSIT INSURANCE ACT.—The Federal Deposit In18 surance Act (12 U.S.C. 1811 et seq.) is amended—

19 (A) in section 3(a)(1) (12 U.S.C.

20 1813(a)(1)), by striking subparagraph (B) and

21 inserting the following:

22 ‘‘(B) includes any former savings associa23 tion.’’;

24 (B) in section 5(b)(5) (12 U.S.C.

25 1815(b)(5)), by striking ‘‘the Bank Insurance
32

•HJ 175 IH

1 Fund or the Savings Association Insurance

2 Fund;’’ and inserting ‘‘Deposit Insurance

3 Fund,’’;

4 (C) in section 5(d) (12 U.S.C. 1815(d)),

5 by striking paragraphs (2) and (3);

6 (D) in section 5(d)(1) (12 U.S.C.

7 1815(d)(1))—

8 (i) in subparagraph (A), by striking

9 ‘‘reserve ratios in the Bank Insurance

10 Fund and the Savings Association Insur11 ance Fund’’ and inserting ‘‘the reserve

12 ratio of the Deposit Insurance Fund’’;

13 (ii) by striking subparagraph (B) and

14 inserting the following:

15 ‘‘(2) FEE CREDITED TO THE DEPOSIT INSUR16 ANCE FUND.—The fee paid by the depository insti17 tution under paragraph (1) shall be credited to the

18 Deposit Insurance Fund.’’;

19 (iii) by striking ‘‘(1) UNINSURED IN20 STITUTIONS.—’’; and

21 (iv) by redesignating subparagraphs

22 (A) and (C) as paragraphs (1) and (3), re23 spectively, and moving the margins 2 ems

24 to the left;

25 (E) in section 5(e) (12 U.S.C. 1815(e))—
33

•HJ 175 IH

1 (i) in paragraph (5)(A), by striking

2 ‘‘Bank Insurance Fund or the Savings As3 sociation Insurance Fund’’ and inserting

4 ‘‘Deposit Insurance Fund’’;

5 (ii) by striking paragraph (6); and

6 (iii) by redesignating paragraphs (7),

7 (8), and (9) as paragraphs (6), (7), and

8 (8), respectively;

9 (F) in section 6(5) (12 U.S.C. 1816(5)),

10 by striking ‘‘Bank Insurance Fund or the Sav11 ings Association Insurance Fund’’ and inserting

12 ‘‘Deposit Insurance Fund’’;

13 (G) in section 7(b) (12 U.S.C. 1817(b))—

14 (i) in paragraph (1)(D), by striking

15 ‘‘each deposit insurance fund’’ and insert16 ing ‘‘the Deposit Insurance Fund’’;

17 (ii) in clauses (i)(I) and (iv) of para18 graph (2)(A), by striking ‘‘each deposit in19 surance fund’’ each place such term ap20 pears and inserting ‘‘the Deposit Insurance

21 Fund’’;

22 (iii) in paragraph (2)(A)(iii), by strik23 ing ‘‘a deposit insurance fund’’ and insert24 ing ‘‘the Deposit Insurance Fund’’;
34

•HJ 175 IH

1 (iv) by striking clause (iv) of para2 graph (2)(A);

3 (v) in paragraph (2)(C) (as redesig4 nated by paragraph (6)(B) of this sub5 section)—

6 (I) by striking ‘‘any deposit in7 surance fund’’ and inserting ‘‘the De8 posit Insurance Fund’’; and

9 (II) by striking ‘‘that fund’’ each

10 place such term appears and inserting

11 ‘‘the Deposit Insurance Fund’’;

12 (vi) in paragraph (2)(D) (as redesig13 nated by paragraph (6)(B) of this sub14 section)—

15 (I) in the subparagraph heading,

16 by striking ‘‘FUNDS ACHIEVE’’ and in17 serting ‘‘FUND ACHIEVES’’; and

18 (II) by striking ‘‘a deposit insur19 ance fund’’ and inserting ‘‘the Deposit

20 Insurance Fund’’;

21 (vii) in paragraph (3)—

22 (I) in the paragraph heading, by

23 striking ‘‘FUNDS’’ and inserting

24 ‘‘FUND’’;
35

•HJ 175 IH

1 (II) by striking ‘‘members of that

2 fund’’ where such term appears in the

3 portion of subparagraph (A) which

4 precedes clause (i) of such subpara5 graph and inserting ‘‘insured deposi6 tory institutions’’;

7 (III) by striking ‘‘that fund’’

8 each place such term appears (other

9 than in connection with term amended

10 in subclause (II) of this clause) and

11 inserting ‘‘the Deposit Insurance

12 Fund’’;

13 (IV) in subparagraph (A), by

14 striking ‘‘Except as provided in para15 graph (2)(F), if’’ and inserting ‘‘If’’;

16 (V) in subparagraph (A), by

17 striking ‘‘any deposit insurance fund’’

18 and inserting ‘‘the Deposit Insurance

19 Fund’’; and

20 (VI) by striking subparagraphs

21 (C) and (D) and inserting the follow22 ing:

23 ‘‘(C) AMENDING SCHEDULE.—The Cor24 poration may, by regulation, amend a schedule

25 promulgated under subparagraph (B).’’; and
36

•HJ 175 IH

1 (viii) in paragraph (6)—

2 (I) by striking ‘‘any such assess3 ment’’ and inserting ‘‘any such assess4 ment is necessary’’;

5 (II) by striking ‘‘(A) is nec6 essary—’’;

7 (III) by striking subparagraph

8 (B);

9 (IV) by redesignating clauses (i),

10 (ii), and (iii) as subparagraphs (A),

11 (B), and (C), respectively, and moving

12 the margins 2 ems to the left; and

13 (V) in subparagraph (C) (as re14 designated), by striking ‘‘; and’’ and

15 inserting a period;

16 (H) in section 11(f)(1) (12 U.S.C.

17 1821(f)(1)), by striking ‘‘, except that—’’ and

18 all that follows through the end of the para19 graph and inserting a period;

20 (I) in section 11(i)(3) (12 U.S.C.

21 1821(i)(3))—

22 (i) by striking subparagraph (B);

23 (ii) by redesignating subparagraph

24 (C) as subparagraph (B); and
37

•HJ 175 IH

1 (iii) in subparagraph (B) (as redesig2 nated), by striking ‘‘subparagraphs (A)

3 and (B)’’ and inserting ‘‘subparagraph

4 (A)’’;

5 (J) in section 11A(a) (12 U.S.C.

6 1821a(a))—

7 (i) in paragraph (2), by striking ‘‘LI8 ABILITIES.—’’ and all that follows through

9 ‘‘Except’’ and inserting ‘‘LIABILITIES.—

10 Except’’;

11 (ii) by striking paragraph (2)(B); and

12 (iii) in paragraph (3), by striking ‘‘the

13 Bank Insurance Fund, the Savings Asso14 ciation Insurance Fund,’’ and inserting

15 ‘‘the Deposit Insurance Fund’’;

16 (K) in section 11A(b) (12 U.S.C.

17 1821a(b)), by striking paragraph (4);

18 (L) in section 11A(f) (12 U.S.C.

19 1821a(f)), by striking ‘‘Savings Association In20 surance Fund’’ and inserting ‘‘Deposit Insur21 ance Fund’’;

22 (M) in section 13 (12 U.S.C. 1823)—

23 (i) in subsection (a)(1), by striking

24 ‘‘Bank Insurance Fund, the Savings Asso25 ciation Insurance Fund,’’ and inserting
38

•HJ 175 IH

1 ‘‘Deposit Insurance Fund, the Special Re2 serve of the Deposit Insurance Fund,’’;

3 (ii) in subsection (c)(4)(E)—

4 (I) in the subparagraph heading,

5 by striking ‘‘FUNDS’’ and inserting

6 ‘‘FUND’’; and

7 (II) in clause (i), by striking

8 ‘‘any insurance fund’’ and inserting

9 ‘‘the Deposit Insurance Fund’’;

10 (iii) in subsection (c)(4)(G)(ii)—

11 (I) by striking ‘‘appropriate in12 surance fund’’ and inserting ‘‘Deposit

13 Insurance Fund’’;

14 (II) by striking ‘‘the members of

15 the insurance fund (of which such in16 stitution is a member)’’ and inserting

17 ‘‘insured depository institutions’’;

18 (III) by striking ‘‘each mem19 ber’s’’ and inserting ‘‘each insured de20 pository institution’s’’; and

21 (IV) by striking ‘‘the member’s’’

22 each place such term appears and in23 serting ‘‘the institution’s’’;

24 (iv) in subsection (c), by striking

25 paragraph (11);
39

•HJ 175 IH

1 (v) in subsection (h), by striking

2 ‘‘Bank Insurance Fund’’ and inserting

3 ‘‘Deposit Insurance Fund’’;

4 (vi) in subsection (k)(4)(B)(i), by

5 striking ‘‘Savings Association Insurance

6 Fund’’ and inserting ‘‘Deposit Insurance

7 Fund’’; and

8 (vii) in subsection (k)(5)(A), by strik9 ing ‘‘Savings Association Insurance Fund’’

10 and inserting ‘‘Deposit Insurance Fund’’;

11 (N) in section 14(a) (12 U.S.C. 1824(a))

12 in the fifth sentence—

13 (i) by striking ‘‘Bank Insurance Fund

14 or the Savings Association Insurance

15 Fund’’ and inserting ‘‘Deposit Insurance

16 Fund’’; and

17 (ii) by striking ‘‘each such fund’’ and

18 inserting ‘‘the Deposit Insurance Fund’’;

19 (O) in section 14(b) (12 U.S.C. 1824(b)),

20 by striking ‘‘Bank Insurance Fund or Savings

21 Association Insurance Fund’’ and inserting

22 ‘‘Deposit Insurance Fund’’;

23 (P) in section 14(c) (12 U.S.C. 1824(c)),

24 by striking paragraph (3);
40

•HJ 175 IH

1 (Q) in section 14(d) (12 U.S.C.

2 1824(d))—

3 (i) by striking ‘‘BIF’’ each place such

4 term appears and inserting ‘‘DIF’’; and

5 (ii) by striking ‘‘Bank Insurance

6 Fund’’ each place such term appears and

7 inserting ‘‘Deposit Insurance Fund’’;

8 (R) in section 15(c)(5) (12 U.S.C.

9 1825(c)(5))—

10 (i) by striking ‘‘the Bank Insurance

11 Fund or Savings Association Insurance

12 Fund, respectively’’ each place such term

13 appears and inserting ‘‘the Deposit Insur14 ance Fund’’; and

15 (ii) in subparagraph (B), by striking

16 ‘‘the Bank Insurance Fund or the Savings

17 Association Insurance Fund, respectively’’

18 and inserting ‘‘the Deposit Insurance

19 Fund’’;

20 (S) in section 17(a) (12 U.S.C. 1827(a))—

21 (i) in the subsection heading, by strik22 ing ‘‘BIF, SAIF,’’ and inserting ‘‘THE DE23 POSIT INSURANCE FUND’’; and

24 (ii) in paragraph (1), by striking ‘‘the

25 Bank Insurance Fund, the Savings Asso-
41

•HJ 175 IH

1 ciation Insurance Fund,’’ each place such

2 term appears and inserting ‘‘the Deposit

3 Insurance Fund’’;

4 (T) in section 17(d) (12 U.S.C. 1827(d)),

5 by striking ‘‘the Bank Insurance Fund, the

6 Savings Association Insurance Fund,’’ each

7 place such term appears and inserting ‘‘the De8 posit Insurance Fund’’;

9 (U) in section 18(m)(3) (12 U.S.C.

10 1828(m)(3))—

11 (i) by striking ‘‘Savings Association

12 Insurance Fund’’ each place such term ap13 pears and inserting ‘‘Deposit Insurance

14 Fund’’; and

15 (ii) in subparagraph (C), by striking

16 ‘‘or the Bank Insurance Fund’’;

17 (V) in section 18(p) (12 U.S.C. 1828(p)),

18 by striking ‘‘deposit insurance funds’’ and in19 serting ‘‘Deposit Insurance Fund’’;

20 (W) in section 24 (12 U.S.C. 1831a) in

21 subsections (a)(1) and (d)(1)(A), by striking

22 ‘‘appropriate deposit insurance fund’’ each

23 place such term appears and inserting ‘‘Deposit

24 Insurance Fund’’;
42

•HJ 175 IH

1 (X) in section 28 (12 U.S.C. 1831e), by

2 striking ‘‘affected deposit insurance fund’’ each

3 place such term appears and inserting ‘‘Deposit

4 Insurance Fund’’;

5 (Y) by striking section 31 (12 U.S.C.

6 1831h);

7 (Z) in section 36(i)(3) (12 U.S.C.

8 1831m(i)(3)) by striking ‘‘affected deposit in9 surance fund’’ and inserting ‘‘Deposit Insur10 ance Fund’’;

11 (AA) in section 38(a) (12 U.S.C.

12 1831o(a)) in the subsection heading, by striking

13 ‘‘FUNDS’’ and inserting ‘‘FUND’’;

14 (BB) in section 38(k) (12 U.S.C.

15 1831o(k))—

16 (i) in paragraph (1), by striking ‘‘a

17 deposit insurance fund’’ and inserting ‘‘the

18 Deposit Insurance Fund’’; and

19 (ii) in paragraph (2)(A)—

20 (I) by striking ‘‘A deposit insur21 ance fund’’ and inserting ‘‘The De22 posit Insurance Fund’’; and

23 (II) by striking ‘‘the deposit in24 surance fund’s outlays’’ and inserting
43

•HJ 175 IH

1 ‘‘the outlays of the Deposit Insurance

2 Fund’’; and

3 (CC) in section 38(o) (12 U.S.C.

4 1831o(o))—

5 (i) by striking ‘‘ASSOCIATIONS.—’’

6 and all that follows through ‘‘Subsections

7 (e)(2)’’ and inserting ‘‘ASSOCIATIONS.—

8 Subsections (e)(2)’’;

9 (ii) by redesignating subparagraphs

10 (A), (B), and (C) as paragraphs (1), (2),

11 and (3), respectively, and moving the mar12 gins 2 ems to the left; and

13 (iii) in paragraph (1) (as redesig14 nated), by redesignating clauses (i) and (ii)

15 as subparagraphs (A) and (B), respec16 tively, and moving the margins 2 ems to

17 the left.

18 (15) AMENDMENTS TO THE FINANCIAL INSTI19 TUTIONS REFORM, RECOVERY, AND ENFORCEMENT

20 ACT OF 1989.—The Financial Institutions Reform,

21 Recovery, and Enforcement Act is amended—

22 (A) in section 951(b)(3)(B) (12 U.S.C.

23 1833a(b)(3)(B)), by striking ‘‘Bank Insurance

24 Fund, the Savings Association Insurance
44

•HJ 175 IH

1 Fund,’’ and inserting ‘‘Deposit Insurance

2 Fund’’; and

3 (B) in section 1112(c)(1)(B) (12 U.S.C.

4 3341(c)(1)(B)), by striking ‘‘Bank Insurance

5 Fund, the Savings Association Insurance

6 Fund,’’ and inserting ‘‘Deposit Insurance

7 Fund’’.

8 (16) AMENDMENT TO THE BANK ENTERPRISE

9 ACT OF 1991.—Section 232(a)(1) of the Bank Enter10 prise Act of 1991 (12 U.S.C. 1834(a)(1)) is amend11 ed by striking ‘‘section 7(b)(2)(H)’’ and inserting

12 ‘‘section 7(b)(2)(G)’’.

13 (17) AMENDMENT TO THE BANK HOLDING

14 COMPANY ACT.—Section 2(j)(2) of the Bank Hold15 ing Company Act of 1956 (12 U.S.C. 1841(j)(2)) is

16 amended by striking ‘‘Savings Association Insurance

17 Fund’’ and inserting ‘‘Deposit Insurance Fund’’.

18 SEC. 205. CREATION OF SAIF SPECIAL RESERVE.

19 Section 11(a)(6) of the Federal Deposit Insurance

20 Act (12 U.S.C. 1821(a)(6)) is amended by adding at the

21 end the following new subparagraph:

22 ‘‘(L) ESTABLISHMENT OF SAIF SPECIAL RE23 SERVE.—

24 ‘‘(i) ESTABLISHMENT.—If, on January 1,

25 1998, the reserve ratio of the Savings Associa-
45

•HJ 175 IH

1 tion Insurance Fund exceeds the designated re2 serve ratio, there is established a Special Re3 serve of the Savings Association Insurance

4 Fund, which shall be administered by the Cor5 poration and shall be invested in accordance

6 with section 13(a).

7 ‘‘(ii) AMOUNTS IN SPECIAL RESERVE.—If,

8 on January 1, 1998, the reserve ratio of the

9 Savings Association Insurance Fund exceeds

10 the designated reserve ratio, the amount by

11 which the reserve ratio exceeds the designated

12 reserve ratio shall be placed in the Special Re13 serve of the Savings Association Insurance

14 Fund established by clause (i).

15 ‘‘(iii) LIMITATION.—The Corporation shall

16 not provide any assessment credit, refund, or

17 other payment from any amount in the Special

18 Reserve of the Savings Association Insurance

19 Fund.

20 ‘‘(iv) EMERGENCY USE OF SPECIAL RE21 SERVE.—Notwithstanding clause (iii), the Cor22 poration may, in its sole discretion, transfer

23 amounts from the Special Reserve of the Sav24 ings Association Insurance Fund to the Savings
46

•HJ 175 IH

1 Association Insurance Fund for the purposes

2 set forth in paragraph (4), only if—

3 ‘‘(I) the reserve ratio of the Savings

4 Association Insurance Fund is less than 50

5 percent of the designated reserve ratio; and

6 ‘‘(II) the Corporation expects the re7 serve ratio of the Savings Association In8 surance Fund to remain at less than 50

9 percent of the designated reserve ratio for

10 each of the next 4 calendar quarters.

11 ‘‘(v) EXCLUSION OF SPECIAL RESERVE IN

12 CALCULATING RESERVE RATIO.—Notwithstand13 ing any other provision of law, any amounts in

14 the Special Reserve of the Savings Association

15 Insurance Fund shall be excluded in calculating

16 the reserve ratio of the Savings Association In17 surance Fund.’’.

18 SEC. 206. REFUND OF AMOUNTS IN DEPOSIT INSURANCE

19 FUND IN EXCESS OF DESIGNATED RESERVE

20 AMOUNT.

21 Subsection (e) of section 7 of the Federal Deposit In22 surance Act (12 U.S.C. 1817(e)) is amended to read as

23 follows:

24 ‘‘(e) REFUNDS.—
47

•HJ 175 IH

1 ‘‘(1) OVERPAYMENTS.—In the case of any pay2 ment of an assessment by an insured depository in3 stitution in excess of the amount due to the Cor4 poration, the Corporation may—

5 ‘‘(A) refund the amount of the excess pay6 ment to the insured depository institution; or

7 ‘‘(B) credit such excess amount toward the

8 payment of subsequent semiannual assessments

9 until such credit is exhausted.

10 ‘‘(2) BALANCE IN INSURANCE FUND IN EXCESS

11 OF DESIGNATED RESERVE.—

12 ‘‘(A) IN GENERAL.—Subject to subpara13 graphs (B) and (C), if, as of the end of any

14 semiannual assessment period, the amount of

15 the actual reserves in—

16 ‘‘(i) the Bank Insurance Fund (until

17 the merger of such fund into the Deposit

18 Insurance Fund pursuant to section l04

19 of the Deposit Insurance Funds Act of

20 1996); or

21 ‘‘(ii) the Deposit Insurance Fund

22 (after the establishment of such fund),

23 exceeds the balance required to meet the des24 ignated reserve ratio applicable with respect to

25 such fund, such excess amount shall be re-
48

•HJ 175 IH

1 funded to insured depository institutions by the

2 Corporation on such basis as the Board of Di3 rectors determines to be appropriate, taking

4 into account the factors considered under the

5 risk-based assessment system.

6 ‘‘(B) REFUND NOT TO EXCEED PREVIOUS

7 SEMIANNUAL ASSESSMENT.—The amount of

8 any refund under this paragraph to any mem9 ber of a deposit insurance fund for any semi10 annual assessment period may not exceed the

11 total amount of assessments paid by such mem12 ber to the insurance fund with respect to such

13 period.

14 ‘‘(C) REFUND LIMITATION FOR CERTAIN

15 INSTITUTIONS.—No refund may be made under

16 this paragraph with respect to the amount of

17 any assessment paid for any semiannual assess18 ment period by any insured depository institu19 tion described in clause (v) of subsection

20 (b)(2)(A).’’.
49

•HJ 175 IH

1 SEC. 207. ASSESSMENT RATES FOR SAIF MEMBERS MAY

2 NOT BE LESS THAN ASSESSMENT RATES FOR

3 BIF MEMBERS.

4 Section 7(b)(2)(C) of the Federal Deposit Insurance

5 Act (12 U.S.C. 1817(b)(2)(E), as redesignated by section

6 204(d)(6) of this Act) is amended—

7 (1) by striking ‘‘and’’ at the end of clause (i);

8 (2) by striking the period at the end of clause

9 (ii) and inserting ‘‘; and’’; and

10 (3) by adding at the end the following new

11 clause:

12 ‘‘(iii) notwithstanding any other provi13 sion of this subsection, during the period

14 beginning on the date of enactment of the

15 Deposit Insurance Funds Act of 1996, and

16 ending on January 1, 1998, the assess17 ment rate for a Savings Association Insur18 ance Fund member may not be less than

19 the assessment rate for a Bank Insurance

20 Fund member that poses a comparable

21 risk to the deposit insurance fund.’’.

22 SEC. 208. ASSESSMENTS AUTHORIZED ONLY IF NEEDED TO

23 MAINTAIN THE RESERVE RATIO OF A DE24 POSIT INSURANCE FUND.

25 (a) IN GENERAL.—Section 7(b)(2)(A)(i) of the Fed26 eral Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(i))
50

•HJ 175 IH

1 is amended in the matter preceding subclause (I) by in2 serting ‘‘when necessary, and only to the extent nec3 essary’’ after ‘‘insured depository institutions’’.

4 (b) LIMITATION ON ASSESSMENT.—Section

5 7(b)(2)(A)(iii) of the Federal Deposit Insurance Act (12

6 U.S.C. 1817(b)(2)(A)(iii)) is amended to read as follows:

7 ‘‘(iii) LIMITATION ON ASSESSMENT.—

8 Except as provided in clause (v), the Board

9 of Directors shall not set semiannual as10 sessments with respect to a deposit insur11 ance fund in excess of the amount need12 ed—

13 ‘‘(I) to maintain the reserve ratio

14 of the fund at the designated reserve

15 ratio; or

16 ‘‘(II) if the reserve ratio is less

17 than the designated reserve ratio, to

18 increase the reserve ratio to the des19 ignated reserve ratio.’’.

20 (c) EXCEPTION TO LIMITATION ON ASSESSMENTS.—

21 Section 7(b)(2)(A) of the Federal Deposit Insurance Act

22 (12 U.S.C. 1817(b)(2)(A)) is amended by adding at the

23 end the following new clause:

24 ‘‘(v) EXCEPTION TO LIMITATION ON

25 ASSESSMENTS.—The Board of Directors
51

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1 may set semiannual assessments in excess

2 of the amount permitted under clauses (i)

3 and (iii) with respect to insured depository

4 institutions that exhibit financial, oper5 ational, or compliance weaknesses ranging

6 from moderately severe to unsatisfactory,

7 or are not well capitalized, as that term is

8 defined in section 38.’’.

9 SEC. 209. DEFINITIONS.

10 For purposes of this title—

11 (1) the term ‘‘Bank Insurance Fund’’ means

12 the fund established pursuant to section

13 (11)(a)(5)(A) of the Federal Deposit Insurance Act,

14 as that section existed on the day before the date of

15 enactment of this Act;

16 (2) the terms ‘‘Bank Insurance Fund member’’

17 and ‘‘Savings Association Insurance Fund member’’

18 have the same meanings as in section 7(l) of the

19 Federal Deposit Insurance Act;

20 (3) the terms ‘‘bank’’, ‘‘Board of Directors’’,

21 ‘‘Corporation’’, ‘‘insured depository institution’’,

22 ‘‘Federal savings association’’, ‘‘savings association’’,

23 ‘‘State savings bank’’, and ‘‘State depository institu24 tion’’ have the same meanings as in section 3 of the

25 Federal Deposit Insurance Act;
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1 (4) the term ‘‘Deposit Insurance Fund’’ means

2 the fund established under section 11(a)(4) of the

3 Federal Deposit Insurance Act (as amended by sec4 tion 204(d) of this Act);

5 (5) the term ‘‘depository institution holding

6 company’’ has the same meaning as in section 3 of

7 the Federal Deposit Insurance Act;

8 (6) the term ‘‘designated reserve ratio’’ has the

9 same meaning as in section 7(b)(2)(A)(iv) of the

10 Federal Deposit Insurance Act;

11 (7) the term ‘‘Savings Association Insurance

12 Fund’’ means the fund established pursuant to sec13 tion 11(a)(6)(A) of the Federal Deposit Insurance

14 Act, as that section existed on the day before the

15 date of enactment of this Act; and

16 (8) the term ‘‘SAIF-assessable deposit’’—

17 (A) means—

18 (i) a deposit that is subject to assess19 ment for purposes of the Savings Associa20 tion Insurance Fund under the Federal

21 Deposit Insurance Act; and

22 (ii) a deposit that section 5(d)(3) of

23 the Federal Deposit Insurance Act treats

24 as insured by the Savings Association In25 surance Fund; and
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1 (B) includes any deposit assumed after

2 March 31, 1995, if the insured depository insti3 tution, the deposits of which are assumed, is

4 not an insured depository institution when the

5 special assessment is imposed under section

6 202(a).

Æ