I

104TH CONGRESS

1ST SESSION H. R. 1480

To stabilize the condition of the Savings Association Insurance Fund, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 7, 1995

Mr. LAFALCE introduced the following bill; which was referred to the

Committee on Banking and Financial Services

A BILL

To stabilize the condition of the Savings Association

Insurance Fund, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Savings Association

5 Insurance Fund Stabilization Act of 1995’’.

6 SEC. 2. 1-TIME SPECIAL SAIF CAPITALIZATION ASSESS7 MENT.

8 Section 7(b) of the Federal Deposit Insurance Act

9 (12 U.S.C. 1817(b)) is amended by adding at the end the

10 following new paragraph:
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1 ‘‘(8) SPECIAL 1-TIME ASSESSMENT TO RECAPI2 TALIZE SAIF.—

3 ‘‘(A) IN GENERAL.—The Corporation may,

4 in the discretion of the Board of Directors, im5 pose a special assessment on each Savings As6 sociation Insurance Fund member in an

7 amount not greater than 0.40 percent of the as8 sessment base, as of January 1, 1995, on which

9 assessments are imposed under the risk-based

10 assessment system established pursuant to

11 paragraph (1).

12 ‘‘(B) DEPOSIT OF ASSESSMENT IN SAIF.—

13 The proceeds of any assessment imposed under

14 subparagraph (A) shall be deposited in the Sav15 ings Association Insurance Fund.

16 ‘‘(C) IMPOSITION OVER PERIOD OF

17 YEARS.—The assessment authorized under sub18 paragraph (A) may be imposed incrementally

19 over such period of years as the Board of Di20 rectors may determine to be appropriate, except

21 the larger percentage of any such incremental

22 assessment shall be allocated to the first year of

23 the effective period for such assessment.

24 ‘‘(D) ABATEMENT FOR TROUBLED INSTI25 TUTIONS.—The Board of Directors may abate
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1 any portion of any assessment under this para2 graph in the case of any undercapitalized insti3 tution or any institution which would become

4 undercapitalized as a result of the imposition of

5 such assessment.’’.

6 SEC. 3. AVAILABILITY OF RTC FUNDS AS BACKSTOP FOR

7 SAIF LOSSES.

8 (a) IN GENERAL.—Section 11(a)(6)(F) of the Fed9 eral Deposit Insurance Act (12 U.S.C. 1821(a)(6)(F)) is

10 amended in the provisions of such subparagraph preceding

11 clause (i)—

12 (1) by inserting ‘‘to cover losses which have

13 been incurred, or can reasonably be expected to be

14 incurred, by the Fund’’ after ‘‘as needed by the

15 Fund’’; and

16 (2) by inserting a period after ‘‘not needed by

17 the Resolution Trust Corporation’’ and striking ev18 erything that follows through the end of the sub19 paragraph.

20 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

21 (1) Section 11(a)(6)(F) of the Federal Deposit

22 Insurance Act (12 U.S.C. 1821(a)(6)(F)) is amend23 ed by striking ‘‘At any time before the end of the

24 2-year period beginning on the date of the termi25 nation of the Resolution Trust Corporation,’’ and in-
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1 serting ‘‘At any time before the Savings Association

2 Insurance Fund first meets or exceeds the des3 ignated reserve ratio applicable to such fund,’’.

4 (2) Section 11(a)(6)(K) of the Federal Deposit

5 Insurance Act (12 U.S.C. 1821(a)(6)(K)) is amend6 ed by striking ‘‘to cover losses incurred by the

7 Fund’’ and inserting ‘‘to carry out the purposes of

8 this Act’’.

9 SEC. 4. FICO PAYMENTS BY ALL FDIC-INSURED DEPOSI10 TORY INSTITUTIONS.

11 Section 21(f)(2) of the Federal Home Loan Bank Act

12 (12 U.S.C. 1441(f)(2)) is amended—

13 (1) in the portion of such paragraph preceding

14 subparagraph (A)—

15 (A) by striking ‘‘each Savings Association

16 Insurance Fund member’’ and inserting ‘‘each

17 insured depository institution (as defined in sec18 tion 3(c)(2) of the Federal Deposit Insurance

19 Act); and

20 (B) by striking ‘‘such member’’ and insert21 ing ‘‘such institution’’; and

22 (2) in subparagraph (A), by striking ‘‘Savings

23 Association Insurance Fund members’’ and inserting

24 ‘‘insured depository institutions’’.
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1 SEC. 5. REPEAL OF MINIMUM SAIF ASSESSMENT RULE.

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

3 (12 U.S.C. 1817(b)(2)) is amended by striking subpara4 graph (E).

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