I

104TH CONGRESS

1ST SESSION H. R. 1471

To provide for sufficient funding to cover the costs of the Financing Corporation, to provide funds to carry out the purposes 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 provide for sufficient funding to cover the costs of the

Financing Corporation, to provide funds to carry out

the purposes 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 ‘‘Financing Corporation

5 and Savings Association Insurance Fund Amendments of

6 1995’’.
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1 SEC. 2. AVAILABILITY OF RTC FUNDS TO RECAPITALIZE

2 SAIF.

3 (a) IN GENERAL.—Section 11(a)(6)(F) of the Fed4 eral Deposit Insurance Act (12 U.S.C. 1821(a)(6)(F)) is

5 amended in the provisions of such subparagraph preceding

6 clause (i)—

7 (1) by inserting ‘‘to cover losses incurred, or

8 which can reasonably be expected to be incurred, by

9 the Fund or to increase the reserve ratio of the

10 Fund’’ after ‘‘as needed by the Fund’’; and

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

12 the Resolution Trust Corporation’’ and striking ev13 erything that follows through the end of the sub14 paragraph.

15 (b) TECHNICAL AND CONFORMING AMENDMENT.—

16 Section 11(a)(6)(K) of the Federal Deposit Insurance Act

17 (12 U.S.C. 1821(a)(6)(K)) is amended by striking ‘‘to

18 cover losses incurred by the Fund’’ and inserting ‘‘to cover

19 losses incurred, or which can reasonably be expected to

20 be incurred, by the Fund or to increase the reserve ratio

21 of the Fund’’.

22 SEC. 3. SAIF PAYMENTS TO FICO.

23 (a) IN GENERAL.—Section 21(f) of the Federal

24 Home Loan Bank Act (12 U.S.C. 1441(f)) is amended

25 by redesignating paragraph (3) as paragraph (4) and in26 serting after paragraph (2) the following new paragraph:
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1 ‘‘(3) PAYMENTS FROM SAIF.—In addition to the

2 amounts available pursuant to paragraphs (1) and

3 (2), the Federal Deposit Insurance Corporation shall

4 make available to the Financing Corporation such

5 amounts as may be prudently transferred from the

6 Savings Association Insurance Fund, taking into ac7 count funds available to such Fund pursuant to sec8 tion 11(a)(6)(F) of the Federal Deposit Insurance

9 Act, to cover the interest payments, issuance costs,

10 and custodial fees on obligations issued by the Fi11 nancing Corporation.’’.

12 (b) TECHNICAL AND CONFORMING AMENDMENT.—

13 Section 11(a)(6) of the Federal Deposit Insurance Act (12

14 U.S.C. 1821(a)(6)) is amended by adding at the end the

15 following new subparagraph:

16 ‘‘(L) AMOUNTS AVAILABLE FOR PAYMENTS

17 TO FICO.—Notwithstanding any other provision

18 of this subsection, amounts in the Savings As19 sociation Insurance Fund shall be available for

20 payment to the Financing Corporation in ac21 cordance with section 21(f)(3) of the Federal

22 Home Loan Bank Act.’’.
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1 SEC. 4. 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).

5 SEC. 5. CLARIFICATION THAT CERTAIN INSTITUTIONS IN6 SURED BY THE SAIF ARE SUBJECT TO FICO

7 ASSESSMENTS.

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

9 (12 U.S.C. 1441(f)(2)) is amended by inserting after

10 ‘‘Savings Association Insurance Fund member’’ the fol11 lowing: ‘‘, including any Savings Association Insurance

12 Fund member referred to in section 5(d)(2)(G) of the Fed13 eral Deposit Insurance Act and, in the case of any Bank

14 Insurance Fund member which has deposits which are

15 treated (under section 5(d)(3) of such Act) as deposits

16 which are insured by the Savings Association Insurance

17 Fund, the adjusted attributable deposit amount with re18 spect to such member as determined under subparagraph

19 (C) of section 5(e)(3) of such Act for purposes of subpara20 graph (B)(i) of such section,’’.

21 SEC. 6. LIMIT ON DIFFERENTIAL BETWEEN ASSESSMENT

22 RATES IMPOSED ON FORMER BIF MEMBERS

23 AND FORMER SAIF MEMBERS.

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

25 (12 U.S.C. 1817(b)(2)) is amended by inserting after

26 paragraph (G) the following new subparagraph:
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1 ‘‘(H) CAP ON DIFFERENTIAL BETWEEN

2 FORMER BIF AND SAIF MEMBERS.—The aver3 age assessment rate under the risk-based as4 sessment system for insured depository institu5 tions which, as of December 31, 1994, were

6 Savings Association Insurance Fund members,

7 including the special assessment under para8 graph (9), shall not exceed the average assess9 ment rate under the risk-based assessment sys10 tem for insured depository institutions which,

11 as of December 31, 1994, were Bank Insurance

12 Fund members by more than 9 basis points.’’.

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