I

104TH CONGRESS

1ST SESSION H. R. 1769

To provide for adequate funding for the Financing Corporation, to provide

for the merger of the deposit insurance funds, to merge the positions

of Comptroller of the Currency and Director of the Office of Thrift

Supervision, to provide for the conversion of savings associations into

banks, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 7, 1995

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

Committee on Banking and Financial Services

A BILL

To provide for adequate funding for the Financing Corporation, to provide for the merger of the deposit insurance

funds, to merge the positions of Comptroller of the Currency and Director of the Office of Thrift Supervision,

to provide for the conversion of savings associations into

banks, 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 ‘‘Federal Deposit Insur5 ance Amendments Act of 1995’’.
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1 TITLE I—BANK INSURANCE

2 FUND AND SAVINGS ASSOCIA3 TION INSURANCE FUND

4 SEC. 101. REFUND OF AMOUNTS IN BIF AND SAIF IN EX5 CESS OF DESIGNATED RESERVE AMOUNT.

6 Subsection (e) of section 7 of the Federal Deposit In7 surance Act (12 U.S.C. 1817(e)) is amended to read as

8 follows:

9 ‘‘(e) REFUNDS.—

10 ‘‘(1) OVERPAYMENTS.—In the case of any pay11 ment of an assessment by an insured depository in12 stitution in excess of the amount due to the Cor13 poration, the Corporation may—

14 ‘‘(A) refund the amount of the excess pay15 ment to the insured depository institution; or

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

17 payment of subsequent semiannual assessments

18 until such credit is exhausted.

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

20 OF DESIGNATED RESERVE.—The amount by which

21 the actual reserves in any insurance fund exceed the

22 balance required to meet the designated reserve ap23 plicable with respect to such fund shall be refunded

24 to members of the fund by the Corporation on such

25 basis as the Board of Directors determines to be ap-
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1 propriate, taking into account the factors considered

2 under the risk-based assessment system.’’.

3 SEC. 102. PAYMENT OF FICO CARRYING COSTS FROM IN4 TEREST EARNED ON DEPOSIT INSURANCE

5 FUNDS.

6 (a) IN GENERAL.—Section 11(a) of the Federal De7 posit Insurance Act (12 U.S.C. 1821(a)) is amended by

8 adding at the end the following new paragraph:

9 ‘‘(9) AVAILABILITY OF INTEREST FOR FICO

10 CARRYING COSTS.—

11 ‘‘(A) IN GENERAL.—Interest earned on the

12 balance in any deposit insurance fund main13 tained by the Corporation (other than the

14 FSLIC Resolution Fund) shall be available for

15 transfer to the Financing Corporation for pur16 poses of section 21(f)(1) of the Federal Home

17 Loan Bank Act.

18 ‘‘(B) AMOUNT OF INTEREST PROPOR19 TIONAL TO AMOUNT OF INSURED DEPOSITS.—

20 The amount of interest paid to the Financing

21 Corporation from any insurance fund pursuant

22 to subparagraph (A) shall bear the same pro23 portion to the total amount of interest paid

24 pursuant to such subparagraph as the amount

25 of deposits insured by such insurance fund
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1 bears to the total amount of insured deposits,

2 as determined by the Corporation on the basis

3 of the most recent certified statements submit4 ted to the Corporation pursuant to section

5 7(c)(1) and such other information as the Cor6 poration may consider appropriate.

7 ‘‘(C) PAYMENT BY CORPORATION.—Upon

8 receiving notice from the Financing Corporation

9 of the amount needed for purposes of section

10 21(f) of the Federal Home Loan Bank Act, the

11 Corporation shall pay such amount from the in12 terest earned on the balances in the deposit in13 surance funds in accordance with subparagraph

14 (B).’’.

15 (b) CONFORMING AMENDMENT TO FEDERAL HOME

16 LOAN BANK ACT.—Section 21(f)(1) of the Federal Home

17 Loan Bank Act (12 U.S.C. 1441(f)(1)) is amended to read

18 as follows:

19 ‘‘(1) INTEREST EARNED ON INSURED DEPOSIT

20 FUNDS.—The interest earned on the balance in any

21 deposit insurance fund maintained by the Federal

22 Deposit Insurance Corporation (other than the

23 FSLIC Resolution Fund) as provided in section

24 11(a)(9) of the Federal Deposit Insurance Act.’’.
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1 (c) ASSESSMENT AUTHORITY TO COVER INTEREST

2 SHORTFALL.—Section 21(f)(2) of the Federal Home Loan

3 Bank Act (12 U.S.C. 1441(f)(2)) is amended to read as

4 follows:

5 ‘‘(2) ASSESSMENT AUTHORITY.—

6 ‘‘(A) IN GENERAL.—If the amount of in7 terest earned on the balance in any deposit in8 surance fund referred to in paragraph (1) is

9 less than such insurance fund’s proportional

10 share of the amount of interest payments, issu11 ance costs, and custodial fees under section

12 11(a)(9)(B) of the Federal Deposit Insurance

13 Act, the Financing Corporation, with the ap14 proval of the Board of Directors of the Federal

15 Deposit Insurance Corporation, shall assess

16 against each member of such fund an assess17 ment (in the same manner as assessments are

18 assessed against such members by the Federal

19 Deposit Insurance Corporation under section 7

20 of the Federal Deposit Insurance Act).

21 ‘‘(B) MAXIMUM AMOUNT OF ASSESS22 MENT.—No assessment under subparagraph

23 (A) with respect to members of a deposit insur24 ance fund maintained by the Federal Deposit

25 Insurance Corporation may exceed the amount
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1 authorized to be assessed against members Sav2 ings Association Insurance Fund members pur3 suant to section 7 of the Federal Deposit Insur4 ance Act.

5 ‘‘(C) PRIORITY.—The Financing Corpora6 tion shall have first priority to make the assess7 ment authorized under subparagraph (A).’’.

8 (d) TECHNICAL AND CONFORMING AMENDMENT TO

9 THE FEDERAL DEPOSIT INSURANCE ACT.—Section

10 7(b)(2)(D) of the Federal Deposit Insurance Act (12

11 U.S.C. 1817(b)(2)(D)) is amended by striking ‘‘Savings

12 Association Insurance Fund members’’ and inserting

13 ‘‘members of a deposit insurance fund’’.

14 SEC. 103. REPEAL OF CERTAIN CERTIFICATION REQUIRE15 MENTS RELATING TO RTC FUNDS.

16 Subparagraph (F) of section 11(a)(6) of the Federal

17 Deposit Insurance Act (12 U.S.C. 1821(a)(6)) is amend18 ed—

19 (1) by striking ‘‘At any time’’ and all that fol20 lows through ‘‘Resolution Trust Corporation,’’ (the

21 1st place such term appears) and inserting ‘‘At any

22 time before the on the date of publication in the

23 Federal Register of the notice of the merger of the

24 Bank Insurance Fund and the Savings Association

25 Insurance Fund into 1 deposit insurance fund under
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1 section 104(a) of the Federal Deposit Insurance

2 Amendments Act of 1995,’’;

3 (2) by inserting ‘‘to pay for losses which have

4 been incurred or can reasonably be expected to be

5 incurred by the Fund’’ after ‘‘are needed by the

6 Fund’’; and

7 (3) by striking ‘‘Corporation, if the Chair8 person’’ and all that follows through the end of such

9 subparagraph and inserting ‘‘Corporation.’’.

10 SEC. 104. MERGER OF BIF AND SAIF AFTER RECAPITALIZA11 TION.

12 (a) IN GENERAL.—Effective at the end of first cal13 endar year during which the Bank Insurance Fund and

14 the Savings Association Insurance Fund have each been

15 determined by the Federal Deposit Insurance Corporation

16 to have achieved the designated reserve ratio applicable

17 with respect to each such fund under section 7(b) of the

18 Federal Deposit Insurance Act, the Corporation shall—

19 (1) merge the 2 insurance funds into 1 deposit

20 insurance fund; and

21 (2) publish a notice of such merger in the Fed22 eral Register at the time such merger becomes effec23 tive.

24 (b) TECHNICAL AND CONFORMING AMENDMENTS.—
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1 (1) Section 11(a)(5) of the Federal Deposit In2 surance Act (12 U.S.C. 1821(a)(5)) is amended to

3 read as follows:

4 ‘‘(5) DEPOSIT INSURANCE FUND.—

5 ‘‘(A) ESTABLISHMENT.—There is estab6 lished a fund to be known as the deposit insur7 ance fund which shall—

8 ‘‘(i) be maintained and administered

9 by the Corporation; and

10 ‘‘(ii) initially consist of the assets and

11 liabilities of the Bank Insurance Fund and

12 Savings Association Insurance Fund which

13 have been merged by the Corporation into

14 the deposit insurance fund pursuant to

15 section 5(a) of the Federal Deposit Insur16 ance Amendments Act of 1995.

17 ‘‘(B) USES.—The deposit insurance fund

18 shall be available to the Corporation for use

19 with respect to insured depository institutions.

20 ‘‘(C) DEPOSITS.—All amounts assessed

21 against insured depository institutions by the

22 Corporation shall be deposited into the deposit

23 insurance fund.’’.
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1 (2) Section 11(a) of the Federal Deposit Insur2 ance Act (12 U.S.C. 1821(a)) is amended by strik3 ing paragraphs 4(A), (6), and (7).

4 (3) Section 7 of the Federal Deposit Insurance

5 Act (12 U.S.C. 1817) is amended by striking sub6 section (l).

7 (4) Section 7(b)(2) of the Federal Deposit In8 surance Act (12 U.S.C. 1817(b)(2)) is amended—

9 (A) by striking subparagraphs (B), (F),

10 and (G);

11 (B) in clauses (i) and (iv) of subparagraph

12 (A), by striking ‘‘each deposit insurance fund’’

13 and inserting ‘‘the deposit insurance fund’’;

14 (C) in subparagraph (A)(iii), by striking

15 ‘‘a deposit insurance fund’’ and inserting ‘‘the

16 deposit insurance fund’’; and

17 (D) by inserting after subparagraph (E)

18 the following new subparagraph:

19 ‘‘(F) RESERVE RATIO DEFINED.—For pur20 poses of this subsection, the term ‘reserve ratio’

21 means the ratio of the net worth of the deposit

22 insurance fund to the value of the aggregate es23 timated insured deposits held in all insured de24 pository institutions.’’.
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1 (5) Section 7(b)(3) of the Federal Deposit In2 surance Act (12 U.S.C. 1817(b)(3)) is amended—

3 (A) in subparagraph (A) by striking ‘‘any

4 deposit insurance fund’’ and inserting ‘‘the de5 posit insurance fund’’; and

6 (B) by striking subparagraphs (C) and

7 (D).

8 (6) Section 7(b)(6) of the Federal Deposit In9 surance Act (12 U.S.C. 1817(b)(6)) is amended—

10 (A) in subparagraph (A)—

11 (i) by inserting ‘‘or’’ after the semi12 colon at the end of clause (i);

13 (ii) by striking clause (ii); and

14 (iii) by striking ‘‘; and’’ at the end of

15 clause (iii) and inserting a period; and

16 (B) by striking subparagraph (B).

17 (7) Section 7 of the Federal Deposit Insurance

18 Act (12 U.S.C. 1817) is amended by striking sub19 section (l).

20 (8) Section 11(a)(4)(B) of the Federal Deposit

21 Insurance Act (12 U.S.C. 1821(a)(4)(B)) is amend22 ed by striking ‘‘Bank Insurance Fund and the Sav23 ings Association Insurance Fund’’ and inserting ‘‘de24 posit insurance fund’’.
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1 (9) Paragraph (1) of section 11(f) of the Fed2 eral Deposit Insurance Act (12 U.S.C. 1821(f)) is

3 amended by striking ‘‘depositor, except that—’’ and

4 all that follows through the period at the end of the

5 paragraph and inserting ‘‘depositor.’’.

6 (10) Section 11(i)(3) of the Federal Deposit In7 surance Act (12 U.S.C. 1821(i)(3)) is amended—

8 (A) by striking subparagraph (B); and

9 (B) in subparagraph (C), by striking ‘‘sub10 paragraphs (A) and (B)’’ and inserting ‘‘sub11 paragraph (A)’’.

12 (11) Section 11A(a)(3) of the Federal Deposit

13 Insurance Act (12 U.S.C. 1821a(a)(3)) is amended

14 by striking ‘‘Bank Insurance Fund, the Savings As15 sociation Insurance Fund,’’ and inserting ‘‘deposit

16 insurance fund’’.

17 (12) Section 11A(f) of the Federal Deposit In18 surance Act (12 U.S.C. 1821a(f)) is amended by

19 striking ‘‘Savings Association Insurance Fund’’ and

20 inserting ‘‘deposit insurance fund’’.

21 (13) Section 13(a)(1) of the Federal Deposit

22 Insurance Act (12 U.S.C. 1823(a)(1)) is amended

23 by striking ‘‘Bank Insurance Fund, Savings Associa24 tion Insurance Fund,’’ and inserting ‘‘deposit insur25 ance fund’’.
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1 (14) Section 13(c)(4)(G) of the Federal Deposit

2 Insurance Act (12 U.S.C. 1823(c)(4)(G)) is amend3 ed—

4 (A) in clause (ii)—

5 (i) by striking ‘‘appropriate insurance

6 fund’’ and inserting ‘‘depository insurance

7 fund’’;

8 (ii) by striking ‘‘the members of the

9 insurance fund (of which such institution

10 is a member)’’ and inserting ‘‘insured de11 pository institutions’’;

12 (iii) by striking ‘‘each member’s’’ and

13 inserting ‘‘each insured depository institu14 tion’s’’; and

15 (iv) by striking ‘‘the member’s’’ and

16 inserting ‘‘the institution’s’’.

17 (15) Section 13(c) of the Federal Deposit In18 surance Act (12 U.S.C. 1823(c)) is amended by

19 striking paragraph (11).

20 (16) Section 13(h) of the Federal Deposit In21 surance Act (12 U.S.C. 1823(h)) is amended by

22 striking ‘‘Bank Insurance Fund’’ and inserting ‘‘de23 posit insurance fund’’.

24 (17) Section 13(k)(4)(B)(i) of the Federal De25 posit Insurance Act (12 U.S.C. 1823(k)(4)(B)(i)) is
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1 amended by striking ‘‘Savings Association Insurance

2 Fund member’’ and inserting ‘‘savings association’’.

3 (18) Section 13(k)(5)(A) of the Federal Deposit

4 Insurance Act (12 U.S.C. 1823(k)(5)(A)) is amend5 ed by striking ‘‘Savings Association Insurance Fund

6 members’’ and inserting ‘‘savings associations’’.

7 (19) Section 14(a) of the Federal Deposit In8 surance Act (12 U.S.C. 1824(a)) is amended by

9 striking ‘‘Bank Insurance Fund or the Savings As10 sociation Insurance Fund’’ and inserting ‘‘depository

11 institution fund’’.

12 (20) Section 14(b) of the Federal Deposit In13 surance Act (12 U.S.C. 1824(b)) is amended by

14 striking ‘‘Bank Insurance Fund or Savings Associa15 tion Insurance Fund’’ and inserting ‘‘deposit insur16 ance fund’’.

17 (21) Section 14(c) of the Federal Deposit In18 surance Act (12 U.S.C. 1824(c)) is amended by

19 striking paragraph (3).

20 (22) Section 14 of the Federal Deposit Insur21 ance Act (12 U.S.C. 1824) is amended by striking

22 subsection (d).

23 (23) Section 15(c)(5) of the Federal Deposit

24 Insurance Act (12 U.S.C. 1825(c)(5)) is amended—
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1 (A) by striking ‘‘Bank Insurance Fund or

2 Savings Association Insurance Fund, respec3 tively,’’ and inserting ‘‘deposit insurance fund’’;

4 (B) by striking ‘‘Bank Insurance Fund or

5 Savings Association Insurance Fund, respec6 tively;’’ and inserting ‘‘deposit insurance fund;’’;

7 and

8 (C) by striking ‘‘Bank Insurance Fund or

9 the Savings Association Insurance Fund, re10 spectively,’’ and inserting ‘‘deposit insurance

11 fund,’’.

12 (24) Section 17(a)(1) of the Federal Deposit

13 Insurance Act (12 U.S.C. 1827(a)(1)) is amended

14 by striking ‘‘Bank Insurance Fund, the Savings As15 sociation Insurance Fund,’’ each place such term ap16 pears and inserting ‘‘deposit insurance fund’’.

17 (25) Section 17(d) of the Federal Deposit In18 surance Act (12 U.S.C. 1827(d)) is amended by

19 striking ‘‘Bank Insurance Fund, the Savings Asso20 ciation Insurance Fund,’’ each place such term ap21 pears and inserting ‘‘deposit insurance fund’’.

22 (26) The heading for section 17(a) of the Fed23 eral Deposit Insurance Act (12 U.S.C. 1827(a)) is

24 amended by striking ‘‘BIF, SAIF,’’ and inserting

25 ‘‘THE DEPOSIT INSURANCE FUND’’.
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1 (27) Section 18(m)(3) of the Federal Deposit

2 Insurance Act (12 U.S.C. 1828(m)(3)) is amend3 ed—

4 (A) in subparagraph (A)—

5 (i) by striking ‘‘Savings Association

6 Insurance Fund.’’ and inserting ‘‘deposit

7 insurance fund.’’; and

8 (ii) by striking ‘‘Savings Association

9 Insurance Fund member’’ and inserting

10 ‘‘savings association’’; and

11 (B) in subparagraph (C), by striking ‘‘Sav12 ings Association Insurance Fund or the Bank

13 Insurance Fund’’ and inserting ‘‘deposit insur14 ance fund’’.

15 (28) Subsections (a)(1) and (d)(1)(A) of section

16 24 of the Federal Deposit Insurance Act (12 U.S.C.

17 1831a) are each amended by striking ‘‘appropriate’’.

18 (29) Section 24(e)(2) of the Federal Deposit

19 Insurance Act (12 U.S.C. 1831a(e)(2)) is amend20 ed—

21 (A) in subparagraph (A), by striking ‘‘of

22 which such banks are members’’; and

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

24 ‘‘of which such bank is a member’’.
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1 (30) Section 24(f)(6)(B) of the Federal Deposit

2 Insurance Act (12 U.S.C. 1831a(f)(6)(B)) is amend3 ed by striking ‘‘of which such bank is a member’’.

4 (31) Section 28 of the Federal Deposit Insur5 ance Act (12 U.S.C. 1831e) is amended by striking

6 ‘‘affected deposit insurance fund’’ each place such

7 term appears and inserting ‘‘deposit insurance

8 fund’’.

9 (32) Section 31(a) of the Federal Deposit In10 surance Act (12 U.S.C. 1831h(a)) is amended by

11 striking ‘‘Insurance Fund’’.

12 (33) The heading for section 31 of the Federal

13 Deposit Insurance Act (12 U.S.C. 1831h) is amend14 ed by striking ‘‘INSURANCE FUND’’.

15 (34) Section 31(b)(1) of the Federal Deposit

16 Insurance Act (12 U.S.C. 1831h(b)(1)) is amended

17 by striking ‘‘insured depository institutions that are

18 Savings Association Insurance Fund members’’ and

19 inserting ‘‘savings associations’’.

20 (35) Section 31(f)(1) of the Federal Deposit In21 surance Act (12 U.S.C. 1831h(f)(1)) is amended by

22 striking ‘‘insured financial institutions that are

23 members of the Savings Association Insurance

24 Fund’’ and inserting ‘‘savings associations’’.
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1 (36) Section 36(i)(3) of the Federal Deposit In2 surance Act (12 U.S.C. 1831m(i)(3)) is amended by

3 striking ‘‘affected’’.

4 (37) Section 38(o)(1) of the Federal Deposit

5 Insurance Act (12 U.S.C. 1831o(o)(1)) is amended

6 by striking ‘‘Savings Association Insurance Fund’’

7 and inserting ‘‘deposit insurance fund’’.

8 (c) EFFECTIVE DATE OF AMENDMENTS.—The

9 amendments made by subsection (b) shall take effect as

10 of the date of publication in the Federal Register of the

11 notice required under subsection (a)(2).

12 TITLE II—MERGER OF OCC AND

13 OTS

14 Subtitle A—Federal Bank Agency

15 SEC. 201. ESTABLISHMENT.

16 (a) ESTABLISHMENT OF THE AGENCY.—Effective

17 January 1, 1996, there is established the Federal Bank

18 Agency which shall be an independent establishment.

19 (b) DEFINITIONS.—For purposes of this subtitle, the

20 following definitions shall apply:

21 (1) ADMINISTRATOR.—The term ‘‘Adminis22 trator’’ means the Administrator of the Federal

23 Bank Agency.

24 (2) AGENCY.—The term ‘‘Agency’’ means the

25 Federal Bank Agency.
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1 (3) SECRETARY.—The term ‘‘Secretary’’ means

2 the Secretary of the Treasury.

3 SEC. 202. ADMINISTRATOR OF THE FEDERAL BANK

4 AGENCY.

5 (a) IN GENERAL.—The Agency shall have an Admin6 istrator who shall be the head of the Agency.

7 (b) APPOINTMENT.—The Administrator shall be ap8 pointed by the President, by and with the advice and con9 sent of the Senate, from among individuals who are

10 citizens of the United States.

11 (c) TERM.—The Administrator shall be appointed for

12 a term of 5 years.

13 (d) VACANCY.—A vacancy in the position of Adminis14 trator which occurs before expiration of the term for which

15 an Administrator was appointed shall be filled in the man16 ner established in subsection (b), and the Administrator

17 appointed to fill such vacancy shall be appointed only for

18 the remainder of said term.

19 (e) SERVICE AFTER END OF TERM.—An individual

20 may serve as Administrator after the expiration of the

21 term for which appointed until a successor Administrator

22 has been appointed.

23 (f) DEPUTY ADMINISTRATORS.—

24 (1) DEPUTY ADMINISTRATOR FOR NATIONAL

25 BANKS.—
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1 (A) IN GENERAL.—The Agency shall have

2 a Deputy Administrator for National Banks

3 who shall be appointed by the President, by and

4 with the advice and consent of the Senate.

5 (B) DUTIES AND POWERS.—The Deputy

6 Administrator for National Banks shall—

7 (i) perform such duties and exercise

8 such powers as the Administrator may pre9 scribe; and

10 (ii) perform the functions which are

11 transferred to the agency from the Comp12 troller of the Currency until the Adminis13 trator provides otherwise.

14 (2) DEPUTY ADMINISTRATOR FOR SAVINGS AS15 SOCIATIONS.—

16 (A) IN GENERAL.—The Agency shall have

17 a Deputy Administrator for Savings Associa18 tions who shall be appointed by the President,

19 by and with the advice and consent of the Sen20 ate.

21 (B) DUTIES AND POWERS.—The Deputy

22 Administrator for Savings Associations shall—

23 (i) perform such duties and exercise

24 such powers as the Administrator may pre25 scribe; and
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1 (ii) perform the functions which are

2 transferred to the agency from the Direc3 tor of the Office of Thrift Supervision until

4 the Administrator provides otherwise.

5 (g) EFFECTIVE DATE.—This section shall take effect

6 on January 1, 1996.

7 SEC. 203. AUTHORITY OF THE ADMINISTRATOR.

8 (a) DELEGATION OF AUTHORITY.—The Adminis9 trator may delegate to any employee, representative, or

10 agent of the Agency any authority of the Administrator.

11 (b) EFFECTIVE DATE.—This section shall take effect

12 on January 1, 1996.

13 SEC. 204. PERSONNEL.

14 (a) IN GENERAL.—The Administrator shall fix the

15 number and compensation of, and appoint and direct, all

16 employees of the Agency.

17 (b) EFFECTIVE DATE.—This section shall take effect

18 on January 1, 1997.

19 SEC. 205. REGULATIONS AND ORDERS.

20 The Administrator may prescribe such regulations

21 and issue such orders as the Administrator may determine

22 to be necessary or appropriate for carrying out any law

23 within the Administrator’s jurisdiction.
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1 SEC. 206. FUNDING.

2 (a) AUTHORITY TO IMPOSE AND COLLECT ASSESS3 MENTS, FEES, AND OTHER CHARGES.—

4 (1) IN GENERAL.—The Administrator may im5 pose and collect such assessments, fees, and other

6 charges on any institution or entity (including any

7 affiliates of any such institution or entity) for which

8 the Administrator is the appropriate Federal bank9 ing agency, as defined in section 3(q)(1) of the Fed10 eral Deposit Insurance Act, as the Administrator de11 termines to be necessary or appropriate to carry out

12 the responsibilities of the Agency.

13 (2) NO NET COST TO GOVERNMENT.—The

14 amount of any assessment, fee, or other charge shall

15 be not less than the amount necessary to meet the

16 full cost to the Federal Government of the service

17 provided by the Agency.

18 (b) USE OF FUNDS.—The Administrator may use the

19 funds obtained through assessments, fees, and other

20 charges imposed pursuant to this subtitle to pay the full

21 cost to the Federal Government of the services provided

22 by the Agency.

23 (c) AGENCY NOT SUBJECT TO APPORTIONMENT OF

24 FUNDS.—Notwithstanding any other provision of law,

25 amounts received by the Agency pursuant to any assess26 ment, fee, or other charge imposed under this Act or any
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1 other provision of law and any other money received by

2 the Agency shall not be subject to apportionment for the

3 purpose of chapter 15 of title 31, United States Code, or

4 under any other authority.

5 (d) TECHNICAL AND CONFORMING AMENDMENT RE6 LATING TO SEQUESTRATION.—Paragraph (1) of section

7 255(g) of the Balanced Budget and Emergency Deficit

8 Control Act of 1985 is amended—

9 (1) by striking the items relating to the Comp10 troller of the Currency and the Director of the Of11 fice of Thrift Supervision; and

12 (2) by inserting after the item relating to

13 the Farm Credit System Financial Assistance Cor14 poration, interest payment (20–1850–0–1–351) the

15 following new item:

16 ‘‘Federal Bank Agency;’’.

17 (e) EFFECTIVE DATE.—This section and the amend18 ments made by this section shall take effect on Jan19 uary 1, 1997.
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1 Subtitle B—Interim Provisions;

2 Transfer of Functions, Person3 nel, and Property

4 SEC. 211. INTERIM PROVISIONS FOR THE FEDERAL BANK

5 AGENCY.

6 (a) INTERIM AUTHORITY OF THE ADMINISTRATOR.—

7 Prior to the date upon which the functions of the Office

8 of the Comptroller of the Currency and the Office of

9 Thrift Supervision are transferred to the Administrator

10 pursuant to this Act, the Administrator shall—

11 (1) consult and cooperate with the Director of

12 the Office of Thrift Supervision and the Comptroller

13 of the Currency to facilitate the orderly transfer of

14 functions to the Office; and

15 (2) take such actions as may be necessary to

16 provide for the establishment of the Agency and for

17 the orderly implementation of this subtitle.

18 (b) INTERIM STAFF.—Prior to the date upon which

19 the Office of the Comptroller of the Currency and the Of20 fice of Thrift Supervision are abolished, each such Office

21 shall detail to the Agency such personnel as the Adminis22 trator deems appropriate to assist the Administrator in

23 carrying out the duties of subtitle A.

24 (c) INTERIM ADMINISTRATIVE SERVICES.—The Sec25 retary may provide all administrative services necessary
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1 to support the Agency prior to the date upon which the

2 Office of the Comptroller of the Currency and the Office

3 of Thrift Supervision are abolished, and obtain reimburse4 ment for the cost of such services pursuant to subsection

5 (d).

6 (d) INTERIM FUNDING.—Prior to the date upon

7 which the Office of the Comptroller of the Currency and

8 the Office of Thrift Supervision are abolished, each such

9 Office shall pay to the Secretary one-half of the total

10 amount determined by the Secretary to be necessary to

11 fund all direct and indirect salary and administrative ex12 penses of the Agency, including the salary of the Adminis13 trator, through January 1, 1997, from the funds obtained

14 by such Offices through assessments, fees, and other

15 charges which they are authorized to impose by law. The

16 Secretary may credit to an appropriation and spend

17 amounts received pursuant to this subsection. Upon the

18 appointment of the Administrator, the amounts paid to

19 the Secretary under this subsection shall be paid by the

20 Secretary to the Administrator.

21 (e) INTERIM AUTHORITY OF THE SECRETARY.—The

22 Secretary is authorized to perform the functions of the

23 Administrator under this section until the Administrator

24 is appointed.
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1 (f) MERGER OF TRANSFERRED EMPLOYEES.—The

2 Administrator shall, to the maximum extent practicable,

3 merge and consolidate the work force structures of the Of4 fice of the Comptroller of the Currency and the Office of

5 Thrift Supervision. In merging the work forces, the Ad6 ministrator shall establish procedures which take into ac7 count the job experience of, and the compensation and

8 benefits provided to, the transferred employees at the

9 prior agency.

10 (g) EFFECTIVE DATE.—This section shall take effect

11 on January 1, 1996.

12 SEC. 212. OFFICE OF THRIFT SUPERVISION ABOLISHED.

13 (a) OFFICE OF THRIFT SUPERVISION ABOLISHED.—

14 Effective January 1, 1997, the Office of Thrift Super15 vision and the position of Director of the Office of Thrift

16 Supervision are hereby abolished.

17 (b) DISPOSITION OF AFFAIRS.—

18 (1) IN GENERAL.—In winding up the affairs of

19 the Office of Thrift Supervision, the Director of the

20 Office of Thrift Supervision shall consult and co21 operate with the Administrator of the Agency, the

22 Comptroller of the Currency, and, with respect to

23 savings and loan holding companies, the Board of

24 Governors of the Federal Reserve System to facili25 tate the orderly transfer of the functions to the
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1 Agency or such Board. Any matter not resolved pur2 suant to such consultation and cooperation shall be

3 resolved by the Secretary.

4 (2) CONTINUING AUTHORITY OF DIRECTOR OF

5 THE OFFICE OF THRIFT SUPERVISION.—Except as

6 provided in paragraph (1) and section 211, no provi7 sion of this subtitle shall be construed as affecting

8 the authority vested in the Director of the Office of

9 Thrift Supervision before the date of enactment of

10 this Act which is necessary to carry out the duties

11 of the position until the date upon which the posi12 tion of Director of the Office of Thrift Supervision

13 is abolished.

14 (3) CONTINUATION OF AGENCY SERVICES.—

15 Any agency, department, or other instrumentality of

16 the United States, or any successor to any such

17 agency, department, or instrumentality, which was

18 providing support services to the Office of Thrift Su19 pervision on the day before the date the Office of

20 Thrift Supervision is abolished shall—

21 (A) continue to provide such services on a

22 reimbursable basis, in accordance with the

23 terms of the arrangement pursuant to which

24 such services were provided until the arrange25 ment is modified or terminated in accordance
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1 with such terms, except that effective Jan2 uary 1, 1997, the Agency shall be substituted

3 for the Office of Thrift Supervision as a party

4 to the arrangement; and

5 (B) consult with the Administrator to co6 ordinate and facilitate a prompt and reasonable

7 transition.

8 (c) SAVINGS PROVISIONS.—

9 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA10 TIONS NOT AFFECTED.—No provision of this subtitle

11 shall be construed as affecting the validity of any

12 right, duty, or obligation of the United States, the

13 Office of Thrift Supervision, or any person, which

14 existed on the day before the date upon which the

15 Office of Thrift Supervision is abolished.

16 (2) CONTINUATION OF SUITS.—No action or

17 other proceeding commenced by or against the Office

18 of Thrift Supervision shall abate by reason of enact19 ment of this Act, except that, effective January 1,

20 1997, the Administrator shall be substituted as a

21 party to any such action or proceeding.

22 (3) CONTINUATION OF ADMINISTRATIVE

23 RULES.—All orders, resolutions, determinations, reg24 ulations, interpretative rules, other interpretations,
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1 guidelines, procedures, and other advisory material

2 which—

3 (A) have been issued, made, prescribed, or

4 permitted to become effective by the Office of

5 Thrift Supervision, and

6 (B) are in effect on December 31, 1996,

7 (or become effective after such date pursuant to

8 the terms of the order, resolution, determina9 tion, rule, other interpretation, guideline, proce10 dure, and other advisory material, as in effect

11 on such date), shall—

12 (i) continue in effect according to the

13 terms of such orders, resolutions, deter14 minations, regulations, interpretative rules,

15 other interpretations, guidelines, proce16 dures, or other advisory material;

17 (ii) be administered by the Adminis18 trator or, in the case of a savings and loan

19 holding company or a subsidiary of such

20 holding company (other than a depository

21 institution), the Board of Governors of the

22 Federal Reserve System; and

23 (iii) be enforceable by or against the

24 Administrator or such Board until modi25 fied, terminated, set aside, or superseded
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1 in accordance with applicable law by the

2 Administrator or Board, by any court of

3 competent jurisdiction, or by operation of

4 law.

5 (d) TRANSFER OF PROPERTY.—Effective January 1,

6 1997, all property of the Office of Thrift Supervision shall

7 be transferred to the Agency.

8 SEC. 213. OFFICE OF THE COMPTROLLER OF THE CUR9 RENCY ABOLISHED.

10 (a) OFFICE OF THE COMPTROLLER OF THE CUR11 RENCY ABOLISHED.—Effective January 1, 1997, the Of12 fice of the Comptroller of the Currency and the position

13 of the Comptroller of the Currency are abolished.

14 (b) DISPOSITION OF AFFAIRS.—

15 (1) IN GENERAL.—In winding up the affairs of

16 the Office of the Comptroller of the Currency, the

17 Comptroller of the Currency shall consult and co18 operate with the Administrator of the Federal Bank

19 Agency and the Director of the Office of Thrift Su20 pervision to facilitate the orderly transfer of func21 tions to the Agency. Any matter not resolved pursu22 ant to such consultation and cooperation shall be

23 resolved by the Secretary.

24 (2) CONTINUING AUTHORITY OF THE COMP25 TROLLER OF THE CURRENCY.—Except as provided
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1 in paragraph (1) and section 211, no provision of

2 this Act shall be construed as affecting the authority

3 vested in the Comptroller of the Currency before the

4 date of enactment of this Act which is necessary to

5 carry out the duties of the position until the date

6 upon which the position of Comptroller is abol7 ished.

8 (3) CONTINUATION OF AGENCY SERVICES.—

9 Any agency, department, or other instrumentality of

10 the United States, or any successor to any such

11 agency, department, or instrumentality, which was

12 providing support services to the Office of the Comp13 troller of the Currency on the day before the date

14 the Office of the Comptroller of the Currency is

15 abolished shall—

16 (A) continue to provide such services, on a

17 reimbursable basis, in accordance with the

18 terms of the arrangement pursuant to which

19 such services were provided until the arrange20 ment is modified or terminated in accordance

21 with such terms, except that effective Jan22 uary 1, 1997, the Agency shall be substituted

23 for the Office of the Comptroller of the Cur24 rency as a party to the arrangement; and
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1 (B) consult with the Administrator to co2 ordinate and facilitate a prompt and reasonable

3 transition.

4 (c) SAVINGS PROVISIONS.—

5 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA6 TIONS NOT AFFECTED.—No provision of this subtitle

7 shall be construed as affecting the validity of any

8 right, duty, or obligation of the United States, the

9 Office of the Comptroller of the Currency, or any

10 person, which existed on the day before the date

11 upon which the Office of the Comptroller of the Cur12 rency is abolished by this subtitle.

13 (2) CONTINUATION OF SUITS.—No action or

14 other proceeding commenced by or against the

15 Comptroller of the Currency or the Office of the

16 Comptroller of the Currency shall abate by reason of

17 enactment of this Act, except that effective Jan18 uary 1, 1997, the Administrator shall be substituted

19 as a party to any such action or proceeding.

20 (3) CONTINUATION OF ADMINISTRATIVE

21 RULES.—All orders, resolutions, determinations, reg22 ulations, interpretative rules, other interpretations,

23 guidelines, procedures, and other advisory material

24 which—
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1 (A) have been issued, made, prescribed, or

2 permitted to become effective by the Comptrol3 ler of the Currency; and

4 (B) are in effect on December 31, 1996,

5 (or become effective after such date pursuant to

6 the terms of the order, resolution, determina7 tion, rule, other interpretation, guideline, proce8 dure, and other advisory material, as in effect

9 on such date) shall—

10 (i) continue in effect according to the

11 terms of such orders, resolutions, deter12 minations, regulations, interpretative rules,

13 guidelines, procedures or other advisory

14 material;

15 (ii) be administered by the Adminis16 trator; and

17 (iii) be enforceable by or against the

18 Administrator until modified, terminated,

19 set aside, or superseded in accordance with

20 applicable law by the Administrator, by

21 any court of competent jurisdiction, or by

22 operation of law.

23 (d) TRANSFER OF PROPERTY.—Effective January 1,

24 1997, all property of the Office of the Comptroller of the

25 Currency shall be transferred to the Agency.
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1 SEC. 214. REFERENCES IN FEDERAL LAW TO FEDERAL

2 BANKING AGENCIES.

3 Any reference in any Federal law to the Comptroller

4 of the Currency, the Office of the Comptroller of the Cur5 rency, the Director of the Office of Thrift Supervision, or

6 the Office of Thrift Supervision shall be deemed to be a

7 reference to the appropriate Federal banking agency (as

8 defined in section 3(q) of the Federal Deposit Insurance

9 Act).

10 Subtitle C—Regulatory and

11 Supervisory Responsibility

12 SEC. 221. TRANSFER OF POWERS AND DUTIES.

13 (a) DIRECTOR OF THE OFFICE OF THRIFT SUPER14 VISION.—Effective January 1, 1997, all powers and duties

15 which were vested in the Director of the Office of Thrift

16 Supervision on December 31, 1996, are transferred to the

17 Administrator, except as otherwise provided in this Act.

18 (b) COMPTROLLER OF THE CURRENCY.—Effective

19 January 1, 1997, all powers and duties which were vested

20 in the Comptroller of the Currency on December 31, 1996,

21 are transferred to the Administrator, except as otherwise

22 provided in this Act.
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1 SEC. 222. TRANSFER OF REGULATION OF SAVINGS AND

2 LOAN HOLDING COMPANIES TO FEDERAL RE3 SERVE BOARD.

4 The Bank Holding Company Act of 1956 (12 U.S.C.

5 1441 et seq.) is amended—

6 (1) by redesignating sections 11 and 12 as sec7 tions 13 and 14, respectively; and

8 (2) by transferring section 10 of the Home

9 Owners’ Loan Act from such Act and inserting such

10 section after section 10 of the Bank Holding Com11 pany Act of 1956;

12 (3) by redesignating the section transferred and

13 inserted after section 10 by paragraph (2) of this

14 section as section 11; and

15 (4) by striking ‘‘Director’’ each place such term

16 appears in section 11 (as so redesignated by para17 graph (3) of this section) and inserting ‘‘Board’’.

18 SEC. 223. APPROPRIATE FEDERAL BANKING AGENCY.

19 (a) IN GENERAL.—Effective January 1, 1997, sec20 tion 3(q) of the Federal Deposit Insurance Act (12 U.S.C.

21 1813(q)) is amended to read as follows:

22 ‘‘(q) APPROPRIATE FEDERAL BANKING AGENCY.—

23 The term ‘appropriate Federal banking agency’ means—

24 ‘‘(1) the Administrator of the Federal Bank

25 Agency in the case of any national banking associa-
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1 tion, any savings association, any District bank, or

2 any Federal branch or agency of a foreign bank;

3 (2) the Board of Governors of the Federal Re4 serve System, in the case of—

5 (A) any State member insured bank (ex6 cept a District bank),

7 (B) any branch or agency of a foreign

8 bank with respect to any provision of the Fed9 eral Reserve Act which is made applicable

10 under the International Banking Act of 1978,

11 (C) any foreign bank which does not oper12 ate an insured branch,

13 (D) any agency or commercial lending

14 company other than a Federal agency,

15 (E) supervisory or regulatory proceedings

16 arising from the authority given to the Board

17 of Governors under section 7(c)(1) of the Inter18 national Banking Act of 1978, including such

19 proceedings under the Financial Institutions

20 Supervisory Act of 1966, and

21 (F) any depository institution holding com22 pany and any subsidiary of a depository institu23 tion holding company (other than a depository

24 institution); and
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1 (3) the Federal Deposit Insurance Corporation

2 in the case of a State nonmember insured bank (ex3 cept a District bank), or a foreign bank having an

4 insured branch.

5 Under the rule set forth in this subsection, more than one

6 agency may be an appropriate Federal banking agency

7 with respect to any given institution.’’.

8 (b) RESPONSIBLE AGENCY.—Section 18(c)(2) of the

9 Federal Deposit Insurance Act (12 U.S.C. 1828(c)(2)) is

10 amended—

11 (1) in subparagraph (A)—

12 (A) by striking ‘‘Comptroller of the Cur13 rency’’ and inserting ‘‘Federal Banking Agen14 cy’’;

15 (B) by striking ‘‘resulting bank’’ and in16 serting ‘‘resulting institution’’; and

17 (C) by striking ‘‘or a District bank’’ and

18 inserting ‘‘District bank, or savings associa19 tion’’;

20 (2) by inserting ‘‘and’’ after the semicolon at

21 the end of subparagraph (B);

22 (3) by striking ‘‘; and’’ at the end of subpara23 graph (C) and inserting a period; and

24 (4) by striking subparagraph (D).
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1 Subtitle D—Reorganization of

2 FDIC Board of Directors

3 SEC. 241. FEDERAL DEPOSIT INSURANCE CORPORATION.

4 (a) REORGANIZATION.—Section 2(a) of the Federal

5 Deposit Insurance Act (12 U.S.C. 1812) is amended to

6 read as follows:

7 ‘‘(a) BOARD OF DIRECTORS.—

8 ‘‘(1) IN GENERAL.—The management of the

9 Corporation shall be vested in a Board of Directors

10 consisting of 3 members appointed by the President,

11 by and with the advice and consent of the Senate,

12 from among individuals who are citizens of the Unit13 ed States.

14 ‘‘(2) POLITICAL AFFILIATION.—Not more than

15 2 of the members of the Board of Directors may be

16 members of the same political party.

17 TITLE III—MERGER OF BANK

18 AND THRIFT CHARTERS

19 SEC. 301. TREASURY STUDY ON MERGER OF CHARTERS.

20 (a) STUDY REQUIRED.—Before the end of the 12-

21 month period beginning on the date of the enactment of

22 this Act, the Secretary of the Treasury shall—

23 (1) conduct a study on—
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1 (A) the consolidation of national bank and

2 savings association charters into a unified char3 ter for depository institutions; and

4 (B) the most feasible means for the con5 version of national banks and savings associa6 tions into depository institutions with a unified

7 charter; and

8 (2) identify any difficulties or problems which

9 may arise in connection with such conversions.

10 (b) FACTORS TO BE CONSIDERED.—In conducting

11 the study under subsection (a) with respect to the conver12 sion of national banks and savings associations into depos13 itory institutions with a unified charter, the Secretary

14 shall consider and make recommendations with respect to

15 the following issues:

16 (1) The tax consequences of any such conver17 sion.

18 (2) Membership in Federal home loan banks.

19 (3) The regulation of holding companies.

20 (4) The continuation of the mutual form of

21 ownership of depository institutions following any

22 conversion to a unified charter.

23 (5) Any other issue with respect to such conver24 sions which the Secretary considers appropriate, es-
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1 pecially any issue relating to any adverse or unan2 ticipated consequence of any such conversion.

3 (c) REPORT TO CONGRESS.—

4 (1) REPORT REQUIRED.—Before the end of the

5 12-month period described in subsection (a), the

6 Secretary of the Treasury shall submit a report to

7 the Congress on the findings and conclusions of the

8 Secretary with respect to the study conducted in ac9 cordance with subsection (a).

10 (2) CONTENTS.—The report submitted to the

11 Congress pursuant to paragraph (1) shall contain

12 such recommendations for legislative or administra13 tive action as the Secretary of the Treasury may de14 termine to be appropriate.

15 (3) LEGISLATIVE RECOMMENDATIONS.—Any

16 legislative recommendation included in the report

17 under paragraph (2) shall be accompanied by draft

18 legislative language which, if enacted by the Con19 gress, would carry out such recommendation.

20 SEC. 302. CONVERSION OF SAVINGS ASSOCIATIONS TO

21 BANKS AFTER MERGER OF BIF AND SAIF.

22 (a) IN GENERAL.—Before the end of the 12-month

23 period beginning on the date of publication in the Federal

24 Register of the notice of the merger of the Bank Insurance

25 Fund and the Savings Association Insurance Fund into
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1 1 deposit insurance fund under section 104(a), each Fed2 eral savings association shall surrender the saving associa3 tion charter of such association and obtain a bank charter

4 in accordance with applicable law.

5 (b) TERMINATION OF DEPOSIT INSURANCE OF SAV6 INGS ASSOCIATIONS.—Section 8(a) of the Federal Deposit

7 Insurance Act (12 U.S.C. 1818(a)) is amended by adding

8 at the end the following new paragraph:

9 ‘‘(11) TERMINATION OF INSURANCE OF SAV10 INGS ASSOCIATION.—Before the end of the 12-month

11 period beginning on the date of publication in the

12 Federal Register of the notice of the merger of the

13 Bank Insurance Fund and the Savings Association

14 Insurance Fund into 1 deposit insurance fund under

15 section 104(a) of the Federal Deposit Insurance

16 Amendments Act of 1995, the Corporation shall ter17 minate, in accordance with this subsection, the in18 sured status of any insured depository institution

19 which is not a bank.’’.

20 (c) REPEAL OF HOME OWNERS’ LOAN ACT.—Effec21 tive as of the end of the 12-month period described in sub22 section (a), the Home Owners’ Loan Act (12 U.S.C. 1461

23 et seq.) is hereby repealed.

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