II

106TH CONGRESS

2D SESSION S. 2798

To amend the Federal Deposit Insurance Act to require periodic cost-ofliving adjustments to the amount of deposit insurance coverage available

under that Act.

IN THE SENATE OF THE UNITED STATES

JUNE 27, 2000

Mr. ALLARD introduced the following bill; which was read twice and referred

to the Committee on Banking, Housing, and Urban Affairs

A BILL

To amend the Federal Deposit Insurance Act to require

periodic cost-of-living adjustments to the amount of deposit insurance coverage available under that Act.

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 ‘‘Deposit and Share In5 surance Adjustment Act of 2000’’.
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1 SEC. 2. PERIODIC ADJUSTMENTS TO MAXIMUM AMOUNT OF

2 DEPOSIT INSURANCE COVERAGE.

3 Section 11(a)(1) of the Federal Deposit Insurance

4 Act (12 U.S.C. 1821(a)(1)) is amended, by striking sub5 paragraph (B) and inserting the following:

6 ‘‘(B) NET AMOUNT OF INSURED DE7 POSIT.—

8 ‘‘(i) IN GENERAL.—Subject to the ad9 justments to be made pursuant to clause

10 (ii), the net amount due to any depositor

11 under this Act at an insured depository in12 stitution shall not exceed $100,000, as de13 termined in accordance with this subpara14 graph and subparagraphs (C) and (D).

15 ‘‘(ii) ADJUSTMENTS.—For the cal16 endar year commencing January 1, 2001,

17 and for each subsequent 3-year period, the

18 maximum net amount due to any depositor

19 at an insured depository institution under

20 clause (i) shall be increased by an amount

21 equal to—

22 ‘‘(I) $100,000; multiplied by

23 ‘‘(II) the cost-of-living adjust24 ment determined under section 1(f)(3)

25 of the Internal Revenue Code of 1986,

26 for such calendar year, determined by
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1 substituting ‘calendar year 2000’ for

2 ‘calendar year 1992’ in subparagraph

3 (B) thereof.

4 ‘‘(iii) ROUNDING.—If the amount de5 termined under clause (ii) is not a multiple

6 of $1,000, such amount shall be rounded

7 to the nearest multiple of $1,000.

8 ‘‘(iv) NOTICE.—Not later than Janu9 ary 15 of the first year of each 3-year pe10 riod referred to in clause (ii), commencing

11 January 15, 2001, the Board of Directors

12 shall cause to be published in the Federal

13 Register the maximum net amount due to

14 any depositor at an insured depository in15 stitution for the ensuing 3-year period.’’.

16 SEC. 3. PERIODIC ADJUSTMENTS TO MAXIMUM AMOUNT OF

17 SHARE INSURANCE COVERAGE.

18 Section 207(k)(1) of the Federal Credit Union Act

19 (12 U.S.C. 1787(k)(1)) is amended—

20 (1) by striking ‘‘(1) Subject’’ and inserting the

21 following: ‘‘INSURED AMOUNTS.—

22 ‘‘(1) DEFINITION OF ‘INSURED ACCOUNT’.—

23 ‘‘(A) IN GENERAL.—Subject’’;
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1 (2) by inserting ‘‘, subject to the adjustments

2 made pursuant to subparagraph (B)’’ after

3 ‘‘$100,000’’; and

4 (3) by adding at the end the following:

5 ‘‘(B) ADJUSTMENTS.—

6 ‘‘(i) IN GENERAL.—For the calendar

7 year commencing January 1, 2001, and for

8 each subsequent 3-year period, the

9 $100,000 amount referred to in subpara10 graph (A) shall be increased by an amount

11 equal to—

12 ‘‘(I) $100,000; multiplied by

13 ‘‘(II) the cost-of-living adjust14 ment determined under section 1(f)(3)

15 of the Internal Revenue Code of 1986,

16 for such calendar year, determined by

17 substituting ‘calendar year 2000’ for

18 ‘calendar year 1992’ in subparagraph

19 (B) thereof.

20 ‘‘(ii) ROUNDING.—If the amount de21 termined under clause (i) is not a multiple

22 of $1,000, such amount shall be rounded

23 to the nearest multiple of $1,000.

24 ‘‘(iii) NOTICE.—Not later than Janu25 ary 15 of the first year of each 3-year pe-
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1 riod referred to in clause (ii), commencing

2 January 15, 2001, the Board shall cause

3 to be published in the Federal Register the

4 maximum net amount due with respect to

5 any member account at an insured credit

6 union for the ensuing 3-year period.’’.

7 SEC. 4. CONFORMING AMENDMENTS.

8 (a) FEDERAL DEPOSIT INSURANCE ACT.—Section

9 11(a) of the Federal Deposit Insurance Act (12 U.S.C.

10 1821(a)) is amended—

11 (1) in paragraph (2)(A), in the matter following

12 clause (v), by striking ‘‘$100,000 per account in an

13 amount not to exceed $100,000 per account’’ and insert14 ing ‘‘the amount determined in accordance with paragraph

15 (1)(B) per account’’; and

16 (2) in paragraph (3)(A)(iii), by striking

17 ‘‘$100,000’’ and inserting ‘‘the amount determined

18 in accordance with paragraph (1)(B)’’.

19 (b) FEDERAL CREDIT UNION ACT.—Section 207(k)

20 of the Federal Credit Union Act (12 U.S.C. 1787(k)) is

21 amended—

22 (1) in paragraph (2)(A), in the matter following

23 clause (v), by striking ‘‘in an amount not to exceed

24 $100,000 per account’’ and inserting ‘‘the amount
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1 determined in accordance with paragraph (1)(B) per

2 account’’; and

3 (2) in paragraph (3), by striking ‘‘in the

4 amount of $100,000 per account’’ and inserting ‘‘in

5 an amount not to exceed the amount determined in

6 accordance with paragraph (1)(B) per account’’.

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