I 

111TH CONGRESS 

1ST SESSION H. R. 786 

To make permanent the temporary increase in deposit insurance coverage, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 2, 2009 

Mr. FRANK of Massachusetts introduced the following bill; which was referred 

to the Committee on Financial Services 

A BILL 

To make permanent the temporary increase in deposit 

insurance coverage, 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. PERMANENT INCREASE IN DEPOSIT INSUR4 ANCE. 

5 (a) AMENDMENTS TO FEDERAL DEPOSIT INSURANCE

6 ACT.—Effective upon the date of the enactment of this 

7 Act, section 11(a)(1) of the Federal Deposit Insurance Act 

8 (12 U.S.C. 1821(a)) is amended— 

9 (1) in paragraph (1)(E), by striking 

10 ‘‘$100,000’’ and inserting ‘‘$250,000’’; 


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1 (2) in paragraph (1)(F)(i), by striking ‘‘2010’’ 

2 and inserting ‘‘2015’’; 

3 (3) in subclause (I) of paragraph (1)(F)(i), by 

4 striking ‘‘$100,000’’ and inserting ‘‘$250,000’’; 

5 (4) in subclause (II) of paragraph (1)(F)(i), by 

6 striking ‘‘the calendar year preceding the date this 

7 subparagraph takes effect under the Federal Deposit 

8 Insurance Reform Act of 2005’’ and inserting ‘‘cal9 endar year 2008’’; and 

10 (5) in paragraph (3)(A)(iii), by striking ‘‘, ex11 cept that $250,000 shall be substituted for $100,000 

12 wherever such term appears in such paragraph’’. 

13 (b) AMENDMENT TO FEDERAL CREDIT UNION

14 ACT.—Section 207(k) of the Federal Credit Union Act 

15 (12 U.S.C. 1787(k)) is amended— 

16 (1) in paragraph (3)— 

17 (A) by striking the opening quotation mark 

18 before ‘‘$250,000’’; 

19 (B) by striking ‘‘, except that $250,000 

20 shall be substituted for $100,000 wherever such 

21 term appears in such section’’; and 

22 (C) by striking the closing quotation mark 

23 after the closing parenthesis; and 

24 (2) in paragraph (5), by striking ‘‘$100,000’’ 

25 and inserting ‘‘$250,000’’. 


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1 (c) RULE OF CONSTRUCTION.—No provision of law, 

2 other than a provision of the Federal Deposit Insurance 

3 Act (with respect to the Federal Deposit Insurance Cor4 poration and insured depository institutions) or the Fed5 eral Credit Union Act (with respect to the National Credit 

6 Union Administration and insured credit unions), may be 

7 construed as limiting the authority of— 

8 (1) the Board of Directors of the Federal De9 posit Insurance Corporation to set assessments 

10 under section 7(b)(2) of the Federal Deposit Insur11 ance Act or to make any inflation adjustment under 

12 section 11(a)(1)(F) of such Act; or 

13 (2) the National Credit Union Administration 

14 Board to periodically adjust the amount of an in15 sured credit union’s deposit under section 202(c)(1) 

16 of the Federal Credit Union Act, set the insurance 

17 premium charge under section 202(c)(2) of such 

18 Act, or to make any inflation adjustment pursuant 

19 to section 207(k)(5) of such Act. 

20 SEC. 2. EXTENSION OF RESTORATION PLAN PERIOD. 

21 Section 7(b)(3)(E)(ii) of the Federal Deposit Insur22 ance Act (12 U.S.C. 1817(b)(3)(E)(ii)) is amended by 

23 striking ‘‘5-year period’’ and inserting ‘‘8-year period’’. 


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1 SEC. 3. FDIC BORROWING AUTHORITY. 

2 Section 14(a) of the Federal Deposit Insurance Act 

3 (12 U.S.C. 1824(a)) is amended— 

4 (1) by striking ‘‘$30,000,000,000’’ and insert5 ing ‘‘$100,000,000,000’’; and 

6 (2) by inserting prior to the last sentence, the 

7 following new sentence: ‘‘The Corporation may re8 quest in writing to borrow, and the Secretary may 

9 authorize and approve the borrowing of, additional 

10 amounts above $100,000,000,000 to the extent that 

11 the Board of Directors and the Secretary determine 

12 such borrowing to be necessary.’’. 

13 SEC. 4. EXPANDING SYSTEMIC RISK SPECIAL ASSESS14 MENTS. 

15 Section 13(c)(4)(G)(ii) of the Federal Deposit Insur16 ance Act (12 U.S.C. 1823(c)(4)(G)(ii)) is amended to read 

17 as follows: 

18 ‘‘(ii) REPAYMENT OF LOSS.— 

19 ‘‘(I) IN GENERAL.—The Corpora20 tion shall recover the loss to the De21 posit Insurance Fund arising from 

22 any action taken or assistance pro23 vided with respect to an insured de24 pository institution under clause (i) 

25 from 1 or more special assessments on 

26 insured depository institutions, deposiVerDate Nov 24 2008 22:40 Feb 02, 2009 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H786.IH H786

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1 tory institution holding companies 

2 (with the concurrence of the Secretary 

3 of the Treasury with respect to hold4 ing companies), or both, as the Cor5 poration determines to be appropriate. 

6 ‘‘(II) TREATMENT OF DEPOSI7 TORY INSTITUTION HOLDING COMPA8 NIES.—For purposes of this clause, 

9 sections 7(c)(2) and 18(h) shall apply 

10 to depository institution holding com11 panies as if they were insured deposi12 tory institutions. 

13 ‘‘(III) REGULATIONS.—The Cor14 poration shall prescribe such regula15 tions as it deems necessary to imple16 ment this clause. In prescribing such 

17 regulations, defining terms, and set18 ting the appropriate assessment rate 

19 or rates, the Corporation shall estab20 lish rates sufficient to cover the losses 

21 incurred as a result of the actions of 

22 the Corporation under clause (i) and 

23 shall consider: the types of entities 

24 that benefit from any action taken or 

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1 paragraph; economic conditions, the 

2 effects on the industry, and such 

3 other factors as the Corporation 

4 deems appropriate and relevant to the 

5 action taken or the assistance pro6 vided. Any funds so collected that ex7 ceed actual losses shall be placed in 

8 the Deposit Insurance Fund.’’. 

Æ 


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