IB 

Union Calendar No. 6 

111TH CONGRESS 

1ST SESSION H. R. 786 

[Report No. 111–18] 

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 

FEBRUARY 23, 2009 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on February 2, 2009] 

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, 


pwalker on PROD1PC71 with BILLS
2 

•HR 786 RH

1 SECTION 1. PERMANENT INCREASE IN DEPOSIT INSUR2 ANCE. 

3 (a) AMENDMENTS TO FEDERAL DEPOSIT INSURANCE

4 ACT.—Effective upon the date of the enactment of this Act, 

5 section 11(a) of the Federal Deposit Insurance Act (12 

6 U.S.C. 1821(a)) is amended— 

7 (1) in paragraph (1)(E), by striking ‘‘$100,000’’ 

8 and inserting ‘‘$250,000’’; 

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

10 and inserting ‘‘2015’’; 

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

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

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

14 striking ‘‘the calendar year preceding the date this 

15 subparagraph takes effect under the Federal Deposit 

16 Insurance Reform Act of 2005’’ and inserting ‘‘cal17 endar year 2008’’; and 

18 (5) in paragraph (3)(A), by striking ‘‘, except 

19 that $250,000 shall be substituted for $100,000 wher20 ever such term appears in such paragraph’’. 

21 (b) AMENDMENT TO FEDERAL CREDIT UNION ACT.— 

22 Section 207(k) of the Federal Credit Union Act (12 U.S.C. 

23 1787(k)) is amended— 

24 (1) in paragraph (3)— 

25 (A) by striking the opening quotation mark 

26 before ‘‘$250,000’’; 


pwalker on PROD1PC71 with BILLS
3 

•HR 786 RH

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

2 be substituted for $100,000 wherever such term 

3 appears in such section’’; and 

4 (C) by striking the closing quotation mark 

5 after the closing parenthesis; and 

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

7 and inserting ‘‘$250,000’’. 

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

9 other than a provision of the Federal Deposit Insurance Act 

10 (with respect to the Federal Deposit Insurance Corporation 

11 and insured depository institutions) or the Federal Credit 

12 Union Act (with respect to the National Credit Union Ad13 ministration and insured credit unions), may be construed 

14 as limiting the authority of— 

15 (1) the Board of Directors of the Federal Deposit 

16 Insurance Corporation to set assessments under sec17 tion 7(b)(2) of the Federal Deposit Insurance Act or 

18 to make any inflation adjustment under section 

19 11(a)(1)(F) of such Act; or 

20 (2) the National Credit Union Administration 

21 Board to periodically adjust the amount of an in22 sured credit union’s deposit under section 202(c)(1) of 

23 the Federal Credit Union Act, set the insurance pre24 mium charge under section 202(c)(2) of such Act, or 


pwalker on PROD1PC71 with BILLS
4 

•HR 786 RH

1 to make any inflation adjustment pursuant to section 

2 207(k)(5) of such Act. 

3 SEC. 2. EXTENSION OF RESTORATION PLAN PERIOD. 

4 Section 7(b)(3)(E)(ii) of the Federal Deposit Insurance 

5 Act (12 U.S.C. 1817(b)(3)(E)(ii)) is amended by striking 

6 ‘‘5-year period’’ and inserting ‘‘8-year period’’. 

7 SEC. 3. FDIC AND NCUA BORROWING AUTHORITY. 

8 (a) FDIC.—Section 14(a) of the Federal Deposit In9 surance Act (12 U.S.C. 1824(a)) is amended by striking 

10 ‘‘$30,000,000,000’’ and inserting ‘‘$100,000,000,000’’. 

11 (b) NCUA.—Section 203(d)(1) of the Federal Credit 

12 Union Act (12 U.S.C. 1783(d)(1)) is amended by striking 

13 ‘‘$100,000,000’’ and inserting ‘‘$6,000,000,000’’. 

14 SEC. 4. EXPANDING SYSTEMIC RISK SPECIAL ASSESS15 MENTS. 

16 Section 13(c)(4)(G)(ii) of the Federal Deposit Insur17 ance Act (12 U.S.C. 1823(c)(4)(G)(ii)) is amended to read 

18 as follows: 

19 ‘‘(ii) REPAYMENT OF LOSS.— 

20 ‘‘(I) IN GENERAL.—The Corpora21 tion shall recover the loss to the De22 posit Insurance Fund arising from 

23 any action taken or assistance pro24 vided with respect to an insured depos25 itory institution under clause (i) from 


pwalker on PROD1PC71 with BILLS
5 

•HR 786 RH

1 1 or more special assessments on in2 sured depository institutions, deposi3 tory institution holding companies 

4 (with the concurrence of the Secretary 

5 of the Treasury with respect to holding 

6 companies), or both, as the Corpora7 tion determines to be appropriate. 

8 ‘‘(II) TREATMENT OF DEPOSITORY

9 INSTITUTION HOLDING COMPANIES.— 

10 For purposes of this clause, sections 

11 7(c)(2) and 18(h) shall apply to depos12 itory institution holding companies as 

13 if they were insured depository institu14 tions. 

15 ‘‘(III) REGULATIONS.—The Cor16 poration shall prescribe such regula17 tions as it deems necessary to imple18 ment this clause. In prescribing such 

19 regulations, defining terms, and setting 

20 the appropriate assessment rate or 

21 rates, the Corporation shall establish 

22 rates sufficient to cover the losses in23 curred as a result of the actions of the 

24 Corporation under clause (i) and shall 

25 consider: the types of entities that benVerDate Nov 24 2008 22:24 Feb 23, 2009 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H786.RH H786

pwalker on PROD1PC71 with BILLS
6 

•HR 786 RH

1 efit from any action taken or assist2 ance provided under this subpara3 graph; economic conditions, the effects 

4 on the industry, and such other factors 

5 as the Corporation deems appropriate 

6 and relevant to the action taken or the 

7 assistance provided. Any funds so col8 lected that exceed actual losses shall be 

9 placed in the Deposit Insurance 

10 Fund.’’. 

11 SEC. 5. ESTABLISHMENT OF A NATIONAL CREDIT UNION 

12 SHARE INSURANCE FUND RESTORATION 

13 PLAN PERIOD. 

14 Section 202(c)(2) of the Federal Credit Union Act (12 

15 U.S.C. 1782(c)(2)) is amended by adding at the end the 

16 following new subparagraph: 

17 ‘‘(D) FUND RESTORATION PLANS.— 

18 ‘‘(i) IN GENERAL.—Whenever— 

19 ‘‘(I) the Board projects that the 

20 equity ratio of the Fund will, within 6 

21 months of such determination, fall 

22 below the minimum amount specified 

23 in subparagraph (C) for the designated 

24 equity ratio; or 


pwalker on PROD1PC71 with BILLS
7 

•HR 786 RH

1 ‘‘(II) the equity ratio of the Fund 

2 actually falls below the minimum 

3 amount specified in subparagraph (C) 

4 for the equity ratio without any deter5 mination under sub-clause (I) having 

6 been made, 

7 the Board shall establish and implement a 

8 Share Insurance Fund restoration plan 

9 within 90 days that meets the requirements 

10 of clause (ii) and such other conditions as 

11 the Board determines to be appropriate. 

12 ‘‘(ii) REQUIREMENTS OF RESTORATION

13 PLAN.—A Share Insurance Fund restora14 tion plan meets the requirements of this 

15 clause if the plan provides that the equity 

16 ratio of the Fund will meet or exceed the 

17 minimum amount specified in subpara18 graph (C) for the designated equity ratio be19 fore the end of the 5-year period beginning 

20 upon the implementation of the plan (or 

21 such longer period as the Board may deter22 mine to be necessary due to extraordinary 

23 circumstances). 

24 ‘‘(iii) TRANSPARENCY.—Not more than 

25 30 days after the Board establishes and imVerDate Nov 24 2008 22:24 Feb 23, 2009 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H786.RH H786

pwalker on PROD1PC71 with BILLS
8 

•HR 786 RH

1 plements a restoration plan under clause 

2 (i), the Board shall publish in the Federal 

3 Register a detailed analysis of the factors 

4 considered and the basis for the actions 

5 taken with regard to the plan.’’. 


pwalker on PROD1PC71 with BILLS

pwalker on PROD1PC71 with BILLS
Union Calendar No. 6 

111TH CONGRESS 

1ST SESSION H. R. 786 

[Report No. 111–18] 

A BILL 

To make permanent the temporary increase in 

deposit insurance coverage, and for other purposes. 

FEBRUARY 23, 2009 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


pwalker on PROD1PC71 with BILLS