I 

108TH CONGRESS 

1ST SESSION H. R. 522

To reform the Federal deposit insurance system, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 4, 2003

Mr. BACHUS (for himself, Mr. OXLEY, Mr. FRANK of Massachusetts, Mr. 

LEACH, Mr. KANJORSKI, Mr. BEREUTER, Ms. WATERS, Mr. ROYCE, Mrs. 

MALONEY, Mr. NEY, Mr. FORD, Mr. GILLMOR, Mr. GONZALEZ, Mr. 

LATOURETTE, Mr. HINOJOSA, Mr. JONES of North Carolina, Mrs. 

MCCARTHY of New York, Mrs. BIGGERT, Mr. DAVIS of Alabama, Mr. 

GREEN of Wisconsin, Mr. GRIJALVA, Mr. GARY G. MILLER of California, 

Ms. HART, Mr. TIBERI, Mr. RENZI, Mr. SIMMONS, Mr. UPTON, and Mr. 

BEAUPREZ) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL

To reform the Federal deposit insurance system, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Federal Deposit Insurance Reform Act of 2003’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows:
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Sec. 1. Short title; table of contents. 

Sec. 2. Merging the BIF and SAIF. 

Sec. 3. Increase in deposit insurance coverage. 

Sec. 4. Setting assessments and repeal of special rules relating to minimum assessments and free deposit insurance. 

Sec. 5. Replacement of fixed designated reserve ratio with reserve range. 

Sec. 6. Requirements applicable to the risk-based assessment system. 

Sec. 7. Refunds, dividends, and credits from Deposit Insurance Fund. 

Sec. 8. Deposit Insurance Fund restoration plans. 

Sec. 9. Regulations required. 

Sec. 10. Studies of FDIC structure and expenses and certain activities and further possible changes to deposit insurance system. 

Sec. 11. Technical and conforming amendments to the Federal Deposit Insurance Act relating to the merger of the BIF and SAIF. 

Sec. 12. Other technical and conforming amendments relating to the merger of 

the BIF and SAIF.

1 SEC. 2. MERGING THE BIF AND SAIF. 

2 (a) IN GENERAL.—

3 (1) MERGER.—The Bank Insurance Fund and 

4 the Savings Association Insurance Fund shall be 

5 merged into the Deposit Insurance Fund. 

6 (2) DISPOSITION OF ASSETS AND LIABIL7 ITIES.—All assets and liabilities of the Bank Insur8 ance Fund and the Savings Association Insurance 

9 Fund shall be transferred to the Deposit Insurance 

10 Fund. 

11 (3) NO SEPARATE EXISTENCE.—The separate 

12 existence of the Bank Insurance Fund and the Sav13 ings Association Insurance Fund shall cease on the 

14 effective date of the merger thereof under this sec15 tion. 

16 (b) REPEAL OF OUTDATED MERGER PROVISION.—

17 Section 2704 of the Deposit Insurance Funds Act of 1996 

18 (12 U.S.C. 1821 note) is repealed. 
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1 (c) EFFECTIVE DATE.—This section shall take effect 

2 on the first day of the first calendar quarter that begins 

3 after the end of the 90-day period beginning on the date 

4 of the enactment of this Act. 

5 SEC. 3. INCREASE IN DEPOSIT INSURANCE COVERAGE. 

6 (a) IN GENERAL.—Section 11(a)(1) of the Federal 

7 Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amend8 ed—

9 (1) by striking subparagraph (B) and inserting 

10 the following new subparagraph: 

11 ‘‘(B) NET AMOUNT OF INSURED DE12 POSIT.—The net amount due to any depositor 

13 at an insured depository institution shall not 

14 exceed the standard maximum deposit insur15 ance amount as determined in accordance with 

16 subparagraphs (C), (D), (E) and (F) and para17 graph (3).’’; and 

18 (2) by adding at the end the following new sub19 paragraphs: 

20 ‘‘(E) STANDARD MAXIMUM DEPOSIT IN21 SURANCE AMOUNT DEFINED.—For purposes of 

22 this Act, the term ‘standard maximum deposit 

23 insurance amount’ means—

24 ‘‘(i) until the effective date of final 

25 regulations prescribed pursuant to section 
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1 9(a)(2) of the Federal Deposit Insurance 

2 Reform Act of 2003, $100,000; and 

3 ‘‘(ii) on and after such effective date, 

4 $130,000, adjusted as provided under sub5 paragraph (F). 

6 ‘‘(F) INFLATION ADJUSTMENT.—

7 ‘‘(i) IN GENERAL.—By April 1 of 

8 2005, and the 1st day of each subsequent 

9 5-year period, the Board of Directors and 

10 the National Credit Union Administration 

11 Board shall jointly prescribe the amount 

12 by which the standard maximum deposit 

13 insurance amount and the standard max14 imum share insurance amount (as defined 

15 in section 207(k) of the Federal Credit 

16 Union Act) applicable to any depositor at 

17 an insured depository institution shall be 

18 increased by calculating the product of—

19 ‘‘(I) $130,000; and 

20 ‘‘(II) the ratio of the value of the 

21 Personal Consumption Expenditures

22 Chain-Type Index (or any successor 

23 index thereto), published by the De24 partment of Commerce, as of Decem25 ber 31 of the year preceding the year 
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1 in which the adjustment is calculated 

2 under this clause, to the value of such 

3 index as of the date this subpara4 graph takes effect. 

5 ‘‘(ii) ROUNDING.—If the amount de6 termined under clause (ii) for any period is 

7 not a multiple of $10,000, the amount so 

8 determined shall be rounded to the nearest 

9 $10,000. 

10 ‘‘(iii) PUBLICATION AND REPORT TO

11 THE CONGRESS.—Not later than April 5 of 

12 any calendar year in which an adjustment 

13 is required to be calculated under clause (i) 

14 to the standard maximum deposit insur15 ance amount and the standard maximum 

16 share insurance amount under such clause, 

17 the Board of Directors and the National 

18 Credit Union Administration Board 

19 shall—

20 ‘‘(I) publish in the Federal Reg21 ister the standard maximum deposit 

22 insurance amount, the standard max23 imum share insurance amount, and 

24 the amount of coverage under para25 graph (3)(A) and section 207(k)(3) of 
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1 the Federal Credit Union Act, as so 

2 calculated; and 

3 ‘‘(II) jointly submit a report to 

4 the Congress containing the amounts 

5 described in subclause (I). 

6 ‘‘(iv) 6-MONTH IMPLEMENTATION PE7 RIOD.—Unless an Act of Congress enacted 

8 before July 1 of the calendar year in which 

9 an adjustment is required to be calculated 

10 under clause (i) provides otherwise, the in11 crease in the standard maximum deposit 

12 insurance amount and the standard max13 imum share insurance amount shall take 

14 effect on January 1 of the year imme15 diately succeeding such calendar year.’’. 

16 (b) COVERAGE FOR CERTAIN EMPLOYEE BENEFIT

17 PLAN DEPOSITS.—Section 11(a)(1)(D) of the Federal De18 posit Insurance Act (12 U.S.C. 1821(a)(1)(D)) is amend19 ed to read as follows: 

20 ‘‘(D) COVERAGE FOR CERTAIN EMPLOYEE

21 BENEFIT PLAN DEPOSITS.—

22 ‘‘(i) PASS-THROUGH INSURANCE.—

23 The Corporation shall provide pass24 through deposit insurance for the deposits 

25 of any employee benefit plan. 
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1 ‘‘(ii) PROHIBITION ON ACCEPTANCE

2 OF BENEFIT PLAN DEPOSITS.—An insured 

3 depository institution that is not well cap4 italized or adequately capitalized may not 

5 accept employee benefit plan deposits. 

6 ‘‘(iii) DEFINITIONS.—For purposes of 

7 this subparagraph, the following definitions 

8 shall apply: 

9 ‘‘(I) CAPITAL STANDARDS.—The 

10 terms ‘well capitalized’ and ‘ade11 quately capitalized’ have the same 

12 meanings as in section 38. 

13 ‘‘(II) EMPLOYEE BENEFIT

14 PLAN.—The term ‘employee benefit 

15 plan’ has the same meaning as in 

16 paragraph (8)(B)(ii), and includes any 

17 eligible deferred compensation plan 

18 described in section 457 of the Inter19 nal Revenue Code of 1986. 

20 ‘‘(III) PASS-THROUGH DEPOSIT

21 INSURANCE.—The term ‘pass-through 

22 deposit insurance’ means, with respect 

23 to an employee benefit plan, deposit 

24 insurance coverage provided on a pro 

25 rata basis to the participants in the 
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1 plan, in accordance with the interest 

2 of each participant.’’. 

3 (c) DOUBLING OF DEPOSIT INSURANCE FOR CER4 TAIN RETIREMENT ACCOUNTS.—Section 11(a)(3)(A) of 

5 the Federal Deposit Insurance Act (12 U.S.C. 

6 1821(a)(3)(A)) is amended by striking ‘‘$100,000’’ and 

7 inserting ‘‘2 times the standard maximum deposit insur8 ance amount (as determined under paragraph (1))’’. 

9 (d) INCREASED INSURANCE COVERAGE FOR MUNIC10 IPAL DEPOSITS.—Section 11(a)(2) of the Federal Deposit 

11 Insurance Act (12 U.S.C. 1821(a)(2)) is amended—

12 (1) in subparagraph (A)—

13 (A) by moving the margins of clauses (i) 

14 through (v) 4 ems to the right; 

15 (B) by striking, in the matter following 

16 clause (v), ‘‘such depositor shall’’ and all that 

17 follows through the period; and 

18 (C) by striking the semicolon at the end of 

19 clause (v) and inserting a period; 

20 (2) by striking ‘‘(2)(A) Notwithstanding’’ and 

21 all that follows through ‘‘a depositor who is—’’ and 

22 inserting the following: 

23 ‘‘(2) MUNICIPAL DEPOSITORS.—

24 ‘‘(A) IN GENERAL.—Notwithstanding any 

25 limitation in this Act or in any other provision 
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1 of law relating to the amount of deposit insur2 ance available to any 1 depositor—

3 ‘‘(i) a municipal depositor shall, for 

4 the purpose of determining the amount of 

5 insured deposits under this subsection, be 

6 deemed to be a depositor separate and dis7 tinct from any other officer, employee, or 

8 agent of the United States or any public 

9 unit referred to in subparagraph (E); and 

10 ‘‘(ii) except as provided in subpara11 graph (B), the deposits of a municipal de12 positor shall be insured in an amount 

13 equal to the standard maximum deposit in14 surance amount (as determined under 

15 paragraph (1)). 

16 ‘‘(B) IN-STATE MUNICIPAL DEPOSITORS.—

17 In the case of the deposits of an in-State mu18 nicipal depositor described in clause (ii), (iii), 

19 (iv), or (v) of subparagraph (E) at an insured

20 depository institution, such deposits shall be in21 sured in an amount not to exceed the lesser 

22 of—

23 ‘‘(i) $2,000,000; or 

24 ‘‘(ii) the sum of the standard max25 imum deposit insurance amount and 80 
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1 percent of the amount of any deposits in 

2 excess of the standard maximum deposit 

3 insurance amount. 

4 ‘‘(C) MUNICIPAL DEPOSIT PARITY.—No 

5 State may deny to insured depository institu6 tions within its jurisdiction the authority to ac7 cept deposits insured under this paragraph, or 

8 prohibit the making of such deposits in such in9 stitutions by any in-State municipal depositor. 

10 ‘‘(D) IN-STATE MUNICIPAL DEPOSITOR DE11 FINED.—For purposes of this paragraph, the 

12 term ‘in-State municipal depositor’ means a 

13 municipal depositor that is located in the same 

14 State as the office or branch of the insured de15 pository institution at which the deposits of 

16 that depositor are held. 

17 ‘‘(E) MUNICIPAL DEPOSITOR.—In this 

18 paragraph, the term ‘municipal depositor’ 

19 means a depositor that is—’’; 

20 (3) by striking ‘‘(B) The’’ and inserting the fol21 lowing: 

22 ‘‘(F) AUTHORITY TO LIMIT DEPOSITS.—

23 The’’; and 
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1 (4) by striking ‘‘depositor referred to in sub2 paragraph (A) of this paragraph’’ each place such 

3 term appears and inserting ‘‘municipal depositor’’. 

4 (e) TECHNICAL AND CONFORMING AMENDMENT RE5 LATING TO INSURANCE OF TRUST FUNDS.—Paragraphs 

6 (1) and (3) of section 7(i) of the Federal Deposit Insur7 ance Act (12 U.S.C. 1817(i)) are each amended by strik8 ing ‘‘$100,000’’ and inserting ‘‘the standard maximum de9 posit insurance amount (as determined under section 

10 11(a)(1))’’. 

11 (f) OTHER TECHNICAL AND CONFORMING AMEND12 MENTS.—

13 (1) Section 11(m)(6) of the Federal Deposit In14 surance Act (12 U.S.C. 1821(m)(6)) is amended by 

15 striking ‘‘$100,000’’ and inserting ‘‘an amount equal 

16 to the standard maximum deposit insurance 

17 amount’’. 

18 (2) Subsection (a) of section 18 of the Federal 

19 Deposit Insurance Act (12 U.S.C. 1828(a)) is 

20 amended to read as follows: 

21 ‘‘(a) INSURANCE LOGO.—

22 ‘‘(1) INSURED DEPOSITORY INSTITUTIONS.—

23 Each insured depository institution shall display at 

24 each place of business maintained by that institution

25 a sign or signs relating to the insurance of the de-
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1 posits of the institution, in accordance with regula2 tions to be prescribed by the Corporation. 

3 ‘‘(2) REGULATIONS.—The Corporation shall 

4 prescribe regulations to carry out this subsection, in5 cluding regulations governing the substance of signs 

6 required by paragraph (1) and the manner of dis7 play or use of such signs. 

8 ‘‘(3) PENALTIES.—For each day that an in9 sured depository institution continues to violate this 

10 subsection or any regulation issued under this sub11 section, it shall be subject to a penalty of not more 

12 than $100, which the Corporation may recover for 

13 its use.’’. 

14 (3) Section 43(d) of the Federal Deposit Insur15 ance Act (12 U.S.C. 1831t(d)) is amended by strik16 ing ‘‘$100,000’’ and inserting ‘‘an amount equal to 

17 the standard maximum deposit insurance amount’’. 

18 (4) Section 6 of the International Banking Act 

19 of 1978 (12 U.S.C. 3104) is amended—

20 (A) by striking ‘‘$100,000’’ each place 

21 such term appears and inserting ‘‘an amount 

22 equal to the standard maximum deposit insur23 ance amount’’; and 

24 (B) by adding at the end the following new 

25 subsection: 
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1 ‘‘(e) STANDARD MAXIMUM DEPOSIT INSURANCE

2 AMOUNT DEFINED.—For purposes of this section, the 

3 term ‘standard maximum deposit insurance amount’ 

4 means the amount of the maximum amount of deposit in5 surance as determined under section 11(a)(1) of the Fed6 eral Deposit Insurance Act.’’. 

7 (g) CONFORMING CHANGE TO CREDIT UNION SHARE

8 INSURANCE FUND.—

9 (1) IN GENERAL.—Section 207(k) of the Fed10 eral Credit Union Act (12 U.S.C. 1787(k)) is 

11 amended—

12 (A) by striking ‘‘(k)(1)’’ and all that fol13 lows through the end of paragraph (1) and in14 serting the following: 

15 ‘‘(k) INSURED AMOUNTS PAYABLE.—

16 ‘‘(1) NET INSURED AMOUNT.—

17 ‘‘(A) IN GENERAL.—Subject to the provi18 sions of paragraph (2), the net amount of share 

19 insurance payable to any member at an insured 

20 credit union shall not exceed the total amount 

21 of the shares or deposits in the name of the 

22 member (after deducting offsets), less any part 

23 thereof which is in excess of the standard max24 imum share insurance amount, as determined 

25 in accordance with this paragraph and para-
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1 graphs (5) and (6), and consistently with ac2 tions taken by the Federal Deposit Insurance 

3 Corporation under section 11(a) of the Federal 

4 Deposit Insurance Act. 

5 ‘‘(B) AGGREGATION.—Determination of 

6 the net amount of share insurance under sub7 paragraph (A), shall be in accordance with such 

8 regulations as the Board may prescribe, and, in 

9 determining the amount payable to any mem10 ber, there shall be added together all accounts 

11 in the credit union maintained by that member 

12 for that member’s own benefit, either in the 

13 member’s own name or in the names of others. 

14 ‘‘(C) AUTHORITY TO DEFINE THE EXTENT

15 OF COVERAGE.—The Board may define, with 

16 such classifications and exceptions as it may 

17 prescribe, the extent of the share insurance cov18 erage provided for member accounts, including 

19 member accounts in the name of a minor, in 

20 trust, or in joint tenancy.’’; 

21 (B) in paragraph (2)—

22 (i) in subparagraph (A)—

23 (I) in clauses (i) through (v), by 

24 moving the margins 4 ems to the 

25 right; 
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1 (II) in the matter following 

2 clause (v), by striking ‘‘his account’’ 

3 and all that follows through the pe4 riod; and 

5 (III) by striking the semicolon at 

6 the end of clause (v) and inserting a 

7 period; 

8 (ii) by striking ‘‘(2)(A) Notwith9 standing’’ and all that follows through ‘‘a 

10 depositor or member who is—’’ and insert11 ing the following: 

12 ‘‘(2) MUNICIPAL DEPOSITORS OR MEMBERS.—

13 ‘‘(A) IN GENERAL.—Notwithstanding any 

14 limitation in this Act or in any other provision 

15 of law relating to the amount of insurance 

16 available to any 1 depositor or member, depos17 its or shares of a municipal depositor or mem18 ber shall be insured in an amount equal to the 

19 standard maximum share insurance amount (as 

20 determined under paragraph (5)), except as 

21 provided in subparagraph (B). 

22 ‘‘(B) IN-STATE MUNICIPAL DEPOSITORS.—

23 In the case of the deposits of an in-State mu24 nicipal depositor described in clause (ii), (iii), 

25 (iv), or (v) of subparagraph (E) at an insured 
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1 credit union, such deposits shall be insured in 

2 an amount equal to the lesser of—

3 ‘‘(i) $2,000,000; or 

4 ‘‘(ii) the sum of the standard max5 imum deposit insurance amount and 80 

6 percent of the amount of any deposits in 

7 excess of the standard maximum deposit 

8 insurance amount. 

9 ‘‘(C) RULE OF CONSTRUCTION.—No provi10 sion of this paragraph shall be construed as au11 thorizing an insured credit union to accept the 

12 deposits of a municipal depositor in an amount 

13 greater than such credit union is authorized to 

14 accept under any other provision of Federal or 

15 State law. 

16 ‘‘(D) IN-STATE MUNICIPAL DEPOSITOR DE17 FINED.—For purposes of this paragraph, the 

18 term ‘in-State municipal depositor’ means a 

19 municipal depositor that is located in the same 

20 State as the office or branch of the insured 

21 credit union at which the deposits of that de22 positor are held. 

23 ‘‘(E) MUNICIPAL DEPOSITOR.—In this 

24 paragraph, the term ‘municipal depositor’ 

25 means a depositor that is—’’; 
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1 (iii) by striking ‘‘(B) The’’ and insert2 ing the following: 

3 ‘‘(F) AUTHORITY TO LIMIT DEPOSITS.—

4 The’’; and 

5 (iv) by striking ‘‘depositor or member 

6 referred to in subparagraph (A)’’ and in7 serting ‘‘municipal depositor or member’’; 

8 and 

9 (C) by adding at the end the following new 

10 paragraphs: 

11 ‘‘(4) COVERAGE FOR CERTAIN EMPLOYEE BEN12 EFIT PLAN DEPOSITS.—

13 ‘‘(A) PASS-THROUGH INSURANCE.—The 

14 Administration shall provide pass-through share 

15 insurance for the deposits or shares of any em16 ployee benefit plan. 

17 ‘‘(B) PROHIBITION ON ACCEPTANCE OF

18 DEPOSITS.—An insured credit union that is not 

19 well capitalized or adequately capitalized may 

20 not accept employee benefit plan deposits. 

21 ‘‘(C) DEFINITIONS.—For purposes of this 

22 paragraph, the following definitions shall apply: 

23 ‘‘(i) CAPITAL STANDARDS.—The 

24 terms ‘well capitalized’ and ‘adequately 
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1 capitalized’ have the same meanings as in 

2 section 216(c). 

3 ‘‘(ii) EMPLOYEE BENEFIT PLAN.—

4 The term ‘employee benefit plan’—

5 ‘‘(I) has the meaning given to 

6 such term in section 3(3) of the Em7 ployee Retirement Income Security 

8 Act of 1974; 

9 ‘‘(II) includes any plan described 

10 in section 401(d) of the Internal Rev11 enue Code of 1986; and 

12 ‘‘(III) includes any eligible de13 ferred compensation plan described in 

14 section 457 of the Internal Revenue 

15 Code of 1986. 

16 ‘‘(iii) PASS-THROUGH SHARE INSUR17 ANCE.—The term ‘pass-through share in18 surance’ means, with respect to an em19 ployee benefit plan, insurance coverage 

20 provided on a pro rata basis to the partici21 pants in the plan, in accordance with the 

22 interest of each participant. 

23 ‘‘(D) RULE OF CONSTRUCTION.—No provi24 sion of this paragraph shall be construed as au25 thorizing an insured credit union to accept the 
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1 deposits of an employee benefit plan in an 

2 amount greater than such credit union is au3 thorized to accept under any other provision of 

4 Federal or State law. 

5 ‘‘(5) STANDARD MAXIMUM SHARE INSURANCE

6 AMOUNT DEFINED.—For purposes of this Act, the 

7 term ‘standard maximum share insurance amount’ 

8 means—

9 ‘‘(A) until the effective date of final regula10 tions prescribed pursuant to section 9(a)(2) of 

11 the Federal Deposit Insurance Reform Act of 

12 2003, $100,000; and 

13 ‘‘(B) on and after such effective date, 

14 $130,000, adjusted as provided under section 

15 11(a)(1)(F) of the Federal Deposit Insurance 

16 Act.’’. 

17 (2) DOUBLING OF SHARE INSURANCE FOR CER18 TAIN RETIREMENT ACCOUNTS.—Section 207(k)(3) 

19 of the Federal Credit Union Act (12 U.S.C. 

20 1787(k)(3)) is amended by striking ‘‘$100,000’’ and

21 inserting ‘‘2 times the standard maximum share in22 surance amount (as determined under paragraph 

23 (1))’’. 

24 (h) EFFECTIVE DATE.—This section and the amend25 ments made by this section shall take effect on the date 
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1 the final regulations required under section 9(a)(2) take 

2 effect. 

3 SEC. 4. SETTING ASSESSMENTS AND REPEAL OF SPECIAL 

4 RULES RELATING TO MINIMUM ASSESS5 MENTS AND FREE DEPOSIT INSURANCE. 

6 (a) SETTING ASSESSMENTS.—Section 7(b)(2) of the 

7 Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)) is 

8 amended—

9 (1) by striking subparagraphs (A) and (B) and 

10 inserting the following new subparagraphs: 

11 ‘‘(A) IN GENERAL.—The Board of Direc12 tors shall set assessments for insured depository 

13 institutions in such amounts as the Board of 

14 Directors may determine to be necessary or ap15 propriate, subject to subparagraph (D). 

16 ‘‘(B) FACTORS TO BE CONSIDERED.—In 

17 setting assessments under subparagraph (A), 

18 the Board of Directors shall consider the fol19 lowing factors: 

20 ‘‘(i) The estimated operating expenses 

21 of the Deposit Insurance Fund. 

22 ‘‘(ii) The estimated case resolution ex23 penses and income of the Deposit Insur24 ance Fund. 
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1 ‘‘(iii) The projected effects of the pay2 ment of assessments on the capital and 

3 earnings of insured depository institutions. 

4 ‘‘(iv) the risk factors and other factors 

5 taken into account pursuant to paragraph 

6 (1) under the risk-based assessment sys7 tem, including the requirement under such 

8 paragraph to maintain a risk-based sys9 tem. 

10 ‘‘(v) Any other factors the Board of 

11 Directors may determine to be appro12 priate.’’; and 

13 (2) by inserting after subparagraph (C) the fol14 lowing new subparagraph: 

15 ‘‘(D) BASE RATE FOR ASSESSMENTS.—

16 ‘‘(i) IN GENERAL.—In setting assess17 ment rates pursuant to subparagraph (A), 

18 the Board of Directors shall establish a 

19 base rate of not more than 1 basis point 

20 (exclusive of any credit or dividend) for 

21 those insured depository institutions in the 

22 lowest-risk category under the risk-based 

23 assessment system established pursuant to 

24 paragraph (1). 
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1 ‘‘(ii) SUSPENSION.—Clause (i) shall 

2 not apply during any period in which the 

3 reserve ratio of the Deposit Insurance 

4 Fund is less than the amount which is 

5 equal to 1.15 percent of the aggregate esti6 mated insured deposits.’’. 

7 (b) ASSESSMENT RECORDKEEPING PERIOD SHORT8 ENED.—Paragraph (5) of section 7(b) of the Federal De9 posit Insurance Act (12 U.S.C. 1817(b)) is amended to 

10 read as follows: 

11 ‘‘(5) DEPOSITORY INSTITUTION REQUIRED TO

12 MAINTAIN ASSESSMENT-RELATED RECORDS.—Each 

13 insured depository institution shall maintain all 

14 records that the Corporation may require for 

15 verifying the correctness of any assessment on the 

16 insured depository institution under this subsection 

17 until the later of—

18 ‘‘(A) the end of the 3-year period begin19 ning on the due date of the assessment; or 

20 ‘‘(B) in the case of a dispute between the 

21 insured depository institution and the Corpora22 tion with respect to such assessment, the date 

23 of a final determination of any such dispute.’’. 

24 (c) INCREASE IN FEES FOR LATE ASSESSMENT PAY25 MENTS.—Subsection (h) of section 18 of the Federal De-
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1 posit Insurance Act (12 U.S.C. 1828(h)) is amended to 

2 read as follows: 

3 ‘‘(h) PENALTY FOR FAILURE TO TIMELY PAY AS4 SESSMENTS.—

5 ‘‘(1) IN GENERAL.—Any insured depository in6 stitution which fails or refuses to pay any assess7 ment shall be subject to a penalty in an amount not 

8 more than 1 percent of the amount of the assess9 ment due for each day that such violation continues. 

10 ‘‘(2) EXCEPTION IN CASE OF DISPUTE.—Para11 graph (1) shall not apply if—

12 ‘‘(A) the failure to pay an assessment is 

13 due to a dispute between the insured depository 

14 institution and the Corporation over the 

15 amount of such assessment; and 

16 ‘‘(B) the insured depository institution de17 posits security satisfactory to the Corporation 

18 for payment upon final determination of the 

19 issue. 

20 ‘‘(3) AUTHORITY TO MODIFY OR REMIT PEN21 ALTY.—The Corporation, in the sole discretion of 

22 the Corporation, may compromise, modify or remit 

23 any penalty which the Corporation may assess or 

24 has already assessed under paragraph (1) upon a 
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1 finding that good cause prevented the timely pay2 ment of an assessment.’’. 

3 (d) ASSESSMENTS FOR LIFELINE ACCOUNTS.—

4 (1) IN GENERAL.—Section 232 of the Federal 

5 Deposit Insurance Corporation Improvement Act of 

6 1991 (12 U.S.C. 1834) is amended by striking sub7 section (c). 

8 (2) CLARIFICATION OF RATE APPLICABLE TO

9 DEPOSITS ATTRIBUTABLE TO LIFELINE AC10 COUNTS.—Section 7(b)(2)(H) of the Federal Deposit 

11 Insurance Act (12 U.S.C. 1817(b)(2)(H)) is amend12 ed by striking ‘‘at a rate determined in accordance 

with such Act’’ and inserting ‘‘at 1 13 ⁄2 the assessment 

14 rate otherwise applicable for such insured depository 

15 institution’’. 

16 (3) REGULATIONS.—Section 232(a)(1) of the 

17 Federal Deposit Insurance Corporation Improvement 

18 Act of 1991 (12 U.S.C. 1834(a)(1)) is amended by

19 striking ‘‘Board of Governors of the Federal Reserve 

20 System, and the’’. 

21 (e) TECHNICAL AND CONFORMING AMENDMENTS.—

22 (1) Paragraph (3) of section 7(a) of the Fed23 eral Deposit Insurance Act (12 U.S.C. 1817(a)(3)) 

24 is amended by striking the 3d sentence and inserting 

25 the following: ‘‘Such reports of condition shall be the 
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1 basis for the certified statements to be filed pursu2 ant to subsection (c).’’. 

3 (2) Subparagraphs (B)(ii) and (C) of section 

4 7(b)(1) of the Federal Deposit Insurance Act (12 

5 U.S.C. 1817(b)(1)) are each amended by striking 

6 ‘‘semiannual’’ where such term appears in each such 

7 subparagraph. 

8 (3) Section 7(b)(2) of the Federal Deposit In9 surance Act (12 U.S.C. 1817(b)(2)) is amended—

10 (A) by striking subparagraphs (E), (F), 

11 and (G); 

12 (B) in subparagraph (C), by striking 

13 ‘‘semiannual’’; and 

14 (C) by redesignating subparagraph (H) (as 

15 amended by subsection (e)(2) of this section) as 

16 subparagraph (E). 

17 (4) Section 7(b) of the Federal Deposit Insur18 ance Act (12 U.S.C. 1817(b)) is amended by strik19 ing paragraph (4) and redesignating paragraphs (5) 

20 (as amended by subsection (b) of this section), (6), 

21 and (7) as paragraphs (4), (5), and (6) respectively. 

22 (5) Section 7(c) of the Federal Deposit Insur23 ance Act (12 U.S.C. 1817(c)) is amended—

24 (A) in paragraph (1)(A), by striking 

25 ‘‘semiannual’’; 
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1 (B) in paragraph (2)(A), by striking 

2 ‘‘semiannual’’; and 

3 (C) in paragraph (3), by striking ‘‘semi4 annual period’’ and inserting ‘‘initial assess5 ment period’’. 

6 (6) Section 7(g)(6) of the Federal Deposit In7 surance Act (12 U.S.C. 1817(g)(6)) (as amended by 

8 subsection (c) of this section) is amended by striking 

9 ‘‘(b)(5)’’ and inserting ‘‘(b)(4)’’. 

10 (7) Section 8(p) of the Federal Deposit Insur11 ance Act (12 U.S.C. 1818(p)) is amended by strik12 ing ‘‘semiannual’’. 

13 (8) Section 8(q) of the Federal Deposit Insur14 ance Act (12 U.S.C. 1818(q)) is amended by strik15 ing ‘‘semiannual period’’ and inserting ‘‘assessment 

16 period’’. 

17 (9) Section 13(c)(4)(G)(ii)(II) of the Federal 

18 Deposit Insurance Act (12 U.S.C. 

19 1823(c)(4)(G)(ii)(II)) is amended by striking ‘‘semi20 annual period’’ and inserting ‘‘assessment period’’. 

21 (10) Section 232(a) of the Federal Deposit In22 surance Corporation Improvement Act of 1991 (12 

23 U.S.C. 1834(a)) is amended—
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1 (A) in the matter preceding subparagraph 

2 (A) of paragraph (2), by striking ‘‘the Board 

3 and’’; 

4 (B) in subparagraph (J) of paragraph (2), 

5 by striking ‘‘the Board’’ and inserting ‘‘the 

6 Corporation’’; 

7 (C) by striking subparagraph (A) of para8 graph (3) and inserting the following new sub9 paragraph: 

10 ‘‘(A) CORPORATION.—The term ‘Corpora11 tion’ means the Federal Deposit Insurance Cor12 poration.’’; and 

13 (D) in subparagraph (C) of paragraph (3), 

14 by striking ‘‘Board’’ and inserting ‘‘Corpora15 tion’’. 

16 (f) EFFECTIVE DATE.—Except as provided in sub17 section (c), this section and the amendments made by this 

18 section shall take effect on the date that the final regula19 tions required under section 9(a)(5) take effect. 

20 SEC. 5. REPLACEMENT OF FIXED DESIGNATED RESERVE 

21 RATIO WITH RESERVE RANGE. 

22 (a) IN GENERAL.—Section 7(b)(3) of the Federal 

23 Deposit Insurance Act (12 U.S.C. 1817(b)(3)) is amended 

24 to read as follows: 

25 ‘‘(3) DESIGNATED RESERVE RATIO.—
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1 ‘‘(A) ESTABLISHMENT.—

2 ‘‘(i) IN GENERAL.—The Board of Di3 rectors shall designate, by regulation after 

4 notice and opportunity for comment, the 

5 reserve ratio applicable with respect to the 

6 Deposit Insurance Fund. 

7 ‘‘(ii) NOT LESS THAN ANNUAL REDE8 TERMINATION.—A determination under 

9 clause (i) shall be made by the Board of 

10 Directors at least before the beginning of 

11 each calendar year, for such calendar year, 

12 and at such other times as the Board of 

13 Directors may determine to be appropriate. 

14 ‘‘(B) RANGE.—The reserve ratio des15 ignated by the Board of Directors for any 

16 year—

17 ‘‘(i) may not exceed 1.4 percent of es18 timated insured deposits; and 

19 ‘‘(ii) may not be less than 1.15 per20 cent of estimated insured deposits.

21 ‘‘(C) FACTORS.—In designating a reserve 

22 ratio for any year, the Board of Directors 

23 shall—

24 ‘‘(i) take into account the risk of 

25 losses to the Deposit Insurance Fund in 
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1 such year and future years, including his2 toric experience and potential and esti3 mated losses from insured depository insti4 tutions; 

5 ‘‘(ii) take into account economic con6 ditions generally affecting insured deposi7 tory institutions so as to allow the des8 ignated reserve ratio to increase during 

9 more favorable economic conditions and to 

10 decrease during less favorable economic 

11 conditions, notwithstanding the increased 

12 risks of loss that may exist during such 

13 less favorable conditions, as determined to 

14 be appropriate by the Board of Directors; 

15 ‘‘(iii) seek to prevent sharp swings in 

16 the assessment rates for insured depository 

17 institutions; and 

18 ‘‘(iv) take into account such other fac19 tors as the Board of Directors may deter20 mine to be appropriate, consistent with the 

21 requirements of this subparagraph. 

22 ‘‘(D) PUBLICATION OF PROPOSED CHANGE

23 IN RATIO.—In soliciting comment on any pro24 posed change in the designated reserve ratio in 

25 accordance with subparagraph (A), the Board 
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1 of Directors shall include in the published pro2 posal a thorough analysis of the data and pro3 jections on which the proposal is based.’’. 

4 (b) TECHNICAL AND CONFORMING AMENDMENT.—

5 Section 3(y) of the Federal Deposit Insurance Act (12 

6 U.S.C. 1813(y)) is amended—

7 (1) by striking ‘‘(y) The term’’ and inserting 

8 ‘‘(y) DEFINITIONS RELATING TO DEPOSIT INSUR9 ANCE FUND.—

10 ‘‘(1) DEPOSIT INSURANCE FUND.—The term’’; 

11 and 

12 (2) by inserting after paragraph (1) (as so des13 ignated by paragraph (1) of this subsection) the fol14 lowing new paragraph: 

15 ‘‘(2) DESIGNATED RESERVE RATIO.—The term 

16 ‘designated reserve ratio’ means the reserve ratio 

17 designated by the Board of Directors in accordance 

18 with section 7(b)(3).’’. 

19 (c) EFFECTIVE DATE.—This section and the amend20 ments made by this section shall take effect on the date 

21 that the final regulations required under section 9(a)(1) 

22 take effect. 
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1 SEC. 6. REQUIREMENTS APPLICABLE TO THE RISK-BASED 

2 ASSESSMENT SYSTEM. 

3 Section 7(b)(1) of the Federal Deposit Insurance Act 

4 (12 U.S.C. 1817(b)(1)) is amended by adding at the end 

5 the following new subparagraphs: 

6 ‘‘(E) INFORMATION CONCERNING RISK OF

7 LOSS AND ECONOMIC CONDITIONS.—

8 ‘‘(i) SOURCES OF INFORMATION.—For 

9 purposes of determining risk of losses at 

10 insured depository institutions and eco11 nomic conditions generally affecting depos12 itory institutions, the Corporation shall col13 lect information, as appropriate, from all 

14 sources the Board of Directors considers 

15 appropriate, such as reports of condition, 

16 inspection reports, and other information 

17 from all Federal banking agencies, any in18 formation available from State bank super19 visors, State insurance and securities regu20 lators, the Securities and Exchange Com21 mission (including information described in 

22 section 35), the Secretary of the Treasury, 

23 the Commodity Futures Trading Commis24 sion, the Farm Credit Administration, the 

25 Federal Trade Commission, any Federal 

26 reserve bank or Federal home loan bank, 
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1 and other regulators of financial institu2 tions, and any information available from 

3 credit rating entities, and other private 

4 economic or business analysts. 

5 ‘‘(ii) CONSULTATION WITH FEDERAL

6 BANKING AGENCIES.—

7 ‘‘(I) IN GENERAL.—Except as 

8 provided in subclause (II), in assess9 ing the risk of loss to the Deposit In10 surance Fund with respect to any in11 sured depository institution, the Cor12 poration shall consult with the appro13 priate Federal banking agency of such 

14 institution. 

15 ‘‘(II) TREATMENT ON AGGRE16 GATE BASIS.—In the case of insured 

17 depository institutions that are well 

18 capitalized (as defined in section 38) 

19 and, in the most recent examination, 

20 were found to be well managed, the 

21 consultation under subclause (I) con22 cerning the assessment of the risk of 

23 loss posed by such institutions may be 

24 made on an aggregate basis. 
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1 ‘‘(iii) RULE OF CONSTRUCTION.—No 

2 provision of this paragraph shall be con3 strued as providing any new authority for 

4 the Corporation to require submission of 

5 information by insured depository institu6 tions to the Corporation. 

7 ‘‘(F) MODIFICATIONS TO THE RISK-BASED

8 ASSESSMENT SYSTEM ALLOWED ONLY AFTER

9 NOTICE AND COMMENT.—In revising or modi10 fying the risk-based assessment system at any 

11 time after the date of the enactment of the 

12 Federal Deposit Insurance Reform Act of 2003, 

13 the Board of Directors may implement such re14 visions or modification in final form only after 

15 notice and opportunity for comment.’’. 

16 SEC. 7. REFUNDS, DIVIDENDS, AND CREDITS FROM DE17 POSIT INSURANCE FUND. 

18 (a) IN GENERAL.—Subsection (e) of section 7 of the 

19 Federal Deposit Insurance Act (12 U.S.C. 1817(e)) is 

20 amended to read as follows: 

21 ‘‘(e) REFUNDS, DIVIDENDS, AND CREDITS.—

22 ‘‘(1) REFUNDS OF OVERPAYMENTS.—In the 

23 case of any payment of an assessment by an insured 

24 depository institution in excess of the amount due to 

25 the Corporation, the Corporation may—
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1 ‘‘(A) refund the amount of the excess pay2 ment to the insured depository institution; or 

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

4 payment of subsequent assessments until such 

5 credit is exhausted. 

6 ‘‘(2) DIVIDENDS FROM EXCESS AMOUNTS IN

7 DEPOSIT INSURANCE FUND.—

8 ‘‘(A) RESERVE RATIO EQUAL TO OR IN EX9 CESS OF 1.4 PERCENT OF ESTIMATED INSURED

10 DEPOSITS.—Whenever the reserve ratio of the 

11 Deposit Insurance Fund equals or exceeds 1.4 

12 percent of estimated insured deposits, the Cor13 poration shall declare the amount in the Fund 

14 in excess of the amount required to maintain 

15 the reserve ratio at the designated reserve ratio 

16 in effect at such time, as dividends to be paid 

17 to insured depository institutions. 

18 ‘‘(B) RESERVE RATIO EQUAL TO OR IN EX19 CESS OF 1.35 PERCENT OF ESTIMATED INSURED

20 DEPOSITS AND LESS THAN 1.4 PERCENT.—

21 Whenever the reserve ratio of the Deposit In22 surance Fund equals or exceeds 1.35 percent of 

23 estimated insured deposits and is less than 1.4 

24 percent of such deposits, the Corporation shall 

25 declare the amount in the Fund that is equal 
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1 to 50 percent of the amount in excess of the 

2 amount required to maintain the reserve ratio 

3 at 1.35 percent of the estimated insured depos4 its as dividends to be paid to insured depository 

5 institutions. 

6 ‘‘(C) BASIS FOR DISTRIBUTION OF DIVI7 DENDS.—

8 ‘‘(i) IN GENERAL.—Solely for the pur9 poses of dividend distribution under this 

10 paragraph and credit distribution under 

11 paragraph (3)(B), the Corporation shall 

12 determine each insured depository institu13 tion’s relative contribution to the Deposit 

14 Insurance Fund (or any predecessor de15 posit insurance fund) for calculating such 

16 institution’s share of any dividend or credit 

17 declared under this paragraph or para18 graph (3)(B), taking into account the fac19 tors described in clause (ii). 

20 ‘‘(ii) FACTORS FOR DISTRIBUTION.—

21 In implementing this paragraph and para22 graph (3)(B) in accordance with regula23 tions, the Corporation shall take into ac24 count the following factors: 
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1 ‘‘(I) The ratio of the assessment 

2 base of an insured depository institu3 tion (including any predecessor) on 

4 December 31, 1996, to the assessment 

5 base of all eligible insured depository 

6 institutions on that date. 

7 ‘‘(II) The total amount of assess8 ments paid on or after January 1, 

9 1997, by an insured depository insti10 tution (including any predecessor) to 

11 the Deposit Insurance Fund (and any 

12 predecessor deposit insurance fund). 

13 ‘‘(III) That portion of assess14 ments paid by an insured depository 

15 institution (including any predecessor) 

16 that reflects higher levels of risk as17 sumed by such institution. 

18 ‘‘(IV) Such other factors as the 

19 Corporation may determine to be ap20 propriate. 

21 ‘‘(D) NOTICE AND OPPORTUNITY FOR

22 COMMENT.—The calculation, declaration, and

23 payment of dividends under this paragraph 

24 shall be made at such times, in such manner, 

25 and on such conditions as the Corporation shall 
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1 prescribe by regulation, after notice and oppor2 tunity for comment. 

3 ‘‘(3) CREDIT POOL.—

4 ‘‘(A) ONE-TIME CREDIT BASED ON TOTAL

5 ASSESSMENT BASE AT YEAR-END 1996.—

6 ‘‘(i) IN GENERAL.—Before the end of 

7 the 270-day period beginning on the date 

8 of the enactment of the Federal Deposit 

9 Insurance Reform Act of 2003, the Board 

10 of Directors shall, by regulation, provide 

11 for a credit to each eligible insured deposi12 tory institution, based on the assessment 

13 base of the institution (including any pred14 ecessor institution) on December 31, 1996, 

15 as compared to the combined aggregate as16 sessment base of all eligible insured deposi17 tory institutions, taking into account such 

18 factors as the Board of Directors may de19 termine to be appropriate. 

20 ‘‘(ii) CREDIT LIMIT.—The aggregate 

21 amount of credits available under clause (i) 

22 to all eligible insured depository institu23 tions shall equal the amount that the Cor24 poration could collect if the Corporation 

25 imposed an assessment of 12 basis points 
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1 on the combined assessment base of the 

2 Bank Insurance Fund and the Savings As3 sociation Insurance Fund as of December 

4 31, 2001. 

5 ‘‘(iii) ELIGIBLE INSURED DEPOSITORY

6 INSTITUTION DEFINED.—For purposes of 

7 this paragraph, the term ‘eligible insured 

8 depository institution’ means any insured 

9 depository institution that—

10 ‘‘(I) was in existence on Decem11 ber 31, 1996, and paid a deposit in12 surance assessment prior to that date; 

13 or 

14 ‘‘(II) is a successor to any in15 sured depository institution described 

16 in subclause (II). 

17 ‘‘(iv) APPLICATION OF CREDITS.—

18 ‘‘(I) IN GENERAL.—The amount 

19 of a credit to any eligible insured de20 pository institution under this para21 graph may be applied by the Corpora22 tion to those portions of the assess23 ments imposed on such institution 

24 under subsection (b) that become due 

25 for assessment periods beginning after 
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1 the effective date of regulations pre2 scribed under clause (i). 

3 ‘‘(II) REGULATIONS.—The regu4 lations prescribed under clause (i) 

5 shall establish the qualifications and 

6 procedures governing the application 

7 of assessment credits pursuant to sub8 clause (I). 

9 ‘‘(v) CRITERIA FOR DETERMINA10 TION.—In determining whether to provide 

11 assessment credits under this paragraph 

12 and the amounts of any such credits, the 

13 Board of Directors shall take into account 

14 the factors for designating the reserve 

15 ratio under subsection (b)(3) and the fac16 tors for setting assessments under sub17 section (b)(2)(B). 

18 ‘‘(vi) LIMITATION ON AMOUNT OF

19 CREDIT FOR CERTAIN DEPOSITORY INSTI20 TUTIONS.—In the case of an insured de21 pository institution that exhibits financial, 

22 operational, or compliance weaknesses 

23 ranging from moderately severe to unsatis24 factory, or is not adequately capitalized (as 

25 defined in section 38) at the beginning of 
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1 an assessment period, the amount of any 

2 credit allowed under this paragraph 

3 against the assessment on that depository 

4 institution for such period may not exceed 

5 the amount calculated by applying to that 

6 depository institution the average assess7 ment rate on all insured depository institu8 tions for such assessment period. 

9 ‘‘(vii) PREDECESSOR DEFINED.—For 

10 purposes of this paragraph, the term ‘pred11 ecessor’, when used with respect to any in12 sured depository institution, includes any 

13 other insured depository institution ac14 quired by or merged with such insured de15 pository institution. 

16 ‘‘(B) ON-GOING CREDIT POOL.—

17 ‘‘(i) IN GENERAL.—In addition to the 

18 credit provided pursuant to subparagraph 

19 (A) and subject to the limitation contained 

20 in clause (vi) of such subparagraph, the 

21 Corporation shall, by regulation, establish 

22 an on-going system of credits to be applied 

23 against future assessments under sub24 section (b)(1) on the same basis as the 
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1 dividends provided under paragraph 

2 (2)(C). 

3 ‘‘(ii) LIMITATION ON CREDITS UNDER

4 CERTAIN CIRCUMSTANCES.—No credits 

5 may be allowed by the Corporation under 

6 this subparagraph during any period in 

7 which—

8 ‘‘(I) the reserve ratio of the De9 posit Insurance Fund is less than the 

10 designated reserve ratio of such Fund; 

11 or 

12 ‘‘(II) the designated reserve ratio 

13 of the Fund is less than 1.25 percent 

14 of the amount of estimated insured 

15 deposits. 

16 ‘‘(4) ADMINISTRATIVE REVIEW.—

17 ‘‘(A) IN GENERAL.—The regulations pre18 scribed under paragraph (2)(D) and subpara19 graphs (A) and (B) of paragraph (3) shall in20 clude provisions allowing an insured depository 

21 institution a reasonable opportunity to chal22 lenge administratively the amount of the credit

23 or dividend determined under paragraph (2) or 

24 (3) for such institution. 
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1 ‘‘(B) ADMINISTRATIVE REVIEW.—Any re2 view under subparagraph (A) of any determina3 tion of the Corporation under paragraph (2) or 

4 (3) shall be final and not subject to judicial re5 view.’’. 

6 (b) DEFINITION OF RESERVE RATIO.—Section 3(y) 

7 of the Federal Deposit Insurance Act (12 U.S.C. 1813(y)) 

8 (as amended by section 5(b) of this Act) is amended by 

9 adding at the end the following new paragraph: 

10 ‘‘(3) RESERVE RATIO.—The term ‘reserve 

11 ratio’, when used with regard to the Deposit Insur12 ance Fund other than in connection with a reference 

13 to the designated reserve ratio, means the ratio of 

14 the net worth of the Deposit Insurance Fund to the 

15 value of the aggregate estimated insured deposits.’’. 

16 SEC. 8. DEPOSIT INSURANCE FUND RESTORATION PLANS. 

17 Section 7(b)(3) of the Federal Deposit Insurance Act 

18 (12 U.S.C. 1917(b)(3)) (as amended by section 5(a) of 

19 this Act) is amended by adding at the end the following 

20 new subparagraph: 

21 ‘‘(E) DIF RESTORATION PLANS.—

22 ‘‘(i) IN GENERAL.—Whenever—

23 ‘‘(I) the Corporation projects 

24 that the reserve ratio of the Deposit 

25 Insurance Fund will fall below the 
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1 designated reserve ratio within 6 

2 months of such determination; or 

3 ‘‘(II) the reserve ratio of the De4 posit Insurance Fund actually falls 

5 below the designated reserve ratio 

6 without any determination under sub7 clause (I) having been made, 

8 the Corporation shall establish and imple9 ment a Deposit Insurance Fund restora10 tion plan within 30 days that meets the re11 quirements of clause (ii) or (iii), as the 

12 case may be, and such other conditions as 

13 the Corporation determines to be appro14 priate. 

15 ‘‘(ii) REQUIREMENTS OF PLAN IF RE16 SERVE RATIO DOES NOT FALL BELOW 1.0

17 PERCENT.—If the reserve ratio of the De18 posit Insurance Fund is not projected to or 

19 has not fallen below an amount equal to 

20 1.0 percent of the aggregate estimated in21 sured deposits, a Deposit Insurance Fund 

22 restoration plan meets the requirements of 

23 this clause if the plan provides that the re24 serve ratio of the Fund will meet or exceed 

25 the designated reserve ratio that was in ef-
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1 fect before the occurrence of the event de2 scribed in subclause (I) or (II) of clause (i) 

3 before the end of the 3-year period begin4 ning upon implementation of the plan. 

5 ‘‘(iii) REQUIREMENTS OF PLAN IF RE6 SERVE RATIO FALLS BELOW 1.0 PER7 CENT.—If the reserve ratio of the Deposit 

8 Insurance Fund has fallen below an 

9 amount equal to 1.0 percent of the aggre10 gate estimated insured deposits, a Deposit 

11 Insurance Fund restoration plan meets the 

12 requirements of this clause if the plan pro13 vides that the reserve ratio of the Fund—

14 ‘‘(I) will meet or exceed an 

15 amount equal to 1.0 percent of the 

16 aggregate estimated insured deposits 

17 before the end of the 2-year period be18 ginning upon implementation of the 

19 plan; and 

20 ‘‘(II) will meet or exceed the des21 ignated reserve ratio that was in ef22 fect before the occurrence of the event 

23 described in subclause (I) or (II) of 

24 clause (i) before the end of the 3-year 

25 period beginning on the date the re-
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1 serve ratio first meets or exceeds an 

2 amount equal to 1.0 percent of the 

3 aggregate estimated insured deposits 

4 after the implementation of the plan. 

5 ‘‘(iv) TRANSPARENCY.—Not more 

6 than 90 days after the Corporation estab7 lishes and implements a restoration plan 

8 under clause (i), the Corporation shall pub9 lish in the Federal Register a detailed 

10 analysis of the factors considered and the 

11 basis for the actions taken with regard to 

12 the plan.’’. 

13 SEC. 9. REGULATIONS REQUIRED. 

14 (a) IN GENERAL.—Not later than 270 days after the 

15 date of the enactment of this Act, the Board of Directors 

16 of the Federal Deposit Insurance Corporation shall pre17 scribe final regulations, after notice and opportunity for 

18 comment—

19 (1) designating the reserve ratio for the Deposit 

20 Insurance Fund in accordance with section 7(b)(3) 

21 of the Federal Deposit Insurance Act (as amended 

22 by section 5 of this Act); 

23 (2) implementing increases in deposit insurance 

24 coverage in accordance with the amendments made 

25 by section 3 of this Act; 
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1 (3) implementing the dividend requirement 

2 under section 7(e)(2) of the Federal Deposit Insur3 ance Act (as amended by section 7 of this Act). 

4 (4) implementing the 1-time assessment credit 

5 to certain insured depository institutions in accord6 ance with section 7(e)(3) of the Federal Deposit In7 surance Act, as amended by section 7 of this Act, 

8 including the qualifications and procedures under 

9 which the Corporation would apply assessment cred10 its; and 

11 (5) providing for assessments under section 

12 7(b) of the Federal Deposit Insurance Act, as 

13 amended by this Act. 

14 (b) RULE OF CONSTRUCTION.—No provision of this 

15 Act or any amendment made by this Act shall be con16 strued as affecting the authority of the Corporation to set 

17 or collect deposit insurance assessments before the effec18 tive date of the final regulations prescribed under sub19 section (a).

20 SEC. 10. STUDIES OF FDIC STRUCTURE AND EXPENSES AND 

21 CERTAIN ACTIVITIES AND FURTHER POS22 SIBLE CHANGES TO DEPOSIT INSURANCE 

23 SYSTEM. 

24 (a) STUDY BY COMPTROLLER GENERAL.—
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1 (1) STUDY REQUIRED.—The Comptroller Gen2 eral shall conduct a study of the following issues: 

3 (A) The efficiency and effectiveness of the 

4 administration of the prompt corrective action 

5 program under section 38 of the Federal De6 posit Insurance Act by the Federal banking 

7 agencies (as defined in section 3 of such Act), 

8 including the degree of effectiveness of such 

9 agencies in identifying troubled depository insti10 tutions and taking effective action with respect 

11 to such institutions, and the degree of accuracy 

12 of the risk assessments made by the Corpora13 tion. 

14 (B) The appropriateness of the organiza15 tional structure of the Federal Deposit Insur16 ance Corporation for the mission of the Cor17 poration taking into account—

18 (i) the current size and complexity of 

19 the business of insured depository institu20 tions (as such term is defined in section 3 

21 of the Federal Deposit Insurance Act); 

22 (ii) the extent to which the organiza23 tional structure contributes to or reduces 

24 operational inefficiencies that increase 

25 operational costs; and 
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1 (iii) the effectiveness of internal con2 trols. 

3 (2) REPORT TO THE CONGRESS.—The Comp4 troller General shall submit a report to the Congress 

5 before the end of the 1-year period beginning on the 

6 date of the enactment of this Act containing the 

7 findings and conclusions of the Comptroller General 

8 with respect to the study required under paragraph 

9 (1) together with such recommendations for legisla10 tive or administrative action as the Comptroller Gen11 eral may determine to be appropriate. 

12 (b) INTERNAL STUDY BY THE FDIC.—

13 (1) STUDY REQUIRED.—Concurrently with the 

14 study required to be conducted by the Comptroller 

15 General under subsection (a), the Federal Deposit 

16 Insurance Corporation shall conduct an internal 

17 study of the same conditions and factors included in 

18 the study under subsection (a). 

19 (2) REPORT TO THE CONGRESS.—The Federal 

20 Deposit Insurance Corporation shall submit a report 

21 to the Congress before the end of the 1-year period 

22 beginning on the date of the enactment of this Act 

23 containing the findings and conclusions of the Cor24 poration with respect to the study required under 

25 paragraph (1) together with such recommendations 
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1 for legislative or administrative action as the Board 

2 of Directors of the Corporation may determine to be 

3 appropriate. 

4 (c) STUDY OF FURTHER POSSIBLE CHANGES TO DE5 POSIT INSURANCE SYSTEM.—

6 (1) STUDY REQUIRED.—The Board of Directors 

7 of the Federal Deposit Insurance Corporation and 

8 the National Credit Union Administration Board 

9 shall each conduct a study of the following: 

10 (A) The feasibility of establishing a vol11 untary deposit insurance system for deposits in 

12 excess of the maximum amount of deposit in13 surance for any depositor and the potential ben14 efits and the potential adverse consequences

15 that may result from the establishment of any 

16 such system. 

17 (B) The feasibility of privatizing all deposit 

18 insurance at insured depository institutions and 

19 insured credit unions. 

20 (2) REPORT.—Before the end of the 1-year pe21 riod beginning on the date of the enactment of this 

22 Act, the Board of Directors of the Federal Deposit 

23 Insurance Corporation and the National Credit 

24 Union Administration Board shall each submit a re25 port to the Congress on the study required under 
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•HR 522 IH 

1 paragraph (1) containing the findings and conclu2 sions of the reporting agency together with such rec3 ommendations for legislative or administrative 

4 changes as the agency may determine to be appro5 priate. 

6 (d) STUDY REGARDING APPROPRIATE DEPOSIT

7 BASE IN DESIGNATING RESERVE RATIO.—

8 (1) STUDY REQUIRED.—The Federal Deposit 

9 Insurance Corporation shall conduct a study of the 

10 feasibility of using actual domestic deposits rather 

11 than estimated insured deposits in calculating the 

12 reserve ratio of the Deposit Insurance Fund and 

13 designating a reserve ratio for such Fund. 

14 (2) REPORT.—The Federal Deposit Insurance 

15 Corporation shall submit a report to the Congress 

16 before the end of the 1-year period beginning on the 

17 date of the enactment of this Act containing the 

18 findings and conclusions of the Corporation with re19 spect to the study required under paragraph (1) to20 gether with such recommendations for legislative or 

21 administrative action as the Board of Directors of 

22 the Corporation may determine to be appropriate. 

23 (e) STUDY OF RESERVE METHODOLOGY AND AC24 COUNTING FOR LOSS.—
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1 (1) STUDY REQUIRED.—The Federal Deposit 

2 Insurance Corporation, in consultation with the 

3 Comptroller General, shall conduct a study of the re4 serve methodology and loss accounting used by the 

5 Corporation during the period beginning on January 

6 1, 1992, and ending December 31, 2002, with re7 spect to insured depository institutions in a troubled 

8 condition (as defined in the regulations prescribed 

9 pursuant to section 32(f) of the Federal Deposit In10 surance Act). 

11 (2) FACTORS TO BE INCLUDED.—In conducting 

12 the study pursuant to paragraph (1), the Federal 

13 Deposit Insurance Corporation shall—

14 (A) consider the overall effectiveness and 

15 accuracy of the methodology used by the Cor16 poration for establishing and maintaining re17 serves and estimating and accounting for losses 

18 at insured depository institutions, during the 

19 period described in such paragraph;

20 (B) consider the appropriateness and reli21 ability of information and criteria used by the 

22 Corporation in determining—

23 (i) whether an insured depository in24 stitution was in a troubled condition; and 
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1 (ii) the amount of any loss anticipated 

2 at such institution; 

3 (C) analyze the actual historical loss expe4 rience over the period described in paragraph 

5 (1) and the causes of the exceptionally high 

6 rate of losses experienced by the Corporation in 

7 the final 3 years of that period; and 

8 (D) rate the efforts of the Corporation to 

9 reduce losses in such 3-year period to minimally 

10 acceptable levels and to historical levels. 

11 (3) REPORT REQUIRED.—The Board of Direc12 tors of the Federal Deposit Insurance Corporation 

13 shall submit a report to the Congress before the end 

14 of the 6-month period beginning on the date of the 

15 enactment of this Act, containing the findings and 

16 conclusions of the Corporation, in consultation with 

17 the Comptroller General, with respect to the study 

18 required under paragraph (1), together with such 

19 recommendations for legislative or administrative ac20 tion as the Board of Directors may determine to be 

21 appropriate. 
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1 SEC. 11. TECHNICAL AND CONFORMING AMENDMENTS TO 

2 THE FEDERAL DEPOSIT INSURANCE ACT RE3 LATING TO THE MERGER OF THE BIF AND 

4 SAIF. 

5 (a) IN GENERAL.—The Federal Deposit Insurance 

6 Act (12 U.S.C. 1811 et seq.) is amended—

7 (1) in section 3 (12 U.S.C. 1813)—

8 (A) by striking subparagraph (B) of sub9 section (a)(1) and inserting the following new 

10 subparagraph: 

11 ‘‘(B) includes any former savings associa12 tion.’’; and 

13 (B) by striking paragraph (1) of sub14 section (y) (as so designated by section 5(b) of 

15 this Act) and inserting the following new para16 graph: 

17 ‘‘(1) DEPOSIT INSURANCE FUND.—The term 

18 ‘Deposit Insurance Fund’ means the Deposit Insur19 ance Fund established under section 11(a)(4).’’; 

20 (2) in section 5(b)(5) (12 U.S.C. 1815(b)(5)), 

21 by striking ‘‘the Bank Insurance Fund or the Sav22 ings Association Insurance Fund,’’ and inserting 

23 ‘‘the Deposit Insurance Fund,’’; 

24 (3) in section 5(c)(4), by striking ‘‘deposit in25 surance fund’’ and inserting ‘‘Deposit Insurance 

26 Fund’’; 
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•HR 522 IH 

1 (4) in section 5(d) (12 U.S.C. 1815(d)), by 

2 striking paragraphs (2) and (3); 

3 (5) in section 5(d)(1) (12 U.S.C. 1815(d)(1))—

4 (A) in subparagraph (A), by striking ‘‘re5 serve ratios in the Bank Insurance Fund and 

6 the Savings Association Insurance Fund as re7 quired by section 7’’ and inserting ‘‘the reserve 

8 ratio of the Deposit Insurance Fund’’; 

9 (B) by striking subparagraph (B) and in10 serting the following: 

11 ‘‘(2) FEE CREDITED TO THE DEPOSIT INSUR12 ANCE FUND.—The fee paid by the depository insti13 tution under paragraph (1) shall be credited to the 

14 Deposit Insurance Fund.’’; 

15 (C) by striking ‘‘(1) UNINSURED INSTITU16 TIONS.—’’; and 

17 (D) by redesignating subparagraphs (A) 

18 and (C) as paragraphs (1) and (3), respectively, 

19 and moving the left margins 2 ems to the left; 

20 (6) in section 5(e) (12 U.S.C. 1815(e))—

21 (A) in paragraph (5)(A), by striking 

22 ‘‘Bank Insurance Fund or the Savings Associa23 tion Insurance Fund’’ and inserting ‘‘Deposit 

24 Insurance Fund’’; 

25 (B) by striking paragraph (6); and 
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•HR 522 IH 

1 (C) by redesignating paragraphs (7), (8), 

2 and (9) as paragraphs (6), (7), and (8), respec3 tively; 

4 (7) in section 6(5) (12 U.S.C. 1816(5)), by 

5 striking ‘‘Bank Insurance Fund or the Savings As6 sociation Insurance Fund’’ and inserting ‘‘Deposit 

7 Insurance Fund’’; 

8 (8) in section 7(b) (12 U.S.C. 1817(b))—

9 (A) in paragraph (1)(C), by striking ‘‘de10 posit insurance fund’’ each place that term ap11 pears and inserting ‘‘Deposit Insurance Fund’’; 

12 (B) in paragraph (1)(D), by striking ‘‘each 

13 deposit insurance fund’’ and inserting ‘‘the De14 posit Insurance Fund’’; and 

15 (C) in paragraph (5) (as so redesignated 

16 by section 4(e)(4) of this Act)—

17 (i) by striking ‘‘any such assessment’’ 

18 and inserting ‘‘any such assessment is nec19 essary’’; 

20 (ii) by striking subparagraph (B); 

21 (iii) in subparagraph (A)—

22 (I) by striking ‘‘(A) is nec23 essary—’’; 
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•HR 522 IH 

1 (II) by striking ‘‘Bank Insurance 

2 Fund members’’ and inserting ‘‘in3 sured depository institutions’’; and 

4 (III) by redesignating clauses (i), 

5 (ii), and (iii) as subparagraphs (A), 

6 (B), and (C), respectively, and moving 

7 the margins 2 ems to the left; and 

8 (iv) in subparagraph (C) (as so redes9 ignated)—

10 (I) by inserting ‘‘that’’ before 

11 ‘‘the Corporation’’; and 

12 (II) by striking ‘‘; and’’ and in13 serting a period; 

14 (9) in section 7(j)(7)(F) (12 U.S.C. 

15 1817(j)(7)(F)), by striking ‘‘Bank Insurance Fund 

16 or the Savings Association Insurance Fund’’ and in17 serting ‘‘Deposit Insurance Fund’’; 

18 (10) in section 8(t)(2)(C) (12 U.S.C. 

19 1818(t)(2)(C)), by striking ‘‘deposit insurance fund’’ 

20 and inserting ‘‘Deposit Insurance Fund’’; 

21 (11) in section 11 (12 U.S.C. 1821)—

22 (A) by striking ‘‘deposit insurance fund’’ 

23 each place that term appears and inserting 

24 ‘‘Deposit Insurance Fund’’; 
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•HR 522 IH 

1 (B) by striking paragraph (4) of sub2 section (a) and inserting the following new 

3 paragraph: 

4 ‘‘(4) DEPOSIT INSURANCE FUND.—

5 ‘‘(A) ESTABLISHMENT.—There is estab6 lished the Deposit Insurance Fund, which the 

7 Corporation shall—

8 ‘‘(i) maintain and administer; 

9 ‘‘(ii) use to carry out its insurance 

10 purposes, in the manner provided by this 

11 subsection; and 

12 ‘‘(iii) invest in accordance with section 

13 13(a). 

14 ‘‘(B) USES.—The Deposit Insurance Fund 

15 shall be available to the Corporation for use 

16 with respect to insured depository institutions 

17 the deposits of which are insured by the De18 posit Insurance Fund. 

19 ‘‘(C) LIMITATION ON USE.—Notwith20 standing any provision of law other than section 

21 13(c)(4)(G), the Deposit Insurance Fund shall 

22 not be used in any manner to benefit any share23 holder or affiliate (other than an insured depos24 itory institution that receives assistance in ac25 cordance with the provisions of this Act) of—
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•HR 522 IH 

1 ‘‘(i) any insured depository institution 

2 for which the Corporation has been ap3 pointed conservator or receiver, in connec4 tion with any type of resolution by the 

5 Corporation; 

6 ‘‘(ii) any other insured depository in7 stitution in default or in danger of default, 

8 in connection with any type of resolution 

9 by the Corporation; or 

10 ‘‘(iii) any insured depository institu11 tion, in connection with the provision of as12 sistance under this section or section 13 

13 with respect to such institution, except 

14 that this clause shall not prohibit any as15 sistance to any insured depository institu16 tion that is not in default, or that is not 

17 in danger of default, that is acquiring (as 

18 defined in section 13(f)(8)(B)) another in19 sured depository institution. 

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

21 against insured depository institutions by the 

22 Corporation shall be deposited into the Deposit 

23 Insurance Fund.’’; 

24 (C) by striking paragraphs (5), (6), and 

25 (7) of subsection (a); and 
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•HR 522 IH 

1 (D) by redesignating paragraph (8) of sub2 section (a) as paragraph (5); 

3 (12) in section 11(f)(1) (12 U.S.C. 1821(f)(1)), 

4 by striking ‘‘, except that—’’ and all that follows 

5 through the end of the paragraph and inserting a 

6 period; 

7 (13) in section 11(i)(3) (12 U.S.C. 

8 1821(i)(3))—

9 (A) by striking subparagraph (B); 

10 (B) by redesignating subparagraph (C) as 

11 subparagraph (B); and 

12 (C) in subparagraph (B) (as so redesig13 nated), by striking ‘‘subparagraphs (A) and 

14 (B)’’ and inserting ‘‘subparagraph (A)’’; 

15 (14) in section 11(p)(2)(B) (12 U.S.C. 

16 1821(p)(2)(B)), by striking ‘‘institution, any’’ and 

17 inserting ‘‘institution, the’’; 

18 (15) in section 11A(a) (12 U.S.C. 1821a(a))—

19 (A) in paragraph (2), by striking ‘‘LIABIL20 ITIES.—’’ and all that follows through ‘‘Except’’ 

21 and inserting ‘‘LIABILITIES.—Except’’; 

22 (B) by striking paragraph (2)(B); and 

23 (C) in paragraph (3), by striking ‘‘the 

24 Bank Insurance Fund, the Savings Association 
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•HR 522 IH 

1 Insurance Fund,’’ and inserting ‘‘the Deposit 

2 Insurance Fund’’; 

3 (16) in section 11A(b) (12 U.S.C. 1821a(b)), 

4 by striking paragraph (4); 

5 (17) in section 11A(f) (12 U.S.C. 1821a(f)), by 

6 striking ‘‘Savings Association Insurance Fund’’ and 

7 inserting ‘‘Deposit Insurance Fund’’; 

8 (18) in section 12(f)(4)(E)(iv) (12 U.S.C. 

9 1822(f)(4)(E)(iv)), by striking ‘‘Federal deposit in10 surance funds’’ and inserting ‘‘the Deposit Insur11 ance Fund (or any predecessor deposit insurance 

12 fund)’’; 

13 (19) in section 13 (12 U.S.C. 1823)—

14 (A) by striking ‘‘deposit insurance fund’’ 

15 each place that term appears and inserting 

16 ‘‘Deposit Insurance Fund’’; 

17 (B) in subsection (a)(1), by striking ‘‘Bank 

18 Insurance Fund, the Savings Association Insur19 ance Fund,’’ and inserting ‘‘Deposit Insurance 

20 Fund’’; 

21 (C) in subsection (c)(4)(E)—

22 (i) in the subparagraph heading, by 

23 striking ‘‘FUNDS’’ and inserting ‘‘FUND’’; 

24 and 
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•HR 522 IH 

1 (ii) in clause (i), by striking ‘‘any in2 surance fund’’ and inserting ‘‘the Deposit 

3 Insurance Fund’’; 

4 (D) in subsection (c)(4)(G)(ii)—

5 (i) by striking ‘‘appropriate insurance 

6 fund’’ and inserting ‘‘Deposit 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’’ each 

16 place that term appears and inserting ‘‘the 

17 institution’s’’; 

18 (E) in subsection (c), by striking para19 graph (11); 

20 (F) in subsection (h), by striking ‘‘Bank 

21 Insurance Fund’’ and inserting ‘‘Deposit Insur22 ance Fund’’;

23 (G) in subsection (k)(4)(B)(i), by striking 

24 ‘‘Savings Association Insurance Fund member’’ 

25 and inserting ‘‘savings association’’; and 
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•HR 522 IH 

1 (H) in subsection (k)(5)(A), by striking 

2 ‘‘Savings Association Insurance Fund mem3 bers’’ and inserting ‘‘savings associations’’; 

4 (20) in section 14(a) (12 U.S.C. 1824(a)), in 

5 the 5th sentence—

6 (A) by striking ‘‘Bank Insurance Fund or 

7 the Savings Association Insurance Fund’’ and 

8 inserting ‘‘Deposit Insurance Fund’’; and 

9 (B) by striking ‘‘each such fund’’ and in10 serting ‘‘the Deposit Insurance Fund’’; 

11 (21) in section 14(b) (12 U.S.C. 1824(b)), by 

12 striking ‘‘Bank Insurance Fund or Savings Associa13 tion Insurance Fund’’ and inserting ‘‘Deposit Insur14 ance Fund’’; 

15 (22) in section 14(c) (12 U.S.C. 1824(c)), by 

16 striking paragraph (3); 

17 (23) in section 14(d) (12 U.S.C. 1824(d))—

18 (A) by striking ‘‘Bank Insurance Fund 

19 member’’ each place that term appears and in20 serting ‘‘insured depository institution’’; 

21 (B) by striking ‘‘Bank Insurance Fund 

22 members’’ each place that term appears and in23 serting ‘‘insured depository institutions’’; 

24 (C) by striking ‘‘Bank Insurance Fund’’ 

25 each place that term appears (other than in 
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•HR 522 IH 

1 connection with a reference to a term amended 

2 by subparagraph (A) or (B) of this paragraph) 

3 and inserting ‘‘Deposit Insurance Fund’’; 

4 (D) by striking the subsection heading and 

5 inserting the following: 

6 ‘‘(d) BORROWING FOR THE DEPOSIT INSURANCE

7 FUND FROM INSURED DEPOSITORY INSTITUTIONS.—’’; 

8 (E) in paragraph (3), in the paragraph 

9 heading, by striking ‘‘BIF’’ and inserting ‘‘THE

10 DEPOSIT INSURANCE FUND’’; and 

11 (F) in paragraph (5), in the paragraph 

12 heading, by striking ‘‘BIF MEMBERS’’ and in13 serting ‘‘INSURED DEPOSITORY INSTITUTIONS’’; 

14 (24) in section 14 (12 U.S.C. 1824), by adding 

15 at the end the following new subsection: 

16 ‘‘(e) BORROWING FOR THE DEPOSIT INSURANCE

17 FUND FROM FEDERAL HOME LOAN BANKS.—

18 ‘‘(1) IN GENERAL.—The Corporation may bor19 row from the Federal home loan banks, with the 

20 concurrence of the Federal Housing Finance Board, 

21 such funds as the Corporation considers necessary 

22 for the use of the Deposit Insurance Fund. 

23 ‘‘(2) TERMS AND CONDITIONS.—Any loan from 

24 any Federal home loan bank under paragraph (1) to 

25 the Deposit Insurance Fund shall—
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•HR 522 IH 

1 ‘‘(A) bear a rate of interest of not less 

2 than the current marginal cost of funds to that 

3 bank, taking into account the maturities in4 volved; 

5 ‘‘(B) be adequately secured, as determined 

6 by the Federal Housing Finance Board; 

7 ‘‘(C) be a direct liability of the Deposit In8 surance Fund; and 

9 ‘‘(D) be subject to the limitations of sec10 tion 15(c).’’; 

11 (25) in section 15(c)(5) (12 U.S.C. 

12 1825(c)(5))—

13 (A) by striking ‘‘the Bank Insurance Fund 

14 or Savings Association Insurance Fund, respec15 tively’’ each place that term appears and insert16 ing ‘‘the Deposit Insurance Fund’’; and 

17 (B) in subparagraph (B), by striking ‘‘the 

18 Bank Insurance Fund or the Savings Associa19 tion Insurance Fund, respectively’’ and insert20 ing ‘‘the Deposit Insurance Fund’’; 

21 (26) in section 17(a) (12 U.S.C. 1827(a))—

22 (A) in the subsection heading, by striking 

23 ‘‘BIF, SAIF,’’ and inserting ‘‘THE DEPOSIT IN24 SURANCE FUND’’; and 

25 (B) in paragraph (1)—
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•HR 522 IH 

1 (i) by striking ‘‘the Bank Insurance 

2 Fund, the Savings Association Insurance 

3 Fund,’’ each place that term appears and 

4 inserting ‘‘the Deposit Insurance Fund’’; 

5 and 

6 (ii) in subparagraph (D), by striking 

7 ‘‘each insurance fund’’ and inserting ‘‘the 

8 Deposit Insurance Fund’’; 

9 (27) in section 17(d) (12 U.S.C. 1827(d)), by 

10 striking ‘‘, the Bank Insurance Fund, the Savings 

11 Association Insurance Fund,’’ each place that term 

12 appears and inserting ‘‘the Deposit Insurance 

13 Fund’’; 

14 (28) in section 18(m)(3) (12 U.S.C. 

15 1828(m)(3))—

16 (A) by striking ‘‘Savings Association In17 surance Fund’’ in the 1st sentence of subpara18 graph (A) and inserting ‘‘Deposit Insurance 

19 Fund’’; 

20 (B) by striking ‘‘Savings Association In21 surance Fund member’’ in the last sentence of 

22 subparagraph (A) and inserting ‘‘savings asso23 ciation’’; and 

24 (C) by striking ‘‘Savings Association Insur25 ance Fund or the Bank Insurance Fund’’ in 
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•HR 522 IH 

1 subparagraph (C) and inserting ‘‘Deposit Insur2 ance Fund’’; 

3 (29) in section 18(o) (12 U.S.C. 1828(o)), by 

4 striking ‘‘deposit insurance funds’’ and ‘‘deposit in5 surance fund’’ each place those terms appear and in6 serting ‘‘Deposit Insurance Fund’’; 

7 (30) in section 18(p) (12 U.S.C. 1828(p)), by 

8 striking ‘‘deposit insurance funds’’ and inserting 

9 ‘‘Deposit Insurance Fund’’; 

10 (31) in section 24 (12 U.S.C. 1831a)—

11 (A) in subsections (a)(1) and (d)(1)(A), by 

12 striking ‘‘appropriate deposit insurance fund’’ 

13 each place that term appears and inserting 

14 ‘‘Deposit Insurance Fund’’; 

15 (B) in subsection (e)(2)(A), by striking 

16 ‘‘risk to’’ and all that follows through the pe17 riod and inserting ‘‘risk to the Deposit Insur18 ance Fund.’’; and

19 (C) in subsections (e)(2)(B)(ii) and 

20 (f)(6)(B), by striking ‘‘the insurance fund of 

21 which such bank is a member’’ each place that 

22 term appears and inserting ‘‘the Deposit Insur23 ance Fund’’; 

24 (32) in section 28 (12 U.S.C. 1831e), by strik25 ing ‘‘affected deposit insurance fund’’ each place 
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•HR 522 IH 

1 that term appears and inserting ‘‘Deposit Insurance 

2 Fund’’; 

3 (33) by striking section 31 (12 U.S.C. 1831h); 

4 (34) in section 36(i)(3) (12 U.S.C. 

5 1831m(i)(3)), by striking ‘‘affected deposit insur6 ance fund’’ and inserting ‘‘Deposit Insurance 

7 Fund’’; 

8 (35) in section 37(a)(1)(C) (12 U.S.C. 

9 1831n(a)(1)(C)), by striking ‘‘insurance funds’’ and 

10 inserting ‘‘Deposit Insurance Fund’’; 

11 (36) in section 38 (12 U.S.C. 1831o), by strik12 ing ‘‘the deposit insurance fund’’ each place that 

13 term appears and inserting ‘‘the Deposit Insurance 

14 Fund’’; 

15 (37) in section 38(a) (12 U.S.C. 1831o(a)), in 

16 the subsection heading, by striking ‘‘FUNDS’’ and in17 serting ‘‘FUND’’; 

18 (38) in section 38(k) (12 U.S.C. 1831o(k))—

19 (A) in paragraph (1), by striking ‘‘a de20 posit insurance fund’’ and inserting ‘‘the De21 posit Insurance Fund’’; 

22 (B) in paragraph (2), by striking ‘‘A de23 posit insurance fund’’ and inserting ‘‘The De24 posit Insurance Fund’’; and 
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•HR 522 IH 

1 (C) in paragraphs (2)(A) and (3)(B), by 

2 striking ‘‘the deposit insurance fund’s outlays’’ 

3 each place that term appears and inserting ‘‘the 

4 outlays of the Deposit Insurance Fund’’; and 

5 (39) in section 38(o) (12 U.S.C. 1831o(o))—

6 (A) by striking ‘‘ASSOCIATIONS.—’’ and all 

7 that follows through ‘‘Subsections (e)(2)’’ and 

8 inserting ‘‘ASSOCIATIONS.—Subsections (e)(2)’’; 

9 (B) by redesignating subparagraphs (A), 

10 (B), and (C) as paragraphs (1), (2), and (3), 

11 respectively, and moving the margins 2 ems to 

12 the left; and 

13 (C) in paragraph (1) (as so redesignated), 

14 by redesignating clauses (i) and (ii) as subpara15 graphs (A) and (B), respectively, and moving 

16 the margins 2 ems to the left. 

17 (b) EFFECTIVE DATE.—This section and the amend18 ments made by this section shall take effect on the first 

19 day of the first calendar quarter that begins after the end 

20 of the 90-day period beginning on the date of the enact21 ment of this Act. 
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1 SEC. 12. OTHER TECHNICAL AND CONFORMING AMEND2 MENTS RELATING TO THE MERGER OF THE 

3 BIF AND SAIF. 

4 (a) SECTION 5136 OF THE REVISED STATUTES.—

5 The paragraph designated the ‘‘Eleventh’’ of section 5136 

6 of the Revised Statutes of the United States (12 U.S.C. 

7 24) is amended in the 5th sentence, by striking ‘‘affected 

8 deposit insurance fund’’ and inserting ‘‘Deposit Insurance 

9 Fund’’. 

10 (b) INVESTMENTS PROMOTING PUBLIC WELFARE; 

11 LIMITATIONS ON AGGREGATE INVESTMENTS.—The 23d 

12 undesignated paragraph of section 9 of the Federal Re13 serve Act (12 U.S.C. 338a) is amended in the 4th sen14 tence, by striking ‘‘affected deposit insurance fund’’ and 

15 inserting ‘‘Deposit Insurance Fund’’. 

16 (c) ADVANCES TO CRITICALLY UNDERCAPITALIZED

17 DEPOSITORY INSTITUTIONS.—Section 10B(b)(3)(A)(ii) of 

18 the Federal Reserve Act (12 U.S.C. 347b(b)(3)(A)(ii)) is 

19 amended by striking ‘‘any deposit insurance fund in’’ and 

20 inserting ‘‘the Deposit Insurance Fund of’’. 

21 (d) AMENDMENTS TO THE BALANCED BUDGET AND

22 EMERGENCY DEFICIT CONTROL ACT OF 1985.—Section 

23 255(g)(1)(A) of the Balanced Budget and Emergency 

24 Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(A)) is 

25 amended—
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•HR 522 IH 

1 (1) by striking ‘‘Bank Insurance Fund’’ and in2 serting ‘‘Deposit Insurance Fund’’; and 

3 (2) by striking ‘‘Federal Deposit Insurance Cor4 poration, Savings Association Insurance Fund (51–

5 4066–0–3–373);’’. 

6 (e) AMENDMENTS TO THE FEDERAL HOME LOAN

7 BANK ACT.—The Federal Home Loan Bank Act (12 

8 U.S.C. 1421 et seq.) is amended—

9 (1) in section 11(k) (12 U.S.C. 1431(k))—

10 (A) in the subsection heading, by striking 

11 ‘‘SAIF’’ and inserting ‘‘THE DEPOSIT INSUR12 ANCE FUND’’; and 

13 (B) by striking ‘‘Savings Association In14 surance Fund’’ each place such term appears 

15 and inserting ‘‘Deposit Insurance Fund’’; 

16 (2) in section 21 (12 U.S.C. 1441)—

17 (A) in subsection (f)(2), by striking ‘‘, ex18 cept that’’ and all that follows through the end 

19 of the paragraph and inserting a period; and 

20 (B) in subsection (k), by striking para21 graph (4); 

22 (3) in section 21A(b)(4)(B) (12 U.S.C. 

23 1441a(b)(4)(B)), by striking ‘‘affected deposit insur24 ance fund’’ and inserting ‘‘Deposit Insurance 

25 Fund’’; 
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•HR 522 IH 

1 (4) in section 21A(b)(6)(B) (12 U.S.C. 

2 1441a(b)(6)(B))—

3 (A) in the subparagraph heading, by strik4 ing ‘‘SAIF-INSURED BANKS’’ and inserting 

5 ‘‘CHARTER CONVERSIONS’’; and 

6 (B) by striking ‘‘Savings Association In7 surance Fund member’’ and inserting ‘‘savings 

8 association’’; 

9 (5) in section 21A(b)(10)(A)(iv)(II) (12 U.S.C. 

10 1441a(b)(10)(A)(iv)(II)), by striking ‘‘Savings Asso11 ciation Insurance Fund’’ and inserting ‘‘Deposit In12 surance Fund’’; 

13 (6) in section 21A(n)(6)(E)(iv) (12 U.S.C. 

14 1441(n)(6)(E)(iv)), by striking ‘‘Federal deposit in15 surance funds’’ and inserting ‘‘the Deposit Insur16 ance Fund’’; 

17 (7) in section 21B(e) (12 U.S.C. 1441b(e))—

18 (A) in paragraph (5), by inserting ‘‘as of 

19 the date of funding’’ after ‘‘Savings Association 

20 Insurance Fund members’’ each place that term 

21 appears; and 

22 (B) by striking paragraphs (7) and (8); 

23 and

24 (8) in section 21B(k) (12 U.S.C. 1441b(k))—
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•HR 522 IH 

1 (A) by inserting before the colon ‘‘, the fol2 lowing definitions shall apply’’; 

3 (B) by striking paragraph (8); and 

4 (C) by redesignating paragraphs (9) and 

5 (10) as paragraphs (8) and (9), respectively. 

6 (f) AMENDMENTS TO THE HOME OWNERS’ LOAN

7 ACT.—The Home Owners’ Loan Act (12 U.S.C. 1461 et 

8 seq.) is amended—

9 (1) in section 5 (12 U.S.C. 1464)—

10 (A) in subsection (c)(5)(A), by striking 

11 ‘‘that is a member of the Bank Insurance 

12 Fund’’; 

13 (B) in subsection (c)(6), by striking ‘‘As 

14 used in this subsection—’’ and inserting ‘‘For 

15 purposes of this subsection, the following defini16 tions shall apply:’’; 

17 (C) in subsection (o)(1), by striking ‘‘that 

18 is a Bank Insurance Fund member’’; 

19 (D) in subsection (o)(2)(A), by striking ‘‘a 

20 Bank Insurance Fund member until such time 

21 as it changes its status to a Savings Association 

22 Insurance Fund member’’ and inserting ‘‘in23 sured by the Deposit Insurance Fund’’; 
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•HR 522 IH 

1 (E) in subsection (t)(5)(D)(iii)(II), by 

2 striking ‘‘affected deposit insurance fund’’ and 

3 inserting ‘‘Deposit Insurance Fund’’; 

4 (F) in subsection (t)(7)(C)(i)(I), by strik5 ing ‘‘affected deposit insurance fund’’ and in6 serting ‘‘Deposit Insurance Fund’’; and 

7 (G) in subsection (v)(2)(A)(i), by striking 

8 ‘‘the Savings Association Insurance Fund’’ and 

9 inserting ‘‘or the Deposit Insurance Fund’’; and 

10 (2) in section 10 (12 U.S.C. 1467a)—

11 (A) in subsection (c)(6)(D), by striking 

12 ‘‘this title’’ and inserting ‘‘this Act’’; 

13 (B) in subsection (e)(1)(B), by striking 

14 ‘‘Savings Association Insurance Fund or Bank 

15 Insurance Fund’’ and inserting ‘‘Deposit Insur16 ance Fund’’; 

17 (C) in subsection (e)(2), by striking ‘‘Sav18 ings Association Insurance Fund or the Bank 

19 Insurance Fund’’ and inserting ‘‘Deposit Insur20 ance Fund’’; 

21 (D) in subsection (e)(4)(B), by striking 

22 ‘‘subsection (1)’’ and inserting ‘‘subsection (l)’’; 

23 (E) in subsection (g)(3)(A), by striking 

24 ‘‘(5) of this section’’ and inserting ‘‘(5) of this 

25 subsection’’; 
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•HR 522 IH 

1 (F) in subsection (i), by redesignating 

2 paragraph (5) as paragraph (4); 

3 (G) in subsection (m)(3), by striking sub4 paragraph (E) and by redesignating subpara5 graphs (F), (G), and (H) as subparagraphs 

6 (E), (F), and (G), respectively; 

7 (H) in subsection (m)(7)(A), by striking 

8 ‘‘during period’’ and inserting ‘‘during the pe9 riod’’; and 

10 (I) in subsection (o)(3)(D), by striking 

11 ‘‘sections 5(s) and (t) of this Act’’ and inserting 

12 ‘‘subsections (s) and (t) of section 5’’. 

13 (g) AMENDMENTS TO THE NATIONAL HOUSING

14 ACT.—The National Housing Act (12 U.S.C. 1701 et 

15 seq.) is amended—

16 (1) in section 317(b)(1)(B) (12 U.S.C. 

17 1723i(b)(1)(B)), by striking ‘‘Bank Insurance Fund 

18 for banks or through the Savings Association Insur19 ance Fund for savings associations’’ and inserting 

20 ‘‘Deposit Insurance Fund’’; and 

21 (2) in section 536(b)(1)(B)(ii) (12 U.S.C. 

22 1735f–14(b)(1)(B)(ii)), by striking ‘‘Bank Insurance 

23 Fund for banks and through the Savings Association 

24 Insurance Fund for savings associations’’ and insert25 ing ‘‘Deposit Insurance Fund’’. 
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•HR 522 IH 

1 (h) AMENDMENTS TO THE FINANCIAL INSTITUTIONS

2 REFORM, RECOVERY, AND ENFORCEMENT ACT OF

3 1989.—The Financial Institutions Reform, Recovery, and 

4 Enforcement Act of 1989 (12 U.S.C. 1811 note) is 

5 amended—

6 (1) in section 951(b)(3)(B) (12 U.S.C. 

7 1833a(b)(3)(B)), by inserting ‘‘and after the merger 

8 of such funds, the Deposit Insurance Fund,’’ after 

9 ‘‘the Savings Association Insurance Fund,’’; and 

10 (2) in section 1112(c)(1)(B) (12 U.S.C. 

11 3341(c)(1)(B)), by striking ‘‘Bank Insurance Fund, 

12 the Savings Association Insurance Fund,’’ and in13 serting ‘‘Deposit Insurance Fund’’. 

14 (i) AMENDMENT TO THE BANK HOLDING COMPANY

15 ACT OF 1956.—The Bank Holding Company Act of 1956 

16 (12 U.S.C. 1841 et seq.) is amended— 

17 (1) in section 2(j)(2) (12 U.S.C. 1841(j)(2)), by 

18 striking ‘‘Savings Association Insurance Fund’’ and 

19 inserting ‘‘Deposit Insurance Fund’’; and 

20 (2) in section 3(d)(1)(D)(iii) (12 U.S.C. 

21 1842(d)(1)(D)(iii)), by striking ‘‘appropriate deposit 

22 insurance fund’’ and inserting ‘‘Deposit Insurance 

23 Fund’’. 

24 (j) AMENDMENTS TO THE GRAMM-LEACH-BLILEY

25 ACT.—Section 114 of the Gramm-Leach-Bliley Act (12 
76

•HR 522 IH 

1 U.S.C. 1828a) is amended by striking ‘‘any Federal de2 posit insurance fund’’ in subsection (a)(1)(B), paragraphs 

3 (2)(B) and (4)(B) of subsection (b), and subsection 

4 (c)(1)(B), each place that term appears and inserting ‘‘the 

5 Deposit Insurance Fund’’. 

6 (k) EFFECTIVE DATE.—This section and the amend7 ments made by this section shall take effect on the first 

8 day of the first calendar quarter that begins after the end 

9 of the 90-day period beginning on the date of the enact10 ment of this Act.

Æ