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Fund,’’ and inserting ‘‘Deposit Insurance
Fund’’; and
(B) in section 1112(c)(1)(B) (12 U.S.C.
3341(c)(1)(B)), by striking ‘‘Bank Insurance
Fund, 
the 
Savings 
Association 
Insurance
Fund,’’ and inserting ‘‘Deposit Insurance
Fund’’.
(16) AMENDMENT TO THE BANK ENTERPRISE
ACT OF 1991.—Section 232(a)(1) of the Bank Enter-
prise Act of 1991 (12 U.S.C. 1834(a)(1)) is amend-
ed by striking ‘‘section 7(b)(2)(H)’’ and inserting
‘‘section 7(b)(2)(G)’’.
(17) AMENDMENT
TO
THE
BANK
HOLDING
COMPANY ACT.—Section 2(j)(2) of the Bank Hold-
ing Company Act of 1956 (12 U.S.C. 1841(j)(2)) is
amended by striking ‘‘Savings Association Insurance
Fund’’ and inserting ‘‘Deposit Insurance Fund’’.
SEC. 205. CREATION OF SAIF SPECIAL RESERVE.
Section 11(a)(6) of the Federal Deposit Insurance
Act (12 U.S.C. 1821(a)(6)) is amended by adding at the
end the following new subparagraph:
‘‘(L) ESTABLISHMENT
OF
SAIF
SPECIAL
RE-
SERVE.—
‘‘(i) ESTABLISHMENT.—If, on January 1,
1998, the reserve ratio of the Savings Associa-
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tion Insurance Fund exceeds the designated re-
serve ratio, there is established a Special Re-
serve of the Savings Association Insurance
Fund, which shall be administered by the Cor-
poration and shall be invested in accordance
with section 13(a).
‘‘(ii) AMOUNTS IN SPECIAL RESERVE.—If,
on January 1, 1998, the reserve ratio of the
Savings Association Insurance Fund exceeds
the designated reserve ratio, the amount by
which the reserve ratio exceeds the designated
reserve ratio shall be placed in the Special Re-
serve of the Savings Association Insurance
Fund established by clause (i).
‘‘(iii) LIMITATION.—The Corporation shall
not provide any assessment credit, refund, or
other payment from any amount in the Special
Reserve of the Savings Association Insurance
Fund.
‘‘(iv) EMERGENCY
USE
OF
SPECIAL
RE-
SERVE.—Notwithstanding clause (iii), the Cor-
poration may, in its sole discretion, transfer
amounts from the Special Reserve of the Sav-
ings Association Insurance Fund to the Savings
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Association Insurance Fund for the purposes
set forth in paragraph (4), only if—
‘‘(I) the reserve ratio of the Savings
Association Insurance Fund is less than 50
percent of the designated reserve ratio; and
‘‘(II) the Corporation expects the re-
serve ratio of the Savings Association In-
surance Fund to remain at less than 50
percent of the designated reserve ratio for
each of the next 4 calendar quarters.
‘‘(v) EXCLUSION OF SPECIAL RESERVE IN
CALCULATING RESERVE RATIO.—Notwithstand-
ing any other provision of law, any amounts in
the Special Reserve of the Savings Association
Insurance Fund shall be excluded in calculating
the reserve ratio of the Savings Association In-
surance Fund.’’.
SEC. 206. REFUND OF AMOUNTS IN DEPOSIT INSURANCE
FUND IN EXCESS OF DESIGNATED RESERVE
AMOUNT.
Subsection (e) of section 7 of the Federal Deposit In-
surance Act (12 U.S.C. 1817(e)) is amended to read as
follows:
‘‘(e) REFUNDS.—
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‘‘(1) OVERPAYMENTS.—In the case of any pay-
ment of an assessment by an insured depository in-
stitution in excess of the amount due to the Cor-
poration, the Corporation may—
‘‘(A) refund the amount of the excess pay-
ment to the insured depository institution; or
‘‘(B) credit such excess amount toward the
payment of subsequent semiannual assessments
until such credit is exhausted.
‘‘(2) BALANCE IN INSURANCE FUND IN EXCESS
OF DESIGNATED RESERVE.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), if, as of the end of any
semiannual assessment period, the amount of
the actual reserves in—
‘‘(i) the Bank Insurance Fund (until
the merger of such fund into the Deposit
Insurance Fund pursuant to section l04
of the Deposit Insurance Funds Act of
1996); or
‘‘(ii) the Deposit Insurance Fund
(after the establishment of such fund),
exceeds the balance required to meet the des-
ignated reserve ratio applicable with respect to
such fund, such excess amount shall be re-
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funded to insured depository institutions by the
Corporation on such basis as the Board of Di-
rectors determines to be appropriate, taking
into account the factors considered under the
risk-based assessment system.
‘‘(B) REFUND NOT TO EXCEED PREVIOUS
SEMIANNUAL
ASSESSMENT.—The amount of
any refund under this paragraph to any mem-
ber of a deposit insurance fund for any semi-
annual assessment period may not exceed the
total amount of assessments paid by such mem-
ber to the insurance fund with respect to such
period.
‘‘(C) REFUND LIMITATION FOR CERTAIN
INSTITUTIONS.—No refund may be made under
this paragraph with respect to the amount of
any assessment paid for any semiannual assess-
ment period by any insured depository institu-
tion described in clause (v) of subsection
(b)(2)(A).’’.
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SEC. 207. ASSESSMENT RATES FOR SAIF MEMBERS MAY
NOT BE LESS THAN ASSESSMENT RATES FOR
BIF MEMBERS.
Section 7(b)(2)(C) of the Federal Deposit Insurance
Act (12 U.S.C. 1817(b)(2)(E), as redesignated by section
204(d)(6) of this Act) is amended—
(1) by striking ‘‘and’’ at the end of clause (i);
(2) by striking the period at the end of clause
(ii) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
clause:
‘‘(iii) notwithstanding any other provi-
sion of this subsection, during the period
beginning on the date of enactment of the
Deposit Insurance Funds Act of 1996, and
ending on January 1, 1998, the assess-
ment rate for a Savings Association Insur-
ance Fund member may not be less than
the assessment rate for a Bank Insurance
Fund member that poses a comparable
risk to the deposit insurance fund.’’.
SEC. 208. ASSESSMENTS AUTHORIZED ONLY IF NEEDED TO
MAINTAIN THE RESERVE RATIO OF A DE-
POSIT INSURANCE FUND.
(a) IN GENERAL.—Section 7(b)(2)(A)(i) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(i))
•HJ 175 IH
is amended in the matter preceding subclause (I) by in-
serting ‘‘when necessary, and only to the extent nec-
essary’’ after ‘‘insured depository institutions’’.
(b) 
LIMITATION
ON
ASSESSMENT.—Section
7(b)(2)(A)(iii) of the Federal Deposit Insurance Act (12
U.S.C. 1817(b)(2)(A)(iii)) is amended to read as follows:
‘‘(iii) LIMITATION ON ASSESSMENT.—
Except as provided in clause (v), the Board
of Directors shall not set semiannual as-
sessments with respect to a deposit insur-
ance fund in excess of the amount need-
ed—
‘‘(I) to maintain the reserve ratio
of the fund at the designated reserve
ratio; or
‘‘(II) if the reserve ratio is less
than the designated reserve ratio, to
increase the reserve ratio to the des-
ignated reserve ratio.’’.
(c) EXCEPTION TO LIMITATION ON ASSESSMENTS.—
Section 7(b)(2)(A) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(b)(2)(A)) is amended by adding at the
end the following new clause:
‘‘(v) EXCEPTION TO LIMITATION ON
ASSESSMENTS.—The Board of Directors
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may set semiannual assessments in excess
of the amount permitted under clauses (i)
and (iii) with respect to insured depository
institutions that exhibit financial, oper-
ational, or compliance weaknesses ranging
from moderately severe to unsatisfactory,
or are not well capitalized, as that term is
defined in section 38.’’.
SEC. 209. DEFINITIONS.
For purposes of this title—
(1) the term ‘‘Bank Insurance Fund’’ means
the 
fund 
established 
pursuant 
to 
section
(11)(a)(5)(A) of the Federal Deposit Insurance Act,
as that section existed on the day before the date of
enactment of this Act;
(2) the terms ‘‘Bank Insurance Fund member’’
and ‘‘Savings Association Insurance Fund member’’
have the same meanings as in section 7(l) of the
Federal Deposit Insurance Act;
(3) the terms ‘‘bank’’, ‘‘Board of Directors’’,
‘‘Corporation’’, ‘‘insured depository institution’’,
‘‘Federal savings association’’, ‘‘savings association’’,
‘‘State savings bank’’, and ‘‘State depository institu-
tion’’ have the same meanings as in section 3 of the
Federal Deposit Insurance Act;
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(4) the term ‘‘Deposit Insurance Fund’’ means
the fund established under section 11(a)(4) of the
Federal Deposit Insurance Act (as amended by sec-
tion 204(d) of this Act);
(5) the term ‘‘depository institution holding
company’’ has the same meaning as in section 3 of
the Federal Deposit Insurance Act;
(6) the term ‘‘designated reserve ratio’’ has the
same meaning as in section 7(b)(2)(A)(iv) of the
Federal Deposit Insurance Act;
(7) the term ‘‘Savings Association Insurance
Fund’’ means the fund established pursuant to sec-
tion 11(a)(6)(A) of the Federal Deposit Insurance
Act, as that section existed on the day before the
date of enactment of this Act; and
(8) the term ‘‘SAIF-assessable deposit’’—
(A) means—
(i) a deposit that is subject to assess-
ment for purposes of the Savings Associa-
tion Insurance Fund under the Federal
Deposit Insurance Act; and
(ii) a deposit that section 5(d)(3) of
the Federal Deposit Insurance Act treats
as insured by the Savings Association In-
surance Fund; and