HR 3717 RFS
section 35), the Secretary of the Treasury,
the Commodity Futures Trading Commis-
sion, the Farm Credit Administration, the
Federal Trade Commission, any Federal
reserve bank or Federal home loan bank,
and other regulators of financial institu-
tions, and any information available from
credit rating entities, and other private
economic or business analysts.
‘‘(ii) CONSULTATION WITH FEDERAL
BANKING AGENCIES.—
‘‘(I) IN
GENERAL.—Except as
provided in subclause (II), in assess-
ing the risk of loss to the Deposit In-
surance Fund with respect to any in-
sured depository institution, the Cor-
poration shall consult with the appro-
priate Federal banking agency of such
institution.
‘‘(II) TREATMENT
ON
AGGRE-
GATE BASIS.—In the case of insured
depository institutions that are well
capitalized (as defined in section 38)
and, in the most recent examination,
were found to be well managed, the
HR 3717 RFS
consultation under subclause (I) con-
cerning the assessment of the risk of
loss posed by such institutions may be
made on an aggregate basis.
‘‘(iii) RULE OF CONSTRUCTION.—No
provision of this paragraph shall be con-
strued as providing any new authority for
the Corporation to require submission of
information by insured depository institu-
tions to the Corporation.
‘‘(F) MODIFICATIONS TO THE RISK-BASED
ASSESSMENT
SYSTEM
ALLOWED
ONLY
AFTER
NOTICE AND COMMENT.—In revising or modi-
fying the risk-based assessment system at any
time after the date of the enactment of the
Federal Deposit Insurance Reform Act of 2002,
the Board of Directors may implement such re-
visions or modification in final form only after
notice and opportunity for comment.’’.
SEC. 7. REFUNDS, DIVIDENDS, AND CREDITS FROM DE-
POSIT INSURANCE FUND.
(a) IN GENERAL.—Subsection (e) of section 7 of the
Federal Deposit Insurance Act (12 U.S.C. 1817(e)) is
amended to read as follows:
‘‘(e) REFUNDS, DIVIDENDS, AND CREDITS.—
HR 3717 RFS
‘‘(1) REFUNDS
OF
OVERPAYMENTS.—In the
case of any payment of an assessment by an insured
depository institution in excess of the amount due to
the Corporation, 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 assessments until such
credit is exhausted.
‘‘(2) DIVIDENDS
FROM
EXCESS
AMOUNTS
IN
DEPOSIT INSURANCE FUND.—
‘‘(A) RESERVE RATIO EQUAL TO OR IN EX-
CESS OF 1.4 PERCENT OF ESTIMATED INSURED
DEPOSITS.—Whenever the reserve ratio of the
Deposit Insurance Fund equals or exceeds 1.4
percent of estimated insured deposits, the Cor-
poration shall declare the amount in the Fund
in excess of the amount required to maintain
the reserve ratio at the designated reserve ratio
in effect at such time, as dividends to be paid
to insured depository institutions.
‘‘(B) RESERVE RATIO EQUAL TO OR IN EX-
CESS OF 1.35 PERCENT OF ESTIMATED INSURED
DEPOSITS
AND
LESS
THAN
1.4
PERCENT.—
Whenever the reserve ratio of the Deposit In-
HR 3717 RFS
surance Fund equals or exceeds 1.35 percent of
estimated insured deposits and is less than 1.4
percent of such deposits, the Corporation shall
declare the amount in the Fund that is equal
to 50 percent of the amount in excess of the
amount required to maintain the reserve ratio
at 1.35 percent of the estimated insured depos-
its as dividends to be paid to insured depository
institutions.
‘‘(C) BASIS FOR DISTRIBUTION OF DIVI-
DENDS.—
‘‘(i) IN GENERAL.—Solely for the pur-
poses of dividend distribution under this
paragraph and credit distribution under
paragraph (3)(B), the Corporation shall
determine each insured depository institu-
tion’s relative contribution to the Deposit
Insurance Fund (or any predecessor de-
posit insurance fund) for calculating such
institution’s share of any dividend or credit
declared under this paragraph or para-
graph (3)(B), taking into account the fac-
tors described in clause (ii).
‘‘(ii) FACTORS FOR DISTRIBUTION.—
In implementing this paragraph and para-
HR 3717 RFS
graph (3)(B) in accordance with regula-
tions, the Corporation shall take into ac-
count the following factors:
‘‘(I) The ratio of the assessment
base of an insured depository institu-
tion (including any predecessor) on
December 31, 1996, to the assessment
base of all eligible insured depository
institutions on that date.
‘‘(II) The total amount of assess-
ments paid on or after January 1,
1997, by an insured depository insti-
tution (including any predecessor) to
the Deposit Insurance Fund (and any
predecessor deposit insurance fund).
‘‘(III) That portion of assess-
ments paid by an insured depository
institution (including any predecessor)
that reflects higher levels of risk as-
sumed by such institution.
‘‘(IV) Such other factors as the
Corporation may determine to be ap-
propriate.
‘‘(D) NOTICE
AND
OPPORTUNITY
FOR
COMMENT.—The calculation, declaration, and
HR 3717 RFS
payment of dividends under this paragraph
shall be made at such times, in such manner,
and on such conditions as the Corporation shall
prescribe by regulation, after notice and oppor-
tunity for comment.
‘‘(3) CREDIT POOL.—
‘‘(A) ONE-TIME CREDIT BASED ON TOTAL
ASSESSMENT BASE AT YEAR-END 1996.—
‘‘(i) IN GENERAL.—Before the end of
the 270-day period beginning on the date
of the enactment of the Federal Deposit
Insurance Reform Act of 2002, the Board
of Directors shall, by regulation, provide
for a credit to each eligible insured deposi-
tory institution, based on the assessment
base of the institution (including any pred-
ecessor institution) on December 31, 1996,
as compared to the combined aggregate as-
sessment base of all eligible insured deposi-
tory institutions, taking into account such
factors as the Board of Directors may de-
termine to be appropriate.
‘‘(ii) CREDIT LIMIT.—The aggregate
amount of credits available under clause (i)
to all eligible insured depository institu-
HR 3717 RFS
tions shall equal the amount that the Cor-
poration could collect if the Corporation
imposed an assessment of 12 basis points
on the combined assessment base of the
Bank Insurance Fund and the Savings As-
sociation Insurance Fund as of December
31, 2001.
‘‘(iii) ELIGIBLE INSURED DEPOSITORY
INSTITUTION DEFINED.—For purposes of
this paragraph, the term ‘eligible insured
depository institution’ means any insured
depository institution that—
‘‘(I) was in existence on Decem-
ber 31, 1996, and paid a deposit in-
surance assessment prior to that date;
or
‘‘(II) is a successor to any in-
sured depository institution described
in subclause (II).
‘‘(iv) APPLICATION OF CREDITS.—
‘‘(I) IN GENERAL.—The amount
of a credit to any eligible insured de-
pository institution under this para-
graph may be applied by the Corpora-
tion to those portions of the assess-
HR 3717 RFS
ments imposed on such institution
under subsection (b) that become due
for assessment periods beginning after
the effective date of regulations pre-
scribed under clause (i).
‘‘(II) REGULATIONS.—The regu-
lations prescribed under clause (i)
shall establish the qualifications and
procedures governing the application
of assessment credits pursuant to sub-
clause (I).
‘‘(v) 
CRITERIA
FOR
DETERMINA-
TION.—In determining whether to provide
assessment credits under this paragraph
and the amounts of any such credits, the
Board of Directors shall take into account
the factors for designating the reserve
ratio under subsection (b)(3) and the fac-
tors for setting assessments under sub-
section (b)(2)(B).
‘‘(vi) LIMITATION
ON
AMOUNT
OF
CREDIT FOR CERTAIN DEPOSITORY INSTI-
TUTIONS.—In the case of an insured de-
pository institution that exhibits financial,
operational, 
or 
compliance 
weaknesses
HR 3717 RFS
ranging from moderately severe to unsatis-
factory, or is not adequately capitalized (as
defined in section 38) at the beginning of
an assessment period, the amount of any
credit 
allowed 
under 
this 
paragraph
against the assessment on that depository
institution for such period may not exceed
the amount calculated by applying to that
depository institution the average assess-
ment rate on all insured depository institu-
tions for such assessment period.
‘‘(vii) PREDECESSOR
DEFINED.—For
purposes of this paragraph, the term ‘pred-
ecessor’, when used with respect to any in-
sured depository institution, includes any
other insured depository institution ac-
quired by or merged with such insured de-
pository institution.
‘‘(B) ON-GOING CREDIT POOL.—
‘‘(i) IN GENERAL.—In addition to the
credit provided pursuant to subparagraph
(A) and subject to the limitation contained
in clause (vi) of such subparagraph, the
Corporation shall, by regulation, establish
an on-going system of credits to be applied
HR 3717 RFS
against future assessments under sub-
section (b)(1) on the same basis as the
dividends 
provided 
under 
paragraph
(2)(C).
‘‘(ii) LIMITATION ON CREDITS UNDER
CERTAIN
CIRCUMSTANCES.—No 
credits
may be allowed by the Corporation under
this subparagraph during any period in
which—
‘‘(I) the reserve ratio of the De-
posit Insurance Fund is less than the
designated reserve ratio of such Fund;
or
‘‘(II) the designated reserve ratio
of the Fund is less than 1.25 percent
of the amount of estimated insured
deposits.
‘‘(4) ADMINISTRATIVE REVIEW.—
‘‘(A) IN GENERAL.—The regulations pre-
scribed under paragraph (2)(D) and subpara-
graphs (A) and (B) of paragraph (3) shall in-
clude provisions allowing an insured depository
institution a reasonable opportunity to chal-
lenge administratively the amount of the credit
HR 3717 RFS
or dividend determined under paragraph (2) or
(3) for such institution.
‘‘(B) ADMINISTRATIVE REVIEW.—Any re-
view under subparagraph (A) of any determina-
tion of the Corporation under paragraph (2) or
(3) shall be final and not subject to judicial re-
view.’’.
(b) DEFINITION OF RESERVE RATIO.—Section 3(y)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(y))
(as amended by section 5(b) of this Act) is amended by
adding at the end the following new paragraph:
‘‘(3) RESERVE
RATIO.—The term ‘reserve
ratio’, when used with regard to the Deposit Insur-
ance Fund other than in connection with a reference
to the designated reserve ratio, means the ratio of
the net worth of the Deposit Insurance Fund to the
value of the aggregate estimated insured deposits.’’.
SEC. 8. DEPOSIT INSURANCE FUND RESTORATION PLANS.
Section 7(b)(3) of the Federal Deposit Insurance Act
(12 U.S.C. 1917(b)(3)) (as amended by section 5(a) of
this Act) is amended by adding at the end the following
new subparagraph:
‘‘(E) DIF RESTORATION PLANS.—
‘‘(i) IN GENERAL.—Whenever—
HR 3717 RFS
‘‘(I) the Corporation projects
that the reserve ratio of the Deposit
Insurance Fund will fall below the
designated reserve ratio within 6
months of such determination; or
‘‘(II) the reserve ratio of the De-
posit Insurance Fund actually falls
below the designated reserve ratio
without any determination under sub-
clause (I) having been made,
the Corporation shall establish and imple-
ment a Deposit Insurance Fund restora-
tion plan within 30 days that meets the re-
quirements of clause (ii) or (iii), as the
case may be, and such other conditions as
the Corporation determines to be appro-
priate.
‘‘(ii) REQUIREMENTS OF PLAN IF RE-
SERVE RATIO DOES NOT FALL BELOW 1.0
PERCENT.—If the reserve ratio of the De-
posit Insurance Fund is not projected to or
has not fallen below an amount equal to
1.0 percent of the aggregate estimated in-
sured deposits, a Deposit Insurance Fund
restoration plan meets the requirements of