I 
109TH CONGRESS 
1ST SESSION H. R. 1185
To reform the Federal deposit insurance system, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 9, 2005
Mr. BACHUS (for himself, Ms. HOOLEY, Mr. OXLEY, Mr. FRANK of Massachu-
setts, Mr. GILLMOR, Mr. KANJORSKI, Ms. PRYCE of Ohio, Mr. LEACH, 
Mrs. MALONEY, Mr. JONES of North Carolina, Mr. MOORE of Kansas, 
Mr. RYUN of Kansas, Mr. ISRAEL, Mr. NEY, Mr. TIBERI, Mrs. BIGGERT, 
Mr. GUTIERREZ, Mr. DAVIS of Alabama, Mr. HINOJOSA, Mr. KING of 
New York, Mrs. MCCARTHY, Mr. LATOURETTE, Mr. MANZULLO, Mr. 
NEUGEBAUER, Mr. FORD, Mr. TOWNS, Mr. RENZI, Mr. CLAY, Mr. GARY 
G. MILLER of California, Mr. MCHENRY, and Mr. BARTLETT of Mary-
land) 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Federal Deposit Insurance Reform Act of 2005’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
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 as-
sessments 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 fur-
ther possible changes to deposit insurance system. 
Sec. 11. Bi-annual FDIC survey and report on increasing the deposit base by 
encouraging use of depository institutions by the unbanked. 
Sec. 12. Technical and conforming amendments to the Federal Deposit Insur-
ance Act relating to the merger of the BIF and SAIF. 
Sec. 13. Other technical and conforming amendments relating to the merger of 
the BIF and SAIF.
SEC. 2. MERGING THE BIF AND SAIF. 
(a) IN GENERAL.—
(1) MERGER.—The Bank Insurance Fund and 
the Savings Association Insurance Fund shall be 
merged into the Deposit Insurance Fund. 
(2) DISPOSITION
OF
ASSETS
AND
LIABIL-
ITIES.—All assets and liabilities of the Bank Insur-
ance Fund and the Savings Association Insurance 
Fund shall be transferred to the Deposit Insurance 
Fund. 
(3) NO SEPARATE EXISTENCE.—The separate 
existence of the Bank Insurance Fund and the Sav-
ings Association Insurance Fund shall cease on the 
effective date of the merger thereof under this sec-
tion.
(b) REPEAL OF OUTDATED MERGER PROVISION.—
Section 2704 of the Deposit Insurance Funds Act of 1996 
(12 U.S.C. 1821 note) is repealed. 
(c) EFFECTIVE DATE.—This section shall take effect 
on the first day of the first calendar quarter that begins 
after the end of the 90-day period beginning on the date 
of the enactment of this Act. 
SEC. 3. INCREASE IN DEPOSIT INSURANCE COVERAGE. 
(a) IN GENERAL.—Section 11(a)(1) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amend-
ed—
(1) by striking subparagraph (B) and inserting 
the following new subparagraph: 
‘‘(B) NET
AMOUNT
OF
INSURED
DE-
POSIT.—The net amount due to any depositor 
at an insured depository institution shall not 
exceed the standard maximum deposit insur-
ance amount as determined in accordance with 
subparagraphs (C), (D), (E) and (F) and para-
graph (3).’’; and 
(2) by adding at the end the following new sub-
paragraphs: 
‘‘(E) STANDARD
MAXIMUM
DEPOSIT
IN-
SURANCE AMOUNT DEFINED.—For purposes of