I
104TH CONGRESS
2D SESSION
H. R. 3567
To fully capitalize the deposit insurance funds, to provide regulatory relief
for insured depository institutions and depository institution holding com-
panies, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 4, 1996
Mr. BEREUTER introduced the following bill; which was referred to the
Committee on Banking and Financial Services
A BILL
To fully capitalize the deposit insurance funds, to provide
regulatory relief for insured depository institutions and
depository institution holding companies, 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 Funds and Regulatory Relief
Act of 1996’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—THRIFT AND BANK CHARTER MERGER
Subtitle A—Recapitalization of Savings Association Insurance Fund
Sec. 101. Special assessment to capitalize SAIF.
Subtitle B—Status of Banks and Savings Associations
Sec. 111. Comprehensive review of charter merger.
Subtitle C—Merger of Insurance Funds
Sec. 121. Merger of BIF and SAIF.
Subtitle D—FICO INTEREST COSTS SHARED
Sec. 131. Financing corporation assessments shared proportionally by all in-
sured depository institutions.
Subtitle E—Refunds of Excess Amounts in Deposit Fund
Sec. 141. Refund of amounts in deposit insurance fund in excess of designated
reserve amount.
Subtitle F—Limitation on Assessments
Sec. 151. Assessments authorized only if needed to maintain the reserve ratio
of a deposit insurance fund.
Subtitle G—Miscellaneous Provisions
Sec. 161. Definitions.
TITLE II—TRANSITIONAL PROVISIONS
Sec. 201. Applicability of FICO assessments to certain SAIF-assessable depos-
its until merger of BIF and SAIF.
Sec. 202. Deposit insurance fund cross guarantees.
Sec. 203. Savings association insurance fund member assessment rate.
Sec. 204. Deposit shifts between BIF and SAIF member subsidiaries of the
same holding company.
Sec. 205. Transfer of Federal reserve surplus funds to meet FICO carrying
costs.
TITLE III—REDUCTIONS IN GOVERNMENT OVERREGULATION
Sec. 300. Short title.
Subtitle A—The Home Mortgage Process
Sec. 301. Regulatory authority over disclosures and escrow accounts under
RESPA transferred to Federal Reserve Board.
Sec. 302. Simplification and unification of disclosures required under RESPA
and TILA for mortgage transactions.
Sec. 303. Increased regulatory flexibility under the Truth in Lending Act.
Sec. 304. Reductions in RESPA regulatory burdens; clarifying amendments.
Sec. 305. Disclosures for adjustable rate mortgages.
Sec. 306. Certain charges.
Sec. 307. Exemptions from rescission.
Sec. 308. Recovery of fees.
Sec. 309. Home ownership debt counseling notification.
Sec. 310. Home Mortgage Disclosure Act.
Subtitle B—Community Reinvestment Act Amendments
Sec. 321. Expression of congressional intent.
Sec. 322. Community Reinvestment Act exemption.
Sec. 323. Community input and conclusive rating.
Sec. 324. Special purpose financial institutions.
Sec. 325. Increased incentives for lending to low- and moderate-income commu-
nities.
Sec. 326. Prohibition on additional reporting under CRA.
Sec. 327. Technical amendment.
Sec. 328. Duplicative reporting.
Sec. 329. CRA congressional oversight.
Sec. 330. Consultation among examiners.
Sec. 331. Limitation on regulations.
Subtitle C—Consumer Banking Reforms
Sec. 341. Truth in Savings.
Sec. 342. Information sharing.
Sec. 343. Electronic Fund Transfer Act clarification.
Sec. 344. Limit on restitution for Truth in Lending violations if safety and
soundness of violator would be affected.
Subtitle D—Equal Credit Opportunity Act Amendments
Sec. 351. Short title.
Sec. 352. Findings and purpose.
Sec. 353. Equal Credit Opportunity Act amendments.
Sec. 354. Fair Credit Reporting Act amendments.
Sec. 355. Incentives for self-testing.
Sec. 356. Credit scoring systems.
Sec. 357. Consultation by Attorney General required in nonreferral cases.
Sec. 358. Effective date.
Subtitle E—Consumer Leasing Act Amendments
Sec. 361. Short title.
Sec. 362. Congressional findings and declaration of purpose.
Sec. 363. Regulations.
Sec. 364. Consumer lease advertising.
Sec. 365. Statutory penalties.
TITLE IV—STREAMLINING GOVERNMENT REGULATIONS
Subtitle A—Regulatory Approval Issues
Sec. 401. Streamlined nonbanking acquisitions by well capitalized and well
managed banking organizations.
Sec. 402. Streamlined bank acquisitions by well capitalized and well managed
banking organizations.
Sec. 403. Eliminate filing and approval requirements for insured depository in-
stitutions already controlled by the same holding company.
Sec. 404. Eliminate redundant approval requirement for Oakar transactions.
Sec. 405. Elimination of duplicative requirements imposed upon bank holding
companies and other regulatory relief under the Home Owners’
Loan Act.
Sec. 406. Eliminate requirement that approval be obtained for divestitures.
Sec. 407. Eliminate unnecessary branch applications.
Sec. 408. Eliminate branch applications and requirements for ATMs and simi-
lar facilities.
Sec. 409. Eliminate requirement for approval of investments in bank premises
for well capitalized and well managed banks.
Sec. 410. Eliminate unnecessary filing for officer and director appointments.
Sec. 411. Streamlining process for determining new nonbanking activities.
Sec. 412. Disposition of foreclosed assets.
Sec. 413. Increase in certain credit union loan ceilings.
Subtitle B—Streamlining of Government Regulations; Miscellaneous Provisions
Sec. 421. Eliminate the per-branch capital requirement for national banks and
State member banks.
Sec. 422. Branch closures.
Sec. 423. Amendments to the Depository Institutions Management Interlocks
Act.
Sec. 424. Acceleration of repayment to Treasury.
Sec. 425. Eliminate unnecessary and duplicative recordkeeping and reporting
requirements relating to loans to executive officers and permit
participation in employee benefit plans.
Sec. 426. Expanded regulatory discretion for small bank examinations.
Sec. 427. Cost reimbursement.
Sec. 428. Identification of foreign nonbank financial institution customers.
Sec. 429. Paperwork reduction review.
Sec. 430. Daily confirmations for hold-in-custody repurchase transactions.
Sec. 431. Required regulatory review of regulations.
Sec. 432. Country risk requirements.
Sec. 433. Audit costs.
Sec. 434. Standards for director and officer liability.
Sec. 435. Foreign bank applications.
Sec. 436. Duplicate examination of foreign banks.
Sec. 437. Second mortgages.
Sec. 438. Streamlining FDIC approval of new State bank powers.
Sec. 439. Repeal of call report attestation requirement.
Sec. 440. Authorizing bank service companies to organize as limited liability
partnerships.
Sec. 441. Bank investments in Edge Act and agreement corporations.
Sec. 442. Report on the reconciliation of differences between regulatory ac-
counting principles and generally accepted accounting prin-
ciples.
Sec. 443. Waivers authorized for residency requirement for national bank direc-
tors.
TITLE V—LENDER LIABILITY
Sec. 501. Lender liability.
TITLE VI—ANNUAL STUDY AND REPORT ON IMPACT ON
LENDING TO SMALL BUSINESS
Sec. 601. Annual study and report.
TITLE I—THRIFT AND BANK
CHARTER MERGER
Subtitle 
A—Recapitalization 
of
Savings Association Insurance
Fund
SEC. 101. SPECIAL ASSESSMENT TO CAPITALIZE SAIF.
(a) IN GENERAL.—Except as provided in subsection
(f), the Board of Directors shall impose a special assess-
ment on the SAIF-assessable deposits of each insured de-
pository institution at a rate applicable to all such institu-
tions that the Board of Directors, in its sole discretion,
determines (after taking into account the adjustments de-
scribed in subsections (g) through (j)) will cause the Sav-
ings Association Insurance Fund to achieve the designated
reserve ratio on January 1, 1998.
(b) FACTORS TO BE CONSIDERED.—In carrying out
subsection (a), the Board of Directors shall base its deter-
mination on—
(1) the monthly Savings Association Insurance
Fund balance most recently calculated;
(2) data on insured deposits reported in the
most recent reports of condition filed not later than
70 days before the date of enactment of this Act by
insured depository institutions; and
(3) any other factors that the Board of Direc-
tors deems appropriate.
(c) DATE
OF DETERMINATION.—For purposes of
subsection (a), the amount of the SAIF-assessable depos-
its of an insured depository institution shall be determined
as of March 31, 1995.
(d) DATE PAYMENT DUE.—The special assessment
imposed under this section shall be—
(1) due on January 1, 1998; and
(2) paid to the Corporation on the later of—
(A) January 1, 1998; or
(B) such other date as the Corporation
shall prescribe, but not later than March 1,
1998.
(e) ASSESSMENT DEPOSITED
IN SAIF.—Notwith-
standing any other provision of law, the proceeds of the
special assessment imposed under this section shall be de-
posited in the Savings Association Insurance Fund.
(f) EXEMPTIONS FOR CERTAIN INSTITUTIONS.—
(1) EXEMPTION
FOR
WEAK
INSTITUTIONS.—
The Board of Directors may, by order, in its sole
discretion, exempt any insured depository institution
that the Board of Directors determines to be weak,
from paying the special assessment imposed under
this section if the Board of Directors determines
that the exemption would reduce risk to the Savings
Association Insurance Fund.
(2) GUIDELINES REQUIRED.—Not later than 30
days after the date of enactment of this Act, the
Board of Directors shall prescribe guidelines setting
forth the criteria that the Board of Directors will
use in exempting institutions under paragraph (1).
Such guidelines shall be published in the Federal
Register.
(3) EXEMPTION
FOR
CERTAIN
NEWLY
CHAR-
TERED AND OTHER DEFINED INSTITUTIONS.—
(A) IN GENERAL.—In addition to the insti-
tutions exempted from paying the special as-
sessment under paragraph (1), the Board of
Directors shall exempt any insured depository
institution from payment of the special assess-
ment if the institution—
(i) was in existence on October 1,
1995, and held no SAIF-assessable depos-
its before January 1, 1993;
(ii) is a Federal savings bank which—
(I) was established de novo in
April 1994 in order to acquire the de-
posits of a savings association which
was in default or in danger of default;
and
(II) received minority interim
capital assistance from the Resolution
Trust 
Corporation 
under 
section
21A(w) of the Federal Home Loan
Bank Act in connection with the ac-
quisition of any such savings associa-
tion; or
(iii) is a savings association, the de-
posits of which are insured by the Savings
Association Insurance Fund, which—
(I) before January 1, 1987, was
chartered as a Federal savings bank
insured by the Federal Savings and
Loan Insurance Corporation for the
purpose of acquiring all or substan-
tially all of the assets and assuming
all or substantially all of the deposit
liabilities of a national bank in a
transaction consummated after July
1, 1986; and
(II) as of the date of that trans-
action, had assets of less than
$150,000,000.
(B) DEFINITION.—For purposes of this
paragraph, an institution shall be deemed to
have held SAIF-assessable deposits before Jan-
uary 1, 1993, if—
(i) the institution directly held SAIF-
assessable insured deposits before that
date; or
(ii) the institution succeeded to, ac-
quired, purchased, or otherwise holds any
SAIF-assessable deposits as of the date of
enactment of this Act that were SAIF-as-
sessable deposits before January 1, 1993.
(4) EXEMPT INSTITUTIONS REQUIRED TO PAY
ASSESSMENTS AT FORMER RATES.—
(A) PAYMENTS TO SAIF AND DIF.—Any in-
sured depository institution that the Board of
Directors exempts under this subsection from
paying the special assessment imposed under
this section shall pay semiannual assessments
during calendar years 1998, 1999, 2000, and
2001—
(i) into the Deposit Insurance Fund,
based on SAIF-assessable deposits of that
institution as of December 31, 1997, at as-
sessment rates calculated under the sched-
ule in effect for Savings Association Insur-
ance Fund members on June 30, 1995; or
(ii) into the Savings Association In-
surance Fund, based on SAIF-assessable
deposits of that institution, at assessment
rates calculated under the schedule in ef-
fect for Savings Association Insurance
Fund members on June 30, 1995, if the
Bank Insurance Fund and the Savings As-
sociation Insurance Fund are not merged
into the Deposit Insurance Fund.
(B) OPTIONAL
PRO
RATA
PAYMENT
OF
SPECIAL
ASSESSMENT.—This paragraph shall
not apply with respect to any insured depository
institution (or successor insured depository in-
stitution) that has paid, during any calendar
year from 1998 through 2001, upon such terms
as the Corporation may announce, an amount
equal to the product of—
(i) 12.5 percent of the special assess-
ment that the institution would have been
required to pay under subsection (a), if the
Board of Directors had not exempted the
institution; and
(ii) the number of full semiannual pe-
riods remaining between the date of the
payment and December 31, 2001.
(g) SPECIAL ELECTION FOR CERTAIN INSTITUTIONS
FACING HARDSHIP AS A RESULT OF THE SPECIAL AS-
SESSMENT.—
(1) ELECTION AUTHORIZED.—If—
(A) an insured depository institution, or
any depository institution holding company
which, directly or indirectly, controls such insti-
tution, is subject to terms or covenants in any
debt obligation or preferred stock outstanding
on September 13, 1995; and
(B) the payment of the special assessment
under subsection (a) would pose a significant
risk of causing such depository institution or
holding company to default or violate any such
term or covenant,
the depository institution may elect, with the ap-
proval of the Corporation, to pay such special as-
sessment in accordance with paragraphs (2) and (3)
in lieu of paying such assessment in the manner re-
quired under subsection (a).
(2) 1ST ASSESSMENT.—An insured depository
institution which makes an election under paragraph
(1) shall pay an assessment of 50 percent of the
amount of the special assessment that would other-
wise apply under subsection (a), by the date on
which such special assessment is otherwise due
under subsection (d).
(3) 2D
ASSESSMENT.—An insured depository
institution which makes an election under paragraph
(1) shall pay a 2d assessment, by the date estab-
lished by the Board of Directors in accordance with
paragraph (4), in an amount equal to the product of
51 percent of the rate determined by the Board of
Directors under subsection (a) for determining the
amount of the special assessment and the SAIF-as-
sessable deposits of the institution on March 31,
1999, or such other date in calendar year 1999 as
the Board of Directors determines to be appropriate.
(4) DUE DATE OF 2D ASSESSMENT.—The date
established by the Board of Directors for the pay-
ment of the assessment under paragraph (3) by a
depository institution shall be the earliest practicable
date which the Board of Directors determines to be
appropriate, which is at least 15 days after the date
used by the Board of Directors under paragraph (3).
(5) SUPPLEMENTAL
SPECIAL
ASSESSMENT.—
An insured depository institution which makes an
election under paragraph (1) shall pay a supple-
mental special assessment, at the same time the pay-
ment under paragraph (3) is made, in an amount
equal to the product of—
(A) 50 percent of the rate determined by
the Board of Directors under subsection (a) for
determining the amount of the special assess-
ment; and
(B) 95 percent of the amount by which the
SAIF-assessable deposits used by the Board of
Directors for determining the amount of the 1st
assessment under paragraph (2) exceeds, if any,
the SAIF-assessable deposits used by the Board
for determining the amount of the 2d assess-
ment under paragraph (3).
(h) ADJUSTMENT
OF SPECIAL ASSESSMENT
FOR
CERTAIN BANK INSURANCE FUND MEMBER BANKS.—
(1) IN GENERAL.—For purposes of computing
the special assessment imposed under this section
with respect to an institution which, as of June 30,
1995, is a Bank Insurance Fund member, the
amount of any deposits of any insured depository in-
stitution which section 5(d)(3) of the Federal De-
posit Insurance Act treats as insured by the Savings
Association Insurance Fund shall be reduced by 20
percent—
(A) if the adjusted attributable deposit
amount of the Bank Insurance Fund member
bank is less than 50 percent of the total domes-
tic deposits of that member bank as of June 30,
1995; or
(B) if, as of June 30, 1995, the Bank In-
surance Fund member—
(i) had an adjusted attributable de-
posit amount equal to less than 75 percent
of the total assessable deposits of that
member bank;
(ii) had total assessable deposits
greater than $5,000,000,000; and
(iii) was owned or controlled by a
bank holding company that owned or con-
trolled insured depository institutions hav-
ing an aggregate amount of deposits in-
sured or treated as insured by the Bank
Insurance Fund greater than the aggre-
gate amount of deposits insured or treated
as insured by the Savings Association In-
surance Fund.
(2) 
ADJUSTED
ATTRIBUTABLE
DEPOSIT
AMOUNT.—For purposes of this subsection, the ‘‘ad-
justed attributable deposit amount’’ shall be deter-
mined in accordance with section 5(d)(3)(C) of the
Federal Deposit Insurance Act.
(i) ADJUSTMENT TO THE ADJUSTED ATTRIBUTABLE
DEPOSIT AMOUNT FOR CERTAIN BANK INSURANCE FUND
MEMBER BANKS.—Section 5(d)(3) of the Federal Deposit
Insurance Act (12 U.S.C. 1815(d)(3)) is amended—
(1) in subparagraph (C), by striking ‘‘The ad-
justed attributable deposit amount’’ and inserting
‘‘Except as provided in subparagraph (K), the ad-
justed attributable deposit amount’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(K) ADJUSTMENT OF ADJUSTED ATTRIB-
UTABLE DEPOSIT AMOUNT.—The amount deter-
mined under subparagraph (C)(i) for deposits
acquired by March 31, 1995, shall be reduced
by 20 percent for purposes of computing the
adjusted attributable deposit amount for the
payment of any assessment for any semiannual
period after the date of the enactment of the
Federal Deposit Insurance Funds and Regu-
latory Relief Act of 1996 (other than the spe-
cial assessment imposed under section 101(a) of
such Act), for a Bank Insurance Fund member
bank that, as of June 30, 1995—
‘‘(i) had an adjusted attributable de-
posit amount that was less than 50 percent
of the total deposits of that member bank;
or
‘‘(ii)(I) had an adjusted attributable
deposit amount equal to less than 75 per-
cent of the total assessable deposits of that
member bank;
‘‘(II) had total assessable deposits
greater than $5,000,000,000; and
‘‘(III) was owned or controlled by a
bank holding company that owned or con-
trolled insured depository institutions hav-
ing an aggregate amount of deposits in-
sured or treated as insured by the Bank
Insurance Fund greater than the aggre-
gate amount of deposits insured or treated
as insured by the Savings Association In-
surance Fund.’’.
(j) ADJUSTMENT
OF SPECIAL ASSESSMENT
FOR
CERTAIN SAVINGS ASSOCIATIONS.—
(1) SPECIAL
ASSESSMENT
REDUCTION.—For
purposes of computing the special assessment im-
posed under this section, in the case of any con-
verted association, the amount of any deposits of
such association which were insured by the Savings
Association Insurance Fund as of March 31, 1995,
shall be reduced by 20 percent.
(2) CONVERTED
ASSOCIATION.—For purposes
of this subsection, the term ‘‘converted association’’
means—
(A) any Federal savings association—
(i) that is a member of the Savings
Association Insurance Fund and that has
deposits subject to assessment by that
fund which did not exceed $4,000,000,000,
as of March 31, 1995; and
(ii) that had been, or is a successor by
merger, acquisition, or otherwise to an in-
stitution that had been, a State savings
bank, the deposits of which were insured
by the Federal Deposit Insurance Corpora-
tion before August 9, 1989, that converted
to a Federal savings association pursuant
to section 5(i) of the Home Owners’ Loan
Act before January 1, 1985;
(B) a State depository institution that is a
member of the Savings Association Insurance
Fund that had been a State savings bank be-
fore October 15, 1982, and was a Federal sav-
ings association on August 9, 1989;
(C) an insured bank that—
(i) was established de novo in order to
acquire the deposits of a savings associa-
tion in default or in danger of default;
(ii) did not open for business before
acquiring the deposits of such savings as-
sociation; and
(iii) was a Savings Association Insur-
ance Fund member as of the date of enact-
ment of this Act; and
(D) an insured bank that—
(i) resulted from a savings association
before December 19, 1991, in accordance
with section 5(d)(2)(G) of the Federal De-
posit Insurance Act; and
(ii) had an increase in its capital in
conjunction with the conversion in an
amount equal to more than 75 percent of
the capital of the institution on the day be-
fore the date of the conversion.
(k) DEPOSIT OF FEES INTO SAIF.—
(1) IN GENERAL.—Section 5(d)(2)(E)(i) of the
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C.
1815(d)(2)(E)(i)) is amended by striking ‘‘subpara-
graph (F)) which—’’ and all that follows through
the semicolon at the end and inserting ‘‘subpara-
graph (F)) which shall be deposited in the Savings
Association Insurance Fund;’’.
(2) TREATMENT OF PRIOR FEES.—All fees col-
lected by the Federal Deposit Insurance Corporation
pursuant to section 5(d)(2)(E)(i) of the Federal De-
posit Insurance Act before the date of the enactment
of this Act which are held by the Corporation as of
such date shall be deposited in the Savings Associa-
tion Insurance Fund in accordance with such sec-
tion, as amended by paragraph (1) of this sub-
section.
Subtitle B—Status of Banks and
Savings Associations
SEC. 111. COMPREHENSIVE REVIEW OF CHARTER MERGER.
It is the intent of the Congress—
(1) acting through the Committee on Banking
and Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and
Urban Affairs of the Senate, to make a comprehen-
sive review of all issues relating to the merger of the
charters of banks and savings associations;
(2) to pass out of each House of the Congress,
by no later than September 30, 1997, appropriate
legislation to provide for such merger; and
(3) to enact such legislation before the effective
date of subtitle C.
Subtitle C—Merger of Insurance
Funds
SEC. 121. MERGER OF 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 established
by section 11(a)(4) of the Federal Deposit Insurance
Act, as amended by this section.
(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.
(b) SPECIAL RESERVE OF THE DEPOSIT INSURANCE
FUND.—
(1) IN
GENERAL.—Immediately before the
merger of the Bank Insurance Fund and the Sav-
ings Association Insurance Fund, if the reserve ratio
of the Savings Association Insurance Fund exceeds
the designated reserve ratio, the amount by which
that reserve ratio exceeds the designated reserve
ratio shall be placed in the Special Reserve of the
Deposit Insurance Fund, established under section
11(a)(5) of the Federal Deposit Insurance Act, as
amended by this section.
(2) DEFINITION.—For purposes of this sub-
section, the term ‘‘reserve ratio’’ means the ratio of
the net worth of the Savings Association Insurance
Fund to the aggregate estimated amount of deposits
insured by the Savings Association Insurance Fund.
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on January
1, 1998, if no insured depository institution is a savings
association on such date.
(d) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) 
DEPOSIT
INSURANCE
FUND.—Section
11(a)(4) of the Federal Deposit Insurance Act (12
U.S.C. 1821(a)(4)) is amended—
(A) by redesignating subparagraph (B) as
subparagraph (C);
(B) by striking subparagraph (A) and in-
serting the following:
‘‘(A) ESTABLISHMENT.—There is estab-
lished the Deposit Insurance Fund, which the
Corporation shall—
‘‘(i) maintain and administer;
‘‘(ii) use to carry out its insurance
purposes in the manner provided by this
subsection; and
‘‘(iii) invest in accordance with section
13(a).
‘‘(B) USES.—The Deposit Insurance Fund
shall be available to the Corporation for use
with respect to Deposit Insurance Fund mem-
bers.’’; and
(C) by striking ‘‘(4) GENERAL PROVISIONS
RELATING TO FUNDS.—’’ and inserting the fol-
lowing:
‘‘(4) ESTABLISHMENT OF THE DEPOSIT INSUR-
ANCE FUND.—’’.
(2) OTHER REFERENCES.—Section 11(a)(4)(C)
of the Federal Deposit Insurance Act (12 U.S.C.
1821(a)(4)(C), as redesignated by paragraph (1) of
this subsection) is amended by striking ‘‘Bank In-
surance Fund and the Savings Association Insur-
ance Fund’’ and inserting ‘‘Deposit Insurance
Fund’’.
(3) DEPOSITS INTO FUND.—Section 11(a)(4) of
the Federal Deposit Insurance Act (12 U.S.C.
1821(a)(4)) is amended by adding at the end the
following new subparagraph:
‘‘(D) DEPOSITS.—All amounts assessed
against insured depository institutions by the
Corporation shall be deposited in the Deposit
Insurance Fund.’’.
(4) SPECIAL RESERVE OF DEPOSITS.—Section
11(a)(5) of the Federal Deposit Insurance Act (12
U.S.C. 1821(a)(5)) is amended to read as follows:
‘‘(5) SPECIAL
RESERVE
OF
DEPOSIT
INSUR-
ANCE FUND.—
‘‘(A) ESTABLISHMENT.—
‘‘(i) IN
GENERAL.—There is estab-
lished a Special Reserve of the Deposit In-
surance Fund, which shall be administered
by the Corporation and shall be invested in
accordance with section 13(a).
‘‘(ii) LIMITATION.—The Corporation
shall not provide any assessment credit, re-
(A) in subclause (I), by striking ‘‘to Sav-
ings Associations Insurance Fund members’’
and inserting ‘‘to insured depository institu-
tions, and their successors, which were Savings
Association Insurance Fund members on Sep-
tember 1, 1995’’; and
(B) in subclause (II), by striking ‘‘to Sav-
ings Associations Insurance Fund members’’
and inserting ‘‘to insured depository institu-
tions, and their successors, which were Savings
Association Insurance Fund members on Sep-
tember 1, 1995’’.
(6) REPEALS.—
(A) SECTION 3.—Section 3(y) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1813(y))
is amended to read as follows:
‘‘(y) DEFINITIONS RELATING TO THE DEPOSIT IN-
SURANCE FUND.—
‘‘(1) DEPOSIT
INSURANCE
FUND.—The term
‘Deposit Insurance Fund’ means the fund estab-
lished under section 11(a)(4).
‘‘(2) RESERVE RATIO.—The term ‘reserve ratio’
means the ratio of the net worth of the Deposit In-
surance Fund to aggregate estimated insured depos-
its held in all insured depository institutions.
‘‘(3) DESIGNATED RESERVE RATIO.—The des-
ignated reserve ratio of the Deposit Insurance Fund
for each year shall be—
‘‘(A) 1.25 percent of estimated insured de-
posits; or
‘‘(B) a higher percentage of estimated in-
sured deposits that the Board of Directors de-
termines to be justified for that year by cir-
cumstances raising a significant risk of sub-
stantial future losses to the fund.
(B) SECTION 7.—Section 7 of the Federal
Deposit Insurance Act (12 U.S.C. 1817) is
amended—
(i) by striking subsection (l);
(ii) by redesignating subsections (m)
and (n) as subsections (l) and (m), respec-
tively;
(iii) in subsection (b)(2), by striking
subparagraphs (B) and (F), and by redes-
ignating subparagraphs (C), (E), (G), and
(H) as subparagraphs (B) through (E), re-
spectively.
(C) SECTION
11.—Section 11(a) of the
Federal Deposit Insurance Act (12 U.S.C.
1821(a)) is amended—
(i) by striking paragraphs (6) and (7);
and
(ii) by redesignating paragraph (8) as
paragraph (6).
(7) SECTION
5136
OF
THE
REVISED
STAT-
UTES.—The paragraph designated the ‘‘Eleventh’’ of
section 5136 of the Revised Statutes (12 U.S.C. 24)
is amended in the 5th sentence, by striking ‘‘affected
deposit insurance fund’’ and inserting ‘‘Deposit In-
surance Fund’’.
(8) INVESTMENTS
PROMOTING
PUBLIC
WEL-
FARE; 
LIMITATIONS
ON
AGGREGATE
INVEST-
MENTS.—The 23d undesignated paragraph of sec-
tion 9 of the Federal Reserve Act (12 U.S.C. 338a)
is amended in the 4th sentence, by striking ‘‘affected
deposit insurance fund’’ and inserting ‘‘Deposit In-
surance Fund’’.
(9) ADVANCES TO CRITICALLY UNDERCAPITAL-
IZED
DEPOSITORY
INSTITUTIONS.—Section
10B(b)(3)(A)(ii) of the Federal Reserve Act (12
U.S.C. 347b(b)(3)(A)(ii)) is amended by striking
‘‘any deposit insurance fund in’’ and inserting ‘‘the
Deposit Insurance Fund of’’.
(10) AMENDMENTS TO THE BALANCED BUDGET
AND EMERGENCY DEFICIT CONTROL ACT OF 1985.—
Section 255(g)(1)(A) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C.
905(g)(1)(A)) is amended—
(A) by striking ‘‘Bank Insurance Fund’’
and inserting ‘‘Deposit Insurance Fund’’; and
(B) by striking ‘‘Federal Deposit Insur-
ance Corporation, Savings Association Insur-
ance Fund;’’.
(11) FURTHER AMENDMENTS TO THE FEDERAL
HOME LOAN BANK ACT.—The Federal Home Loan
Bank Act (12 U.S.C. 1421 et seq.) is amended—
(A) 
in 
section 
11(k) 
(12 
U.S.C.
1431(k))—
(i) in the subsection heading, by strik-
ing ‘‘SAIF’’ and inserting ‘‘THE DEPOSIT
INSURANCE FUND’’; and
(ii) by striking ‘‘Savings Association
Insurance Fund’’ each place such term ap-
pears and inserting ‘‘Deposit Insurance
Fund’’;
(B) in section 21A(b)(4)(B) (12 U.S.C.
1441a(b)(4)(B)), by striking ‘‘affected deposit
insurance fund’’ and inserting ‘‘Deposit Insur-
ance Fund’’;
(C) in section 21A(b)(6)(B) (12 U.S.C.
1441a(b)(6)(B))—
(i) in the subparagraph heading, by
striking ‘‘SAIF-INSURED BANKS’’ and in-
serting ‘‘CHARTER CONVERSIONS’’; and
(ii) by striking ‘‘Savings Association
Insurance Fund member’’ and inserting
‘‘savings association’’;
(D) in section 21A(b)(10)(A)(iv)(II) (12
U.S.C. 1441a(b)(10)(A)(iv)(II)), by striking
‘‘Savings Association Insurance Fund’’ and in-
serting ‘‘Deposit Insurance Fund’’;
(E) 
in 
section 
21B(e) 
(12 
U.S.C.
1441b(e))—
(i) in paragraph (5), by inserting ‘‘as
of the date of funding’’ after ‘‘Savings As-
sociation Insurance Fund members’’ each
place such term appears;
(ii) by striking paragraph (7); and
(iii) by redesignating paragraph (8) as
paragraph (7); and
(F) 
in 
section 
21B(k) 
(12 
U.S.C.
1441b(k))—
(i) by striking paragraph (8); and
(ii) by redesignating paragraphs (9)
and (10) as paragraphs (8) and (9), re-
spectively.
(12) AMENDMENTS
TO
THE
HOME
OWNERS’
LOAN
ACT.—The Home Owners’ Loan Act (12
U.S.C. 1461 et seq.) is amended—
(A) in section 5 (12 U.S.C. 1464)—
(i) in subsection (c)(5)(A), by striking
‘‘that is a member of the Bank Insurance
Fund’’;
(ii) in subsection (c)(6), by striking
‘‘As used in this subsection—’’ and insert-
ing ‘‘For purposes of this subsection, the
following definitions shall apply:’’;
(iii) in subsection (o)(1), by striking
‘‘that is a Bank Insurance Fund member’’;
(iv) in subsection (o)(2)(A), by strik-
ing ‘‘a Bank Insurance Fund member until
such time as it changes its status to a Sav-
ings Association Insurance Fund member’’
and inserting ‘‘insured by the Deposit In-
surance Fund’’;
(v) in subsection (t)(5)(D)(iii)(II), by
striking ‘‘affected deposit insurance fund’’
and inserting ‘‘Deposit Insurance Fund’’;
(vi) in subsection (t)(7)(C)(i)(I), by
striking ‘‘affected deposit insurance fund’’
and inserting ‘‘Deposit Insurance Fund’’;
and
(vii) in subsection (v)(2)(A)(i), by
striking ‘‘, the Savings Association Insur-
ance Fund’’ and inserting ‘‘or the Deposit
Insurance Fund’’; and
(B) in section 10 (12 U.S.C. 1467a)—
(i) in subsection (e)(1)(A)(iii)(VII), by
adding ‘‘or’’ at the end;
(ii) in subsection (e)(1)(A)(iv), by
adding ‘‘and’’ at the end;
(iii) in subsection (e)(1)(B), by strik-
ing ‘‘Savings Association Insurance Fund
or Bank Insurance Fund’’ and inserting
‘‘Deposit Insurance Fund’’;
(iv) in subsection (e)(2), by striking
‘‘Savings Association Insurance Fund or
the Bank Insurance Fund’’ and inserting
‘‘Deposit Insurance Fund’’; and
(v) in subsection (m)(3), by striking
subparagraph (E), and by redesignating
subparagraphs (F), (G), and (H) as sub-
paragraphs (E), (F), and (G), respectively.
(13) AMENDMENTS TO THE NATIONAL HOUSING
ACT.—The National Housing Act (12 U.S.C. 1701
et seq.) is amended—
(A) in section 317(b)(1)(B) (12 U.S.C.
1723i(b)(1)(B)), by striking ‘‘Bank Insurance
Fund for banks or through the Savings Asso-
ciation Insurance Fund for savings associa-
tions’’ and inserting ‘‘Deposit Insurance Fund’’;
and
(B) in section 526(b)(1)(B)(ii) (12 U.S.C.
1735f–14(b)(1)(B)(ii)), by striking ‘‘Bank In-
surance Fund for banks and through the Sav-
ings Association Insurance Fund for savings as-
sociations’’ and inserting ‘‘Deposit Insurance
Fund’’.
(14) FURTHER AMENDMENTS TO THE FEDERAL
DEPOSIT INSURANCE ACT.—The Federal Deposit In-
surance Act (12 U.S.C. 1811 et seq.) is amended—
(A) 
in 
section 
3(a)(1) 
(12 
U.S.C.
1813(a)(1)), by striking subparagraph (B) and
inserting the following:
‘‘(B) includes any former savings associa-
tion.’’;
(B) 
in 
section 
5(b)(5) 
(12 
U.S.C.
1815(b)(5)), by striking ‘‘the Bank Insurance
Fund or the Savings Association Insurance
Fund;’’ and inserting ‘‘Deposit Insurance
Fund,’’;
(C) in section 5(d) (12 U.S.C. 1815(d)),
by striking paragraphs (2) and (3);
(D) 
in 
section 
5(d)(1) 
(12 
U.S.C.
1815(d)(1))—
(i) in subparagraph (A), by striking
‘‘reserve ratios in the Bank Insurance
Fund and the Savings Association Insur-
ance Fund’’ and inserting ‘‘the reserve
ratio of the Deposit Insurance Fund’’;
(ii) by striking subparagraph (B) and
inserting the following:
‘‘(2) FEE CREDITED TO THE DEPOSIT INSUR-
ANCE FUND.—The fee paid by the depository insti-
tution under paragraph (1) shall be credited to the
Deposit Insurance Fund.’’;
(iii) by striking ‘‘(1) UNINSURED IN-
STITUTIONS.—’’; and
(iv) by redesignating subparagraphs
(A) and (C) as paragraphs (1) and (3), re-
spectively, and moving the margins 2 ems
to the left;
(E) in section 5(e) (12 U.S.C. 1815(e))—
(i) in paragraph (5)(A), by striking
‘‘Bank Insurance Fund or the Savings As-
sociation Insurance Fund’’ and inserting
‘‘Deposit Insurance Fund’’;
(ii) by striking paragraph (6); and
(iii) by redesignating paragraphs (7),
(8), and (9) as paragraphs (6), (7), and
(8), respectively;
(F) in section 6(5) (12 U.S.C. 1816(5)),
by striking ‘‘Bank Insurance Fund or the Sav-
ings Association Insurance Fund’’ and inserting
‘‘Deposit Insurance Fund’’;
(G) in section 7(b) (12 U.S.C. 1817(b))—
(i) in paragraph (1)(D), by striking
‘‘each deposit insurance fund’’ and insert-
ing ‘‘the Deposit Insurance Fund’’;
(ii) in clauses (i)(I) and (iv) of para-
graph (2)(A), by striking ‘‘each deposit in-
surance fund’’ each place such term ap-
pears and inserting ‘‘the Deposit Insurance
Fund’’;
(iii) in paragraph (2)(A)(iii), by strik-
ing ‘‘a deposit insurance fund’’ and insert-
ing ‘‘the Deposit Insurance Fund’’;
(iv) by striking clause (iv) of para-
graph (2)(A);
(v) in paragraph (2)(C) (as redesig-
nated by paragraph (6)(B) of this sub-
section)—
(I) by striking ‘‘any deposit in-
surance fund’’ and inserting ‘‘the De-
posit Insurance Fund’’; and
(II) by striking ‘‘that fund’’ each
place such term appears and inserting
‘‘the Deposit Insurance Fund’’;
(vi) in paragraph (2)(D) (as redesig-
nated by paragraph (6)(B) of this sub-
section)—
(I) in the subparagraph heading,
by striking ‘‘FUNDS ACHIEVE’’ and in-
serting ‘‘FUND ACHIEVES’’; and
(II) by striking ‘‘a deposit insur-
ance fund’’ and inserting ‘‘the Deposit
Insurance Fund’’;
(vii) in paragraph (3)—
(I) in the paragraph heading, by
striking 
‘‘FUNDS’’ 
and 
inserting
‘‘FUND’’;
(II) by striking ‘‘that fund’’ each
place such term appears and inserting
‘‘the Deposit Insurance Fund’’;
(III) in subparagraph (A), by
striking ‘‘Except as provided in para-
graph (2)(F), if’’ and inserting ‘‘If’’;
(IV) in subparagraph (A), by
striking ‘‘any deposit insurance fund’’
and inserting ‘‘the Deposit Insurance
Fund’’; and
(V) by striking subparagraphs
(C) and (D) and inserting the follow-
ing:
‘‘(C) AMENDING
SCHEDULE.—The Cor-
poration may, by regulation, amend a schedule
promulgated under subparagraph (B).’’; and
(viii) in paragraph (6)—
(I) by striking ‘‘any such assess-
ment’’ and inserting ‘‘any such assess-
ment is necessary’’;
(II) by striking ‘‘(A) is nec-
essary—’’;
(III) by striking subparagraph
(B);
(IV) by redesignating clauses (i),
(ii), and (iii) as subparagraphs (A),
(B), and (C), respectively, and moving
the margins 2 ems to the left; and
(V) in subparagraph (C) (as re-
designated), by striking ‘‘; and’’ and
inserting a period;
(H) 
in 
section 
11(f)(1) 
(12 
U.S.C.
1821(f)(1)), by striking ‘‘, except that—’’ and
all that follows through the end of the para-
graph and inserting a period;
(I) 
in 
section 
11(i)(3) 
(12 
U.S.C.
1821(i)(3))—
(i) by striking subparagraph (B);
(ii) by redesignating subparagraph
(C) as subparagraph (B); and
(iii) in subparagraph (B) (as redesig-
nated), by striking ‘‘subparagraphs (A)
and (B)’’ and inserting ‘‘subparagraph
(A)’’;
(J) 
in 
section 
11A(a) 
(12 
U.S.C.
1821a(a))—
(i) in paragraph (2), by striking ‘‘LI-
ABILITIES.—’’ and all that follows through
‘‘Except’’ and inserting ‘‘LIABILITIES.—
Except’’;
(ii) by striking paragraph (2)(B); and
(iii) in paragraph (3), by striking ‘‘the
Bank Insurance Fund, the Savings Asso-
ciation Insurance Fund,’’ and inserting
‘‘the Deposit Insurance Fund’’;
(K) 
in 
section 
11A(b) 
(12 
U.S.C.
1821a(b)), by striking paragraph (4);
(L) 
in 
section 
11A(f) 
(12 
U.S.C.
1821a(f)), by striking ‘‘Savings Association In-
surance Fund’’ and inserting ‘‘Deposit Insur-
ance Fund’’;
(M) in section 13 (12 U.S.C. 1823)—
(i) in subsection (a)(1), by striking
‘‘Bank Insurance Fund, the Savings Asso-
ciation Insurance Fund,’’ and inserting
‘‘Deposit Insurance Fund, the Special Re-
serve of the Deposit Insurance Fund,’’;
(ii) in subsection (c)(4)(E)—
(I) in the subparagraph heading,
by striking ‘‘FUNDS’’ and inserting
‘‘FUND’’; and
(II) in clause (i), by striking
‘‘any insurance fund’’ and inserting
‘‘the Deposit Insurance Fund’’;
(iii) in subsection (c)(4)(G)(ii)—
(I) by striking ‘‘appropriate in-
surance fund’’ and inserting ‘‘Deposit
Insurance Fund’’;
(II) by striking ‘‘the members of
the insurance fund (of which such in-
stitution is a member)’’ and inserting
‘‘insured depository institutions’’;
(III) by striking ‘‘each mem-
ber’s’’ and inserting ‘‘each insured de-
pository institution’s’’; and
(IV) by striking ‘‘the member’s’’
each place such term appears and in-
serting ‘‘the institution’s’’;
(iv) in subsection (c), by striking
paragraph (11);
(v) in subsection (h), by striking
‘‘Bank Insurance Fund’’ and inserting
‘‘Deposit Insurance Fund’’;
(vi) in subsection (k)(4)(B)(i), by
striking ‘‘Savings Association Insurance
Fund’’ and inserting ‘‘Deposit Insurance
Fund’’; and
(vii) in subsection (k)(5)(A), by strik-
ing ‘‘Savings Association Insurance Fund’’
and inserting ‘‘Deposit Insurance Fund’’;
(N) in section 14(a) (12 U.S.C. 1824(a))
in the 5th sentence—
(i) by striking ‘‘Bank Insurance Fund
or the Savings Association Insurance
Fund’’ and inserting ‘‘Deposit Insurance
Fund’’; and
(ii) by striking ‘‘each such fund’’ and
inserting ‘‘the Deposit Insurance Fund’’;
(O) in section 14(b) (12 U.S.C. 1824(b)),
by striking ‘‘Bank Insurance Fund or Savings
Association Insurance Fund’’ and inserting
‘‘Deposit Insurance Fund’’;
(P) in section 14(c) (12 U.S.C. 1824(c)),
by striking paragraph (3);
(Q) 
in 
section 
14(d) 
(12 
U.S.C.
1824(d))—
(i) by striking ‘‘BIF’’ each place such
term appears and inserting ‘‘DIF’’; and
(ii) by striking ‘‘Bank Insurance
Fund’’ each place such term appears and
inserting ‘‘Deposit Insurance Fund’’;
(R) 
in 
section 
15(c)(5) 
(12 
U.S.C.
1825(c)(5))—
(i) by striking ‘‘the Bank Insurance
Fund or Savings Association Insurance
Fund, respectively’’ each place such term
appears and inserting ‘‘the Deposit Insur-
ance Fund’’; and
(ii) in subparagraph (B), by striking
‘‘the Bank Insurance Fund or the Savings
Association Insurance Fund, respectively’’
and inserting ‘‘the Deposit Insurance
Fund’’;
(S) in section 17(a) (12 U.S.C. 1827(a))—
(i) in the subsection heading, by strik-
ing ‘‘BIF, SAIF,’’ and inserting ‘‘THE DE-
POSIT INSURANCE FUND’’; and
(ii) in paragraph (1), by striking ‘‘the
Bank Insurance Fund, the Savings Asso-
ciation Insurance Fund,’’ each place such
term appears and inserting ‘‘the Deposit
Insurance Fund’’;
(T) in section 17(d) (12 U.S.C. 1827(d)),
by striking ‘‘the Bank Insurance Fund, the
Savings Association Insurance Fund,’’ each
place such term appears and inserting ‘‘the De-
posit Insurance Fund’’;
(U) in section 18(m)(3) (12 U.S.C.
1828(m)(3))—
(i) by striking ‘‘Savings Association
Insurance Fund’’ each place such term ap-
pears and inserting ‘‘Deposit Insurance
Fund’’; and
(ii) in subparagraph (C), by striking
‘‘or the Bank Insurance Fund’’;
(V) in section 18(p) (12 U.S.C. 1828(p)),
by striking ‘‘deposit insurance funds’’ and in-
serting ‘‘Deposit Insurance Fund’’;
(W) in section 24 (12 U.S.C. 1831a) in
subsections (a)(1) and (d)(1)(A), by striking
‘‘appropriate deposit insurance fund’’ each
place such term appears and inserting ‘‘Deposit
Insurance Fund’’;
(X) in section 28 (12 U.S.C. 1831e), by
striking ‘‘affected deposit insurance fund’’ each
place such term appears and inserting ‘‘Deposit
Insurance Fund’’;
(Y) by striking section 31 (12 U.S.C.
1831h);
(Z) 
in 
section 
36(i)(3) 
(12 
U.S.C.
1831m(i)(3)) by striking ‘‘affected deposit in-
surance fund’’ and inserting ‘‘Deposit Insur-
ance Fund’’;
(AA) 
in 
section 
38(a) 
(12 
U.S.C.
1831o(a)) in the subsection heading, by striking
‘‘FUNDS’’ and inserting ‘‘FUND’’;
(BB) 
in 
section 
38(k) 
(12 
U.S.C.
1831o(k))—
(i) in paragraph (1), by striking ‘‘a
deposit insurance fund’’ and inserting ‘‘the
Deposit Insurance Fund’’; and
(ii) in paragraph (2)(A)—
(I) by striking ‘‘A deposit insur-
ance fund’’ and inserting ‘‘The De-
posit Insurance Fund’’; and
(II) by striking ‘‘the deposit in-
surance fund’s outlays’’ and inserting
‘‘the outlays of the Deposit Insurance
Fund’’; and
(CC) 
in 
section 
38(o) 
(12 
U.S.C.
1831o(o))—
(i) by striking ‘‘ASSOCIATIONS.—’’
and all that follows through ‘‘Subsections
(e)(2)’’ and inserting ‘‘ASSOCIATIONS.—
Subsections (e)(2)’’;
(ii) by redesignating subparagraphs
(A), (B), and (C) as paragraphs (1), (2),
and (3), respectively, and moving the mar-
gins 2 ems to the left; and
(iii) in paragraph (1) (as redesig-
nated), by redesignating clauses (i) and (ii)
as subparagraphs (A) and (B), respec-
tively, and moving the margins 2 ems to
the left.
(15) AMENDMENTS TO THE FINANCIAL INSTI-
TUTIONS REFORM, RECOVERY, AND ENFORCEMENT
ACT OF 1989.—The Financial Institutions Reform,
Recovery, and Enforcement Act is amended—
(A) in section 951(b)(3)(B) (12 U.S.C.
1833a(b)(3)(B)), by striking ‘‘Bank Insurance
Fund, 
the 
Savings 
Association 
Insurance
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’’.
Subtitle D—FICO INTEREST
COSTS SHARED
SEC. 
131. 
FINANCING 
CORPORATION 
ASSESSMENTS
SHARED PROPORTIONALLY BY ALL INSURED
DEPOSITORY INSTITUTIONS.
(a) IN GENERAL.—Section 21 of the Federal Home
Loan Bank Act (12 U.S.C. 1441) is amended—
(1) in subsection (f)(2)—
(A) in the matter immediately preceding
subparagraph (A)—
(i) by striking ‘‘Savings Association
Insurance Fund member’’ and inserting
‘‘insured depository institution’’; and
(ii) by striking ‘‘members’’ and insert-
ing ‘‘institutions’’; and
(B) by striking ‘‘, except that—’’ and all
that follows through the end of the paragraph
and inserting ‘‘, except that—
‘‘(A) the Financing Corporation shall have
first priority to make the assessment; and
‘‘(B) no limitation under clause (i) or (iii)
of section 7(b)(2)(A) of the Federal Deposit In-
surance Act shall apply for purposes of this
paragraph.’’; and
(2) in subsection (k)—
(A) by striking ‘‘section—’’ and inserting
‘‘section, the following definitions shall apply:’’;
(B) by striking paragraph (1);
(C) by redesignating paragraphs (2) and
(3) as paragraphs (1) and (2), respectively; and
(D) by adding at the end the following new
paragraph:
‘‘(3) INSURED DEPOSITORY INSTITUTION.—The
term ‘insured depository institution’ has the same
meaning as in section 3 of the Federal Deposit In-
surance Act.’’.
(b) CONFORMING AMENDMENT.—Section 7(b)(2) of
the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2))
is amended by striking subparagraph (D).
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on January
1, 1998.
Subtitle E—Refunds of Excess
Amounts in Deposit Fund
SEC. 141. REFUND OF AMOUNTS IN DEPOSIT INSURANCE
FUND IN EXCESS OF DESIGNATED RESERVE
AMOUNT.
(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.—
‘‘(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 121 of
the Federal Deposit Insurance Funds and
Regulatory Relief 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-
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).’’.
(b) EFFECTIVE DATE.—Paragraph (2) of section
7(e) of the Federal Deposit Insurance Act (as amended
by subsection (a) of this section) shall apply with respect
to semiannual assessment periods ending on or after De-
cember 31, 1995.
Subtitle F—Limitation on
Assessments
SEC. 151. 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))
is amended in the matter preceding subclause (I) by in-