IB 
Union Calendar No. 31
108TH CONGRESS 
1ST SESSION 
H. R. 522
[Report No. 108–50] 
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 Com-
mittee on Financial Services 
MARCH 27, 2003
Additional sponsors: Mr. BURR, Mr. SOUDER, Mr. CRAMER, Mr. ADERHOLT, 
Mr. ROGERS of Alabama, Mr. NETHERCUTT, Mr. UDALL of Colorado, 
Mr. OSBORNE, Mr. EMANUEL, Ms. EDDIE BERNICE JOHNSON of Texas, 
Mr. BACA, Mr. BONNER, Mr. KING of New York, Mrs. CAPITO, Ms. HAR-
RIS, Mr. BARTLETT of Maryland, Mr. MANZULLO, Mr. TANCREDO, Mr. 
MCINNIS, Mr. EVERETT, Mr. BAIRD, Mr. BOSWELL, Mr. TIAHRT, Mr. 
MORAN of Kansas, Mr. GOODLATTE, Mr. HOLDEN, Mr. MCGOVERN, Mr. 
TAUZIN, Mr. WELDON of Pennsylvania, and Mr. COMBEST 
MARCH 27, 2003
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed
sured depository institution shall not exceed the 
standard maximum deposit insurance amount as 
determined in accordance with subparagraphs 
(C), (D), (E) and (F) and paragraph (3).’’; and 
(2) by adding at the end the following new sub-
paragraphs: 
‘‘(E) STANDARD MAXIMUM DEPOSIT INSUR-
ANCE AMOUNT DEFINED.—For purposes of this 
Act, the term ‘standard maximum deposit insur-
ance amount’ means—
‘‘(i) until the effective date of final reg-
ulations prescribed pursuant to section 
9(a)(2) of the Federal Deposit Insurance 
Reform Act of 2003, $100,000; and 
‘‘(ii) on and after such effective date, 
$130,000, adjusted as provided under sub-
paragraph (F). 
‘‘(F) INFLATION ADJUSTMENT.—
‘‘(i) IN
GENERAL.—By April 1 of 
2005, and the 1st day of each subsequent 5-
year period, the Board of Directors and the 
National 
Credit 
Union 
Administration 
Board shall jointly prescribe the amount by 
which the standard maximum deposit in-
surance amount and the standard max-
imum share insurance amount (as defined 
in section 207(k) of the Federal Credit 
Union Act) applicable to any depositor at 
an insured depository institution shall be 
increased by calculating the product of—
‘‘(I) $130,000; and 
‘‘(II) the ratio of the value of the 
Personal Consumption Expenditures
Chain-Type Index (or any successor 
index thereto), published by the De-
partment of Commerce, as of December 
31 of the year preceding the year in 
which the adjustment is calculated 
under this clause, to the value of such 
index as of the date this subparagraph 
takes effect. 
‘‘(ii) ROUNDING.—If the amount deter-
mined under clause (ii) for any period is 
not a multiple of $10,000, the amount so 
determined shall be rounded to the nearest 
$10,000. 
‘‘(iii) PUBLICATION
AND
REPORT
TO 
THE CONGRESS.—Not later than April 5 of 
any calendar year in which an adjustment 
is required to be calculated under clause (i)
to the standard maximum deposit insurance 
amount and the standard maximum share 
insurance amount under such clause, the 
Board of Directors and the National Credit 
Union Administration Board shall—
‘‘(I) publish in the Federal Reg-
ister the standard maximum deposit 
insurance amount, the standard max-
imum share insurance amount, and 
the amount of coverage under para-
graph (3)(A) and section 207(k)(3) of 
the Federal Credit Union Act, as so 
calculated; and 
‘‘(II) jointly submit a report to 
the Congress containing the amounts 
described in subclause (I). 
‘‘(iv) 6-MONTH
IMPLEMENTATION
PE-
RIOD.—Unless an Act of Congress enacted 
before July 1 of the calendar year in which 
an adjustment is required to be calculated 
under clause (i) provides otherwise, the in-
crease in the standard maximum deposit 
insurance amount and the standard max-
imum share insurance amount shall take ef-
fect on January 1 of the year immediately 
succeeding such calendar year.’’. 
(b) COVERAGE
FOR CERTAIN EMPLOYEE BENEFIT 
PLAN DEPOSITS.—Section 11(a)(1)(D) of the Federal De-
posit Insurance Act (12 U.S.C. 1821(a)(1)(D)) is amended 
to read as follows: 
‘‘(D) COVERAGE
FOR
CERTAIN
EMPLOYEE 
BENEFIT PLAN DEPOSITS.—
‘‘(i) PASS-THROUGH INSURANCE.—The 
Corporation shall provide pass-through de-
posit insurance for the deposits of any em-
ployee benefit plan. 
‘‘(ii) PROHIBITION ON ACCEPTANCE OF 
BENEFIT PLAN DEPOSITS.—An insured de-
pository institution that is not well capital-
ized or adequately capitalized may not ac-
cept employee benefit plan deposits. 
‘‘(iii) DEFINITIONS.—For purposes of 
this subparagraph, the following definitions 
shall apply: 
‘‘(I) CAPITAL
STANDARDS.—The 
terms ‘well capitalized’ and ‘ade-
quately capitalized’ have the same 
meanings as in section 38.
‘‘(II) 
EMPLOYEE
BENEFIT 
PLAN.—The term ‘employee benefit 
plan’ has the same meaning as in 
paragraph (8)(B)(ii), and includes any 
eligible deferred compensation plan de-
scribed in section 457 of the Internal 
Revenue Code of 1986. 
‘‘(III) PASS-THROUGH
DEPOSIT 
INSURANCE.—The term ‘pass-through 
deposit insurance’ means, with respect 
to an employee benefit plan, deposit 
insurance coverage provided on a pro 
rata basis to the participants in the 
plan, in accordance with the interest of 
each participant.’’. 
(c) DOUBLING OF DEPOSIT INSURANCE FOR CERTAIN 
RETIREMENT ACCOUNTS.—Section 11(a)(3)(A) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1821(a)(3)(A)) is 
amended by striking ‘‘$100,000’’ and inserting ‘‘2 times the 
standard maximum deposit insurance amount (as deter-
mined under paragraph (1))’’. 
(d) INCREASED INSURANCE COVERAGE FOR MUNIC-
IPAL DEPOSITS.—Section 11(a)(2) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(a)(2)) is amended—
(1) in subparagraph (A)—
(A) by moving the margins of clauses (i) 
through (v) 4 ems to the right; 
(B) by striking, in the matter following 
clause (v), ‘‘such depositor shall’’ and all that 
follows through the period; and 
(C) by striking the semicolon at the end of 
clause (v) and inserting a period;
(2) by striking ‘‘(2)(A) Notwithstanding’’ and all 
that follows through ‘‘a depositor who is—’’ and in-
serting the following: 
‘‘(2) MUNICIPAL DEPOSITORS.—
‘‘(A) IN
GENERAL.—Notwithstanding any 
limitation in this Act or in any other provision 
of law relating to the amount of deposit insur-
ance available to any 1 depositor—
‘‘(i) a municipal depositor shall, for 
the purpose of determining the amount of 
insured deposits under this subsection, be 
deemed to be a depositor separate and dis-
tinct from any other officer, employee, or 
agent of the United States or any public 
unit referred to in subparagraph (E); and 
‘‘(ii) except as provided in subpara-
graph (B), the deposits of a municipal de-
positor shall be insured in an amount equal
to the standard maximum deposit insurance 
amount (as determined under paragraph 
(1)). 
‘‘(B) IN-STATE MUNICIPAL DEPOSITORS.—
In the case of the deposits of an in-State munic-
ipal depositor described in clause (ii), (iii), (iv), 
or (v) of subparagraph (E) at an insured deposi-
tory institution, such deposits shall be insured in 
an amount not to exceed the lesser of—
‘‘(i) $2,000,000; or 
‘‘(ii) the sum of the standard max-
imum deposit insurance amount and 80 
percent of the amount of any deposits in ex-
cess of the standard maximum deposit in-
surance amount. 
‘‘(C) MUNICIPAL
DEPOSIT
PARITY.—No 
State may deny to insured depository institu-
tions within its jurisdiction the authority to ac-
cept deposits insured under this paragraph, or 
prohibit the making of such deposits in such in-
stitutions by any in-State municipal depositor. 
‘‘(D) IN-STATE MUNICIPAL DEPOSITOR DE-
FINED.—For purposes of this paragraph, the 
term ‘in-State municipal depositor’ means a mu-
nicipal depositor that is located in the same
State as the office or branch of the insured de-
pository institution at which the deposits of that 
depositor are held. 
‘‘(E) 
MUNICIPAL
DEPOSITOR.—In 
this 
paragraph, the term ‘municipal depositor’ means 
a depositor that is—’’; 
(3) by striking ‘‘(B) The’’ and inserting the fol-
lowing: 
‘‘(F) AUTHORITY
TO
LIMIT
DEPOSITS.—
The’’; and 
(4) by striking ‘‘depositor referred to in subpara-
graph (A) of this paragraph’’ each place such term 
appears and inserting ‘‘municipal depositor’’. 
(e) TECHNICAL AND CONFORMING AMENDMENT RE-
LATING TO INSURANCE OF TRUST FUNDS.—Paragraphs (1) 
and (3) of section 7(i) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(i)) are each amended by striking 
‘‘$100,000’’ and inserting ‘‘the standard maximum deposit 
insurance amount (as determined under section 11(a)(1))’’. 
(f) OTHER TECHNICAL
AND CONFORMING AMEND-
MENTS.—
(1) Section 11(m)(6) of the Federal Deposit In-
surance Act (12 U.S.C. 1821(m)(6)) is amended by 
striking ‘‘$100,000’’ and inserting ‘‘an amount equal
to 
the 
standard 
maximum 
deposit 
insurance 
amount’’. 
(2) Subsection (a) of section 18 of the Federal 
Deposit Insurance Act (12 U.S.C. 1828(a)) is amend-
ed to read as follows: 
‘‘(a) INSURANCE LOGO.—
‘‘(1) INSURED DEPOSITORY INSTITUTIONS.—
‘‘(A) IN GENERAL.—Each insured deposi-
tory institution shall display at each place of 
business maintained by that institution a sign 
or signs relating to the insurance of the deposits 
of the institution, in accordance with regulations 
to be prescribed by the Corporation. 
‘‘(B) STATEMENT TO BE INCLUDED.—Each 
sign required under subparagraph (A) shall in-
clude a statement that insured deposits are 
backed by the full faith and credit of the United 
States Government. 
‘‘(2) REGULATIONS.—The Corporation shall pre-
scribe regulations to carry out this subsection, includ-
ing regulations governing the substance of signs re-
quired by paragraph (1) and the manner of display 
or use of such signs. 
‘‘(3) PENALTIES.—For each day that an insured 
depository institution continues to violate this sub-
section or any regulation issued under this subsection, 
it shall be subject to a penalty of not more than $100, 
which the Corporation may recover for its use.’’. 
(3) Section 43(d) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1831t(d)) is amended by striking 
‘‘$100,000’’ and inserting ‘‘an amount equal to the 
standard maximum deposit insurance amount’’.
(4) Section 6 of the International Banking Act 
of 1978 (12 U.S.C. 3104) is amended—
(A) by striking ‘‘$100,000’’ each place such 
term appears and inserting ‘‘an amount equal to 
the 
standard 
maximum 
deposit 
insurance 
amount’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(e) STANDARD
MAXIMUM
DEPOSIT
INSURANCE 
AMOUNT DEFINED.—For purposes of this section, the term 
‘standard maximum deposit insurance amount’ means the 
amount of the maximum amount of deposit insurance as 
determined under section 11(a)(1) of the Federal Deposit 
Insurance Act.’’. 
(g) CONFORMING CHANGE TO CREDIT UNION SHARE 
INSURANCE FUND.—
(1) IN GENERAL.—Section 207(k) of the Federal 
Credit Union Act (12 U.S.C. 1787(k)) is amended—
(A) by striking ‘‘(k)(1)’’ and all that follows 
through the end of paragraph (1) and inserting 
the following: 
‘‘(k) INSURED AMOUNTS PAYABLE.—
‘‘(1) NET INSURED AMOUNT.—
‘‘(A) IN GENERAL.—Subject to the provi-
sions of paragraph (2), the net amount of share 
insurance payable to any member at an insured 
credit union shall not exceed the total amount of 
the shares or deposits in the name of the member 
(after deducting offsets), less any part thereof 
which is in excess of the standard maximum 
share insurance amount, as determined in ac-
cordance with this paragraph and paragraphs 
(5) and (6), and consistently with actions taken 
by the Federal Deposit Insurance Corporation 
under section 11(a) of the Federal Deposit Insur-
ance Act. 
‘‘(B) AGGREGATION.—Determination of the 
net amount of share insurance under subpara-
graph (A), shall be in accordance with such regu-
lations as the Board may prescribe, and, in de-
termining the amount payable to any member, 
there shall be added together all accounts in the 
credit union maintained by that member for that
member’s own benefit, either in the member’s 
own name or in the names of others. 
‘‘(C) AUTHORITY TO DEFINE THE EXTENT 
OF
COVERAGE.—The Board may define, with 
such classifications and exceptions as it may 
prescribe, the extent of the share insurance cov-
erage provided for member accounts, including 
member accounts in the name of a minor, in 
trust, or in joint tenancy.’’; 
(B) in paragraph (2)—
(i) in subparagraph (A)—
(I) in clauses (i) through (v), by 
moving the margins 4 ems to the right; 
(II) in the matter following clause 
(v), by striking ‘‘his account’’ and all 
that follows through the period; and 
(III) by striking the semicolon at 
the end of clause (v) and inserting a 
period; 
(ii) by striking ‘‘(2)(A) Notwith-
standing’’ and all that follows through ‘‘a 
depositor or member who is—’’ and insert-
ing the following: 
‘‘(2) MUNICIPAL DEPOSITORS OR MEMBERS.—
‘‘(A) IN
GENERAL.—Notwithstanding any 
limitation in this Act or in any other provision 
of law relating to the amount of insurance avail-
able to any 1 depositor or member, deposits or 
shares of a municipal depositor or member shall 
be insured in an amount equal to the standard 
maximum share insurance amount (as deter-
mined under paragraph (5)), except as provided 
in subparagraph (B). 
‘‘(B) IN-STATE MUNICIPAL DEPOSITORS.—
In the case of the deposits of an in-State munic-
ipal depositor described in clause (ii), (iii), (iv), 
or (v) of subparagraph (E) at an insured credit 
union, such deposits shall be insured in an 
amount equal to the lesser of—
‘‘(i) $2,000,000; or 
‘‘(ii) the sum of the standard max-
imum deposit insurance amount and 80 
percent of the amount of any deposits in ex-
cess of the standard maximum deposit in-
surance amount. 
‘‘(C) RULE OF CONSTRUCTION.—No provi-
sion of this paragraph shall be construed as au-
thorizing an insured credit union to accept the 
deposits of a municipal depositor in an amount
greater than such credit union is authorized to 
accept under any other provision of Federal or 
State law. 
‘‘(D) IN-STATE MUNICIPAL DEPOSITOR DE-
FINED.—For purposes of this paragraph, the 
term ‘in-State municipal depositor’ means a mu-
nicipal depositor that is located in the same
State as the office or branch of the insured credit 
union at which the deposits of that depositor are 
held. 
‘‘(E) 
MUNICIPAL
DEPOSITOR.—In 
this 
paragraph, the term ‘municipal depositor’ means 
a depositor that is—’’; 
(iii) by striking ‘‘(B) The’’ and insert-
ing the following: 
‘‘(F) AUTHORITY
TO
LIMIT
DEPOSITS.—
The’’; and 
(iv) by striking ‘‘depositor or member 
referred to in subparagraph (A)’’ and in-
serting ‘‘municipal depositor or member’’; 
and 
(C) by adding at the end the following new 
paragraphs: 
‘‘(4) COVERAGE FOR CERTAIN EMPLOYEE BEN-
EFIT PLAN DEPOSITS.—
‘‘(A) PASS-THROUGH INSURANCE.—The Ad-
ministration shall provide pass-through share in-
surance for the deposits or shares of any em-
ployee benefit plan. 
‘‘(B) PROHIBITION ON ACCEPTANCE OF DE-
POSITS.—An insured credit union that is not 
well capitalized or adequately capitalized may 
not accept employee benefit plan deposits. 
‘‘(C) DEFINITIONS.—For purposes of this 
paragraph, the following definitions shall apply: 
‘‘(i) CAPITAL STANDARDS.—The terms 
‘well capitalized’ and ‘adequately capital-
ized’ have the same meanings as in section 
216(c). 
‘‘(ii) EMPLOYEE BENEFIT PLAN.—The 
term ‘employee benefit plan’—
‘‘(I) has the meaning given to 
such term in section 3(3) of the Em-
ployee Retirement Income Security Act 
of 1974; 
‘‘(II) includes any plan described 
in section 401(d) of the Internal Rev-
enue Code of 1986; and 
‘‘(III) includes any eligible de-
ferred compensation plan described in
section 457 of the Internal Revenue 
Code of 1986. 
‘‘(iii) PASS-THROUGH
SHARE
INSUR-
ANCE.—The term ‘pass-through share insur-
ance’ means, with respect to an employee 
benefit plan, insurance coverage provided 
on a pro rata basis to the participants in 
the plan, in accordance with the interest of 
each participant. 
‘‘(D) RULE OF CONSTRUCTION.—No provi-
sion of this paragraph shall be construed as au-
thorizing an insured credit union to accept the 
deposits of an employee benefit plan in an 
amount greater than such credit union is author-
ized to accept under any other provision of Fed-
eral or State law. 
‘‘(5) STANDARD
MAXIMUM
SHARE
INSURANCE 
AMOUNT
DEFINED.—For purposes of this Act, the 
term ‘standard maximum share insurance amount’ 
means—
‘‘(A) until the effective date of final regula-
tions prescribed pursuant to section 9(a)(2) of 
the Federal Deposit Insurance Reform Act of 
2003, $100,000; and
‘‘(B) on and after such effective date, 
$130,000, adjusted as provided under section 
11(a)(1)(F) of the Federal Deposit Insurance 
Act.’’. 
(2) DOUBLING OF SHARE INSURANCE FOR CER-
TAIN RETIREMENT ACCOUNTS.—Section 207(k)(3) of 
the Federal Credit Union Act (12 U.S.C. 1787(k)(3)) 
is amended by striking ‘‘$100,000’’ and inserting ‘‘2 
times the standard maximum share insurance 
amount (as determined under paragraph (1))’’. 
(h) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the date the 
final regulations required under section 9(a)(2) take effect. 
SEC. 4. SETTING ASSESSMENTS AND REPEAL OF SPECIAL 
RULES 
RELATING 
TO 
MINIMUM 
ASSESS-
MENTS AND FREE DEPOSIT INSURANCE. 
(a) SETTING ASSESSMENTS.—Section 7(b)(2) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)) is 
amended—
(1) by striking subparagraphs (A) and (B) and 
inserting the following new subparagraphs: 
‘‘(A) IN GENERAL.—The Board of Directors 
shall set assessments for insured depository insti-
tutions in such amounts as the Board of Direc-
tors may determine to be necessary or appro-
priate, subject to subparagraph (D). 
‘‘(B) FACTORS TO BE CONSIDERED.—In set-
ting assessments under subparagraph (A), the 
Board of Directors shall consider the following 
factors: 
‘‘(i) The estimated operating expenses 
of the Deposit Insurance Fund.
‘‘(ii) The estimated case resolution ex-
penses and income of the Deposit Insurance 
Fund. 
‘‘(iii) The projected effects of the pay-
ment of assessments on the capital and 
earnings of insured depository institutions. 
‘‘(iv) the risk factors and other factors 
taken into account pursuant to paragraph 
(1) under the risk-based assessment system, 
including the requirement under such para-
graph to maintain a risk-based system. 
‘‘(v) Any other factors the Board of Di-
rectors may determine to be appropriate.’’; 
and 
(2) by inserting after subparagraph (C) the fol-
lowing new subparagraph: 
‘‘(D) BASE RATE FOR ASSESSMENTS.—
‘‘(i) IN GENERAL.—In setting assess-
ment rates pursuant to subparagraph (A), 
the Board of Directors shall establish a base 
rate of not more than 1 basis point (exclu-
sive of any credit or dividend) for those in-
sured depository institutions in the lowest-
risk category under the risk-based assess-
ment system established pursuant to para-
graph (1). No insured depository institution 
shall be barred from the lowest-risk category 
solely because of size. 
‘‘(ii) SUSPENSION.—Clause (i) shall 
not apply during any period in which the 
reserve ratio of the Deposit Insurance Fund 
is less than the amount which is equal to 
1.15 percent of the aggregate estimated in-
sured deposits.’’. 
(b) ASSESSMENT RECORDKEEPING PERIOD SHORT-
ENED.—Paragraph (5) of section 7(b) of the Federal De-
posit Insurance Act (12 U.S.C. 1817(b)) is amended to read 
as follows: 
‘‘(5) DEPOSITORY
INSTITUTION
REQUIRED
TO 
MAINTAIN
ASSESSMENT-RELATED
RECORDS.—Each 
insured depository institution shall maintain all 
records that the Corporation may require for
verifying the correctness of any assessment on the in-
sured depository institution under this subsection 
until the later of—
‘‘(A) the end of the 3-year period beginning 
on the due date of the assessment; or 
‘‘(B) in the case of a dispute between the in-
sured depository institution and the Corporation 
with respect to such assessment, the date of a 
final determination of any such dispute.’’. 
(c) INCREASE IN FEES FOR LATE ASSESSMENT PAY-
MENTS.—Subsection (h) of section 18 of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(h)) is amended to read as 
follows: 
‘‘(h) PENALTY FOR FAILURE TO TIMELY PAY ASSESS-
MENTS.—
‘‘(1) IN GENERAL.—Any insured depository in-
stitution which fails or refuses to pay any assessment 
shall be subject to a penalty in an amount not more 
than 1 percent of the amount of the assessment due 
for each day that such violation continues. 
‘‘(2) EXCEPTION IN CASE OF DISPUTE.—Para-
graph (1) shall not apply if—
‘‘(A) the failure to pay an assessment is due 
to a dispute between the insured depository insti-
(3) REGULATIONS.—Section 232(a)(1) of the 
Federal Deposit Insurance Corporation Improvement 
Act of 1991 (12 U.S.C. 1834(a)(1)) is amended by 
striking ‘‘Board of Governors of the Federal Reserve 
System, and the’’. 
(e) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Paragraph (3) of section 7(a) of the Federal 
Deposit Insurance Act (12 U.S.C. 1817(a)(3)) is 
amended by striking the 3d sentence and inserting the
following: ‘‘Such reports of condition shall be the 
basis for the certified statements to be filed pursuant 
to subsection (c).’’. 
(2) Subparagraphs (B)(ii) and (C) of section 
7(b)(1) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(b)(1)) are each amended by striking 
‘‘semiannual’’ where such term appears in each such 
subparagraph. 
(3) Section 7(b)(2) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1817(b)(2)) is amended—
(A) by striking subparagraphs (E), (F), and 
(G); 
(B) in subparagraph (C), by striking ‘‘semi-
annual’’; and
(C) by redesignating subparagraph (H) (as 
amended by subsection (e)(2) of this section) as 
subparagraph (E). 
(4) Section 7(b) of the Federal Deposit Insurance 
Act (12 U.S.C. 1817(b)) is amended by striking para-
graph (4) and redesignating paragraphs (5) (as 
amended by subsection (b) of this section), (6), and 
(7) as paragraphs (4), (5), and (6) respectively. 
(5) Section 7(c) of the Federal Deposit Insurance 
Act (12 U.S.C. 1817(c)) is amended—
(A) in paragraph (1)(A), by striking ‘‘semi-
annual’’; 
(B) in paragraph (2)(A), by striking ‘‘semi-
annual’’; and 
(C) in paragraph (3), by striking ‘‘semi-
annual period’’ and inserting ‘‘initial assessment 
period’’. 
(6) Section 8(p) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1818(p)) is amended by striking 
‘‘semiannual’’. 
(7) Section 8(q) of the Federal Deposit Insurance 
Act (12 U.S.C. 1818(q)) is amended by striking 
‘‘semiannual period’’ and inserting ‘‘assessment pe-
riod’’.
(8) Section 13(c)(4)(G)(ii)(II) of the Federal De-
posit Insurance Act (12 U.S.C. 1823(c)(4)(G)(ii)(II)) 
is amended by striking ‘‘semiannual period’’ and in-
serting ‘‘assessment period’’. 
(9) Section 232(a) of the Federal Deposit Insur-
ance Corporation Improvement Act of 1991 (12 
U.S.C. 1834(a)) is amended—
(A) in the matter preceding subparagraph 
(A) of paragraph (2), by striking ‘‘the Board 
and’’; 
(B) in subparagraph (J) of paragraph (2), 
by striking ‘‘the Board’’ and inserting ‘‘the Cor-
poration’’; 
(C) by striking subparagraph (A) of para-
graph (3) and inserting the following new sub-
paragraph: 
‘‘(A) CORPORATION.—The term ‘Corpora-
tion’ means the Federal Deposit Insurance Cor-
poration.’’; and 
(D) in subparagraph (C) of paragraph (3), 
by striking ‘‘Board’’ and inserting ‘‘Corpora-
tion’’. 
(f) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the date that
the final regulations required under section 9(a)(5) take ef-
fect. 
SEC. 5. REPLACEMENT OF FIXED DESIGNATED RESERVE 
RATIO WITH RESERVE RANGE. 
(a) IN GENERAL.—Section 7(b)(3) of the Federal De-
posit Insurance Act (12 U.S.C. 1817(b)(3)) is amended to 
read as follows: 
‘‘(3) DESIGNATED RESERVE RATIO.—
‘‘(A) ESTABLISHMENT.—
‘‘(i) IN GENERAL.—The Board of Di-
rectors shall designate, by regulation after 
notice and opportunity for comment, the re-
serve ratio applicable with respect to the 
Deposit Insurance Fund. 
‘‘(ii) NOT LESS THAN ANNUAL REDE-
TERMINATION.—A 
determination 
under 
clause (i) shall be made by the Board of Di-
rectors at least before the beginning of each 
calendar year, for such calendar year, and 
at such other times as the Board of Direc-
tors may determine to be appropriate. 
‘‘(B) RANGE.—The reserve ratio designated 
by the Board of Directors for any year—
‘‘(i) may not exceed 1.4 percent of esti-
mated insured deposits; and
‘‘(ii) may not be less than 1.15 percent 
of estimated insured deposits.
‘‘(C) FACTORS.—In designating a reserve 
ratio for any year, the Board of Directors 
shall—
‘‘(i) take into account the risk of losses 
to the Deposit Insurance Fund in such year 
and future years, including historic experi-
ence and potential and estimated losses 
from insured depository institutions;
‘‘(ii) take into account economic condi-
tions generally affecting insured depository 
institutions so as to allow the designated re-
serve ratio to increase during more favor-
able economic conditions and to decrease 
during less favorable economic conditions, 
notwithstanding the increased risks of loss 
that may exist during such less favorable 
conditions, as determined to be appropriate 
by the Board of Directors; 
‘‘(iii) seek to prevent sharp swings in 
the assessment rates for insured depository 
institutions; and 
‘‘(iv) take into account such other fac-
tors as the Board of Directors may deter-
mine to be appropriate, consistent with the 
requirements of this subparagraph. 
‘‘(D) PUBLICATION OF PROPOSED CHANGE 
IN RATIO.—In soliciting comment on any pro-
posed change in the designated reserve ratio in 
accordance with subparagraph (A), the Board of 
Directors shall include in the published proposal 
a thorough analysis of the data and projections 
on which the proposal is based.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 3(y) of the Federal Deposit Insurance Act (12 U.S.C. 
1813(y)) is amended—
(1) by striking ‘‘(y) The term’’ and inserting 
‘‘(y) DEFINITIONS RELATING TO DEPOSIT INSURANCE 
FUND.—
‘‘(1) DEPOSIT
INSURANCE
FUND.—The term’’; 
and 
(2) by inserting after paragraph (1) (as so des-
ignated by paragraph (1) of this subsection) the fol-
lowing new paragraph: 
‘‘(2) DESIGNATED RESERVE RATIO.—The term 
‘designated reserve ratio’ means the reserve ratio des-
ignated by the Board of Directors in accordance with 
section 7(b)(3).’’.
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the date that 
the final regulations required under section 9(a)(1) take ef-
fect. 
SEC. 6. REQUIREMENTS APPLICABLE TO THE RISK-BASED 
ASSESSMENT SYSTEM. 
Section 7(b)(1) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(b)(1)) is amended by adding at the end 
the following new subparagraphs: 
‘‘(E) INFORMATION
CONCERNING
RISK
OF 
LOSS AND ECONOMIC CONDITIONS.—
‘‘(i) SOURCES OF INFORMATION.—For 
purposes of determining risk of losses at in-
sured depository institutions and economic 
conditions generally affecting depository in-
stitutions, the Corporation shall collect in-
formation, as appropriate, from all sources 
the Board of Directors considers appro-
priate, such as reports of condition, inspec-
tion reports, and other information from all 
Federal banking agencies, any information 
available from State bank supervisors, State 
insurance and securities regulators, the Se-
curities and Exchange Commission (includ-
ing information described in section 35),
the Secretary of the Treasury, the Com-
modity Futures Trading Commission, the 
Farm Credit Administration, the Federal 
Trade Commission, any Federal reserve 
bank or Federal home loan bank, and other 
regulators of financial institutions, and any 
information available from credit rating en-
tities, and other private economic or busi-
ness analysts. 
‘‘(ii) CONSULTATION
WITH
FEDERAL 
BANKING AGENCIES.—
‘‘(I) IN GENERAL.—Except as pro-
vided in subclause (II), in assessing the 
risk of loss to the Deposit Insurance 
Fund with respect to any insured de-
pository institution, the Corporation 
shall consult with the appropriate Fed-
eral banking agency of such institu-
tion. 
‘‘(II) TREATMENT ON AGGREGATE 
BASIS.—In the case of insured deposi-
tory institutions that are well capital-
ized (as defined in section 38) and, in 
the most recent examination, were 
found to be well managed, the consulta-
tion under subclause (I) concerning 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 in-
formation by insured depository institutions 
to the Corporation. 
‘‘(F) MODIFICATIONS TO THE RISK-BASED 
ASSESSMENT SYSTEM ALLOWED ONLY AFTER NO-
TICE AND COMMENT.—In revising or modifying 
the risk-based assessment system at any time 
after the date of the enactment of the Federal De-
posit Insurance Reform Act of 2003, the Board 
of Directors may implement such revisions 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.—
‘‘(1) REFUNDS OF OVERPAYMENTS.—In the case 
of any payment of an assessment by an insured de-
pository 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 DE-
POSIT INSURANCE FUND.—
‘‘(A) RESERVE
RATIO
IN
EXCESS
OF
1.4 
PERCENT OF ESTIMATED INSURED DEPOSITS.—
Whenever the reserve ratio of the Deposit Insur-
ance Fund exceeds 1.4 percent of estimated in-
sured deposits, the Corporation shall declare the 
amount in the Fund in excess of the amount re-
quired to maintain the reserve ratio at 1.4 per-
cent of estimated insured deposits, 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 NOT MORE THAN 1.4 PERCENT.—
Whenever the reserve ratio of the Deposit Insur-
ance Fund equals or exceeds 1.35 percent of esti-
mated insured deposits and is not more 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 deposits as divi-
dends to be paid to insured depository institu-
tions. 
‘‘(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 de-
termine each insured depository institu-
tion’s relative contribution to the Deposit 
Insurance Fund (or any predecessor deposit 
insurance fund) for calculating such insti-
tution’s share of any dividend or credit de-
clared under this paragraph or paragraph 
(3)(B), taking into account the factors de-
scribed in clause (ii). 
‘‘(ii) FACTORS FOR DISTRIBUTION.—In 
implementing this paragraph and para-
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 institu-
tion (including any predecessor) to the 
Deposit Insurance Fund (and any 
predecessor deposit insurance fund). 
‘‘(III) That portion of assessments 
paid by an insured depository institu-
tion (including any predecessor) that 
reflects higher levels of risk assumed by 
such institution. 
‘‘(IV) Such other factors as the 
Corporation may determine to be ap-
propriate. 
‘‘(D) NOTICE AND OPPORTUNITY FOR COM-
MENT.—The Corporation shall prescribe by regu-
lation, after notice and opportunity for com-
ment, the method for the calculation, declaration, 
and payment of dividends under this paragraph. 
‘‘(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 Insur-
ance Reform Act of 2003, the Board of Di-
rectors shall, by regulation, provide for a 
credit to each eligible insured depository in-
stitution, based on the assessment base of 
the institution (including any predecessor 
institution) on December 31, 1996, as com-
pared to the combined aggregate assessment 
base of all eligible insured depository insti-
tutions, taking into account such factors as 
the Board of Directors may determine to be 
appropriate. 
‘‘(ii) CREDIT
LIMIT.—The aggregate 
amount of credits available under clause (i) 
to all eligible insured depository institu-
tions shall equal the amount that the Cor-
poration could collect if the Corporation im-
posed an assessment of 12 basis points on
the combined assessment base of the Bank 
Insurance Fund and the Savings Associa-
tion 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 December 
31, 1996, and paid a deposit insurance 
assessment prior to that date; or 
‘‘(II) is a successor to any insured 
depository institution described in sub-
clause (II). 
‘‘(iv) APPLICATION OF CREDITS.—
‘‘(I) IN GENERAL.—The amount of 
a credit to any eligible insured deposi-
tory institution under this paragraph 
shall be applied by the Corporation, 
subject to subsection (b)(3)(e), to the 
assessments imposed on such institu-
tion under subsection (b) that become 
due for assessment periods beginning
after the effective date of regulations 
prescribed under clause (i). 
‘‘(II) REGULATIONS.—The regula-
tions prescribed under clause (i) shall 
establish the qualifications and proce-
dures governing the application of as-
sessment credits pursuant to subclause 
(I). 
‘‘(v) LIMITATION ON AMOUNT OF CRED-
IT
FOR
CERTAIN
DEPOSITORY
INSTITU-
TIONS.—In the case of an insured deposi-
tory institution that exhibits financial, 
operational, or compliance weaknesses rang-
ing from moderately severe to unsatisfac-
tory, or is not adequately capitalized (as de-
fined 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 assessment rate on 
all insured depository institutions for such 
assessment period.
‘‘(vi) PREDECESSOR
DEFINED.—For 
purposes of this paragraph, the term ‘prede-
cessor’, 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 (v) of such subparagraph, the Cor-
poration shall, by regulation, establish an 
on-going system of credits to be applied 
against future assessments under subsection 
(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 awarded 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 reserve ratio of the Fund 
is less than 1.25 percent of the amount 
of estimated insured deposits.
‘‘(iii) 
CRITERIA
FOR
DETERMINA-
TION.—In determining the amounts of any 
assessment credits under this subparagraph, 
the Board of Directors shall take into ac-
count the factors for designating the reserve 
ratio under subsection (b)(3) and the factors 
for setting assessments under subsection 
(b)(2)(B). 
‘‘(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 challenge 
administratively the amount of the credit or div-
idend 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 Insurance Fund 
other than in connection with a reference to the des-
ignated reserve ratio, means the ratio of the net worth 
of the Deposit Insurance Fund to the value of the ag-
gregate estimated insured deposits.’’. 
SEC. 8. DEPOSIT INSURANCE FUND RESTORATION PLANS. 
Section 7(b)(3) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(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—
‘‘(I) the Corporation projects that 
the reserve ratio of the Deposit Insur-
ance Fund will, within 6 months of 
such determination, fall below the min-
imum amount specified in subpara-
graph (B)(ii) for the designated reserve 
ratio; or 
‘‘(II) the reserve ratio of the De-
posit Insurance Fund actually falls 
below the minimum amount specified 
in subparagraph (B)(ii) for the des-
ignated reserve ratio without any de-
termination under subclause (I) having 
been made, 
the Corporation shall establish and imple-
ment a Deposit Insurance Fund restoration 
plan within 90 days that meets the require-
ments of clause (ii) and such other condi-
tions as the Corporation determines to be 
appropriate. 
‘‘(ii) REQUIREMENTS OF RESTORATION 
PLAN.—A Deposit Insurance Fund restora-
tion plan meets the requirements of this 
clause if the plan provides that the reserve 
ratio of the Fund will meet or exceed the 
minimum amount specified in subpara-
graph (B)(ii) for the designated reserve 
ratio before the end of the 10-year period be-
ginning upon the implementation of the 
plan.
‘‘(iii) RESTRICTION
ON
ASSESSMENT 
CREDITS.—As part of any restoration plan 
under this subparagraph, the Corporation 
may elect to restrict the application of as-
sessment credits provided under subsection 
(e)(3) for any period that the plan is in ef-
fect. 
‘‘(iv) LIMITATION ON RESTRICTION.—
Notwithstanding clause (iii), while any res-
toration plan under this subparagraph is in 
effect, the Corporation shall apply credits 
provided to an insured depository institu-
tion under subsection (e)(3) against any as-
sessment imposed on the institution for any 
assessment period in an amount equal to 
the lesser of—
‘‘(I) the amount of the assessment; 
or 
‘‘(II) the amount equal to 3 basis 
points of the institution’s assessment 
base. 
‘‘(v) TRANSPARENCY.—Not more than 
30 days after the Corporation establishes 
and implements a restoration plan under 
clause (i), the Corporation shall publish in
the Federal Register a detailed analysis of 
the factors considered and the basis for the 
actions taken with regard to the plan.’’.
SEC. 9. REGULATIONS REQUIRED. 
(a) IN GENERAL.—Not later than 270 days after the 
date of the enactment of this Act, the Board of Directors 
of the Federal Deposit Insurance Corporation shall pre-
scribe final regulations, after notice and opportunity for 
comment—
(1) designating the reserve ratio for the Deposit 
Insurance Fund in accordance with section 7(b)(3) of 
the Federal Deposit Insurance Act (as amended by 
section 5 of this Act); 
(2) implementing increases in deposit insurance 
coverage in accordance with the amendments made by 
section 3 of this Act; 
(3) implementing the dividend requirement 
under section 7(e)(2) of the Federal Deposit Insurance 
Act (as amended by section 7 of this Act). 
(4) implementing the 1-time assessment credit to 
certain insured depository institutions in accordance 
with section 7(e)(3) of the Federal Deposit Insurance 
Act, as amended by section 7 of this Act, including 
the qualifications and procedures under which the 
Corporation would apply assessment credits; and
(5) providing for assessments under section 7(b) 
of the Federal Deposit Insurance Act, as amended by 
this Act. 
(b) RULE OF CONSTRUCTION.—No provision of this 
Act or any amendment made by this Act shall be construed 
as affecting the authority of the Corporation to set or collect 
deposit insurance assessments before the effective date of the 
final regulations prescribed under subsection (a).
SEC. 10. STUDIES OF FDIC STRUCTURE AND EXPENSES AND 
CERTAIN ACTIVITIES AND FURTHER POS-
SIBLE CHANGES TO DEPOSIT INSURANCE 
SYSTEM. 
(a) STUDY BY COMPTROLLER GENERAL.—
(1) STUDY REQUIRED.—The Comptroller General 
shall conduct a study of the following issues: 
(A) The efficiency and effectiveness of the 
administration of the prompt corrective action 
program under section 38 of the Federal Deposit 
Insurance Act by the Federal banking agencies 
(as defined in section 3 of such Act), including 
the degree of effectiveness of such agencies in 
identifying troubled depository institutions and 
taking effective action with respect to such insti-
tutions, and the degree of accuracy of the risk as-
sessments made by the Corporation.
(B) The appropriateness of the organiza-
tional structure of the Federal Deposit Insurance 
Corporation for the mission of the Corporation 
taking into account—
(i) the current size and complexity of 
the business of insured depository institu-
tions (as such term is defined in section 3 
of the Federal Deposit Insurance Act); 
(ii) the extent to which the organiza-
tional structure contributes to or reduces 
operational inefficiencies that increase oper-
ational costs; and 
(iii) the effectiveness of internal con-
trols. 
(2) REPORT
TO
THE
CONGRESS.—The Comp-
troller General shall submit a report to the Congress 
before the end of the 1-year period beginning on the 
date of the enactment of this Act containing the find-
ings and conclusions of the Comptroller General with 
respect to the study required under paragraph (1) to-
gether with such recommendations for legislative or 
administrative action as the Comptroller General 
may determine to be appropriate. 
(b) INTERNAL STUDY BY THE FDIC.—
(1) STUDY REQUIRED.—Concurrently with the 
study required to be conducted by the Comptroller 
General under subsection (a), the Federal Deposit In-
surance Corporation shall conduct an internal study 
of the same conditions and factors included in the 
study under subsection (a). 
(2) REPORT TO THE CONGRESS.—The Federal 
Deposit Insurance Corporation shall submit a report 
to the Congress before the end of the 1-year period be-
ginning on the date of the enactment of this Act con-
taining the findings and conclusions of the Corpora-
tion with respect to the study required under para-
graph (1) together with such recommendations for leg-
islative or administrative action as the Board of Di-
rectors of the Corporation may determine to be appro-
priate. 
(c) STUDY OF FURTHER POSSIBLE CHANGES TO DE-
POSIT INSURANCE SYSTEM.—
(1) STUDY REQUIRED.—The Board of Directors 
of the Federal Deposit Insurance Corporation and the 
National Credit Union Administration Board shall 
each conduct a study of the following: 
(A) The feasibility of establishing a vol-
untary deposit insurance system for deposits in 
excess of the maximum amount of deposit insur-
ance for any depositor and the potential benefits 
and the potential adverse consequences that may 
result from the establishment of any such system.
(B) The feasibility of privatizing all deposit 
insurance at insured depository institutions and 
insured credit unions. 
(2) REPORT.—Before the end of the 1-year pe-
riod beginning on the date of the enactment of this 
Act, the Board of Directors of the Federal Deposit In-
surance Corporation and the National Credit Union 
Administration Board shall each submit a report to 
the Congress on the study required under paragraph 
(1) containing the findings and conclusions of the re-
porting agency together with such recommendations 
for legislative or administrative changes as the agency 
may determine to be appropriate. 
(d) STUDY REGARDING APPROPRIATE DEPOSIT BASE 
IN DESIGNATING RESERVE RATIO.—
(1) STUDY REQUIRED.—The Federal Deposit In-
surance Corporation shall conduct a study of the fea-
sibility of using actual domestic deposits rather than 
estimated insured deposits in calculating the reserve 
ratio of the Deposit Insurance Fund and designating 
a reserve ratio for such Fund.
(2) REPORT.—The Federal Deposit Insurance 
Corporation shall submit a report to the Congress be-
fore the end of the 1-year period beginning on the 
date of the enactment of this Act containing the find-
ings and conclusions of the Corporation with respect 
to the study required under paragraph (1) together 
with such recommendations for legislative or adminis-
trative action as the Board of Directors of the Cor-
poration may determine to be appropriate. 
(e) STUDY
OF RESERVE METHODOLOGY
AND AC-
COUNTING FOR LOSS.—
(1) STUDY REQUIRED.—The Federal Deposit In-
surance Corporation, in consultation with the Comp-
troller General, shall conduct a study of the reserve 
methodology and loss accounting used by the Corpora-
tion during the period beginning on January 1, 1992, 
and ending December 31, 2002, with respect to in-
sured depository institutions in a troubled condition 
(as defined in the regulations prescribed pursuant to 
section 32(f) of the Federal Deposit Insurance Act). 
(2) FACTORS TO BE INCLUDED.—In conducting 
the study pursuant to paragraph (1), the Federal De-
posit Insurance Corporation shall—
(A) consider the overall effectiveness and ac-
curacy of the methodology used by the Corpora-
tion for establishing and maintaining reserves 
and estimating and accounting for losses at in-
sured depository institutions, during the period 
described in such paragraph;
(B) consider the appropriateness and reli-
ability of information and criteria used by the 
Corporation in determining—
(i) whether an insured depository in-
stitution was in a troubled condition; and 
(ii) the amount of any loss anticipated 
at such institution; 
(C) analyze the actual historical loss experi-
ence over the period described in paragraph (1) 
and the causes of the exceptionally high rate of 
losses experienced by the Corporation in the final 
3 years of that period; and 
(D) rate the efforts of the Corporation to re-
duce losses in such 3-year period to minimally 
acceptable levels and to historical levels. 
(3) REPORT REQUIRED.—The Board of Directors 
of the Federal Deposit Insurance Corporation shall 
submit a report to the Congress before the end of the 
6-month period beginning on the date of the enact-
ment of this Act, containing the findings and conclu-
sions of the Corporation, in consultation with the
Comptroller General, with respect to the study re-
quired under paragraph (1), together with such rec-
ommendations for legislative or administrative action 
as the Board of Directors may determine to be appro-
priate.
SEC. 11. BI-ANNUAL FDIC SURVEY AND REPORT ON IN-
CREASING THE DEPOSIT BASE BY ENCOUR-
AGING USE OF DEPOSITORY INSTITUTIONS 
BY THE UNBANKED. 
The Federal Deposit Insurance Act (12 U.S.C. 1811 
et seq.) is amended by adding at the end the following new 
section: 
‘‘SEC. 49. BI-ANNUAL FDIC SURVEY AND REPORT ON EN-
COURAGING USE OF DEPOSITORY INSTITU-
TIONS BY THE UNBANKED. 
‘‘(a) SURVEY REQUIRED.—
‘‘(1) IN GENERAL.—The Corporation shall con-
duct a bi-annual survey on efforts by insured deposi-
tory institutions to bring those individuals and fami-
lies who have rarely, if ever, held a checking account, 
a savings account or other type of transaction or 
check cashing account at an insured depository insti-
tution (hereafter in this section referred to as the 
‘unbanked’) into the conventional finance system.
‘‘(2) FACTORS AND QUESTIONS TO CONSIDER.—
In conducting the survey, the Corporation shall take 
the following factors and questions into account:
‘‘(A) To what extent do insured depository 
institutions promote financial education and fi-
nancial literacy outreach? 
‘‘(B) Which financial education efforts ap-
pear to be the most effective in bringing 
‘unbanked’ individuals and families into the 
conventional finance system? 
‘‘(C) What efforts are insured institutions 
making at converting ‘unbanked’ money order, 
wire transfer, and international remittance cus-
tomers into conventional account holders? 
‘‘(D) What cultural, language and identi-
fication issues as well as transaction costs ap-
pear to most prevent ‘unbanked’ individuals 
from establishing conventional accounts? 
‘‘(E) What is a fair estimate of the size and 
worth of the ‘unbanked’ market in the United 
States? 
‘‘(b) REPORTS.—The Chairperson of the Board of Di-
rectors shall submit a bi-annual report to the Committee 
on Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs
of the Senate containing the Corporation’s findings and 
conclusions with respect to the survey conducted pursuant 
to subsection (a), together with such recommendations for 
legislative or administrative action as the Chairperson may 
determine to be appropriate.’’. 
SEC. 12. TECHNICAL AND CONFORMING AMENDMENTS TO 
THE FEDERAL DEPOSIT INSURANCE ACT RE-
LATING TO THE MERGER OF THE BIF AND 
SAIF. 
(a) IN GENERAL.—The Federal Deposit Insurance Act 
(12 U.S.C. 1811 et seq.) is amended—
(1) in section 3 (12 U.S.C. 1813)—
(A) by striking subparagraph (B) of sub-
section (a)(1) and inserting the following new 
subparagraph: 
‘‘(B) includes any former savings associa-
tion.’’; and 
(B) by striking paragraph (1) of subsection 
(y) (as so designated by section 5(b) of this Act) 
and inserting the following new paragraph: 
‘‘(1) DEPOSIT INSURANCE FUND.—The term ‘De-
posit Insurance Fund’ means the Deposit Insurance 
Fund established under section 11(a)(4).’’; 
(2) 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 ‘‘the De-
posit Insurance Fund,’’; 
(3) in section 5(c)(4), by striking ‘‘deposit insur-
ance fund’’ and inserting ‘‘Deposit Insurance Fund’’; 
(4) in section 5(d) (12 U.S.C. 1815(d)), by strik-
ing paragraphs (2) and (3) (and any funds resulting 
from the application of such paragraph (2) prior to 
its repeal shall be deposited into the general fund of 
the Deposit Insurance Fund); 
(5) in section 5(d)(1) (12 U.S.C. 1815(d)(1))—
(A) in subparagraph (A), by striking ‘‘re-
serve ratios in the Bank Insurance Fund and the 
Savings Association Insurance Fund as required 
by section 7’’ and inserting ‘‘the reserve ratio of 
the Deposit Insurance Fund’’; 
(B) by striking subparagraph (B) and in-
serting the following: 
‘‘(2) FEE CREDITED TO THE DEPOSIT INSUR-
ANCE FUND.—The fee paid by the depository institu-
tion under paragraph (1) shall be credited to the De-
posit Insurance Fund.’’; 
(C) by striking ‘‘(1) UNINSURED INSTITU-
TIONS.—’’; and
(D) by redesignating subparagraphs (A) 
and (C) as paragraphs (1) and (3), respectively, 
and moving the left margins 2 ems to the left; 
(6) in section 5(e) (12 U.S.C. 1815(e))—
(A) in paragraph (5)(A), by striking ‘‘Bank 
Insurance Fund or the Savings Association In-
surance Fund’’ and inserting ‘‘Deposit Insurance 
Fund’’; 
(B) by striking paragraph (6); and 
(C) by redesignating paragraphs (7), (8), 
and (9) as paragraphs (6), (7), and (8), respec-
tively; 
(7) in section 6(5) (12 U.S.C. 1816(5)), by strik-
ing ‘‘Bank Insurance Fund or the Savings Associa-
tion Insurance Fund’’ and inserting ‘‘Deposit Insur-
ance Fund’’; 
(8) in section 7(b) (12 U.S.C. 1817(b))—
(A) in paragraph (1)(C), by striking ‘‘de-
posit insurance fund’’ each place that term ap-
pears and inserting ‘‘Deposit Insurance Fund’’; 
(B) in paragraph (1)(D), by striking ‘‘each 
deposit insurance fund’’ and inserting ‘‘the De-
posit Insurance Fund’’; and 
(C) in paragraph (5) (as so redesignated by 
section 4(e)(4) of this Act)—
(i) by striking ‘‘any such assessment’’ 
and inserting ‘‘any such assessment is nec-
essary’’; 
(ii) by striking subparagraph (B);
(iii) in subparagraph (A)—
(I) by striking ‘‘(A) is nec-
essary—’’; 
(II) by striking ‘‘Bank Insurance 
Fund members’’ and inserting ‘‘in-
sured depository institutions’’; and 
(III) by redesignating clauses (i), 
(ii), and (iii) as subparagraphs (A), 
(B), and (C), respectively, and moving 
the margins 2 ems to the left; and 
(iv) in subparagraph (C) (as so redes-
ignated)—
(I) by inserting ‘‘that’’ before ‘‘the 
Corporation’’; and 
(II) by striking ‘‘; and’’ and in-
serting a period; 
(9) 
in 
section 
7(j)(7)(F) 
(12 
U.S.C. 
1817(j)(7)(F)), by striking ‘‘Bank Insurance Fund or 
the Savings Association Insurance Fund’’ and insert-
ing ‘‘Deposit Insurance Fund’’;
(10) 
in 
section 
8(t)(2)(C) 
(12 
U.S.C. 
1818(t)(2)(C)), by striking ‘‘deposit insurance fund’’ 
and inserting ‘‘Deposit Insurance Fund’’; 
(11) in section 11 (12 U.S.C. 1821)—
(A) by striking ‘‘deposit insurance fund’’ 
each place that term appears and inserting ‘‘De-
posit Insurance Fund’’; 
(B) by striking paragraph (4) of subsection 
(a) and inserting the following new paragraph: 
‘‘(4) DEPOSIT INSURANCE FUND.—
‘‘(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 insured depository institutions the de-
posits of which are insured by the Deposit Insur-
ance Fund.
‘‘(C) 
LIMITATION
ON
USE.—Notwith-
standing any provision of law other than section 
13(c)(4)(G), the Deposit Insurance Fund shall 
not be used in any manner to benefit any share-
holder or affiliate (other than an insured deposi-
tory institution that receives assistance in ac-
cordance with the provisions of this Act) of—
‘‘(i) any insured depository institution 
for which the Corporation has been ap-
pointed conservator or receiver, in connec-
tion with any type of resolution by the Cor-
poration; 
‘‘(ii) any other insured depository in-
stitution in default or in danger of default, 
in connection with any type of resolution 
by the Corporation; or 
‘‘(iii) any insured depository institu-
tion, in connection with the provision of as-
sistance under this section or section 13 
with respect to such institution, except that 
this clause shall not prohibit any assistance 
to any insured depository institution that is 
not in default, or that is not in danger of 
default, that is acquiring (as defined in sec-
tion 13(f)(8)(B)) another insured depository 
institution. 
‘‘(D) DEPOSITS.—All amounts assessed 
against insured depository institutions by the 
Corporation shall be deposited into the Deposit 
Insurance Fund.’’; 
(C) by striking paragraphs (5), (6), and (7) 
of subsection (a); and 
(D) by redesignating paragraph (8) of sub-
section (a) as paragraph (5); 
(12) 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 paragraph and inserting a pe-
riod; 
(13) in section 11(i)(3) (12 U.S.C. 1821(i)(3))—
(A) by striking subparagraph (B); 
(B) by redesignating subparagraph (C) as 
subparagraph (B); and 
(C) in subparagraph (B) (as so redesig-
nated), by striking ‘‘subparagraphs (A) and (B)’’ 
and inserting ‘‘subparagraph (A)’’; 
(14) 
in 
section 
11(p)(2)(B) 
(12 
U.S.C. 
1821(p)(2)(B)), by striking ‘‘institution, any’’ and 
inserting ‘‘institution, the’’; 
(15) in section 11A(a) (12 U.S.C. 1821a(a))—
(A) in paragraph (2), by striking ‘‘LIABIL-
ITIES.—’’ and all that follows through ‘‘Except’’ 
and inserting ‘‘LIABILITIES.—Except’’; 
(B) by striking paragraph (2)(B); and 
(C) in paragraph (3), by striking ‘‘the 
Bank Insurance Fund, the Savings Association
Insurance Fund,’’ and inserting ‘‘the Deposit In-
surance Fund’’; 
(16) in section 11A(b) (12 U.S.C. 1821a(b)), by 
striking paragraph (4); 
(17) in section 11A(f) (12 U.S.C. 1821a(f)), by 
striking ‘‘Savings Association Insurance Fund’’ and 
inserting ‘‘Deposit Insurance Fund’’; 
(18) in section 12(f)(4)(E)(iv) (12 U.S.C. 
1822(f)(4)(E)(iv)), by striking ‘‘Federal deposit insur-
ance funds’’ and inserting ‘‘the Deposit Insurance 
Fund (or any predecessor deposit insurance fund)’’; 
(19) in section 13 (12 U.S.C. 1823)—
(A) by striking ‘‘deposit insurance fund’’ 
each place that term appears and inserting ‘‘De-
posit Insurance Fund’’; 
(B) in subsection (a)(1), by striking ‘‘Bank 
Insurance Fund, the Savings Association Insur-
ance Fund,’’ and inserting ‘‘Deposit Insurance 
Fund’’;
(C) in subsection (c)(4)(E)—
(i) in the subparagraph heading, by 
striking ‘‘FUNDS’’ and inserting ‘‘FUND’’; 
and 
(ii) in clause (i), by striking ‘‘any in-
surance fund’’ and inserting ‘‘the Deposit 
Insurance Fund’’; 
(D) in subsection (c)(4)(G)(ii)—
(i) by striking ‘‘appropriate insurance 
fund’’ and inserting ‘‘Deposit Insurance 
Fund’’; 
(ii) by striking ‘‘the members of the in-
surance fund (of which such institution is a 
member)’’ and inserting ‘‘insured depository 
institutions’’; 
(iii) by striking ‘‘each member’s’’ and 
inserting ‘‘each insured depository institu-
tion’s’’; and 
(iv) by striking ‘‘the member’s’’ each 
place that term appears and inserting ‘‘the 
institution’s’’; 
(E) in subsection (c), by striking paragraph 
(11);
(F) in subsection (h), by striking ‘‘Bank In-
surance Fund’’ and inserting ‘‘Deposit Insurance 
Fund’’;
(G) in subsection (k)(4)(B)(i), by striking 
‘‘Savings Association Insurance Fund member’’ 
and inserting ‘‘savings association’’; and 
(H) in subsection (k)(5)(A), by striking 
‘‘Savings Association Insurance Fund members’’ 
and inserting ‘‘savings associations’’; 
(20) in section 14(a) (12 U.S.C. 1824(a)), in the 
5th sentence—
(A) by striking ‘‘Bank Insurance Fund or 
the Savings Association Insurance Fund’’ and 
inserting ‘‘Deposit Insurance Fund’’; and 
(B) by striking ‘‘each such fund’’ and in-
serting ‘‘the Deposit Insurance Fund’’; 
(21) in section 14(b) (12 U.S.C. 1824(b)), by 
striking ‘‘Bank Insurance Fund or Savings Associa-
tion Insurance Fund’’ and inserting ‘‘Deposit Insur-
ance Fund’’; 
(22) in section 14(c) (12 U.S.C. 1824(c)), by 
striking paragraph (3); 
(23) in section 14(d) (12 U.S.C. 1824(d))—
(A) by striking ‘‘Bank Insurance Fund 
member’’ each place that term appears and in-
serting ‘‘insured depository institution’’; 
(B) by striking ‘‘Bank Insurance Fund 
members’’ each place that term appears and in-
serting ‘‘insured depository institutions’’; 
(C) by striking ‘‘Bank Insurance Fund’’ 
each place that term appears (other than in con-
nection with a reference to a term amended by 
subparagraph (A) or (B) of this paragraph) and 
inserting ‘‘Deposit Insurance Fund’’; 
(D) by striking the subsection heading and 
inserting the following: 
‘‘(d) BORROWING FOR THE DEPOSIT INSURANCE FUND 
FROM INSURED DEPOSITORY INSTITUTIONS.—’’; 
(E) in paragraph (3), in the paragraph 
heading, by striking ‘‘BIF’’ and inserting ‘‘THE 
DEPOSIT INSURANCE FUND’’; and 
(F) in paragraph (5), in the paragraph 
heading, by striking ‘‘BIF MEMBERS’’ and insert-
ing ‘‘INSURED DEPOSITORY INSTITUTIONS’’; 
(24) in section 14 (12 U.S.C. 1824), by adding 
at the end the following new subsection: 
‘‘(e) BORROWING FOR THE DEPOSIT INSURANCE FUND 
FROM FEDERAL HOME LOAN BANKS.—
‘‘(1) IN GENERAL.—The Corporation may bor-
row from the Federal home loan banks, with the con-
currence of the Federal Housing Finance Board, such 
funds as the Corporation considers necessary for the 
use of the Deposit Insurance Fund. 
‘‘(2) TERMS AND CONDITIONS.—Any loan from 
any Federal home loan bank under paragraph (1) to 
the Deposit Insurance Fund shall—
‘‘(A) bear a rate of interest of not less than 
the current marginal cost of funds to that bank, 
taking into account the maturities involved; 
‘‘(B) be adequately secured, as determined 
by the Federal Housing Finance Board; 
‘‘(C) be a direct liability of the Deposit In-
surance Fund; and 
‘‘(D) be subject to the limitations of section 
15(c).’’; 
(25) in section 15(c)(5) (12 U.S.C. 1825(c)(5))—
(A) by striking ‘‘the Bank Insurance Fund 
or Savings Association Insurance Fund, respec-
tively’’ each place that term appears and insert-
ing ‘‘the Deposit Insurance Fund’’; and 
(B) in subparagraph (B), by striking ‘‘the 
Bank Insurance Fund or the Savings Associa-
tion Insurance Fund, respectively’’ and inserting 
‘‘the Deposit Insurance Fund’’; 
(26) in section 17(a) (12 U.S.C. 1827(a))—
(A) in the subsection heading, by striking 
‘‘BIF, SAIF,’’ and inserting ‘‘THE DEPOSIT IN-
SURANCE FUND’’; and 
(B) in paragraph (1)—
(i) by striking ‘‘the Bank Insurance 
Fund, the Savings Association Insurance 
Fund,’’ each place that term appears and 
inserting ‘‘the Deposit Insurance Fund’’; 
and 
(ii) in subparagraph (D), by striking 
‘‘each insurance fund’’ and inserting ‘‘the 
Deposit Insurance Fund’’; 
(27) in section 17(d) (12 U.S.C. 1827(d)), by 
striking ‘‘, the Bank Insurance Fund, the Savings As-
sociation Insurance Fund,’’ each place that term ap-
pears and inserting ‘‘the Deposit Insurance Fund’’; 
(28) 
in 
section 
18(m)(3) 
(12 
U.S.C. 
1828(m)(3))—
(A) by striking ‘‘Savings Association Insur-
ance Fund’’ in the 1st sentence of subparagraph 
(A) and inserting ‘‘Deposit Insurance Fund’’;
(B) by striking ‘‘Savings Association Insur-
ance Fund member’’ in the last sentence of sub-
paragraph (A) and inserting ‘‘savings associa-
tion’’; and 
(C) by striking ‘‘Savings Association Insur-
ance Fund or the Bank Insurance Fund’’ in sub-
paragraph (C) and inserting ‘‘Deposit Insurance 
Fund’’; 
(29) in section 18(o) (12 U.S.C. 1828(o)), by 
striking ‘‘deposit insurance funds’’ and ‘‘deposit in-
surance fund’’ each place those terms appear and in-
serting ‘‘Deposit Insurance Fund’’; 
(30) in section 18(p) (12 U.S.C. 1828(p)), by 
striking ‘‘deposit insurance funds’’ and inserting ‘‘De-
posit Insurance Fund’’; 
(31) in section 24 (12 U.S.C. 1831a)—
(A) in subsections (a)(1) and (d)(1)(A), by 
striking ‘‘appropriate deposit insurance fund’’ 
each place that term appears and inserting ‘‘De-
posit Insurance Fund’’; 
(B) in subsection (e)(2)(A), by striking 
‘‘risk to’’ and all that follows through the period 
and inserting ‘‘risk to the Deposit Insurance 
Fund.’’; and
(C) 
in 
subsections 
(e)(2)(B)(ii) 
and 
(f)(6)(B), by striking ‘‘the insurance fund of 
which such bank is a member’’ each place that 
term appears and inserting ‘‘the Deposit Insur-
ance Fund’’; 
(32) in section 28 (12 U.S.C. 1831e), by striking 
‘‘affected deposit insurance fund’’ each place that 
term appears and inserting ‘‘Deposit Insurance 
Fund’’; 
(33) by striking section 31 (12 U.S.C. 1831h); 
(34) in section 36(i)(3) (12 U.S.C. 1831m(i)(3)), 
by striking ‘‘affected deposit insurance fund’’ and in-
serting ‘‘Deposit Insurance Fund’’; 
(35) 
in 
section 
37(a)(1)(C) 
(12 
U.S.C. 
1831n(a)(1)(C)), by striking ‘‘insurance funds’’ and 
inserting ‘‘Deposit Insurance Fund’’; 
(36) in section 38 (12 U.S.C. 1831o), by striking 
‘‘the deposit insurance fund’’ each place that term ap-
pears and inserting ‘‘the Deposit Insurance Fund’’; 
(37) in section 38(a) (12 U.S.C. 1831o(a)), in 
the subsection heading, by striking ‘‘FUNDS’’ and in-
serting ‘‘FUND’’; 
(38) in section 38(k) (12 U.S.C. 1831o(k))—
(A) in paragraph (1), by striking ‘‘a de-
posit insurance fund’’ and inserting ‘‘the Deposit 
Insurance Fund’’; 
(B) in paragraph (2), by striking ‘‘A de-
posit insurance fund’’ and inserting ‘‘The De-
posit Insurance Fund’’; and 
(C) in paragraphs (2)(A) and (3)(B), by 
striking ‘‘the deposit insurance fund’s outlays’’ 
each place that term appears and inserting ‘‘the 
outlays of the Deposit Insurance Fund’’; and 
(39) in section 38(o) (12 U.S.C. 1831o(o))—
(A) by striking ‘‘ASSOCIATIONS.—’’ and all 
that follows through ‘‘Subsections (e)(2)’’ and in-
serting ‘‘ASSOCIATIONS.—Subsections (e)(2)’’; 
(B) by redesignating subparagraphs (A), 
(B), and (C) as paragraphs (1), (2), and (3), re-
spectively, and moving the margins 2 ems to the 
left; and 
(C) in paragraph (1) (as so redesignated), 
by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively, and moving the 
margins 2 ems to the left. 
(b) EFFECTIVE DATE.—This section and the amend-
ments made by 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. 13. OTHER TECHNICAL AND CONFORMING AMEND-
MENTS RELATING TO THE MERGER OF THE 
BIF AND SAIF. 
(a) SECTION 5136 OF THE REVISED STATUTES.—The 
paragraph designated the ‘‘Eleventh’’ of section 5136 of the 
Revised Statutes of the United States (12 U.S.C. 24) is 
amended in the 5th sentence, by striking ‘‘affected deposit 
insurance fund’’ and inserting ‘‘Deposit Insurance Fund’’. 
(b) INVESTMENTS PROMOTING PUBLIC WELFARE; LIM-
ITATIONS ON AGGREGATE INVESTMENTS.—The 23d undes-
ignated paragraph of section 9 of the Federal Reserve Act 
(12 U.S.C. 338a) is amended in the 4th sentence, by strik-
ing ‘‘affected deposit insurance fund’’ and inserting ‘‘De-
posit Insurance Fund’’. 
(c) ADVANCES
TO CRITICALLY UNDERCAPITALIZED 
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’’. 
(d) AMENDMENTS TO THE BALANCED BUDGET AND 
EMERGENCY DEFICIT CONTROL ACT
OF 1985.—Section 
255(g)(1)(A) of the Balanced Budget and Emergency Def-
icit Control Act of 1985 (2 U.S.C. 905(g)(1)(A)) is amend-
ed—
(1) by striking ‘‘Bank Insurance Fund’’ and in-
serting ‘‘Deposit Insurance Fund’’; and 
(2) by striking ‘‘Federal Deposit Insurance Cor-
poration, Savings Association Insurance Fund (51–
4066–0–3–373);’’. 
(e) AMENDMENTS
TO
THE FEDERAL HOME LOAN 
BANK ACT.—The Federal Home Loan Bank Act (12 U.S.C. 
1421 et seq.) is amended—
(1) in section 11(k) (12 U.S.C. 1431(k))—
(A) in the subsection heading, by striking 
‘‘SAIF’’ and inserting ‘‘THE DEPOSIT INSUR-
ANCE FUND’’; and 
(B) by striking ‘‘Savings Association Insur-
ance Fund’’ each place such term appears and 
inserting ‘‘Deposit Insurance Fund’’; 
(2) in section 21 (12 U.S.C. 1441)—
(A) in subsection (f)(2), by striking ‘‘, ex-
cept that’’ and all that follows through the end 
of the paragraph and inserting a period; and 
(B) in subsection (k), by striking paragraph 
(4);
(3) 
in 
section 
21A(b)(4)(B) 
(12 
U.S.C. 
1441a(b)(4)(B)), by striking ‘‘affected deposit insur-
ance fund’’ and inserting ‘‘Deposit Insurance Fund’’; 
(4) 
in 
section 
21A(b)(6)(B) 
(12 
U.S.C. 
1441a(b)(6)(B))—
(A) in the subparagraph heading, by strik-
ing ‘‘SAIF-INSURED
BANKS’’ and inserting 
‘‘CHARTER CONVERSIONS’’; and 
(B) by striking ‘‘Savings Association Insur-
ance Fund member’’ and inserting ‘‘savings as-
sociation’’; 
(5) in section 21A(b)(10)(A)(iv)(II) (12 U.S.C. 
1441a(b)(10)(A)(iv)(II)), by striking ‘‘Savings Asso-
ciation Insurance Fund’’ and inserting ‘‘Deposit In-
surance Fund’’; 
(6) in section 21A(n)(6)(E)(iv) (12 U.S.C. 
1441(n)(6)(E)(iv)), by striking ‘‘Federal deposit in-
surance funds’’ and inserting ‘‘the Deposit Insurance 
Fund’’; 
(7) in section 21B(e) (12 U.S.C. 1441b(e))—
(A) in paragraph (5), by inserting ‘‘as of 
the date of funding’’ after ‘‘Savings Association 
Insurance Fund members’’ each place that term 
appears; and 
(B) by striking paragraphs (7) and (8); and
(8) in section 21B(k) (12 U.S.C. 1441b(k))—
(A) by inserting before the colon ‘‘, the fol-
lowing definitions shall apply’’; 
(B) by striking paragraph (8); and 
(C) by redesignating paragraphs (9) and 
(10) as paragraphs (8) and (9), respectively. 
(f) AMENDMENTS
TO
THE HOME OWNERS’ LOAN 
ACT.—The Home Owners’ Loan Act (12 U.S.C. 1461 et 
seq.) is amended—
(1) in section 5 (12 U.S.C. 1464)—
(A) in subsection (c)(5)(A), by striking 
‘‘that is a member of the Bank Insurance Fund’’;
(B) in subsection (c)(6), by striking ‘‘As 
used in this subsection—’’ and inserting ‘‘For 
purposes of this subsection, the following defini-
tions shall apply:’’; 
(C) in subsection (o)(1), by striking ‘‘that is 
a Bank Insurance Fund member’’; 
(D) in subsection (o)(2)(A), by striking ‘‘a 
Bank Insurance Fund member until such time 
as it changes its status to a Savings Association 
Insurance Fund member’’ and inserting ‘‘insured 
by the Deposit Insurance Fund’’;
(E) in subsection (t)(5)(D)(iii)(II), by strik-
ing ‘‘affected deposit insurance fund’’ and insert-
ing ‘‘Deposit Insurance Fund’’; 
(F) in subsection (t)(7)(C)(i)(I), by striking 
‘‘affected deposit insurance fund’’ and inserting 
‘‘Deposit Insurance Fund’’; and 
(G) in subsection (v)(2)(A)(i), by striking 
‘‘the Savings Association Insurance Fund’’ and 
inserting ‘‘or the Deposit Insurance Fund’’; and 
(2) in section 10 (12 U.S.C. 1467a)—
(A) in subsection (c)(6)(D), by striking 
‘‘this title’’ and inserting ‘‘this Act’’; 
(B) in subsection (e)(1)(B), by striking 
‘‘Savings Association Insurance Fund or Bank 
Insurance Fund’’ and inserting ‘‘Deposit Insur-
ance Fund’’; 
(C) in subsection (e)(2), by striking ‘‘Sav-
ings Association Insurance Fund or the Bank 
Insurance Fund’’ and inserting ‘‘Deposit Insur-
ance Fund’’; 
(D) in subsection (e)(4)(B), by striking 
‘‘subsection (1)’’ and inserting ‘‘subsection (l)’’; 
(E) in subsection (g)(3)(A), by striking ‘‘(5) 
of this section’’ and inserting ‘‘(5) of this sub-
section’’;
(F) in subsection (i), by redesignating para-
graph (5) as paragraph (4); 
(G) in subsection (m)(3), by striking sub-
paragraph (E) and by redesignating subpara-
graphs (F), (G), and (H) as subparagraphs (E), 
(F), and (G), respectively; 
(H) in subsection (m)(7)(A), by striking 
‘‘during period’’ and inserting ‘‘during the pe-
riod’’; and 
(I) in subsection (o)(3)(D), by striking ‘‘sec-
tions 5(s) and (t) of this Act’’ and inserting 
‘‘subsections (s) and (t) of section 5’’. 
(g) AMENDMENTS TO THE NATIONAL HOUSING ACT.—
The National Housing Act (12 U.S.C. 1701 et seq.) is 
amended—
(1) 
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 Association Insur-
ance Fund for savings associations’’ and inserting 
‘‘Deposit Insurance Fund’’; and 
(2) in section 536(b)(1)(B)(ii) (12 U.S.C. 1735f–
14(b)(1)(B)(ii)), by striking ‘‘Bank Insurance Fund 
for banks and through the Savings Association Insur-
ance Fund for savings associations’’ and inserting 
‘‘Deposit Insurance Fund’’.
(h) AMENDMENTS TO THE FINANCIAL INSTITUTIONS 
REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989.—
The Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 1811 note) is amended—
(1) 
in 
section 
951(b)(3)(B) 
(12 
U.S.C. 
1833a(b)(3)(B)), by inserting ‘‘and after the merger of 
such funds, the Deposit Insurance Fund,’’ after ‘‘the 
Savings Association Insurance Fund,’’; and 
(2) 
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 insert-
ing ‘‘Deposit Insurance Fund’’. 
(i) AMENDMENT TO THE BANK HOLDING COMPANY 
ACT OF 1956.—The Bank Holding Company Act of 1956 
(12 U.S.C. 1841 et seq.) is amended— 
(1) in section 2(j)(2) (12 U.S.C. 1841(j)(2)), by 
striking ‘‘Savings Association Insurance Fund’’ and 
inserting ‘‘Deposit Insurance Fund’’; and 
(2) 
in 
section 
3(d)(1)(D)(iii) 
(12 
U.S.C. 
1842(d)(1)(D)(iii)), by striking ‘‘appropriate deposit 
insurance fund’’ and inserting ‘‘Deposit Insurance 
Fund’’. 
(j) AMENDMENTS
TO
THE
GRAMM-LEACH-BLILEY 
ACT.—Section 114 of the Gramm-Leach-Bliley Act (12 
U.S.C. 1828a) is amended by striking ‘‘any Federal deposit
insurance fund’’ in subsection (a)(1)(B), paragraphs (2)(B) 
and (4)(B) of subsection (b), and subsection (c)(1)(B), each 
place that term appears and inserting ‘‘the Deposit Insur-
ance Fund’’. 
(k) EFFECTIVE DATE.—This section and the amend-
ments made by 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.
Union Calendar No. 31
108TH CONGRESS 
1ST SESSION 
H. R. 522
[Report No. 108–50] 
A BILL 
To reform the Federal deposit insurance system, 
and for other purposes. 
MARCH 27, 2003
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed