pository institution that exhibits financial,
operational, 
or 
compliance 
weaknesses
ranging from moderately severe to unsatis-
factory, or is not adequately capitalized (as
defined in section 38) at the beginning of
an assessment period, the amount of any
credit 
allowed 
under 
this 
paragraph
against the assessment on that depository
institution for such period may not exceed
the amount calculated by applying to that
depository institution the average assess-
ment rate on all insured depository institu-
tions for such assessment period.
‘‘(vi) PREDECESSOR
DEFINED.—For
purposes of this paragraph, the term ‘pred-
ecessor’, when used with respect to any in-
sured depository institution, includes any
other insured depository institution ac-
quired by or merged with such insured de-
pository institution.
‘‘(B) ON-GOING CREDIT POOL.—
‘‘(i) IN GENERAL.—In addition to the
credit provided pursuant to subparagraph
(A) and subject to the limitation contained
in clause (v) of such subparagraph, the
Corporation shall, by regulation, establish
an on-going system of credits to be applied
against future assessments under sub-
section (b)(1) on the same basis as the
dividends 
provided 
under 
paragraph
(2)(C).
‘‘(ii) LIMITATION ON CREDITS UNDER
CERTAIN
CIRCUMSTANCES.—No 
credits
may be 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 subpara-
graph, the Board of Directors shall take
into account 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 chal-
lenge administratively the amount of the credit
or dividend determined under paragraph (2) or
(3) for such institution.
‘‘(B) ADMINISTRATIVE REVIEW.—Any re-
view under subparagraph (A) of any determina-
tion of the Corporation under paragraph (2) or
(3) shall be final and not subject to judicial re-
view.’’.
(b) DEFINITION OF RESERVE RATIO.—Section 3(y)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(y))
(as amended by section 5(b) of this Act) is amended by
adding at the end the following new paragraph:
‘‘(3) RESERVE
RATIO.—The term ‘reserve
ratio’, when used with regard to the Deposit Insur-
ance Fund other than in connection with a reference
to the designated reserve ratio, means the ratio of
the net worth of the Deposit Insurance Fund to the
value of the aggregate estimated insured deposits.’’.
SEC. 8. DEPOSIT INSURANCE FUND RESTORATION PLANS.
Section 7(b)(3) of the Federal Deposit Insurance Act
(12 U.S.C. 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
Insurance Fund will, within 6 months
of such determination, fall below the
minimum amount specified in sub-
paragraph (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) hav-
ing been made,
the Corporation shall establish and imple-
ment a Deposit Insurance Fund restora-