surance Fund with respect to any in-
sured depository institution, the Cor-
poration shall consult with the appro-
priate Federal banking agency of such
institution.
‘‘(II) TREATMENT
ON
AGGRE-
GATE BASIS.—In the case of insured
depository institutions that are well
capitalized (as defined in section 38)
and, in the most recent examination,
were found to be well managed, the
consultation under subclause (I) con-
cerning the assessment of the risk of
loss posed by such institutions may be
made on an aggregate basis.
‘‘(iii) RULE OF CONSTRUCTION.—No
provision of this paragraph shall be con-
strued as providing any new authority for
the Corporation to require submission of
information by insured depository institu-
tions to the Corporation.
‘‘(F) MODIFICATIONS TO THE RISK-BASED
ASSESSMENT
SYSTEM
ALLOWED
ONLY
AFTER
NOTICE AND COMMENT.—In revising or modi-
fying the risk-based assessment system at any
time after the date of the enactment of the
Federal Deposit Insurance Reform Act of 2005,
the Board of Directors may implement such re-
visions or modification in final form only after
notice and opportunity for comment.’’.
SEC. 7. REFUNDS, DIVIDENDS, AND CREDITS FROM DE-
POSIT INSURANCE FUND.
(a) IN GENERAL.—Subsection (e) of section 7 of the
Federal Deposit Insurance Act (12 U.S.C. 1817(e)) is
amended to read as follows:
‘‘(e) REFUNDS, DIVIDENDS, AND CREDITS.—
‘‘(1) REFUNDS
OF
OVERPAYMENTS.—In the
case of any payment of an assessment by an insured
depository institution in excess of the amount due to
the Corporation, the Corporation may—
‘‘(A) refund the amount of the excess pay-
ment to the insured depository institution; or
‘‘(B) credit such excess amount toward the
payment of subsequent assessments until such
credit is exhausted.
‘‘(2) DIVIDENDS
FROM
EXCESS
AMOUNTS
IN
DEPOSIT INSURANCE FUND.—
‘‘(A) RESERVE RATIO IN EXCESS OF 1.4
PERCENT OF ESTIMATED INSURED DEPOSITS.—
Whenever the reserve ratio of the Deposit In-
surance Fund exceeds 1.4 percent of estimated
insured deposits, the Corporation shall declare
the amount in the Fund in excess of the
amount required to maintain the reserve ratio
at 1.4 percent of estimated insured deposits, as
dividends to be paid to insured depository insti-
tutions.
‘‘(B) RESERVE RATIO EQUAL TO OR IN EX-
CESS OF 1.35 PERCENT OF ESTIMATED INSURED
DEPOSITS
AND
NOT
MORE
THAN
1.4
PER-
CENT.—Whenever the reserve ratio of the De-
posit Insurance Fund equals or exceeds 1.35
percent of estimated 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 esti-
mated insured deposits as dividends to be paid
to insured depository institutions.
‘‘(C) BASIS FOR DISTRIBUTION OF DIVI-
DENDS.—
‘‘(i) IN GENERAL.—Solely for the pur-
poses of dividend distribution under this
paragraph and credit distribution under
paragraph (3)(B), the Corporation shall
determine each insured depository institu-
tion’s relative contribution to the Deposit
Insurance Fund (or any predecessor de-
posit insurance fund) for calculating such
institution’s share of any dividend or credit
declared under this paragraph or para-
graph (3)(B), taking into account the fac-
tors described in clause (ii).
‘‘(ii) FACTORS FOR DISTRIBUTION.—
In implementing this paragraph and para-
graph (3)(B) in accordance with regula-
tions, the Corporation shall take into ac-
count the following factors:
‘‘(I) The ratio of the assessment
base of an insured depository institu-
tion (including any predecessor) on
December 31, 1996, to the assessment
base of all eligible insured depository
institutions on that date.
‘‘(II) The total amount of assess-
ments paid on or after January 1,
1997, by an insured depository insti-
tution (including any predecessor) to