I
104TH CONGRESS
1ST SESSION
H. R. 1769
To provide for adequate funding for the Financing Corporation, to provide
for the merger of the deposit insurance funds, to merge the positions
of Comptroller of the Currency and Director of the Office of Thrift
Supervision, to provide for the conversion of savings associations into
banks, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 7, 1995
Mr. MCCOLLUM introduced the following bill; which was referred to the
Committee on Banking and Financial Services
A BILL
To provide for adequate funding for the Financing Corpora-
tion, to provide for the merger of the deposit insurance
funds, to merge the positions of Comptroller of the Cur-
rency and Director of the Office of Thrift Supervision,
to provide for the conversion of savings associations into
banks, 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.
This Act may be cited as the ‘‘Federal Deposit Insur-
ance Amendments Act of 1995’’.
TITLE 
I—BANK 
INSURANCE
FUND AND SAVINGS ASSOCIA-
TION INSURANCE FUND
SEC. 101. REFUND OF AMOUNTS IN BIF AND SAIF IN EX-
CESS OF DESIGNATED RESERVE AMOUNT.
Subsection (e) of section 7 of the Federal Deposit In-
surance 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.—The amount by which
the actual reserves in any insurance fund exceed the
balance required to meet the designated reserve ap-
plicable with respect to such fund shall be refunded
to members of the fund by the Corporation on such
basis as the Board of Directors determines to be ap-
propriate, taking into account the factors considered
under the risk-based assessment system.’’.
SEC. 102. PAYMENT OF FICO CARRYING COSTS FROM IN-
TEREST EARNED ON DEPOSIT INSURANCE
FUNDS.
(a) IN GENERAL.—Section 11(a) of the Federal De-
posit Insurance Act (12 U.S.C. 1821(a)) is amended by
adding at the end the following new paragraph:
‘‘(9) AVAILABILITY
OF
INTEREST
FOR
FICO
CARRYING COSTS.—
‘‘(A) IN GENERAL.—Interest earned on the
balance in any deposit insurance fund main-
tained by the Corporation (other than the
FSLIC Resolution Fund) shall be available for
transfer to the Financing Corporation for pur-
poses of section 21(f)(1) of the Federal Home
Loan Bank Act.
‘‘(B) AMOUNT
OF
INTEREST
PROPOR-
TIONAL TO AMOUNT OF INSURED DEPOSITS.—
The amount of interest paid to the Financing
Corporation from any insurance fund pursuant
to subparagraph (A) shall bear the same pro-
portion to the total amount of interest paid
pursuant to such subparagraph as the amount
of deposits insured by such insurance fund
bears to the total amount of insured deposits,
as determined by the Corporation on the basis
of the most recent certified statements submit-
ted to the Corporation pursuant to section
7(c)(1) and such other information as the Cor-
poration may consider appropriate.
‘‘(C) PAYMENT BY CORPORATION.—Upon
receiving notice from the Financing Corporation
of the amount needed for purposes of section
21(f) of the Federal Home Loan Bank Act, the
Corporation shall pay such amount from the in-
terest earned on the balances in the deposit in-
surance funds in accordance with subparagraph
(B).’’.
(b) CONFORMING AMENDMENT TO FEDERAL HOME
LOAN BANK ACT.—Section 21(f)(1) of the Federal Home
Loan Bank Act (12 U.S.C. 1441(f)(1)) is amended to read
as follows:
‘‘(1) INTEREST EARNED ON INSURED DEPOSIT
FUNDS.—The interest earned on the balance in any
deposit insurance fund maintained by the Federal
Deposit Insurance Corporation (other than the
FSLIC Resolution Fund) as provided in section
11(a)(9) of the Federal Deposit Insurance Act.’’.
authorized to be assessed against members Sav-
ings Association Insurance Fund members pur-
suant to section 7 of the Federal Deposit Insur-
ance Act.
‘‘(C) PRIORITY.—The Financing Corpora-
tion shall have first priority to make the assess-
ment authorized under subparagraph (A).’’.
(d) TECHNICAL AND CONFORMING AMENDMENT TO
THE
FEDERAL
DEPOSIT
INSURANCE
ACT.—Section
7(b)(2)(D) of the Federal Deposit Insurance Act (12
U.S.C. 1817(b)(2)(D)) is amended by striking ‘‘Savings
Association Insurance Fund members’’ and inserting
‘‘members of a deposit insurance fund’’.
SEC. 103. REPEAL OF CERTAIN CERTIFICATION REQUIRE-
MENTS RELATING TO RTC FUNDS.
Subparagraph (F) of section 11(a)(6) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)(6)) is amend-
ed—
(1) by striking ‘‘At any time’’ and all that fol-
lows through ‘‘Resolution Trust Corporation,’’ (the
1st place such term appears) and inserting ‘‘At any
time before the on the date of publication in the
Federal Register of the notice of the merger of the
Bank Insurance Fund and the Savings Association
Insurance Fund into 1 deposit insurance fund under
section 104(a) of the Federal Deposit Insurance
Amendments Act of 1995,’’;
(2) by inserting ‘‘to pay for losses which have
been incurred or can reasonably be expected to be
incurred by the Fund’’ after ‘‘are needed by the
Fund’’; and
(3) by striking ‘‘Corporation, if the Chair-
person’’ and all that follows through the end of such
subparagraph and inserting ‘‘Corporation.’’.
SEC. 104. MERGER OF BIF AND SAIF AFTER RECAPITALIZA-
TION.
(a) IN GENERAL.—Effective at the end of first cal-
endar year during which the Bank Insurance Fund and
the Savings Association Insurance Fund have each been
determined by the Federal Deposit Insurance Corporation
to have achieved the designated reserve ratio applicable
with respect to each such fund under section 7(b) of the
Federal Deposit Insurance Act, the Corporation shall—
(1) merge the 2 insurance funds into 1 deposit
insurance fund; and
(2) publish a notice of such merger in the Fed-
eral Register at the time such merger becomes effec-
tive.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 11(a)(5) of the Federal Deposit In-
surance Act (12 U.S.C. 1821(a)(5)) is amended to
read as follows:
‘‘(5) DEPOSIT INSURANCE FUND.—
‘‘(A) ESTABLISHMENT.—There is estab-
lished a fund to be known as the deposit insur-
ance fund which shall—
‘‘(i) be maintained and administered
by the Corporation; and
‘‘(ii) initially consist of the assets and
liabilities of the Bank Insurance Fund and
Savings Association Insurance Fund which
have been merged by the Corporation into
the deposit insurance fund pursuant to
section 5(a) of the Federal Deposit Insur-
ance Amendments Act of 1995.
‘‘(B) USES.—The deposit insurance fund
shall be available to the Corporation for use
with respect to insured depository institutions.
‘‘(C) DEPOSITS.—All amounts assessed
against insured depository institutions by the
Corporation shall be deposited into the deposit
insurance fund.’’.
(2) Section 11(a) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1821(a)) is amended by strik-
ing paragraphs 4(A), (6), and (7).
(3) Section 7 of the Federal Deposit Insurance
Act (12 U.S.C. 1817) is amended by striking sub-
section (l).
(4) Section 7(b)(2) of the Federal Deposit In-
surance Act (12 U.S.C. 1817(b)(2)) is amended—
(A) by striking subparagraphs (B), (F),
and (G);
(B) in clauses (i) and (iv) of subparagraph
(A), by striking ‘‘each deposit insurance fund’’
and inserting ‘‘the deposit insurance fund’’;
(C) in subparagraph (A)(iii), by striking
‘‘a deposit insurance fund’’ and inserting ‘‘the
deposit insurance fund’’; and
(D) by inserting after subparagraph (E)
the following new subparagraph:
‘‘(F) RESERVE RATIO DEFINED.—For pur-
poses of this subsection, the term ‘reserve ratio’
means the ratio of the net worth of the deposit
insurance fund to the value of the aggregate es-
timated insured deposits held in all insured de-
pository institutions.’’.
(5) Section 7(b)(3) of the Federal Deposit In-
surance Act (12 U.S.C. 1817(b)(3)) is amended—
(A) in subparagraph (A) by striking ‘‘any
deposit insurance fund’’ and inserting ‘‘the de-
posit insurance fund’’; and
(B) by striking subparagraphs (C) and
(D).
(6) Section 7(b)(6) of the Federal Deposit In-
surance Act (12 U.S.C. 1817(b)(6)) is amended—
(A) in subparagraph (A)—
(i) by inserting ‘‘or’’ after the semi-
colon at the end of clause (i);
(ii) by striking clause (ii); and
(iii) by striking ‘‘; and’’ at the end of
clause (iii) and inserting a period; and
(B) by striking subparagraph (B).
(7) Section 7 of the Federal Deposit Insurance
Act (12 U.S.C. 1817) is amended by striking sub-
section (l).
(8) Section 11(a)(4)(B) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)(4)(B)) is amend-
ed by striking ‘‘Bank Insurance Fund and the Sav-
ings Association Insurance Fund’’ and inserting ‘‘de-
posit insurance fund’’.