I
104TH CONGRESS
2D SESSION
H. R. 2903
To provide for deficit reduction and achieve a balanced budget by fiscal
year 2002.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 26, 1996
Mr. KASICH (by request): introduced the following bill; which was referred to
the Committee on the Budget, and in addition to the Committees on
Ways and Means, Commerce, Banking and Financial Services, the Judici-
ary, Agriculture, Economic and Educational Opportunities, Government
Reform and Oversight, House Oversight, National Security, Veterans’ Af-
fairs, Resources, International Relations, and Rules, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee con-
cerned
A BILL
To provide for deficit reduction and achieve a balanced
budget by fiscal year 2002.
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 ‘‘Balanced Budget Act
of 1995 for Economic Growth and Fairness’’.
SEC. 2. TABLE OF CONTENTS.
This Act is organized into titles as follows:
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Title I—Banking, Housing, and Related Provisions
Title II—Spectrum Allocation Provisions
Title III—Medicaid
Title IV—Medicare
Title V—Welfare Reform
Title VI—Federal Retirement Provisions
Title VII—Veterans Provisions
Title VIII—Asset Sales, User Fees, and other Mandatory Provisions
Title IX—Revenues
Title X—Budget Enforcement
TITLE I—BANKING, HOUSING,
AND RELATED PROVISIONS
Subtitle A—Financial Institutions
SEC. 2011. 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 at a rate applicable to all such institutions that
the Board of Directors, in its ‘sole discretion, determines
(after taking into account the adjustments described in
subsections (g) through (j)) will cause the Savings Asso-
ciation Insurance Fund to achieve the designated reserve
ratio on the first business day of January 1996.
(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
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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 the first business day of January
1996; and
(2) paid to the Corporation on the later of—
(A) the first business day of January
1996; or
(B) such other date as the Corporation
shall prescribe, but not later than 60 days after
the date of enactment of this Act.
(e) ASSESSMENT DEPOSITED
IN SAIF.—Notwith-
standing any other provisions 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
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(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) prior to 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
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(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 prior to
January 1, 1993, if—
(i) it directly held SAIF-assessable in-
sured deposits prior to that date; or
(ii) it succeeded to, acquired, pur-
chased, or otherwise holds any SAIF-as-
sessable deposits as of the date of enact-
ment of this Act that were SAIF-assess-
able deposits prior to 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—
(i) during calendar years 1996 and
1997, into the Savings Association Insur-
ance Fund, based on SAIF-assessable de-
posits of that institution, at assessment
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rates calculated under the schedule in ef-
fect for Savings Association Insurance
Fund members on June 30, 1995; and
(ii) during calendar years 1998 and
1999—
(I) into the Deposit Insurance
Fund, based on SAIF-assessable de-
posits of that institution as of Decem-
ber 31, 1997, at assessment rates cal-
culated under the schedule in effect
for Savings Association Insurance
Fund members on June 30, 1995; or
(II) in accordance with clause (i),
if the Bank Insurance Fund and the
Savings Association Insurance Fund
are not merged into the Deposit In-
surance 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 1997 through 1999, upon such terms
as the Corporation may announce, an amount
equal to the product of—
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(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, 1999.
(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-
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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,
1996, or such other date in calendar year 1996 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
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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 a Bank Insurance Fund member
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bank, the amount of any deposits of any insured de-
pository institution which section 5(d)(3) of the Fed-
eral Deposit Insurance Act treats as insured by the
Savings Association Insurance Fund shall be re-
duced 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
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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 December 31, 1995 (other than the
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special assessment imposed under section
2011(a) of the Balanced Budget Act of 1995),
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.—
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(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 prior to August 9, 1989, that con-
verted to a Federal savings association
pursuant to section 5(i) of the Home Own-
ers Loan Act prior to January 1, 1985;
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(B) a State depository institution that is a
member of the Savings Association Insurance
Fund that had been a State savings bank prior
to October 15, 1982, and was a Federal savings
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.
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SEC. 
2012. 
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);
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(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 become effective on Janu-
ary 1, 1996.
SEC. 2013. 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
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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 aggregate estimated insured deposits held
in all Savings Association Insurance Fund members.
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall become effective on Janu-
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ary 1, 1998, if no insured depository institution is a sav-
ings association on that 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
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(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.—
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‘‘(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-
fund, or other payment from any amount
in the Special Reserve.
‘‘(B) EMERGENCY
USE
OF
SPECIAL
RE-
SERVE.—Notwithstanding subparagraph (A)(ii),
the Corporation may, in its sole discretion,
transfer amounts from the Special Reserve to
the Deposit Insurance Fund, for the purposes
set forth in paragraph (4), only if—
‘‘(i) the reserve ratio of the Deposit
Insurance Fund is less than 50 percent of
the designated reserve ratio; and
‘‘(ii) the Corporation expects the re-
serve ratio of the Deposit Insurance Fund
to remain at less than 50 percent of the
designated reserve ratio for each of the
next 4 calendar quarters.
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‘‘(C) EXCLUSION OF SPECIAL RESERVE IN
CALCULATING RESERVE RATIO.—Notwithstand-
ing any other provision of law, any amounts in
the Special Reserve shall be excluded in cal-
culating the reserve ratio of the Deposit Insur-
ance Fund under section 7.’’.
(5) FEDERAL HOME LOAN BANK ACT.—Section
21B(f)(2)(C)(ii) of the Federal Home Loan Bank
Act (12 U.S.C. 1441b(f)(2)(C)(ii)) is amended—
(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:
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‘‘(y) DEFINITIONS RELATING TO THE DEPOSIT IN-
SURANCE FUND.—The term—
‘‘(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);
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(ii) by redesignating subsections (m)
and (n) as subsections (l) and (m), respec-
tively; and
(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.—Paragraph Eleventh of section 5136 of the
Revised Statutes (12 U.S.C. 24) is amended in the
fifth sentence, by striking ‘‘affected deposit insur-
ance fund’’ and inserting ‘‘Deposit Insurance
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)
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is amended in the fourth sentence, by striking ‘‘af-
fected deposit insurance fund’’ and inserting ‘‘De-
posit Insurance Fund’’.
(9) 
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’’.
(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))—
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(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))—
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(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:’’;
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(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;
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(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-
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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’’;
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(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’’;
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(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’’;
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(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 ‘‘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
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(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 margin 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;
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(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 Insurance
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Fund’’ 
and 
inserting 
‘‘Deposit 
Insurance
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’’;
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(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 fifth sentence—
(i) by striking ‘‘Bank Insurance Fund
or the Savings Association Insurance
Fund’’ and inserting ‘‘Deposit Insurance
Fund’’; and
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(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’’
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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’’;
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(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))—
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(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-
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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 (Public Law 101–
73; 103 Stat. 183) 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
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amended by striking ‘‘Savings Association Insurance
Fund’’ and inserting ‘‘Deposit Insurance Fund’’.
SEC. 2014. CREATION OF SAIF SPECIAL RESERVE.
Section 11(a)(6) of the Federal Deposit Insurance
Act (12 U.S.C. 1821(a)(6)) is amended by adding at the
end the following new subparagraph:
‘‘(L) ESTABLISHMENT
OF
SAIF
SPECIAL
RESERVE.—
‘‘(i) ESTABLISHMENT.—If, on Janu-
ary 1, 1998, the reserve ratio of the Sav-
ings Association Insurance Fund exceeds
the designated reserve ratio, there is estab-
lished a Special Reserve of the Savings As-
sociation Insurance Fund, which shall be
administered by the Corporation and shall
be invested in accordance with section
13(a).
‘‘(ii) 
AMOUNTS
IN
SPECIAL
RE-
SERVE.—If, on January 1, 1998, the re-
serve ratio of the Savings Association In-
surance Fund exceeds the designated re-
serve ratio, the amount by which the re-
serve ratio exceeds the designated reserve
ratio shall be placed in the Special Reserve
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of the Savings Association Insurance Fund
established by clause (i).
‘‘(iii) LIMITATION.—The Corporation
shall not provide any assessment credit, re-
fund, or other payment from any amount
in the Special Reserve of the Savings Asso-
ciation Insurance Fund.
‘‘(iv) EMERGENCY
USE
OF
SPECIAL
RESERVE.—Notwithstanding clause (iii),
the Corporation may, in its sole discretion,
transfer amounts from the Special Reserve
of the Savings Association Insurance Fund
to the Savings Association Insurance Fund
for the purposes set forth in paragraph
(4), only if—
‘‘(I) the reserve ratio of the Sav-
ings Association Insurance Fund is
less than 50 percent of the designated
reserve ratio; and
‘‘(II) the Corporation expects the
reserve ratio of the Savings Associa-
tion Insurance Fund to remain at less
than 50 percent of the designated re-
serve ratio for each of the next 4 cal-
endar quarters.
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‘‘(v) EXCLUSION
OF
SPECIAL
RE-
SERVE
IN
CALCULATING
RESERVE
RATIO.—Notwithstanding any other provi-
sion of law, any amounts in the Special
Reserve of the Savings Association Insur-
ance Fund shall be excluded in calculating
the reserve ratio of the Savings Association
Insurance Fund.’’.
SEC. 2015. REFUND OF AMOUNTS IN DEPOSIT INSURANCE
FUND IN EXCESS 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.
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‘‘(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 2013
of the Balanced Budget Act of 1995); 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
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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-
tions described in clause (v) of subsection
(b)(2)(A).’’.
SEC. 2016. ASSESSMENT RATES FOR SAIF MEMBERS MAY
NOT BE LESS THAN ASSESSMENT RATES FOR
BIF MEMBERS.
Section 7(b)(2)(C) of the Federal Deposit Insurance
Act (12 U.S.C. 1817)(2)(E), as redesignated by section
2013(d)(6) of this Act) is amended—
(1) by striking ‘‘and’’ at the end of clause (i);
(2) by striking the period at the end of clause
(ii) and inserting ‘‘; and’’; and
(3) by adding at the end of the following new
clause:
‘‘(iii) notwithstanding any other provi-
sion of this subsection, during the period
beginning on the date of enactment of the
Balanced Budget Act of 1995, and ending
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on January 1, 1998, the assessment rate
for a Savings Association Insurance Fund
member may not be less than the assess-
ment rate for a Bank Insurance Fund
member that poses a comparable risk to
the deposit insurance fund.’’.
SEC. 2017. 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-
serting ‘‘when necessary, and only to the extent nec-
essary’’ after ‘‘insured depository institutions’’.
(b) 
LIMITATION
ON
ASSESSMENT.—Section
7(b)(2)(A)(iii) of the Federal Deposit Insurance Act (12
U.S.C. 1817(b)(2)(A)(iii)) is amended to read as follows:
‘‘(iii) LIMITATION ON ASSESSMENT.—
Except as provided in clause (v), the Board
of Directors shall not set semiannual as-
sessments with respect to a deposit insur-
ance fund in excess of the amount need-
ed—
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‘‘(I) to maintain the reserve ratio
of the fund at the designated reserve
ratio; or
‘‘(II) if the reserve ratio is less
than the designated reserve ratio, to
increase the reserve ratio to the des-
ignated reserve ratio.’’.
(c) EXCEPTION TO LIMITATION ON ASSESSMENTS.—
Section 7(b)(2)(A) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(b)(2)(A)) is amended by adding at the
end of the following new clause:
‘‘(v) EXCEPTION TO LIMITATION ON
ASSESSMENTS.—The Board of Directors
may set semiannual assessments in excess
of the amount permitted under clauses (i)
and (iii) with respect to insured depository
institutions that exhibit financial, oper-
ational, or compliance weaknesses ranging
from moderately severe to unsatisfactory,
or are not well capitalized, as that term is
defined in section 38.’’.
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SEC. 2018. LIMITATION ON AUTHORITY OF OVERSIGHT
BOARD TO CONTINUE TO EMPLOY MORE
THAN 18 OFFICERS AND EMPLOYEES.
(a) IN GENERAL.—Section 21A(a) of the Federal
Home Loan Bank Act (12 U.S.C. 1441a(a)) is amended
by adding at the end the following new paragraph:
‘‘(17) PHASED-DOWN
OPERATION
OF
OVER-
SIGHT BOARD FOLLOWING TERMINATION OF COR-
PORATION.—
‘‘(A) TERMINATION OF AUTHORITY TO EM-
PLOY STAFF.—Except as provided in subpara-
graph (B), the authority of the Thrift Depositor
Protection Oversight Board under paragraph
(5) to establish officer and employee positions,
to compensate officers and employees of the
Board, and to provide other benefits for officers
and employees of the Board shall terminate as
of December 31, 1995.
‘‘(B) LIMITED AUTHORITY FOR EMPLOY-
ING STAFF.—The Thrift Depositor Protection
Oversight Board may employ not more than 18
individuals, excluding any employee of any
other department or agency utilized by the
Board, to carry out the functions of the Board
during the period beginning on January 1,
1996 and ending on May 1, 1996, other than
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employees whose employment is in the process
of being terminated in accordance with sub-
paragraph (C).
‘‘(C) TERMINATION OF EMPLOYMENT OF
ADDITIONAL
EMPLOYEES
REQUIRED
TO
BE
COMMENCED.—The Thrift Depositor Protection
Oversight Board shall commence terminating,
not later than December 31, 1995, and in ac-
cordance with title 5, United States Code, and
applicable regulations of the Office of Personnel
Management, the employment of any employee
of the Board whose continued employment by
the Board after such date is inconsistent with
the requirement of subparagraph (B).’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
Section 21A(a)(5) of the Federal Home Loan Bank Act
(12 U.S.C. 1441a(a)(5)) is amended in subparagraphs
(B), (C), (D), and (E), by inserting ‘‘subject to paragraph
(17)’’, after the closing parenthesis of the subparagraph
designation in each such subparagraph.
SEC. 2019. DEFINITIONS.
For purposes of this subtitle—
(1) the term ‘‘Bank Insurance Fund’’ means
the 
fund 
established 
pursuant 
to 
section
(11)(a)(5)(A) of the Federal Deposit Insurance Act,
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as that section existed on the day before the date of
enactment of this Act;
(2) the terms ‘‘Bank Insurance Fund member’’
and ‘‘Savings Association Insurance Fund member’’
have the same meanings as in section 7(l) of the
Federal Deposit Insurance Act;
(3) the terms ‘‘bank’’, ‘‘Board of Directors’’,
‘‘Corporation’’, ‘‘insured depository institution’’,
‘‘Federal savings association’’, ‘‘savings association’’,
‘‘State savings bank’’, and ‘‘State depository institu-
tion’’ have the same meanings as in section 3 of the
Federal Deposit Insurance Act;
(4) the term ‘‘Deposit Insurance Fund’’ means
the fund established under section 11(a)(4) of the
Federal Deposit Insurance Act, as amended by sec-
tion 2013(d) of this Act;
(5) the term ‘‘depository institution holding
company’’ has the same meaning as in section 3 of
the Federal Deposit Insurance Act;
(6) the term ‘‘designated reserve ratio’’ has the
same meaning as in section 7(b)(2)(A)(iv) of the
Federal Deposit Insurance Act;
(7) the term ‘‘Savings Association Insurance
Fund’’ means the fund established pursuant to sec-
tion 11(a)(6)(A) of the Federal Deposit Insurance
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Act, as that section existed on the day before the
date of enactment of this Act; and
(8) 
the 
term 
‘‘SAIF-assessable 
deposit’’
means—
(A) a deposit that is subject to assessment
for purposes of the Savings Association Insur-
ance Fund under the Federal Deposit Insur-
ance Act; and
(B) a deposit that section 5(d)(3) of the
Federal Deposit Insurance Act treats as in-
sured by the Savings Association Insurance
Fund.
Subtitle B—Housing
SEC. 2051. ANNUAL ADJUSTMENT FACTORS FOR OPERAT-
ING COSTS ONLY; RESTRAINT ON RENT IN-
CREASES.
(a) ANNUAL ADJUSTMENT FACTORS FOR OPERATING
COSTS ONLY.—Section 8(c)(2)(A) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)) is
amended—
(1) 
by 
striking 
‘‘(2)(A)’’ 
and 
inserting
‘‘(2)(A)(i)’’;
(2) by striking the second sentence and all that
follows through the end of the subparagraph; and
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(3) by adding at the end of the following new
clause:
‘‘(ii) Each assistance contract under this section shall
provide that—
‘‘(I) if the maximum monthly rent for a unit in
a new construction or substantial rehabilitation
project to be adjusted using an annual adjustment
factor exceeds 100 percent of the fair market rent
for an existing dwelling unit in the market area, the
Secretary shall adjust the rent using an operating
costs factor that increases the rent to reflect in-
creases in operating costs in the market area; and
‘‘(II) if the owner of a unit in a project de-
scribed in subclause (I) demonstrates that the ad-
justed rent determined under subclause (I) would
not exceed the rent for an unassisted unit of similar
quality, type, and age in the same market area, as
determined by the Secretary, the Secretary shall use
the otherwise applicable annual adjustment factor.’’.
(b) RESTRAINT ON SECTION 8 RENT INCREASES.—
Section 8(c)(2)(A) of the United States Housing Act of
1937 (42 U.S.C. 1437f(c)(2)(A)), as amended by sub-
section (a), is amended by adding at the end the following
new clause:
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‘‘(iii)(I) Subject to subclause (II), with respect to any
unit assisted under this section that it occupied by the
same family at the time of the most recent annual rental
adjustment, if the assistance contract provides for the ad-
justment of the maximum monthly rent by applying an
annual adjustment factor, and if the rent for the unit is
otherwise eligible for an adjustment based on the full
amount of the annual adjustment factor, 0.01 shall be
subtracted from the amount of the annual adjustment fac-
tor, except that the annual adjustment factor shall not be
reduced to less than 1.0.
‘‘(II) With respect to any unit described in subclause
(I) that is assisted under the certificate program, the ad-
justed rent shall not exceed the rent for a comparable un-
assisted unit of similar quality, type, and age in the mar-
ket area in which the unit is located.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall become effective on October 1, 1995.
SEC. 2052. FORECLOSURE AVOIDANCE AND BORROWER AS-
SISTANCE.
(a) FORECLOSURE AVOIDANCE.—Except as provided
in subsection (e), the last sentence of section 204(a) of
the National Housing Act (12 U.S.C. 1710(a)) is amended
by inserting before the period the following: ‘‘: And pro-
vided further, That the Secretary may pay insurance bene-
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fits to the mortgagee to recompense the mortgagee for its
actions to provide an alternative to foreclosure of a mort-
gage that is in default, which actions may include such
actions as special forbearance, loan modification, and
deeds in lieu of foreclosure, all upon such terms and condi-
tions as the mortgagee shall determine in the mortgagee’s
sole discretion within guidelines provided by the Secretary,
but which may not include assignment of a mortgage to
the Secretary: And provided further, That for purposes of
the preceding proviso, no action authorized by the Sec-
retary and no action taken, nor any failure to act, by the
Secretary or the mortgagee shall be subject to judicial re-
view’’.
(b) AUTHORITY TO ASSIST MORTGAGORS IN DE-
FAULT.—Except as provided in subsection (e), section 230
of the National Housing Act (12 U.S.C. 1715u) is amend-
ed to read as follows:
‘‘AUTHORITY TO ASSIST MORTGAGORS IN DEFAULT
‘‘SEC. 230. (a) PAYMENT OF PARTIAL CLAIM.—The
Secretary may establish a program for payment of a par-
tial insurance claim to a mortgagee that agrees to apply
the claim amount to payment of a mortgage on a 1- to
4-family residence that is in default. Any such payment
under such program to the mortgagee shall be made in
the Secretary’s sole discretion and on terms and conditions
acceptable to the Secretary, except that—
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‘‘(1) the amount of the payment shall be in an
amount determined by the Secretary, which shall not
exceed an amount equivalent to 12 monthly mort-
gage payments and any costs related to the default
that are approved by the Secretary; and
‘‘(2) the mortgagor shall agree to repay the
amount of the insurance claim to the Secretary upon
terms and conditions acceptable to the Secretary.
The Secretary may pay the mortgagee, from the appro-
priate insurance fund, in connection with any activities
that the mortgagee is required to undertake concerning
repayment by the mortgagor of the amount owed to the
Secretary.
‘‘(b) ASSIGNMENT.—
‘‘(1) PROGRAM
AUTHORITY.—The Secretary
may establish a program for assignment to the Sec-
retary, upon request of the mortgagee, of a mort-
gage on a 1- to 4-family residence insured under this
Act.
‘‘(2) PROGRAM
REQUIREMENTS.—The Sec-
retary may accept assignment of a mortgage under
a program under this subsection only if—
‘‘(A) the mortgage was in default;
‘‘(B) the mortgagee has modified the mort-
gage to cure the default and provide for mort-
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gage payments within the reasonable ability of
the mortgagor to pay at interest rates not ex-
ceeding current market interest rates; and
‘‘(C) the Secretary arranges for servicing
of the assigned mortgage by a mortgagee
(which may include the assigning mortgagee)
through procedures that the Secretary has de-
termined to be in the best interests of the ap-
propriate insurance fund.
‘‘(3) PAYMENT
OF
INSURANCE
BENEFITS.—
Upon accepting assignment of a mortgage under the
program under this subsection, the Secretary may
pay insurance benefits to the mortgagee from the
appropriate insurance fund in an amount that the
Secretary determines to be appropriate, but which
may not exceed the amount necessary to compensate
the mortgagee for the assignment and any losses
and expenses resulting from the mortgage modifica-
tion.
‘‘(c) PROHIBITION OF JUDICIAL REVIEW.—No deci-
sion by the Secretary to exercise or forego exercising any
authority under this section shall be subject to judicial re-
view.
‘‘(d) SAVINGS PROVISION.—Any mortgage for which
the mortgagor has applied to the Secretary, before the
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date of the enactment of the Balanced Budget Act of
1995, for assignment pursuant to subsection (c) of this
section as in effect before such date of enactment shall
continue to be governed by the provisions of this section
in effect immediately before such date of enactment.
‘‘(e) APPLICABILITY OF OTHER LAWS.—No provision
of this Act or any other law shall be construed to require
the Secretary to provide an alternative to foreclosure for
mortgagees with mortgages on 1- to 4-family residences
insured by the Secretary under this Act, or to accept as-
signments of such mortgages.’’.
(c) APPLICABILITY
OF AMENDMENTS.—Except as
provided in subsection (e), the amendments made by sub-
sections (a) and (b) shall apply only with respect to mort-
gages insured under the National Housing Act that are
originated on or after October 1, 1995.
(d) REGULATIONS.—Not later than the expiration of
the 60-day period beginning on the date of the enactment
of this Act, the Secretary of Housing and Urban Develop-
ment shall issue interim regulations to implement this sec-
tion and the amendments made by this section.
(e) EFFECTIVENESS
AND APPLICABILITY.—If this
Act is enacted after the date of the enactment of the De-
partments of Veterans Affairs and Housing and Urban
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Development, and Independent Agencies Appropriations
Act, 1996—
(1) subsections (a), (b), (c), and (d) of this sec-
tion shall not take effect; and
(2) subsection (c) of the section relating to fore-
closure avoidance and borrower assistance in title II
of the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies
Appropriations Act, 1996, is amended by striking
‘‘only with respect to mortgages insured under the
National Housing Act that are originated before Oc-
tober 1, 1995’’ and inserting ‘‘to mortgages origi-
nated before, on, and after October 1, 1995’’.
TITLE 
II—COMMUNICATIONS
AND SPECTRUM ALLOCATION
PROVISIONS
SEC. 3001. SPECTRUM AUCTIONS.
(a) EXTENSION AND EXPANSION OF AUCTION AU-
THORITY.—
(1) AMENDMENTS.—Section 309(j) of the Com-
munications Act of 1934 (47 U.S.C. 309(j)) is
amended—
(A) by striking paragraphs (1) and (2) and
inserting the following:
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‘‘(1) GENERAL AUTHORITY.—If, consistent with
the obligations described in paragraph (6)(E), mutu-
ally exclusive applications are accepted for any ini-
tial license or construction permit, then the Commis-
sion shall grant such license or permit to a qualified
applicant through a system of competitive bidding
that meets the requirements of this subsection.
‘‘(2) EXEMPTIONS.—The competitive bidding
authority granted by this subsection shall not apply
to licenses or construction permits issued by the
Commission—
‘‘(A) that, as the result of the Commission
carrying out the obligations described in para-
graph (6)(E), are not mutually exclusive;
‘‘(B) for public safety radio services, in-
cluding non-Government uses the sole or prin-
cipal purpose of which is to protect the safety
of life, health, and property and which are not
made commercially available to the public; or
‘‘(C) for initial licenses or construction
permits for new terrestrial digital television
services assigned by the Commission to existing
terrestrial broadcast licensees to replace their
current television licenses, unless—
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fied for reallocation for mixed Federal and non-Federal
use in any reallocation report under subsection (a) shall,
to the maximum extent practicable through the use of the
authority granted under subsection (g) and any other ap-
plicable provision of law, take action to relocate its spec-
trum use to other frequencies that are reserved for Fed-
eral use or to consolidate its spectrum use with other Fed-
eral Government stations in a manner that maximizes the
spectrum available for non-Federal use. Subsection (c)(4)
of this section shall not apply to the extent that a non-
Federal user seeks to relocate or relocates a Federal power
agency under subsection (g).
‘‘(i) DEFINITION.—For purposes of this section, the
term ‘Federal entity’ means any department, agency, or
other instrumentality of the Federal Government that uti-
lizes a Government station license obtained under section
305 of the 1934 Act (47 U.S.C. 305).’’; and
(2) in section 114(a)(1), by striking ‘‘(a) or
(d)(1)’’ and inserting ‘‘(a), (d)(1), or (f)’’.
(d) 
IDENTIFICATION
AND
REALLOCATION
OF
AUCTIONABLE
FREQUENCIES.—The 
National 
Tele-
communications and Information Administration Organi-
zation Act (47 U.S.C. 901 et seq.) is amended—
(1) in section 113(b)—