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 2005, 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 (I). 
‘‘(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).