(2) 
in 
subsection 
(c)(1)(A) 
(12 
U.S.C.
461(c)(1)(A)), by striking ‘‘subsection (b)(4)(C)’’
and inserting ‘‘subsection (b)’’.
SEC. 102. AMENDMENTS RELATING TO SAVINGS AND DE-
MAND DEPOSIT ACCOUNTS AT DEPOSITORY
INSTITUTIONS.
(a) IMMEDIATE INCREASE
IN
THE NUMBER
OF
INTERACCOUNT TRANSFERS ALLOWED EACH MONTH.—
Section 2 of Public Law 93–100 (12 U.S.C. 1832) is
amended—
(1) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively; and
(2) by inserting after subsection (a) the follow-
ing:
‘‘(b) INTERACCOUNT TRANSFERS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, any depository institution may per-
mit the owner of any deposit or account on which in-
terest or dividends are paid to make up to 24 trans-
fers per month, for any purpose, to another account
of the owner in the same institution.
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in
this subsection shall be construed to prevent an ac-
count offered pursuant to this subsection from being
considered a transaction account (as defined in sec-
tion 19(b) of the Federal Reserve Act (12 U.S.C.
461(b)) for purposes of such Act.’’.
(b) NOW ACCOUNTS AUTHORIZED FOR ALL BUSI-
NESSES AFTER 2001.—
(1) IN GENERAL.—Effective on the date pro-
vided in paragraph (3), section 2 of Public Law 93–
100 (12 U.S.C. 1832(a)(2)) (as amended by sub-
section (a) of this section) is amended to read as fol-
lows:
‘‘SEC. 2. WITHDRAWALS BY NEGOTIABLE OR TRANSFER-
ABLE INSTRUMENTS FOR TRANSFERS TO
THIRD PARTIES.
‘‘Notwithstanding any other provision of law, any de-
pository institution (as defined in section 3 of the Federal
Deposit Insurance Act) may permit the owner of any de-
posit or account to make withdrawals from such deposit
or account by negotiable or transferable instruments for
the purpose of making payments to third parties.’’.
(2) REPEAL OF PROHIBITION ON PAYMENT OF
INTEREST ON DEMAND DEPOSITS.—
(A) FEDERAL RESERVE ACT.—Section 19
of the Federal Reserve Act (12 U.S.C. 371a) is
amended by striking subsection (i).
(B) HOME OWNERS’ LOAN ACT.—The 1st
sentence of section 5(b)(1)(B) of the Home
Owners’ Loan Act (12 U.S.C. 1464(b)(1)(B)) is
amended by striking ‘‘savings association may
not—’’ and all that follows through ‘‘(ii) permit
any’’ and inserting ‘‘savings association may
not permit any’’.
(C) FEDERAL DEPOSIT INSURANCE ACT.—
Section 18 of the Federal Deposit Insurance
Act (12 U.S.C. 1828) is amended by striking
subsection (g).
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on October 1,
2001.
SEC. 103. TRANSFER OF FEDERAL RESERVE SURPLUSES.
(a) PAYMENTS FROM DIVIDENDS AND SURPLUS OF
FEDERAL RESERVE BANKS.—Section 7(a)(3) of the Fed-
eral Reserve Act (12 U.S.C. 289(3)) is amended by strik-
ing ‘‘fiscal years 1997 and 1998’’ and inserting ‘‘fiscal
years 1998 through 2003’’.
(b) ADDITIONAL TRANSFERS
FOR FISCAL YEARS
1999 THROUGH 2003.—
(1) IN GENERAL.—In addition to the amounts
required to be transferred from the surplus funds of
the Federal reserve banks pursuant to section
7(a)(3) of the Federal Reserve Act and section
3002(b) of the Omnibus Budget Reconciliation Act
of 1993, the Federal reserve banks shall transfer
from such surplus funds to the Board of Governors
of the Federal Reserve System for transfer to the
Secretary of the Treasury for deposit in the general
fund of the Treasury, such sums as are necessary to
equal the net cost of section 101, as estimated by
the Office of Management and Budget.
(2) ALLOCATION BY FED.—Of the total amount
required to be paid by the Federal reserve banks
under paragraph (1) for fiscal years 1999 through
2003, the Board of Governors of the Federal Re-
serve System shall determine the amount each such
bank shall pay in such fiscal year.
(3) REPLENISHMENT OF SURPLUS FUND PRO-
HIBITED.—No Federal reserve bank may replenish
such bank’s surplus fund by the amount of any
transfer by such bank under paragraph (1) during
the fiscal year for which such transfer is made.
SEC. 104. STUDY OF RESERVE RATIOS FOR DEPOSIT INSUR-
ANCE FUNDS.
(a) REVIEW AND RECOMMENDATION.—The Board of
Directors of the Federal Deposit Insurance Corporation,
in consultation with the Board of Governors of the Federal
Reserve System and the Secretary of the Treasury, shall—
(1) conduct a study of the adequacy of the de-
posit insurance funds, taking into account—
(A) expected operating expenses, case reso-
lution expenditures and income, and the effect
of assessments on members’ earnings and cap-
ital;
(B) historical failure rates and loss experi-
ence;
(C) recent changes in the law, including
statutory changes requiring prompt corrective
action, least-cost resolutions, and risk-based as-
sessment systems;
(D) the income of such funds from invest-
ments;
(E) the potential implication of the Year
2000 computer problem (as defined in section
2(b)(5) of the Examination Parity and Year
2000 Readiness for Financial Institutions Act)
and industry consolidation; and
(F) the historical experience of the Cor-
poration in providing rebates or credits from
any deposit insurance fund; and
(2) recommend to the Congress—
(A) an appropriate range of reserve ratios
between the net worth of any deposit insurance
fund and the aggregate amount of insured de-
posits insured by such fund; and
(B) an appropriate mechanism for rebating
or providing credit from any deposit insurance
fund when the balance of the fund exceeds any
applicable reserve ratio.
(b) REPORT REQUIRED.—The Board of Directors of
the Federal Deposit Insurance Corporation, in consulta-
tion with the Board of Governors of the Federal Reserve
System and the Secretary of the Treasury, shall submit
a report to the Congress before June 30, 1999, contain-
ing—
(1) the findings and conclusions of the study re-
quired under subsection (a)(1); and
(2) the recommendations required under sub-
section (a)(2).
TITLE II—IMPROVING DEPOSI-
TORY INSTITUTION MANAGE-
MENT PRACTICES
Subtitle A—National Banks
SEC. 201. AUTHORITY TO ALLOW MORE THAN 25 DIREC-
TORS.
Section 31 of the Banking Act of 1933 (12 U.S.C.
71a) is amended in the first sentence, by inserting before
the period ‘‘, except that the Comptroller of the Currency