1157
with an environmental law, or monitoring,
modifying or enforcing the term or condition;
‘‘(E) monitoring or undertaking 1 or more
inspections of the vessel or facility;
‘‘(F) providing financial or other advice or
counseling to other parties to the fiduciary rela-
tionship, including the settlor or beneficiary;
‘‘(G) restructuring, renegotiating, or other-
wise altering the terms and conditions of the fi-
duciary relationship;
‘‘(H) administering, as a fiduciary, a vessel
or facility that was contaminated before the fi-
duciary relationship began; or
‘‘(I) declining to take any of the actions
described in subparagraphs (B) through (H).
‘‘(5) DEFINITIONS.—As used in this Act:
‘‘(A) FIDUCIARY.—The term ‘fiduciary’—
‘‘(i) means a person acting for the
benefit of another party as a bona fide—
‘‘(I) trustee;
‘‘(II) executor;
‘‘(III) administrator;
‘‘(IV) custodian;
‘‘(V) guardian of estates or
guardian ad litem;
1158
‘‘(VI) receiver;
‘‘(VII) conservator;
‘‘(VIII) committee of estates of
incapacitated persons;
‘‘(IX) personal representative;
‘‘(X) trustee (including a succes-
sor to a trustee) under an indenture
agreement, trust agreement, lease, or
similar financing agreement, for debt
securities, certificates of interest or
certificates of participation in debt se-
curities, or other forms of indebted-
ness as to which the trustee is not, in
the capacity of trustee, the lender; or
‘‘(XI) representative in any other
capacity that the Administrator, after
providing public notice, determines to
be similar to the capacities described
in subclauses (I) through (X); and
‘‘(ii) does not include—
‘‘(I) a person that is acting as a
fiduciary with respect to a trust or
other fiduciary estate that was orga-
nized for the primary purpose of, or is
engaged in, actively carrying on a
1159
trade or business for profit, unless the
trust or other fiduciary estate was
created as part of, or to facilitate, 1
or more estate plans or because of the
incapacity of a natural person; or
‘‘(II) a person that acquires own-
ership or control of a vessel or facility
with the objective purpose of avoiding
liability of the person or of any other
person.
‘‘(B) FIDUCIARY CAPACITY.—The term ‘fi-
duciary capacity’ means the capacity of a per-
son in holding title to a vessel or facility, or
otherwise having control of or an interest in the
vessel or facility, pursuant to the exercise of the
responsibilities of the person as a fiduciary.
‘‘(6) SAVINGS CLAUSE.—Nothing in this sub-
section—
‘‘(A) affects the rights or immunities or
other defenses that are available under this Act
or other law that is applicable to a person sub-
ject to this subsection; or
‘‘(B) creates any liability for a person or a
private right of action against a fiduciary or
any other person.
1160
‘‘(7) NO
EFFECT
ON
CERTAIN
PERSONS.—
Nothing in this subsection applies to a person if the
person—
‘‘(A)(i) acts in a capacity other than that
of a fiduciary or in a beneficiary capacity; and
‘‘(ii) in that capacity, directly or indirectly
benefits from a trust or fiduciary relationship;
or
‘‘(B)(i) is a beneficiary and a fiduciary
with respect to the same fiduciary estate; and
‘‘(ii) as a fiduciary, receives benefits that
exceed customary or reasonable compensation,
and incidental benefits, permitted under other
applicable law.
‘‘(8) LIMITATION.—This subsection does not
preclude a claim under this Act against—
‘‘(A) the assets of the estate or trust ad-
ministered by the fiduciary; or
‘‘(B) a nonemployee agent or independent
contractor retained by a fiduciary.’’.
(b) DEFINITION OF OWNER OR OPERATOR.—Section
101(20) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C.
9601(20)) is amended by adding at the end the following:
1161
‘‘(E) EXCLUSION OF LENDERS NOT PAR-
TICIPANTS IN MANAGEMENT.—
‘‘(i) INDICIA OF OWNERSHIP TO PRO-
TECT SECURITY.—The term ‘owner or op-
erator’ does not include a person that is a
lender that, without participating in the
management of a vessel or facility, holds
indicia of ownership primarily to protect
the security interest of the person in the
vessel or facility.
‘‘(ii) 
FORECLOSURE.—The 
term
‘owner or operator’ does not include a per-
son that is a lender that did not partici-
pate in management of a vessel or facility
prior to foreclosure, notwithstanding that
the person—
‘‘(I) forecloses on the vessel or
facility; and
‘‘(II) after foreclosure, sells, re-
leases (in the case of a lease finance
transaction), or liquidates the vessel
or facility, maintains business activi-
ties, winds up operations, undertakes
a 
response 
action 
under 
section
107(d)(1) or under the direction of an
1162
on-scene coordinator appointed under
the National Contingency Plan, with
respect to the vessel or facility, or
takes any other measure to preserve,
protect, or prepare the vessel or facil-
ity prior to sale or disposition,
if the person seeks to sell, re-lease (in the
case of a lease finance transaction), or oth-
erwise divest the person of the vessel or fa-
cility at the earliest practicable, commer-
cially reasonable time, on commercially
reasonable terms, taking into account mar-
ket conditions and legal and regulatory re-
quirements.
‘‘(F) PARTICIPATION IN MANAGEMENT.—
For purposes of subparagraph (E)—
‘‘(i) the term ‘participate in manage-
ment’—
‘‘(I) means actually participating
in the management or operational af-
fairs of a vessel or facility; and
‘‘(II) does not include merely
having the capacity to influence, or
the unexercised right to control, vessel
or facility operations;
1163
‘‘(ii) a person that is a lender and
that holds indicia of ownership primarily to
protect a security interest in a vessel or fa-
cility shall be considered to participate in
management only if, while the borrower is
still in possession of the vessel or facility
encumbered by the security interest, the
person—
‘‘(I) 
exercises 
decisionmaking
control over the environmental compli-
ance related to the vessel or facility,
such that the person has undertaken
responsibility for the hazardous sub-
stance handling or disposal practices
related to the vessel or facility; or
‘‘(II) exercises control at a level
comparable to that of a manager of
the vessel or facility, such that the
person has assumed or manifested re-
sponsibility—
‘‘(aa) for the overall man-
agement of the vessel or facility
encompassing 
day-to-day 
deci-
sionmaking with respect to envi-
ronmental compliance; or
1164
‘‘(bb) over all or substan-
tially all of the operational func-
tions (as distinguished from fi-
nancial or administrative func-
tions) of the vessel or facility
other than the function of envi-
ronmental compliance;
‘‘(iii) the term ‘participate in manage-
ment’ does not include performing an act
or failing to act prior to the time at which
a security interest is created in a vessel or
facility; and
‘‘(iv) the term ‘participate in manage-
ment’ does not include—
‘‘(I) holding a security interest or
abandoning or releasing a security in-
terest;
‘‘(II) including in the terms of an
extension of credit, or in a contract or
security agreement relating to the ex-
tension, a covenant, warranty, or
other term or condition that relates to
environmental compliance;
1165
‘‘(III) monitoring or enforcing
the terms and conditions of the exten-
sion of credit or security interest;
‘‘(IV) monitoring or undertaking
1 or more inspections of the vessel or
facility;
‘‘(V) requiring a response action
or other lawful means of addressing
the release or threatened release of a
hazardous substance in connection
with the vessel or facility prior to,
during, or on the expiration of the
term of the extension of credit;
‘‘(VI) providing financial or other
advice or counseling in an effort to
mitigate, prevent, or cure default or
diminution in the value of the vessel
or facility;
‘‘(VII) restructuring, renegotiat-
ing, or otherwise agreeing to alter the
terms and conditions of the extension
of credit or security interest, exercis-
ing forbearance;
‘‘(VIII) exercising other remedies
that may be available under applicable
1166
law for the breach of a term or condi-
tion of the extension of credit or secu-
rity agreement; or
‘‘(IX) conducting a response ac-
tion under section 107(d) or under
the direction of an on-scene coordina-
tor appointed under the National Con-
tingency Plan,
if the actions do not rise to the level of
participating in management (within the
meaning of clauses (i) and (ii)).
‘‘(G) OTHER TERMS.—As used in this Act:
‘‘(i) EXTENSION
OF
CREDIT.—The
term ‘extension of credit’ includes a lease
finance transaction—
‘‘(I) in which the lessor does not
initially select the leased vessel or fa-
cility and does not during the lease
term control the daily operations or
maintenance of the vessel or facility;
or
‘‘(II) that conforms with regula-
tions issued by the appropriate Fed-
eral banking agency or the appro-
priate State bank supervisor (as those
1167
terms are defined in section 3 of the
Federal Deposit Insurance Act (12
U.S.C. 1813) or with regulations is-
sued by the National Credit Union
Administration Board, as appropriate.
‘‘(ii) FINANCIAL OR ADMINISTRATIVE
FUNCTION.—The term ‘financial or admin-
istrative function’ includes a function such
as that of a credit manager, accounts pay-
able officer, accounts receivable officer,
personnel manager, comptroller, or chief fi-
nancial officer, or a similar function.
‘‘(iii) FORECLOSURE; FORECLOSE.—
The terms ‘foreclosure’ and ‘foreclose’
mean, respectively, acquiring, and to ac-
quire, a vessel or facility through—
‘‘(I)(aa) purchase at sale under a
judgment or decree, power of sale, or
nonjudicial foreclosure sale;
‘‘(bb) a deed in lieu of fore-
closure, or similar conveyance from a
trustee; or
‘‘(cc) repossession,
if the vessel or facility was security for an
extension of credit previously contracted;
1169
‘‘(V) any person (including a suc-
cessor or assignee of any such person)
that makes a bona fide extension of
credit to or takes or acquires a secu-
rity interest from a nonaffiliated per-
son;
‘‘(VI) the Federal National Mort-
gage Association, the Federal Home
Loan Mortgage Corporation, the Fed-
eral Agricultural Mortgage Corpora-
tion, or any other entity that in a
bona fide manner buys or sells loans
or interests in loans;
‘‘(VII) a person that insures or
guarantees against a default in the re-
payment of an extension of credit, or
acts as a surety with respect to an ex-
tension of credit, to a nonaffiliated
person; and
‘‘(VIII) a person that provides
title insurance and that acquires a
vessel or facility as a result of assign-
ment or conveyance in the course of
underwriting claims and claims settle-
ment.
1170
‘‘(v) OPERATIONAL
FUNCTION.—The
term ‘operational function’ includes a func-
tion such as that of a facility or plant
manager, operations manager, chief oper-
ating officer, or chief executive officer.
‘‘(vi) SECURITY INTEREST.—The term
‘security interest’ includes a right under a
mortgage, deed of trust, assignment, judg-
ment lien, pledge, security agreement, fac-
toring agreement, or lease and any other
right accruing to a person to secure the re-
payment of money, the performance of a
duty, or any other obligation by a non-
affiliated person.’’.
SEC. 2503. CONFORMING AMENDMENT.
Section 9003(h) of the Solid Waste Disposal Act (42
U.S.C. 6991b(h)) is amended by striking paragraph (9)
and inserting the following:
‘‘(9) DEFINITION OF OWNER OR OPERATOR.—
‘‘(A) IN GENERAL.—As used in this sub-
title, the terms ‘owner’ and ‘operator’ do not in-
clude a person that, without participating in the
management of an underground storage tank
and otherwise not engaged in petroleum produc-
tion, refining, or marketing, holds indicia of
1171
ownership primarily to protect the person’s se-
curity interest.
‘‘(B) SECURITY INTEREST HOLDERS.—The
provisions regarding holders of security inter-
ests in subparagraphs (E) through (G) of sec-
tion 101(20) and the provisions regarding fidu-
ciaries at section 107(n) of the Comprehensive
Environmental Response, Compensation, and
Liability Act of 1980 shall apply in determining
a person’s liability as an owner or operator of
an underground storage tank for the purposes
of this subtitle.
‘‘(C) EFFECT ON RULE.—Nothing in sub-
paragraph (B) shall be construed as modifying
or affecting the final rule issued by the Admin-
istrator on September 7, 1995 (60 Fed. Reg.
46,692), or as limiting the authority of the Ad-
ministrator to amend the final rule, in accord-
ance with applicable law. The final rule in effect
on the date of enactment of this subparagraph
shall prevail over any inconsistent provision re-
garding holders of security interests in subpara-
graphs (E) through (G) of section 101(20) or
any inconsistent provision regarding fiduciaries
in section 107(n) of the Comprehensive Envi-
1172
ronmental Response, Compensation, and Liabil-
ity Act of 1980. Any amendment to the final
rule shall be consistent with the provisions re-
garding holders of security interests in subpara-
graphs (E) through (G) of section 101(20) and
the provisions regarding fiduciaries in section
107(n) of the Comprehensive Environmental
Response, Compensation, and Liability Act of
1980. This subparagraph does not preclude ju-
dicial review of any amendment of the final rule
made after the date of enactment of this sub-
paragraph.’’.
SEC. 2504. LENDER LIABILITY RULE.
(a) IN GENERAL.—Effective on the date of enact-
ment of this Act, the portion of the final rule issued by
the Administrator of the Environmental Protection Agen-
cy on April 29, 1992 (57 Fed. Reg. 18,344), prescribing
section 300.1105 of title 40, Code of Federal Regulations,
shall be deemed to have been validly issued under author-
ity of the Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980 (42 U.S.C. 9601 et
seq.) and to have been effective according to the terms
of the final rule. No additional judicial proceedings shall
be necessary or may be held with respect to such portion
of the final rule. Any reference in that portion of the final
1173
rule to section 300.1100 of title 40, Code of Federal Regu-
lations, shall be deemed to be a reference to the amend-
ments made by this subtitle.
(b) JUDICIAL
REVIEW.—Notwithstanding section
113(a) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C.
9613(a)), no court shall have jurisdiction to review the
portion of the final rule issued by the Administrator of
the Environmental Protection Agency on April 29, 1992
(57 Fed. Reg. 18,344) that prescribed section 300.1105
of title 40, Code of Federal Regulations.
(c) AMENDMENT.—No provision of this section shall
be construed as limiting the authority of the President or
a delegee of the President to amend the portion of the
final rule issued by the Administrator of the Environ-
mental Protection Agency on April 29, 1992 (57 Fed. Reg.
18,344), prescribing section 300.1105 of title 40, Code of
Federal Regulations, consistent with the amendments
made by this subtitle and other applicable law.
(d) JUDICIAL REVIEW.—No provision of this section
shall be construed as precluding judicial review of any
amendment of section 300.1105 of title 40, Code of Fed-
eral Regulations, made after the date of enactment of this
Act.
1174
SEC. 2505. EFFECTIVE DATE.
The amendments made by this subtitle shall be appli-
cable with respect to any claim that has not been finally
adjudicated as of the date of enactment of this Act.
Subtitle F—Miscellaneous
SEC. 2601. FEDERAL RESERVE BOARD STUDY.
(a) STUDY OF ELECTRONIC STORED VALUE PROD-
UCTS.—
(1) STUDY.—The Board shall conduct a study
of electronic stored value products which evaluates
whether provisions of the Electronic Fund Transfer
Act could be applied to such products without ad-
versely impacting the cost, development, and oper-
ation of such products.
(2) CONSIDERATIONS.—In conducting its study
under paragraph (1), the Board shall consider
whether alternatives to regulation under the Elec-
tronic Fund Transfer Act, such as allowing competi-
tive market forces to shape the development and op-
eration of electronic stored value products, could
more efficiently achieve the objectives embodied in
that Act.
(b) REPORT.—The Board shall submit a report of its
study under subsection (a) to the Congress not later than
6 months after the date of enactment of this Act.
1175
(c) ACTION TO FINALIZE.—The Board shall take no
action to finalize any amendments to regulations under
the Electronic Fund Transfer Act that would regulate
electronic stored value products until the later of—
(1) 3 months after the date on which the report
is submitted to the Congress under subsection (b);
or
(2) 9 months after the date of enactment of
this Act.
SEC. 2602. TREATMENT OF CLAIMS ARISING FROM BREACH
OF 
CONTRACTS 
EXECUTED 
BY 
THE 
RE-
CEIVER OR CONSERVATOR.
Section 11(d) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(d)) is amended by adding at the end the
following new paragraph:
‘‘(20) TREATMENT OF CLAIMS ARISING FROM
BREACH
OF
CONTRACTS
EXECUTED
BY
THE
RE-
CEIVER
OR
CONSERVATOR.—Notwithstanding any
other provision of this subsection, any final and
unappealable judgment for monetary damages en-
tered against a receiver or conservator for an in-
sured depository institution for the breach of an
agreement executed or approved by such receiver or
conservator after the date of its appointment shall
be paid as an administrative expense of the receiver
1176
or conservator. Nothing in this paragraph shall be
construed to limit the power of a receiver or con-
servator to exercise any rights under contract or law,
including to terminate, breach, cancel, or otherwise
discontinue such agreement.’’.
SEC. 2603. CRIMINAL SANCTIONS FOR FICTITIOUS FINAN-
CIAL INSTRUMENTS AND COUNTERFEITING.
(a) INCREASED PENALTIES FOR COUNTERFEITING
VIOLATIONS.—Sections 474 and 474A of title 18, United
States Code, are amended by striking ‘‘class C felony’’
each place that term appears and inserting ‘‘class B fel-
ony’’.
(b) CRIMINAL PENALTY FOR PRODUCTION, SALE,
TRANSPORTATION, POSSESSION OF FICTITIOUS FINAN-
CIAL INSTRUMENTS PURPORTING TO BE THOSE OF THE
STATES, OF POLITICAL SUBDIVISIONS, AND OF PRIVATE
ORGANIZATIONS.—
(1) IN GENERAL.—Chapter 25 of title 18, Unit-
ed States Code, is amended by inserting after sec-
tion 513, the following new section:
‘‘§ 514. Fictitious obligations
‘‘(a) Whoever, with the intent to defraud—
‘‘(1) draws, prints, processes, produces, pub-
lishes, or otherwise makes, or attempts or causes the
same, within the United States;
1177
‘‘(2) passes, utters, presents, offers, brokers, is-
sues, sells, or attempts or causes the same, or with
like intent possesses, within the United States; or
‘‘(3) utilizes interstate or foreign commerce, in-
cluding the use of the mails or wire, radio, or other
electronic communication, to transmit, transport,
ship, move, transfer, or attempts or causes the same,
to, from, or through the United States,
any false or fictitious instrument, document, or other item
appearing, representing, purporting, or contriving through
scheme or artifice, to be an actual security or other finan-
cial instrument issued under the authority of the United
States, a foreign government, a State or other political
subdivision of the United States, or an organization, shall
be guilty of a class B felony.
‘‘(b) For purposes of this section, any term used in
this section that is defined in section 513(c) has the same
meaning given such term in section 513(c).
‘‘(c) The United States Secret Service, in addition to
any other agency having such authority, shall have author-
ity to investigate offenses under this section.’’.
(2) TECHNICAL AMENDMENT.—The analysis for
chapter 25 of title 18, United States Code, is
amended by inserting after the item relating to sec-
tion 513 the following:
‘‘514. Fictitious obligations.’’.
1178
SEC. 2604. AMENDMENTS TO THE TRUTH IN SAVINGS ACT.
(a) REPEAL.—Effective as of the end of the 5-year
period beginning on the date of the enactment of this Act,
section 271 of the Truth in Savings Act (12 U.S.C. 4310)
is repealed.
(b) ON-PREMISES DISPLAYS.—Section 263(c) of the
Truth in Savings Act (12 U.S.C. 4302(c)) is amended—
(1) by striking paragraph (2);
(2) by striking ‘‘(1) IN GENERAL.—’’; and
(3) by redesignating subparagraphs (A) and
(B) as paragraphs (1) and (2), respectively, and in-
denting appropriately.
(c) DEPOSITORY INSTITUTION DEFINITION.—Section
274(6) of the Truth in Savings Act (12 U.S.C. 4313(6))
is amended by inserting before the period ‘‘, but does not
include any nonautomated credit union that was not re-
quired to comply with the requirements of this title as of
the date of enactment of the Economic Growth and Regu-
latory Paperwork Reduction Act of 1996, pursuant to the
determination of the National Credit Union Administra-
tion Board’’.
(d) TIME DEPOSITS.—Section 266(a)(3) of the Truth
in Savings Act (12 U.S.C. 4305(a)(3)) is amended by in-
serting ‘‘has a maturity of more than 30 days’’ after ‘‘de-
posit which’’.
1179
SEC. 2605. CONSUMER LEASING ACT AMENDMENTS.
(a) CONGRESSIONAL FINDINGS AND DECLARATION
OF PURPOSES.—
(1) FINDINGS.—The Congress finds that—
(A) competition among the various finan-
cial institutions and other firms engaged in the
business of consumer leasing is greatest when
there is informed use of leasing;
(B) the informed use of leasing results
from an awareness of the cost of leasing by con-
sumers; and
(C) there has been a continued trend to-
ward leasing automobiles and other durable
goods for consumer use as an alternative to in-
stallment credit sales and that leasing product
advances have occurred such that lessors have
been unable to provide consistent industry-wide
disclosures to fully account for the competitive
progress that has occurred.
(2) PURPOSES.—The purposes of this section
are—
(A) to assure a simple, meaningful disclo-
sure of leasing terms so that the consumer will
be able to compare more readily the various
leasing terms available to the consumer and
avoid the uninformed use of leasing, and to pro-
1180
tect the consumer against inaccurate and unfair
leasing practices;
(B) to provide for adequate cost disclo-
sures that reflect the marketplace without im-
pairing competition and the development of new
leasing products; and
(C) to provide the Board with the regu-
latory authority to assure a simplified, mean-
ingful definition and disclosure of the terms of
certain leases of personal property for personal,
family, or household purposes so as to—
(i) enable the lessee to compare more
readily the various lease terms available to
the lessee;
(ii) enable comparison of lease terms
with credit terms, as appropriate; and
(iii) assure meaningful and accurate
disclosures of lease terms in advertise-
ments.
(b) REGULATIONS.—
(1) IN GENERAL.—Chapter 5 of the Truth in
Lending Act (15 U.S.C. 1667 et seq.) is amended by
adding at the end the following new section:
‘‘SEC. 187. REGULATIONS.
‘‘(a) REGULATIONS AUTHORIZED.—
1181
‘‘(1) IN GENERAL.—The Board shall prescribe
regulations to update and clarify the requirements
and definitions applicable to lease disclosures and
contracts, and any other issues specifically related to
consumer leasing, to the extent that the Board de-
termines such action to be necessary—
‘‘(A) to carry out this chapter;
‘‘(B) to prevent any circumvention of this
chapter; or
‘‘(C) to facilitate compliance with the re-
quirements of the chapter.
‘‘(2) CLASSIFICATIONS, 
ADJUSTMENTS.—Any
regulations prescribed under paragraph (1) may con-
tain classifications and differentiations, and may
provide for adjustments and exceptions for any class
of transactions, as the Board considers appropriate.
‘‘(b) MODEL DISCLOSURE.—
‘‘(1) PUBLICATION.—The Board shall establish
and publish model disclosure forms to facilitate com-
pliance with the disclosure requirements of this
chapter and to aid the consumer in understanding
the transaction to which the subject disclosure form
relates.
‘‘(2) USE OF AUTOMATED EQUIPMENT.—In es-
tablishing model forms under this subsection, the
1182
Board shall consider the use by lessors of data proc-
essing or similar automated equipment.
‘‘(3) USE OPTIONAL.—A lessor may utilize a
model disclosure form established by the Board
under this subsection for purposes of compliance
with this chapter, at the discretion of the lessor.
‘‘(4) EFFECT OF USE.—Any lessor who prop-
erly uses the material aspects of any model disclo-
sure form established by the Board under this sub-
section shall be deemed to be in compliance with the
disclosure requirements to which the form relates.’’.
(2) EFFECTIVE DATE.—
(A) IN GENERAL.—Any regulation of the
Board, or any amendment or interpretation of
any regulation of the Board issued pursuant to
section 187 of the Truth in Lending Act (as
added by paragraph (1) of this subsection),
shall become effective on the first October 1
that follows the date of promulgation of that
regulation, amendment, or interpretation by not
less than 6 months.
(B) LONGER PERIOD.—The Board may, at
the discretion of the Board, extend the time pe-
riod referred to in subparagraph (A) in accord-
ance with subparagraph (C), to permit lessors
1183
to adjust their disclosure forms to accommodate
the requirements of section 127 of the Truth in
Lending Act (as added by paragraph (1) of this
subsection).
(C) SHORTER
PERIOD.—The Board may
shorten the time period referred to in subpara-
graph (A), if the Board makes a specific finding
that such action is necessary to comply with the
findings of a court or to prevent an unfair or
deceptive practice.
(D) 
COMPLIANCE
BEFORE
EFFECTIVE
DATE.—Any lessor may comply with any means
of disclosure provided for in section 127 of the
Truth in Lending Act (as added by paragraph
(1) of this subsection) before the effective date
of such requirement.
(E) DEFINITIONS.—For purposes of this
subsection, the term ‘‘lessor’’ has the same
meaning as in section 181 of the Truth in
Lending Act.
(3) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 5 of title I of the Truth in Lending
Act (15 U.S.C. 1601 et seq.) is amended by insert-
ing after the item relating to section 186 the follow-
ing new item:
‘‘187. Regulations.’’.
1184
(c) CONSUMER LEASE ADVERTISING.—Section 184
of the Truth in Lending Act (15 U.S.C. 1667c) is amend-
ed—
(1) by striking subsections (a) and (c);
(2) by redesignating subsection (b) as sub-
section (c); and
(3) by inserting before subsection (c), as so re-
designated, the following:
‘‘(a) IN
GENERAL.—If an advertisement for a
consumer lease includes a statement of the amount of any
payment or a statement that any or no initial payment
is required, the advertisement shall clearly and conspicu-
ously state, as applicable—
‘‘(1) the transaction advertised is a lease;
‘‘(2) the total amount of any initial payments
required on or before consummation of the lease or
delivery of the property, whichever is later;
‘‘(3) that a security deposit is required;
‘‘(4) the number, amount, and timing of sched-
uled payments; and
‘‘(5) with respect to a lease in which the liabil-
ity of the consumer at the end of the lease term is
based on the anticipated residual value of the prop-
erty, that an extra charge may be imposed at the
end of the lease term.
1185
‘‘(b) ADVERTISING
MEDIUM
NOT
LIABLE.—No
owner or employee of any entity that serves as a medium
in which an advertisement appears or through which an
advertisement is disseminated, shall be liable under this
section.’’.
SEC. 2606. STUDY OF CORPORATE CREDIT UNIONS.
(a) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) ADMINISTRATION.—The term ‘‘Administra-
tion’’ means the National Credit Union Administra-
tion.
(2) BOARD.—The term ‘‘Board’’ means the Na-
tional Credit Union Administration Board.
(3) CORPORATE
CREDIT
UNION.—The term
‘‘corporate credit union’’ has the meaning given such
term by rule or regulation of the Board.
(4) FUND.—The term ‘‘Fund’’ means the Na-
tional Credit Union Share Insurance Fund estab-
lished under section 203 of the Federal Credit
Union Act.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury.
(b) STUDY.—
(1) IN GENERAL.—The Secretary, in consulta-
tion with the Board, the Corporation, the Comptrol-
1186
ler of the Currency, and the Administration, shall
conduct a study and evaluation of—
(A) the oversight and supervisory practices
of the Administration concerning the Fund, in-
cluding the treatment of amounts deposited in
the Fund pursuant to section 202(c) of the
Federal Credit Union Act, including analysis
of—
(i) whether those amounts should
be—
(I) refundable; or
(II) treated as expenses; and
(ii) the use of those amounts in deter-
mining equity capital ratios;
(B) the potential for, and potential effects
of, administration of the Fund by an entity
other than the Administration;
(C) the 10 largest corporate credit unions
in the United States, conducted in cooperation
with appropriate employees of other Federal
agencies with expertise in the examination of
federally insured financial institutions, includ-
ing—
(i) the investment practices of those
credit unions; and
1187
(ii) the financial stability, financial
operations, and financial controls of those
credit unions;
(D) the regulations of the Administration;
and
(E) the supervision of corporate credit
unions by the Administration.
(c) REPORT.—Not later than 12 months after the
date of enactment of this Act, the Secretary shall submit
to the appropriate committees of the Congress, a report
that includes the results of the study and evaluation con-
ducted under subsection (b), together with any rec-
ommendations that the Secretary considers to be appro-
priate.
SEC. 2607. REPORT ON THE RECONCILIATION OF DIF-
FERENCES 
BETWEEN 
REGULATORY 
AC-
COUNTING PRINCIPLES AND GENERALLY AC-
CEPTED ACCOUNTING PRINCIPLES.
Not later than 180 days after the date of enactment
of this Act, each appropriate Federal banking agency shall
submit to the Committee on Banking and Financial Serv-
ices of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the Senate,
a report describing both the actions that have been taken
by the agency and the actions that will be taken by the
1188
agency to eliminate or conform inconsistent or duplicative
accounting and reporting requirements applicable to re-
ports or statements filed with any such agency by insured
depository institutions, as required by section 121 of the
Federal Deposit Insurance Corporation Improvement Act
of 1991.
SEC. 2608. STATE-BY-STATE AND METROPOLITAN AREA-BY-
METROPOLITAN AREA STUDY OF BANK FEES.
Section 1002(b)(2)(A) of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1811 note) is amended to read as follows:
‘‘(A) a description of any discernible trend,
in the Nation as a whole, in each of the 50
States, and in each consolidated metropolitan
statistical area or primary metropolitan statis-
tical area (as defined by the Director of the Of-
fice of Management and Budget), in the cost
and availability of retail banking services (in-
cluding fees imposed for providing such serv-
ices), that delineates differences between in-
sured depository institutions on the basis of
both the size of the institution and any engage-
ment of the institution in multistate activity;
and’’.
1189
SEC. 2609. PROSPECTIVE APPLICATION OF GOLD CLAUSES
IN CONTRACTS.
Section 5118(d)(2) of title 31, United States Code,
is amended by adding at the end the following: ‘‘This
paragraph shall apply to any obligation issued on or before
October 27, 1977, notwithstanding any assignment or no-
vation of such obligation after October 27, 1977, unless
all parties to the assignment or novation specifically agree
to include a gold clause in the new agreement. Nothing
in the preceding sentence shall be construed to affect the
enforceability of a Gold Clause contained in any obligation
issued after October 27, 1977 if the enforceability of that
Gold Clause has been finally adjudicated before the date
of enactment of the Economic Growth and Regulatory Pa-
perwork Reduction Act of 1996.’’.
SEC. 2610. QUALIFIED FAMILY PARTNERSHIPS.
Section 2 of the Bank Holding Company Act of 1956
(12 U.S.C. 1841) is amended—
(1) in subsection (b), by inserting ‘‘, and shall
not include a qualified family partnership’’ after ‘‘by
any State’’; and
(2) in subsection (o), by adding at the end the
following:
‘‘(10) QUALIFIED FAMILY PARTNERSHIP.—The
term ‘qualified family partnership’ means a general
or limited partnership that the Board determines—
1190
‘‘(A) does not directly control any bank,
except through a registered bank holding com-
pany;
‘‘(B) does not control more than 1 reg-
istered bank holding company;
‘‘(C) does not engage in any business ac-
tivity, except indirectly through ownership of
other business entities;
‘‘(D) has no investments other than those
permitted for a bank holding company pursuant
to section 4(c);
‘‘(E) is not obligated on any debt, either
directly or as a guarantor;
‘‘(F) has partners, all of whom are ei-
ther—
‘‘(i) individuals related to each other
by blood, marriage (including former mar-
riage), or adoption; or
‘‘(ii) trusts for the primary benefit of
individuals related as described in clause
(i); and
‘‘(G) has filed with the Board a statement
that includes—
‘‘(i) the basis for the eligibility of the
partnership under subparagraph (F);
1191
‘‘(ii) a list of the existing activities
and investments of the partnership;
‘‘(iii) a commitment to comply with
this paragraph;
‘‘(iv) a commitment to comply with
section 7 of the Federal Deposit Insurance
Act with respect to any acquisition of con-
trol of an insured depository institution oc-
curring after date of enactment of this
paragraph; and
‘‘(v) a commitment to be subject, to
the same extent as if the qualified family
partnership were a bank holding com-
pany—
‘‘(I) to examination by the Board
to assure compliance with this para-
graph; and
‘‘(II) to section 8 of the Federal
Deposit Insurance Act.’’.
SEC. 2611. COOPERATIVE EFFORTS BETWEEN DEPOSITORY
INSTITUTIONS AND FARMERS AND RANCH-
ERS IN DROUGHT-STRICKEN AREAS.
(a) FINDINGS.—The Congress hereby finds the fol-
lowing:
1192
(1) Severe drought is being experienced in the
Plains and the Southwest portions of our country.
(2) Soil erosion is becoming a critical issue as
the dry season approaches and summer winds may
rob these fields of nutrient-rich topsoil.
(3) Without immediate assistance, ranchers and
farmers would be forced to cull their herds bringing
tremendous volatility in the beef market.
(4) The American people will feel the impact of
this drought in their pocketbooks through higher
prices for grain products.
(5) The communities in drought-stricken areas
are suffering and borrowers may have difficulty
meeting their obligations to financial institutions.
(6) Congress has already passed the Depository
Institutions Disaster Relief Act of 1992 which allows
financial institutions to make emergency exceptions
to the appraisal requirement in times of national dis-
asters.
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that financial institutions and Federal bank
regulators should work cooperatively with farmers and
ranchers in communities affected by drought conditions to
allow financial obligations to be met without imposing
undue burdens.
1193
SEC. 2612. STREAMLINING PROCESS FOR DETERMINING
NEW NONBANKING ACTIVITIES.
Section 4(c)(8) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843(c)(8)) is amended by striking
‘‘and opportunity for hearing’’ and inserting the following:
‘‘(and opportunity for hearing in the case of an acquisition
of a savings association)’’.
SEC. 2613. AUTHORIZING BANK SERVICE COMPANIES TO
ORGANIZE AS LIMITED LIABILITY COMPA-
NIES.
(a) AMENDMENT TO SHORT TITLE.—Section 1 of the
Bank Service Corporation Act (12 U.S.C. 1861(a)) is
amended by striking subsection (a) and inserting the fol-
lowing new subsection:
‘‘(a) SHORT TITLE.—This Act may be cited as the
‘Bank Service Company Act’.’’;
(b) AMENDMENTS TO DEFINITIONS.—Section 1(b) of
the Bank Service Corporation Act (12 U.S.C. 1861(b)) is
amended—
(1) by striking paragraph (2) and inserting the
following new paragraph:
‘‘(2) the term ‘bank service company’ means—
‘‘(A) any corporation—
‘‘(i) which is organized to perform
services authorized by this Act; and
1194
‘‘(ii) all of the capital stock of which
is owned by 1 or more insured banks; and
‘‘(B) any limited liability company—
‘‘(i) which is organized to perform
services authorized by this Act; and
‘‘(ii) all of the members of which are
1 or more insured banks.’’;
(2) in paragraph (6)—
(A) by striking ‘‘corporation’’ and inserting
‘‘company’’; and
(B) by striking ‘‘and’’ after the semicolon;
(3) by redesignating paragraph (7) as para-
graph (8) and inserting after paragraph (6) the fol-
lowing new paragraph:
‘‘(7) the term ‘limited liability company’ means
any company, partnership, trust, or similar business
entity organized under the law of a State (as defined
in section 3 of the Federal Deposit Insurance Act)
which provides that a member or manager of such
company is not personally liable for a debt, obliga-
tion, or liability of the company solely by reason of
being, or acting as, a member or manager of such
company; and’’; and
(4) in paragraph (8) (as so redesignated)—
1195
(A) by striking ‘‘corporation’’ each place
such term appears and inserting ‘‘company’’;
and
(B) by striking ‘‘capital stock’’ and insert-
ing ‘‘equity’’.
(c) AMENDMENTS TO SECTION 2.—Section 2 of the
Bank Service Corporation Act (12 U.S.C. 1862) is amend-
ed—
(1) by striking ‘‘corporation’’ and inserting
‘‘company’’;
(2) by striking ‘‘corporations’’ and inserting
‘‘companies’’; and
(3) in the heading for such section, by striking
‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(d) AMENDMENTS TO SECTION 3.—Section 3 of the
Bank Service Corporation Act (12 U.S.C. 1863) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’; and
(2) in the heading for such section, by striking
‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(e) AMENDMENTS TO SECTION 4.—Section 4 of the
Bank Service Corporation Act (12 U.S.C. 1864) is amend-
ed—
1196
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’;
(2) in subsection (b), by inserting ‘‘or mem-
bers’’ after ‘‘shareholders’’ each place such term ap-
pears;
(3) in subsections (c) and (d), by inserting ‘‘or
member’’ after ‘‘shareholder’’ each place such term
appears;
(4) in subsection (e)—
(A) by inserting ‘‘or members’’ after ‘‘na-
tional bank and State bank shareholders’’;
(B) by striking ‘‘its national bank share-
holder or shareholders’’ and inserting ‘‘any
shareholder or member of the company which is
a national bank’’;
(C) by striking ‘‘its State bank shareholder
or shareholders’’ and inserting ‘‘any share-
holder or member of the company which is a
State bank’’;
(D) by striking ‘‘such State bank or
banks’’ and inserting ‘‘any such State bank’’;
and
(E) by inserting ‘‘or members’’ after
‘‘State bank and national bank shareholders’’;
and
1197
(5) in the heading for such section, by striking
‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(f) AMENDMENTS TO SECTION 5.—Section 5 of the
Bank Service Corporation Act (12 U.S.C. 1865) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’; and
(2) in the heading for such section, by striking
‘‘CORPORATIONS’’ and inserting ‘‘COMPANIES’’.
(g) AMENDMENTS TO SECTION 6.—Section 6 of the
Bank Service Corporation Act (12 U.S.C. 1866) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’;
(2) by inserting ‘‘or is not a member of’’ after
‘‘does not own stock in’’;
(3) by striking ‘‘the nonstockholding institu-
tion’’ and inserting ‘‘such depository institution’’;
(4) by inserting ‘‘or is a member of’’ after ‘‘that
owns stock in’’;
(5) in paragraphs (1) and (2), by inserting ‘‘or
nonmember’’ after ‘‘nonstockholding’’; and
(6) in the heading for such section by inserting
‘‘OR NONMEMBERS’’ after ‘‘NONSTOCKHOLDERS’’.
1198
(h) AMENDMENTS TO SECTION 7.—Section 7 of the
Bank Service Corporation Act (12 U.S.C. 1867) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’;
(2) in subsection (a)—
(A) by inserting ‘‘or principal member’’
after ‘‘principal shareholder’’; and
(B) by inserting ‘‘or member’’ after ‘‘other
shareholder’’; and
(3) in the heading for such section, by striking
‘‘CORPORATIONS’’ and inserting ‘‘COMPANIES’’.
SEC. 2614. RETIREMENT CERTIFICATES OF DEPOSITS.
(a) IN GENERAL.—Section 3(l)(5) of the Federal De-
posit Insurance Act (12 U.S.C. 1813(l)(5) is amended—
(1) in subparagraph (A), by striking ‘‘and’’ at
the end;
(2) in subparagraph (B), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(C) any liability of an insured depository
institution that arises under an annuity con-
tract, the income of which is tax deferred under
1199
section 72 of the Internal Revenue Code of
1986.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to any liability of an insured
depository that arises under an annuity contract issued
on or after the date of enactment of this Act.
SEC. 2615. PROHIBITIONS ON CERTAIN DEPOSITORY INSTI-
TUTION ASSOCIATIONS WITH GOVERNMENT-
SPONSORED ENTERPRISES.
(a) CREDIT UNIONS.—Section 201 of the Federal
Credit Union Act (12 U.S.C. 1781) is amended by adding
at the end the following new subsection:
‘‘(e) PROHIBITION ON CERTAIN ASSOCIATIONS.—
‘‘(1) IN
GENERAL.—No insured credit union
may be sponsored by or accept financial support, di-
rectly or indirectly, from any Government-sponsored
enterprise, if the credit union includes the customers
of the Government-sponsored enterprise in the field
of membership of the credit union.
‘‘(2) ROUTINE
BUSINESS
FINANCING.—Para-
graph (1) shall not apply with respect to advances
or other forms of financial assistance generally pro-
vided by a Government-sponsored enterprise in the
ordinary course of business of the enterprise.
1200
‘‘(3) GOVERNMENT-SPONSORED
ENTERPRISE
DEFINED.—For purposes of this subsection, the
term ‘Government-sponsored enterprise’ has the
meaning given to such term in section 1404(e)(1)(A)
of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.
‘‘(4) EMPLOYEE CREDIT UNION.—No provision
of this subsection shall be construed as prohibiting
any employee of a Government-sponsored enterprise
from becoming a member of a credit union whose
field of membership is the employees of such enter-
prise.’’.
(b) BANKS AND SAVINGS ASSOCIATIONS.—Section 18
of the Federal Deposit Insurance Act (12 U.S.C. 1828)
is amended by adding at the end the following new sub-
section:
‘‘(s) PROHIBITION ON CERTAIN AFFILIATIONS.—
‘‘(1) IN
GENERAL.—No depository institution
may be an affiliate of, be sponsored by, or accept fi-
nancial support, directly or indirectly, from any Gov-
ernment-sponsored enterprise.
‘‘(2) EXCEPTION FOR MEMBERS OF A FEDERAL
HOME LOAN BANK.—Paragraph (1) shall not apply
with respect to the membership of a depository insti-
tution in a Federal home loan bank.
1201
‘‘(3) ROUTINE
BUSINESS
FINANCING.—Para-
graph (1) shall not apply with respect to advances
or other forms of financial assistance provided by a
Government-sponsored enterprise pursuant to the
statutes governing such enterprise.
‘‘(4) GOVERNMENT-SPONSORED
ENTERPRISE
DEFINED.—For purposes of this subsection, the
term ‘Government-sponsored enterprise’ has the
meaning given to such term in section 1404(e)(1)(A)
of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply on and after January 1, 1996.
Subtitle G—Deposit Insurance
Funds
SEC. 2701. SHORT TITLE.
This subtitle may be cited as the ‘‘Deposit Insurance
Funds Act of 1996’’.
SEC. 2702. SPECIAL ASSESSMENT TO CAPITALIZE SAIF.
(a) IN GENERAL.—Except as provided in subsection
(f), the Board of Directors of the Federal Deposit Insur-
ance Corporation shall impose a special assessment on the
SAIF-assessable deposits of each insured depository insti-
tution in accordance with assessment regulations of the
Corporation at a rate applicable to all such institutions
1202
that the Board of Directors, in its sole discretion, deter-
mines (after taking into account the adjustments de-
scribed in subsections (g), (h), and (j)) will cause the Sav-
ings Association Insurance Fund to achieve the designated
reserve ratio on the first business day of the 1st month
beginning after the date of the enactment of this Act.
(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
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.—Except as provided in
subsection (g), the special assessment imposed under this
section shall be—
1203
(1) due on the first business day of the 1st
month beginning after the date of the enactment of
this Act; and
(2) paid to the Corporation on the later of—
(A) the first business day of the 1st month
beginning after such date of enactment; 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 provision 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
discretion, exempt any insured depository institution
that the Board of Directors determines to be weak,
from paying the special assessment imposed under
this section if the Board of Directors determines
that the exemption would reduce risk to the Savings
Association Insurance Fund.
(2) GUIDELINES REQUIRED.—Not later than 30
days after the date of enactment of this Act, the
Board of Directors shall prescribe guidelines setting
1204
forth the criteria that the Board of Directors will
use in exempting institutions under paragraph (1).
Such guidelines shall be published in the Federal
Register.
(3) EXEMPTION
FOR
CERTAIN
NEWLY
CHAR-
TERED AND OTHER DEFINED INSTITUTIONS.—
(A) IN GENERAL.—In addition to the insti-
tutions exempted from paying the special as-
sessment under paragraph (1), the Board of
Directors shall exempt any insured depository
institution from payment of the special assess-
ment if the institution—
(i) was in existence on October 1,
1995, and held no SAIF-assessable depos-
its before January 1, 1993;
(ii) is a Federal savings bank which—
(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
1205
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) before 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
(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 before Jan-
uary 1, 1993, if—
(i) it directly held SAIF-assessable de-
posits before that date; or
1206
(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 before 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, 1997,
and 1998, into the Savings Association In-
surance Fund, based on SAIF-assessable
deposits of that institution, at assessment
rates calculated under the schedule in ef-
fect for Savings Association Insurance
Fund members on June 30, 1995; and
(ii) during calendar year 1999—
(I) into the Deposit Insurance
Fund, based on SAIF-assessable de-
posits of that institution as of Decem-
ber 31, 1998, at assessment rates cal-
culated under the schedule in effect
1207
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—
(i) 16.7 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.
1208
(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-
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 in an amount equal to
50 percent of the amount of the special assessment
that would otherwise apply under subsection (a), by
1209
the date on which such special assessment is payable
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
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-
1210
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
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
1211
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
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.
1212
(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 that begins after the date of the enact-
ment of the Deposit Insurance Funds Act of
1996 (other than the special assessment im-
posed under section 2702(a) of such Act), 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
1213
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.—
(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
1214
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 before August 9, 1989, that converted
to a Federal savings association pursuant
to section 5(i) of the Home Owners’ Loan
Act before January 1, 1985;
(B) a State depository institution that is a
member of the Savings Association Insurance
Fund that had been a State savings bank be-
fore October 15, 1982, and was a Federal sav-
ings association on August 9, 1989;
1215
(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 before the date of en-
actment 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.
SEC. 2703. FINANCING CORPORATION FUNDING.
(a) IN GENERAL.—Section 21 of the Federal Home
Loan Bank Act (12 U.S.C. 1441) is amended—
(1) in subsection (f)(2)—
1216
(A) in the matter immediately preceding
subparagraph (A)—
(i) by striking ‘‘To the extent the
amounts available pursuant to paragraph
(1) are insufficient to cover the amount of
interest payments, issuance costs, and cus-
todial fees,’’ and inserting ‘‘In addition to
the amounts obtained pursuant to para-
graph (1),’’;
(ii) by striking ‘‘Savings Association
Insurance Fund member’’ and inserting
‘‘insured depository institution’’; and
(iii) by striking ‘‘members’’ and in-
serting ‘‘institutions’’; and
(B) by striking ‘‘, except that—’’ and all
that follows through the end of the paragraph
and inserting ‘‘, except that—
‘‘(A) the assessments imposed on insured
depository institutions with respect to any BIF-
assessable deposit shall be assessed at a rate
equal to 1⁄5 of the rate of the assessments im-
posed on insured depository institutions with
respect to any SAIF-assessable deposit; and
‘‘(B) no limitation under clause (i) or (iii)
of section 7(b)(2)(A) of the Federal Deposit In-
1217
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);
(C) by redesignating paragraphs (2) and
(3) as paragraphs (1) and (2), respectively; and
(D) by adding at the end the following new
paragraphs:
‘‘(3) INSURED DEPOSITORY INSTITUTION.—The
term ‘insured depository institution’ has the same
meaning as in section 3 of the Federal Deposit In-
surance Act
‘‘(4) DEPOSIT TERMS.—
‘‘(A) BIF-ASSESSABLE
DEPOSITS.—The
term ‘BIF-assessable deposit’ means a deposit
that is subject to assessment for purposes of
the Bank Insurance Fund under the Federal
Deposit Insurance Act (including a deposit that
is treated as a deposit insured by the Bank In-
surance Fund under section 5(d)(3) of the Fed-
eral Deposit Insurance Act).
‘‘(B) SAIF-ASSESSABLE
DEPOSIT.—The
term ‘SAIF-assessable deposit’ has the meaning
1218
given to such term in section 2710 of the De-
posit Insurance Funds Act of 1996.’’.
(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.—
(1) IN GENERAL.—Subsections (a) and (c) and
the amendments made by such subsections shall
apply with respect to semiannual periods which
begin after December 31, 1996.
(2) TERMINATION
OF
CERTAIN
ASSESSMENT
RATES.—Subparagraph (A) of section 21(f)(2) of
the Federal Home Loan Bank Act (as amended by
subsection (a)) shall not apply after the earlier of—
(A) December 31, 1999; or
(B) the date as of which the last savings
association ceases to exist.
(d) PROHIBITION ON DEPOSIT SHIFTING.—
(1) IN GENERAL.—Effective as of the date of
the enactment of this Act and ending on the date
provided in subsection (c)(2) of this section, the
Comptroller of the Currency, the Board of Directors
of the Federal Deposit Insurance Corporation, the
Board of Governors of the Federal Reserve System,
and the Director of the Office of Thrift Supervision
1219
shall take appropriate actions, including enforcement
actions, denial of applications, or imposition of en-
trance and exit fees as if such transactions qualified
as conversion transactions pursuant to section 5(d)
of the Federal Deposit Insurance Act, to prevent in-
sured depository institutions and depository institu-
tion holding companies from facilitating or encour-
aging the shifting of deposits from SAIF-assessable
deposits to BIF-assessable deposits (as defined in
section 21(k) of the Federal Home Loan Bank Act)
for the purpose of evading the assessments imposed
on insured depository institutions with respect to
SAIF-assessable deposits under section 7(b) of the
Federal Deposit Insurance Act and section 21(f)(2)
of the Federal Home Loan Bank Act.
(2) REGULATIONS.—The Board of Directors of
the Federal Deposit Insurance Corporation may
issue regulations, including regulations defining
terms used in paragraph (1), to prevent the shifting
of deposits described in such paragraph.
(3) RULE OF CONSTRUCTION.—No provision of
this subsection shall be construed as prohibiting con-
duct or activity of any insured depository institution
which—
1220
(A) is undertaken in the ordinary course of
business of such depository institution; and
(B) is not directed towards the depositors
of an insured depository institution affiliate (as
defined in section 2(k) of the Bank Holding
Company Act of 1956) of such depository insti-
tution.
SEC. 2704. 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
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.—
1221
(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 the aggregate estimated amount of deposits
insured by the Savings Association Insurance Fund.
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall become effective on Janu-
ary 1, 1999, 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);
1222
(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
(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-
1223
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.—
‘‘(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.
1224
‘‘(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.
‘‘(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’’
1225
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:
‘‘(y) DEFINITIONS RELATING TO THE DEPOSIT IN-
SURANCE FUND.—
‘‘(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.
1226
‘‘(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);
(ii) by redesignating subsections (m)
and (n) as subsections (l) and (m), respec-
tively;
(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—
1227
(i) by striking paragraphs (6) and (7);
and
(ii) by redesignating paragraph (8) as
paragraph (6).
(7) SECTION
5136
OF
THE
REVISED
STAT-
UTES.—The paragraph designated the ‘‘Eleventh’’ of
section 5136 of the Revised Statutes of the United
States (12 U.S.C. 24) is amended in the 5th sen-
tence, by striking ‘‘affected deposit insurance 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)
is amended in the 4th sentence, by striking ‘‘affected
deposit insurance fund’’ and inserting ‘‘Deposit In-
surance Fund’’.
(9) ADVANCES TO CRITICALLY UNDERCAPITAL-
IZED
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.—
1228
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))—
(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’’;
1229
(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))—
(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
1230
(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—
(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:’’;
(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’’;
1231
(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—
(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;
(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.
1232
(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-
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
1233
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’’;
(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))—
1234
(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’’;
(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’’;
1235
(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’’;
(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’’;
1236
(II) by striking ‘‘members of that
fund’’ where such term appears in the
portion of subparagraph (A) which
precedes clause (i) of such subpara-
graph and inserting ‘‘insured deposi-
tory institutions’’;
(III) by striking ‘‘that fund’’
each place such term appears (other
than in connection with term amended
in subclause (II) of this clause) and
inserting 
‘‘the 
Deposit 
Insurance
Fund’’;
(IV) in subparagraph (A), by
striking ‘‘Except as provided in para-
graph (2)(F), if’’ and inserting ‘‘If’’;
(V) in subparagraph (A), by
striking ‘‘any deposit insurance fund’’
and inserting ‘‘the Deposit Insurance
Fund’’; and
(VI) by striking subparagraphs
(C) and (D) and inserting the follow-
ing:
‘‘(C) AMENDING
SCHEDULE.—The Cor-
poration may, by regulation, amend a schedule
prescribed under subparagraph (B).’’; and
1237
(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 margins 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;
(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
1238
(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 In-
surance Fund’’ and inserting ‘‘Deposit Insur-
ance 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
1239
‘‘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’’;
(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);
1240
(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 5th sentence—
(i) by striking ‘‘Bank Insurance Fund
or the Savings Association Insurance
Fund’’ and inserting ‘‘Deposit Insurance
Fund’’; and
(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);
1241
(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’’
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-
1242
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’’;
(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’’;
1243
(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))—
(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
1244
‘‘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-
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 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
1245
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 En-
terprise Act of 1991 (12 U.S.C. 1834(a)(1)) is
amended by striking ‘‘section 7(b)(2)(H)’’ and in-
serting ‘‘section 7(b)(2)(G)’’.
(17) AMENDMENT
TO
THE
BANK
HOLDING
COMPANY
ACT
OF 1956.—Section 2(j)(2) of the
Bank Holding Company Act of 1956 (12 U.S.C.
1841(j)(2)) is amended by striking ‘‘Savings Asso-
ciation Insurance Fund’’ and inserting ‘‘Deposit In-
surance Fund’’.
SEC. 2705. 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
RE-
SERVE.—
1246
‘‘(i) ESTABLISHMENT.—If, on January 1,
1999, the reserve ratio of the Savings Associa-
tion Insurance Fund exceeds the designated re-
serve ratio, there is established a Special Re-
serve of the Savings Association Insurance
Fund, which shall be administered by the Cor-
poration and shall be invested in accordance
with section 13(a).
‘‘(ii) AMOUNTS IN SPECIAL RESERVE.—If,
on January 1, 1999, the reserve ratio of the
Savings Association Insurance Fund exceeds
the designated reserve ratio, the amount by
which the reserve ratio exceeds the designated
reserve ratio shall be placed in the Special Re-
serve of the Savings Association Insurance
Fund established by clause (i).
‘‘(iii) LIMITATION.—The Corporation shall
not provide any assessment credit, refund, or
other payment from any amount in the Special
Reserve of the Savings Association Insurance
Fund.
‘‘(iv) EMERGENCY
USE
OF
SPECIAL
RE-
SERVE.—Notwithstanding clause (iii), the Cor-
poration may, in its sole discretion, transfer
amounts from the Special Reserve of the Sav-
1247
ings 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 Savings
Association Insurance Fund is less than 50
percent of the designated reserve ratio; and
‘‘(II) the Corporation expects the re-
serve ratio of the Savings Association In-
surance Fund to remain at less than 50
percent of the designated reserve ratio for
each of the next 4 calendar quarters.
‘‘(v) EXCLUSION OF SPECIAL RESERVE IN
CALCULATING RESERVE RATIO.—Notwithstand-
ing any other provision of law, any amounts in
the Special Reserve of the Savings Association
Insurance Fund shall be excluded in calculating
the reserve ratio of the Savings Association In-
surance Fund.’’.
SEC. 2706. 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.—
1248
‘‘(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.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), if, as of the end of any
semiannual assessment period beginning after
the date of the enactment of the Deposit Insur-
ance Funds Act of 1996, the amount of the ac-
tual reserves in—
‘‘(i) the Bank Insurance Fund (until
the merger of such fund into the Deposit
Insurance Fund pursuant to section 2704
of the Deposit Insurance Funds Act of
1996); or
‘‘(ii) the Deposit Insurance Fund
(after the establishment of such fund),
1249
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
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-
tion described in clause (v) of subsection
(b)(2)(A).’’.
1250
SEC. 2707. 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(b)(2)(E), as redesignated by section
2704(d)(6) of this subtitle) 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 the following new
clause:
‘‘(iii) notwithstanding any other provi-
sion of this subsection, during the period
beginning on the date of enactment of the
Deposit Insurance Funds Act of 1996, and
ending on December 31, 1998, the assess-
ment rate for a Savings Association Insur-
ance Fund member may not be less than
the assessment rate for a Bank Insurance
Fund member that poses a comparable
risk to the deposit insurance fund.’’.
SEC. 2708. 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))
1251
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—
‘‘(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 the following new clause:
‘‘(v) EXCEPTION TO LIMITATION ON
ASSESSMENTS.—The Board of Directors
1252
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.’’.
SEC. 2709. TREASURY STUDY OF COMMON DEPOSITORY IN-
STITUTION CHARTER.
(a) STUDY REQUIRED.—The Secretary of the Treas-
ury shall conduct a study of all issues which the Secretary
considers to be relevant with respect to the development
of a common charter for all insured depository institutions
(as defined in section 3 of the Federal Deposit Insurance
Act) and the abolition of separate and distinct charters
between banks and savings associations.
(b) REPORT TO THE CONGRESS.—
(1) IN GENERAL.—The Secretary of the Treas-
ury shall submit a report to the Congress on or be-
fore March 31, 1997, containing the findings and
conclusions of the Secretary in connection with the
study conducted pursuant to subsection (a).
1253
(2) DETAILED
ANALYSIS
AND
RECOMMENDA-
TIONS.—The report under paragraph (1) shall in-
clude—
(A) a detailed analysis of each issue the
Secretary considered relevant to the subject of
the study;
(B) recommendations of the Secretary with
regard to the establishment of a common char-
ter for insured depository institutions (as de-
fined in section 3 of the Federal Deposit Insur-
ance Act); and
(C) such recommendations for legislative
and administrative action as the Secretary de-
termines to be appropriate to implement the
recommendations of the Secretary under sub-
paragraph (B).
SEC. 2710. DEFINITIONS.
For purposes of this subtitle, the following definitions
shall apply:
(1) BANK INSURANCE FUND.—The term ‘‘Bank
Insurance Fund’’ means the fund established pursu-
ant to section (11)(a)(5)(A) of the Federal Deposit
Insurance Act, as that section existed on the day be-
fore the date of enactment of this Act.
1254
(2) BIF MEMBER, SAIF MEMBER.—The terms
‘‘Bank Insurance Fund member’’ and ‘‘Savings As-
sociation Insurance Fund member’’ have the same
meanings as in section 7(l) of the Federal Deposit
Insurance Act.
(3) VARIOUS
BANKING
TERMS.—The terms
‘‘bank’’, ‘‘Board of Directors’’, ‘‘Corporation’’, ‘‘de-
posit’’, ‘‘insured depository institution’’, ‘‘Federal
savings association’’, ‘‘savings association’’, ‘‘State
savings bank’’, and ‘‘State depository institution’’
have the same meanings as in section 3 of the Fed-
eral Deposit Insurance Act.
(4) DEPOSIT
INSURANCE
FUND.—The term
‘‘Deposit Insurance Fund’’ means the fund estab-
lished under section 11(a)(4) of the Federal Deposit
Insurance Act (as amended by section 2704(d) of
this subtitle).
(5) DEPOSITORY INSTITUTION HOLDING COM-
PANY.—The term ‘‘depository institution holding
company’’ has the same meaning as in section 3 of
the Federal Deposit Insurance Act.
(6) DESIGNATED RESERVE RATIO.—The term
‘‘designated reserve ratio’’ has the same meaning as
in section 7(b)(2)(A)(iv) of the Federal Deposit In-
surance Act.
1255
(7) SAIF.—The term ‘‘Savings Association In-
surance Fund’’ means the fund established pursuant
to section 11(a)(6)(A) of the Federal Deposit Insur-
ance Act, as that section existed on the day before
the date of enactment of this Act.
(8) SAIF-ASSESSABLE
DEPOSIT.—The term
‘‘SAIF-assessable deposit’’—
(A) means a deposit that is subject to as-
sessment for purposes of the Savings Associa-
tion Insurance Fund under the Federal Deposit
Insurance Act (including a deposit that is treat-
ed as insured by the Savings Association Insur-
ance Fund under section 5(d)(3) of the Federal
Deposit Insurance Act); and
(B) includes any deposit described in sub-
paragraph (A) which is assumed after March
31, 1995, if the insured depository institution,
the deposits of which are assumed, is not an in-
sured depository institution when the special as-
sessment is imposed under section 2702(a).
SEC. 2711. DEDUCTION FOR SPECIAL ASSESSMENTS.
For purposes of subtitle A of the Internal Revenue
Code of 1986—
(1) the amount allowed as a deduction under
section 162 of such Code for a taxable year shall in-
1256
clude any amount paid during such year by reason
of an assessment under section 2702 of this subtitle,
and
(2) section 172(f) of such Code shall not apply
to any deduction described in paragraph (1).
TITLE III—SPECTRUM
ALLOCATION PROVISIONS
SEC. 3001. COMPETITIVE BIDDING FOR SPECTRUM.
(a) COMMISSION OBLIGATION TO MAKE ADDI-
TIONAL SPECTRUM AVAILABLE.—The Federal Commu-
nications Commission shall—
(1) reallocate the use of frequencies at 2305–
2320 megahertz and 2345–2360 megahertz to wire-
less services that are consistent with international
agreements concerning spectrum allocations; and
(2) assign the use of such frequencies by com-
petitive bidding pursuant to section 309(j) of the
Communications Act of 1934 (47 U.S.C. 309(j)).
(b) ADDITIONAL REQUIREMENTS.—In making the
bands of frequencies described in subsection (a) available
for competitive bidding, the Commission shall—
(1) seek to promote the most efficient use of
the spectrum; and
(2) take into account the needs of public safety
radio services.
1257
(c) EXPEDITED PROCEDURES.—The Commission
shall commence the competitive bidding for the assign-
ment of the frequencies described in subsection (a)(1) no
later than April 15, 1997. The rules governing such fre-
quencies shall be effective immediately upon publication
in the Federal Register notwithstanding section 553(d),
801(a)(3), and 806(a) of title 5, United States Code.
Chapter 6 of such title, and sections 3507 and 3512 of
title 44, United States Code, shall not apply to the rules
and competitive bidding procedures governing such fre-
quencies. Notwithstanding section 309(b) of the Commu-
nications Act of 1934 (47 U.S.C. 309(b)), no application
for an instrument of authorization for such frequencies
shall be granted by the Commission earlier than 7 days
following issuance of public notice by the Commission of
the acceptance for filing of such application or of any
substantial amendment thereto. Notwithstanding section
309(d)(1) of such Act (47 U.S.C. 309(d)(1)), the Com-
mission may specify a period (no less than 5 days follow-
ing issuance of such public notice) for the filing of peti-
tions to deny any application for an instrument of au-
thorization for such frequencies.
(d) DEADLINE FOR COLLECTION.—The Commis-
sion shall conduct the competitive bidding under sub-
section (a)(2) in a manner that ensures that all proceeds
1258
of the bidding are deposited in accordance with section
309(j)(8) of the Communications Act of 1934 not later
September 30, 1997.
TITLE IV—ADJUSTMENT OF
PAYGO BALANCES
SEC. 4001. ADJUSTMENT OF PAYGO BALANCES.
For purposes of section 252 of the Balanced
Budget and Emergency Deficit Control Act of 1985, on
the calendar day after the Director of the Office of Man-
agement and Budget issues the final sequestration report
for fiscal year 1997, the Director and the Director of the
Congressional Budget Office shall change the balances
(as computed pursuant to section 252(b) of that Act) of
direct spending and receipts legislation—
(1) for fiscal year 1997 to zero if such balance
for the fiscal year is not an increase in the deficit.
1259
TITLE V—ADDITIONAL
APPROPRIATIONS
CHAPTER 1
DEPARTMENT OF AGRICULTURE, RURAL DE-
VELOPMENT, FOOD AND DRUG ADMINIS-
TRATION, AND RELATED AGENCIES
DEPARTMENT OF AGRICULTURE
COOPERATIVE STATE RESEARCH, EDUCATION, AND
EXTENSION SERVICE
EXTENSION ACTIVITIES
For an additional amount for payments for coop-
erative extension work by the colleges receiving the bene-
fits of the second Morrill Act (7 U.S.C. 321–326, 328)
and Tuskegee University, $753,000.
NATURAL RESOURCES CONSERVATION SERVICE
WATERSHED AND FLOOD PREVENTION OPERATIONS
For an additional amount to repair damages to
the waterways and watersheds resulting from the effects
of Hurricanes Fran and Hortense and other natural dis-
asters, $63,000,000, to remain available until expended:
Provided, That the entire amount is designated by Con-
gress as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
1260
FARM SERVICE AGENCY
EMERGENCY CONSERVATION PROGRAM
For an additional amount for emergency expenses
resulting from the effects of Hurricanes Fran and
Hortense and other natural disasters, $25,000,000, to re-
main available until expended: Provided, That the entire
amount is designated by Congress as an emergency re-
quirement pursuant to section 251(b)(2)(D)(i) of the
Balanced Budget and Emergency Deficit Control Act of
1985, as amended.
CHAPTER 2
DISTRICT OF COLUMBIA
EDUCATION FACILITIES IMPROVEMENT IN THE DISTRICT
OF COLUMBIA
(BY TRANSFER)
SEC. 5201. The District of Columbia Financial
Responsibility and Management Assistance Authority (re-
ferred to in this section as the ‘‘Authority’’) shall have
the authority to contract with a private entity (or enti-
ties) to carry out a program of school facility repair of
public schools and public charter schools located in public
school facilities in the District of Columbia, in consulta-
tion with the General Services Administration: Provided,
That an amount estimated to be $40,700,000 is hereby
transferred and otherwise made available to the Author-
ity until expended for contracting as provided under this
1261
section, to be derived from transfers and reallocations as
follows: (1) funds made available under the heading
‘‘PUBLIC EDUCATION SYSTEM’’ in Public Law 104–
194 for school repairs in a restricted line item; (2) all
capital financing authority made available from public
school capital improvements in Public Law 104–194; and
(3) all capital financing authority made available for pub-
lic school capital improvements which are or remain
available from Public Law 104–134 or any previous ap-
propriations Act for the District of Columbia: Provided
further, That the General Services Administration, in
consultation with the District of Columbia Public Schools
and the District of Columbia Council and subject to the
approval of the Authority and the Committees on Appro-
priations of the Senate and the House of Representatives,
shall provide program management services to assist in
the short-term management of the repairs and capital im-
provements: Provided further, That contracting author-
ized under this section shall be conducted in accordance
with Federal procurement rules and regulations and
guidelines or such guidelines as prescribed by the Author-
ity.
SPECIAL RULES REGARDING GENERAL OBLIGATION BOND
ACT
SEC. 5202. WAIVER
OF CONGRESSIONAL RE-
VIEW.—Notwithstanding section 602(c)(1) of the District
1262
of Columbia Self-Government and Governmental Reorga-
nization Act (sec. 1–233(c)(1), D.C. Code), the General
Obligation Bond Act of 1996 (D.C. Bill 11–840), if en-
acted by the Council of the District of Columbia, shall
take effect on the date of the enactment of such Act or
the date of the enactment of this Act, whichever is later.
AMENDMENTS TO FINANCIAL RESPONSIBILITY AND
MANAGEMENT ASSISTANCE ACT
SEC. 5203. (a) CALUCULATION OF 7-DAY REVIEW
PERIOD FOR COUNCIL ACTS.—Section 203(a)(5) of the
District of Columbia Financial Responsibility and Man-
agement Assistance Act of 1995 (sec. 47–392.3(a)(5),
D.C. Code) is amended—
(1) by inserting ‘‘(excluding Saturdays, Sun-
days, and legal holidays)’’ after ‘‘7-day period’’ the
first place it appears; and
(2) by striking ‘‘the date the Council submits
the Act to the Authority’’ and inserting ‘‘the first
day (excluding Saturdays, Sundays, and legal holi-
days) after the Authority receives the Act from the
Council’’.
(b) SPECIFICATION
OF PENALTY
FOR PROHIB-
ITED ACTS.—Section 103(i)(1) of such Act (sec. 47–
391.3(i)(1), D.C. Code) is amended by striking the period
at the end and inserting the following: ‘‘, and shall be
1263
fined not more than $1,000, imprisoned for not more
than 1 year, or both.’’.
(c) WAIVER
OF PRIVACY ACT REQUIREMENTS
FOR OBTAINING OFFICIAL DATA.—Section 103(c)(1) of
such Act (sec. 47–391.3(c)(1), D.C. Code) is amended by
striking ‘‘Act) and 552b’’ and inserting ‘‘Act), 552a (the
Privacy Act of 1974), and 552b’’.
(d) PERMITTING AUTHORITY REVIEW OF RULE-
MAKING.—Section 203(b) of such Act (sec. 47–392.3(b),
D.C. Code) is amended by adding at the end the follow-
ing new paragraph:
‘‘(5) APPLICATION
TO
RULES
AND
REGULA-
TIONS.—The provisions of this subsection shall
apply with respect to a rule or regulation issued or
proposed to be issued by the Mayor (or the head of
any department or agency of the District govern-
ment) in the same manner as such provisions apply
to a contract or lease.’’.
(e) DEPOSIT OF ALL DISTRICT BORROWING WITH
AUTHORITY.—
(1) IN
GENERAL.—Section 204 of such Act
(sec. 47–392.4, D.C. Code) is amended—
(A) by redesignating subsections (d) and
(e) as subsections (e) and (f); and
1264
(B) by inserting after subsection (c) the
following new subsection:
‘‘(d) DEPOSIT OF BORROWED FUNDS WITH AU-
THORITY.—If the District government borrows funds
during a control year, the funds shall be deposited into
an escrow account held by the Authority, to be allocated
by the Authority to the Mayor at such intervals and in
accordance with such terms and conditions as it considers
appropriate, consistent with the financial plan and budg-
et for the year and with any other withholding of funds
by the Authority pursuant to this Act.’’.
(2) CONFORMING AMENDMENTS.—(A) Section
204(e) of such Act, as redesignated by paragraph
(1)(A), is amended by inserting after ‘‘(b)(1)’’ the
following: ‘‘or the escrow account described in sub-
section (d)’’.
(B) Section 206(d)(1) of such Act is amended
by striking ‘‘204(b)’’ and inserting ‘‘204(b), section
204(d),’’.
(f) GRANTING AUTHORITY POWER TO ISSUE GEN-
ERAL ORDERS.—Section 207 of such Act (sec. 47–392.7,
D.C. Code) is amended by adding at the end the follow-
ing new subsection:
‘‘(d) ADDITIONAL POWER
TO ISSUE ORDERS,
RULES, AND REGULATIONS.—
1265
‘‘(1) IN GENERAL.—In addition to the authority
described in subsection (c), the Authority may at
any time issue such orders, rules, or regulations as
it considers appropriate to carry out the purposes of
this Act and the amendments made by this Act, to
the extent that the issuance of such an order, rule,
or regulation is within the authority of the Mayor or
the head of any department or agency of the District
government, and any such order, rule, or regulation
shall be legally binding to the same extent as if is-
sued by the Mayor or the head of any such depart-
ment or agency.
‘‘(2) NOTIFICATION.—Upon issuing an order,
rule, or regulation pursuant to this subsection, the
Authority shall notify the Mayor, the Council, the
President, and Congress.
‘‘(3) NO
JUDICIAL
REVIEW
OF
DECISION
TO
ISSUE
ORDER.—The decision by the Authority to
issue an order, rule, or regulation pursuant to this
subsection shall be final and shall not be subject to
judicial review.’’.
PROHIBITING FUNDING FOR TERMINATED EMPLOYEES OR
CONTRACTORS
SEC. 5204. (a) IN GENERAL.—Except as provided
in subsection (b), none of the funds made available to the
District of Columbia during any fiscal year (beginning
1266
with fiscal year 1996) may be used to pay the salary or
wages of any individual whose employment by the Dis-
trict government is no longer required as determined by
the District of Columbia Financial Responsibility and
Management Assistance Authority, or to pay any ex-
penses associated with a contractor or consultant of the
District government whose contract or arrangement with
the District government is no longer required as deter-
mined by the Authority.
(b) EXCEPTION
FOR PAYMENTS
FOR SERVICES
ALREADY PROVIDED.—Funds made available to the Dis-
trict of Columbia may be used to pay an individual for
employment already performed at the time of the
Authority’s determination, or to pay a contractor or con-
sultant for services already provided at the time of the
Authority’s determination, to the extent permitted by the
District of Columbia Financial Responsibility and Man-
agement Assistance Authority.
(c) DISTRICT GOVERNMENT DEFINED.—In this
section, the term ‘‘District government’’ has the meaning
given such term in section 305(5) of the District of Co-
lumbia Financial Responsibility and Management Assist-
ance Act of 1995.
1267
AMENDMENTS TO DISTRICT OF COLUMBIA SCHOOL
REFORM ACT OF 1995
SEC. 5205. (a) PROCESS FOR FILING CHARTER
PETITIONS.—Section 2201 of the District of Columbia
School Reform Act of 1995 (Public Law 104–134; 110
Stat. 1321–115) is amended by adding at the end the fol-
lowing:
‘‘(d) LIMITATIONS ON FILING.—
‘‘(1) MULTIPLE CHARTERING AUTHORITIES.—
An eligible applicant may not file the same petition
to establish a public charter school with more than
1 eligible chartering authority during a calendar
year.
‘‘(2) MULTIPLE PETITIONS.—An eligible appli-
cant may not file more than 1 petition to establish
a public charter school during a calendar year.’’.
(b) 
CONTENTS
OF
PETITION.—Section
2202(6)(B) of the District of Columbia School Reform
Act of 1995 (110 Stat. 1321–116) is amended to read
as follows:
‘‘(B) either—
‘‘(i)(I) an identification of a facility
for the school, including a description of
the site where the school will be located,
any buildings on the site, and any build-
1268
ings proposed to be constructed on the
site, and (II) information demonstrating
that the eligible applicant has acquired
title to, or otherwise secured the use of,
the facility; or
‘‘(ii) a timetable by which an identi-
fication described in clause (i)(I) will be
made, and the information described in
clause (i)(II) will be submitted, to the eligi-
ble chartering authority;’’.
(c) PROCESS FOR APPROVING OR DENYING PUB-
LIC CHARTER SCHOOL PETITIONS.—Section 2203 of the
District of Columbia School Reform Act of 1995 (110
Stat. 1321–118) is amended—
(1) by amending subsection (d) to read as fol-
lows:
‘‘(d) APPROVAL.—
‘‘(1) IN GENERAL.—Subject to subsection (i)
and paragraph (2), an eligible chartering authority
shall approve a petition to establish a public charter
school, if—
‘‘(A) the eligible chartering authority de-
termines that the petition satisfies the require-
ments of this subtitle;
1269
‘‘(B) the eligible applicant who filed the
petition agrees to satisfy any condition or re-
quirement, consistent with this subtitle and
other applicable law, that is set forth in writing
by the eligible chartering authority as an
amendment to the petition;
‘‘(C) the eligible chartering authority de-
termines that the public charter school has the
ability to meet the educational objectives out-
lined in the petition; and
‘‘(D) the approval will not cause the eligi-
ble chartering authority to exceed a limit under
subsection (i).
‘‘(2) CONDITIONAL APPROVAL.—
‘‘(A) IN GENERAL.—In the case of a peti-
tion that does not contain the identification and
information 
required 
under 
section
2202(6)(B)(i), but does contain the timetable
required under section 2202(6)(B)(ii), an eligi-
ble chartering authority may only approve the
petition on a conditional basis, subject to the el-
igible applicant’s submitting the identification
and 
information 
described 
in 
section
2202(6)(B)(i) in accordance with such time-
table, or any other timetable specified in writing
1270
by the eligible chartering authority in an
amendment to the petition.
‘‘(B) 
EFFECT
OF
CONDITIONAL
AP-
PROVAL.—For purposes of subsections (e), (h),
(i), and (j), a petition conditionally approved
under this paragraph shall be treated the same
as a petition approved under paragraph (1), ex-
cept that on the date that such a conditionally
approved petition ceases to be conditionally ap-
proved because the eligible applicant has not
timely submitted the identification and informa-
tion described in section 2202(6)(B)(i), the ap-
proval of the petition shall cease to be counted
for purposes of subsection (i).’’;
(2) in subsection (h), by striking ‘‘(d)(2),’’ each
place such term appears and inserting ‘‘(d),’’;
(3) by amending subsection (i) to read as fol-
lows:
‘‘(i) NUMBER OF PETITIONS.—
‘‘(1) FIRST YEAR.—During calendar year 1996,
not more than 10 petitions to establish public char-
ter schools may be approved under this subtitle.
‘‘(2) SUBSEQUENT YEARS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), during calendar year 1997, and dur-
1271
ing each subsequent calendar year, each eligible
chartering authority shall not approve more
than 10 petitions to establish a public charter
school under this subtitle. Any such petition
shall be approved during the period that begins
on January 1 and ends on April 1.
‘‘(B) EXCEPTION.—If, by April 1 of any
calendar year after 1996, an eligible chartering
authority has approved fewer than 10 petitions
during such calendar year, any other eligible
chartering authority may approve more than 10
petitions during such calendar year, but only
if—
‘‘(i) the eligible chartering authority
completes the approval of any such addi-
tional petition before June 1 of the year;
and
‘‘(ii) the approval of any such addi-
tional petition will not cause the total
number of petitions approved by all eligible
chartering authorities during the calendar
year to exceed 20.’’; and
(4) by amending subsection (j) to read as fol-
lows:
1272
‘‘(j) AUTHORITY
OF
ELIGIBLE
CHARTERING
AUTHORITY.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), and except for officers or employees of
the eligible chartering authority with which a peti-
tion to establish a public charter school is filed, no
governmental entity, elected official, or employee of
the District of Columbia shall make, participate in
making, or intervene in the making of, the decision
to approve or deny such a petition.
‘‘(2) AVAILABILITY OF REVIEW.—A decision by
an eligible chartering authority to deny a petition to
establish a public charter school shall be subject to
judicial review by an appropriate court of the Dis-
trict of Columbia.’’.
(d) DISTRICT
OF COLUMBIA PUBLIC SCHOOL
SERVICES
TO
PUBLIC
CHARTER
SCHOOLS.—Section
2209 of the District of Columbia School Reform Act of
1995 (110 Stat. 1321–125) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘The Superintendent’’; and
(2) by adding at the end the following:
‘‘(b) PREFERENCE IN LEASING OR PURCHASING
PUBLIC SCHOOL FACILITIES.—
‘‘(1) FORMER PUBLIC SCHOOL PROPERTY.—
1273
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law relating to the disposition
of a facility or property described in subpara-
graph (B), the Mayor and the District of Co-
lumbia Government shall give preference to an
eligible applicant whose petition to establish a
public charter school has been conditionally ap-
proved under section 2203(d)(2), or a Board of
Trustees, with respect to the purchase or lease
of a facility or property described in subpara-
graph (B), provided that doing so will not re-
sult in a significant loss of revenue that might
be obtained from other dispositions or uses of
the facility or property.
‘‘(B) PROPERTY DESCRIBED.—A facility or
property referred to in subparagraph (A) is a
facility, or real property—
‘‘(i) that formerly was under the juris-
diction of the Board of Education;
‘‘(ii) that the Board of Education has
determined is no longer needed for pur-
poses of operating a District of Columbia
public school; and
1274
‘‘(iii) with respect to which the Board
of Education has transferred jurisdiction
to the Mayor.
‘‘(2) CURRENT PUBLIC SCHOOL PROPERTY.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law relating to the disposition
of a facility or property described in subpara-
graph (B), the Mayor and the District of Co-
lumbia Government shall give preference to an
eligible applicant whose petition to establish a
public charter school has been conditionally ap-
proved under section 2203(d)(2), or a Board of
Trustees, in leasing, or otherwise contracting
for the use of, a facility or property described
in subparagraph (B).
‘‘(B) PROPERTY DESCRIBED.—A facility or
property referred to in subparagraph (A) is a
facility, real property, or a designated area of
a facility or real property, that—
‘‘(i) is under the jurisdiction of the
Board of Education; and
‘‘(ii) is available for use because the
Board of Education is not using, for edu-
cational, administrative, or other purposes,
1275
the facility, real property, or designated
area.’’.
(e) CHARTER RENEWAL.—Section 2212 of the
District of Columbia School Reform Act of 1995 (110
Stat. 1321–129) is amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) TERMS.—
‘‘(1) INITIAL TERM.—A charter granted to a
public charter school shall remain in force for a 15-
year period.
‘‘(2) RENEWALS.—A charter may be renewed
for an unlimited number of times, each time for a
15-year period.
‘‘(3) REVIEW.—An eligible chartering authority
that grants or renews a charter pursuant to para-
graph (1) or (2) shall review the charter—
‘‘(A) at least once every 5 years to deter-
mine whether the charter should be revoked for
the reasons described in subsection (a)(1)(A) or
(b) of section 2213 in accordance with the pro-
cedures for such revocation established under
section 2213(c); and
‘‘(B) once every 5 years, beginning on the
date that is 5 years after the date on which the
1276
charter is granted or renewed, to determine
whether the charter should be revoked for the
reasons described in section 2213(a)(1)(B) in
accordance with the procedures for such revoca-
tion established under section 2213(c).’’; and
(2) by amending subsection (d)(6) to read as
follows:
‘‘(6) JUDICIAL REVIEW.—A decision by an eligi-
ble chartering authority to deny an application to
renew a charter shall be subject to judicial review by
an appropriate court of the District of Columbia.’’.
(f) CHARTER REVOCATION.—Section 2213(a) of
the District of Columbia School Reform Act of 1995 (110
Stat. 1321–130) is amended to read as follows:
‘‘(a) CHARTER OR LAW VIOLATIONS; FAILURE TO
MEET GOALS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
an eligible chartering authority that has granted a
charter to a public charter school may revoke the
charter if the eligible chartering authority deter-
mines that the school—
‘‘(A) committed a violation of applicable
laws or a material violation of the conditions,
terms, standards, or procedures set forth in the
1277
charter, including violations relating to the edu-
cation of children with disabilities; or
‘‘(B) failed to meet the goals and student
academic achievement expectations set forth in
the charter.
‘‘(2) SPEICAL RULE.—An eligible chartering au-
thority may not revoke a charter under paragraph
(1)(B), except pursuant to a determination made
through 
a 
review 
conducted 
under 
section
2212(a)(3)(B).’’.
(g) PUBLIC CHARTER SCHOOL BOARD.—Para-
graphs (3) and (4) of section 2214(a) of the District of
Columbia School Reform Act of 1995 (110 Stat. 1321–
132) are amended to read as follows:
‘‘(3) VACANCIES.—
‘‘(A) OTHER THAN FROM EXPIRATION OF
TERM.—Where a vacancy occurs in the mem-
bership of the Board for reasons other than the
expiration of the term of a member of the
Board, the Secretary of Education, not later
than 30 days after the vacancy occurs, shall
present to the Mayor a list of 3 people the Sec-
retary determines are qualified to serve on the
Board. The Mayor, in consultation with the
District of Columbia Council, shall appoint 1
1278
person from the list to serve on the Board. The
Secretary shall recommend, and the Mayor
shall appoint, such member of the Board taking
into consideration the criteria described in para-
graph (2). Any member appointed to fill a va-
cancy occurring prior to the expiration of the
term of a predecessor shall be appointed only
for the remainder of the term.
‘‘(B) EXPIRATION
OF
TERM.—Not later
than the date that is 60 days before the expira-
tion of the term of a member of the Board, the
Secretary of Education shall present to the
Mayor, with respect to each such impending va-
cancy, a list of 3 people the Secretary deter-
mines are qualified to serve on the Board. The
Mayor, in consultation with the District of Co-
lumbia Council, shall appoint 1 person from
each such list to serve on the Board. The Sec-
retary shall recommend, and the Mayor shall
appoint, any member of the Board taking into
consideration the criteria described in para-
graph (2).
‘‘(4) TIME LIMIT FOR APPOINTMENTS.—If, at
any time, the Mayor does not appoint members to
the Board sufficient to bring the Board’s member-
1279
ship to 7 within 30 days after receiving a rec-
ommendation from the Secretary of Education under
paragraph (2) or (3), the Secretary, not later than
10 days after the final date for such mayoral ap-
pointment, shall make such appointments as are
necessary to bring the membership of the Board to
7.’’.
(h) TECHNICAL AMENDMENT.—Section 2561(b)
of the District of Columbia School Reform Act of 1995
(Public Law 104–134), as amended by section 148 of the
District of Columbia Appropriations Act, 1997 (Public
Law 104–194), is amended to read as follows:
‘‘(b) LIMITATION.—A waiver under subsection (a)
shall not apply to the Davis-Bacon Act (40 U.S.C. 276a
et seq.) or Executive Order 11246 or other civil rights
standards.’’.
DISPOSITION OF CERTAIN SCHOOL PROPERTY BY
AUTHORITY
SEC. 5206. (a) IN GENERAL.—Subtitle C of title
II of the District of Columbia Financial Responsibility
and Management Assistance Act of 1995 is amended by
adding at the end the following new section:
‘‘SEC. 225. DISPOSITION OF CERTAIN SCHOOL PROPERTY.
‘‘(a) POWER TO DISPOSE.—Notwithstanding any
other provision of law relating to the disposition of a fa-
cility or property described in subsection (d), the Author-
1280
ity may dispose (by sale, lease, or otherwise) of any facil-
ity or property described in subsection (d).
‘‘(b) 
PREFERENCE
FOR
PUBLIC
CHARTER
SCHOOL.—In disposing of a facility or property under
this section, the Authority shall give preference to an eli-
gible applicant (as defined in section 2002 of the District
of Columbia School Reform Act of 1995) whose petition
to establish a public charter school has been conditionally
approved under section 2203(d)(2) of such Act, or a
Board of Trustees (as defined in section 2002 of such
Act) of such a public charter school, if doing so will not
result in a significant loss of revenue that might be ob-
tained from other dispositions or uses of the facility or
property.
‘‘(c) USE OF PROCEEDS FROM DISPOSITION FOR
SCHOOL REPAIR AND MAINTENANCE.—
‘‘(1) IN GENERAL.—The Authority shall deposit
any proceeds of the disposition of a facility or prop-
erty under this section in the Board of Education
Real Property Maintenance and Improvement Fund
(as established by the Real Property Disposal Act of
1990), to be used for the construction, maintenance,
improvement, rehabilitation, or repair of buildings
and grounds which are used for educational pur-
1281
poses for public and public charter school students
in the District of Columbia.
‘‘(2) CONSULTATION.—In disposing of a facility
or property under this section, the Authority shall
consult with the Superintendent of Schools of the
District of Columbia, the Mayor, the Council, the
Administrator of General Services, and education
and community leaders involved in planning for an
agency or authority that will design and administer
a comprehensive long-term program for repair and
improvement of District of Columbia public school
facilities (as described in section 2552(a) of the Dis-
trict of Columbia School Reform Act of 1995).
‘‘(3) LEGAL EFFECT OF SALE.—The Authority
may dispose of a facility or property under this sec-
tion by executing a proper deed and any other legal
instrument for conveyance of title to the facility or
property, and such deed shall convey good and valid
title to the purchaser of the facility or property.
‘‘(d) FACILITY OR PROPERTY DESCRIBED.—A fa-
cility or property described in this subsection is a facility
or property which is described in section 2209(b)(1)(B)
of the District of Columbia School Reform Act of 1995
and with respect to which the Authority has made the
following determinations:
1282
‘‘(1) The property is no longer needed for pur-
poses of operating a District of Columbia public
school (as defined in section 2002 of the District of
Columbia School Reform Act of 1995).
‘‘(2) The disposition of the property is in the
best interests of education in the District of Colum-
bia.
‘‘(3) The Mayor (or any other department or
agency of the District government) has failed to
make substantial progress toward disposing the
property during the 90-day period which begins on
the date the Board of Education transfers jurisdic-
tion over the property to the Mayor (or, in the case
of 
property 
which 
is 
described 
in 
section
2209(b)(1)(B) of such Act as of the date of the en-
actment of this section, during the 90-day period
which begins on the date of the enactment of this
section).’’.
(b) CONTROL OVER BOARD OF EDUCATION REAL
PROPERTY MAINTENANCE AND IMPROVEMENT FUND.—
(1) IN GENERAL.—Section 2(b) of the Board of
Education Real Property Disposal Act of 1990 (sec.
9–402(b), D.C. Code) is amended—
(A) by amending the second sentence to
read as follows: ‘‘Subject to paragraph (6), the
1283
District of Columbia Financial Responsibility
and Management Assistance Authority shall ad-
minister the Fund and receive all payments into
the Fund that are required by law.’’; and
(B) by adding at the end the following new
paragraph:
‘‘(6) Upon the establishment of an agency or au-
thority within the District of Columbia government to ad-
minister a public schools facilities revitalization plan pur-
suant to section 2552(a)(2) of the District of Columbia
School Reform Act of 1995, such agency or authority
shall administer the Fund and receive all payments into
the Fund that are required by law.’’.
(2) CONFORMING AMENDMENTS.—Section 2(b)
of the Board of Education Real Property Disposal
Act of 1990 (sec. 9–402(b), D.C. Code) is amend-
ed—
(A) in the third sentence of paragraph (1),
by striking ‘‘; provided that the Board’’ and all
that follows and inserting a period; and
(B) by striking paragraph (5).
(c) CLERICAL AMENDMENT.—The table of con-
tents of subtitle C of title II of the District of Columbia
Financial Responsibility and Management Assistance Act
1284
of 1995 is amended by adding at the end the following
new item:
‘‘Sec. 225. Disposition of certain school property.’’.
CHAPTER 3
ENERGY AND WATER DEVELOPMENT
DEPARTMENT OF DEFENSE—CIVIL
DEPARTMENT OF THE ARMY
CORPS OF ENGINEERS—CIVIL
OPERATION AND MAINTENANCE, GENERAL
For an additional amount for ‘‘Operation and
Maintenance, General’’ for emergency expenses resulting
from Hurricane Fran and other natural disasters of
1996, $19,000,000, to remain available until expended:
Provided, That such amount is designated by Congress as
an 
emergency 
requirement 
pursuant 
to 
section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
GENERAL PROVISION
SEC. 5301. None of the funds appropriated in the
Energy and Water Department Appropriations Act, 1997
may be made available to the Tennessee Valley Authority
if the Tennessee Valley Authority is imposing a perform-
ance deposit in connection with residential shoreline al-
teration permits.
1333
(1) Section 5, Township 17 South, Range 4
East, Lot 7 (37.63 acres).
(2) Section 2, Township 17 South, Range 4
East, Lot 3 (29.28 acres).
(3) Section 13, Township 17 South, Range 4
East, S1⁄2 SE1⁄4 (80 acres).
(4) Section 2, Township 17 South, Range 4
East, SW1⁄4 SW1⁄4 (40 acres).
(5) Section 2, Township 17 South, Range 4
East, NW1⁄4 SE1⁄4 (40 acres).
(6) Section 8, Township 17 South, Range 4
East, SE1⁄4 SW1⁄4 (40 acres).
(7) Section 11, Township 17 South, Range 4
East, W1⁄2 NW1⁄4 (80 acres).
(d) EQUAL VALUE.—The land and interests in
land exchanged under this section shall be of equal mar-
ket value as determined by nationally recognized ap-
praisal standards, including, to the extent appropriate,
the Uniform Standards for Federal Land Acquisition, the
Uniform Standards of Professional Appraisal Practice, or
shall be equalized by way of payment of cash pursuant
to the provisions of section 206(d) of the Federal Land
Policy and Management Act of 1976 (43 U.S.C.
1716(d)), and other applicable law. The appraisal shall
consider access costs for the parcels involved.