249
‘‘(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. 806. REFUND OF AMOUNTS IN DEPOSIT INSURANCE
FUND IN EXCESS OF DESIGNATED RESERVE
AMOUNT.
Subsection (e) of section 7 of the Federal Deposit In-
surance Act (12 U.S.C. 1817(e)) is amended to read as
follows:
‘‘(e) REFUNDS.—
‘‘(1) OVERPAYMENTS.—In the case of any pay-
ment of an assessment (including any assessment
made pursuant to section 802 of the Deposit Insur-
ance Funds Act of 1996) by an insured depository
institution in excess of the amount due to the Cor-
poration, the Corporation may—
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‘‘(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 804 of
the Deposit Insurance Funds Act of 1996);
‘‘(ii) the Savings Association Insur-
ance Fund (until the merger of such fund
into the Deposit Insurance Fund pursuant
to section 804 of the Deposit Insurance
Funds Act of 1996); or
‘‘(iii) the Deposit Insurance Fund
(after the establishment of such fund),
251
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.—
‘‘(i) IN
GENERAL.—The amount of
any refund under this paragraph to any
member of a deposit insurance fund for
any semiannual assessment period may not
exceed the total amount of assessments
paid by such member to the insurance
fund with respect to such period.
‘‘(ii) 
SPECIAL
ASSESSMENT.—The
amount of any refund under this para-
graph to any Savings Association Insur-
ance Fund member which is attributable to
the special assessment imposed under sec-
tion 802 of the Deposit Insurance Funds
Act of 1996 may not exceed the total
amount of assessments paid by such mem-
252
ber to the Savings Association Insurance
Fund with respect to such assessment.
‘‘(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).’’.
SEC. 807. 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
4(d)(6) of this Act) is amended—
(1) by striking ‘‘and’’ at the end of clause (i);
(2) by striking the period at the end of clause
(ii) and inserting ‘‘; and’’; and
(3) by adding at the end 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-
253
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. 808. ASSESSMENTS AUTHORIZED ONLY IF NEEDED TO
MAINTAIN THE RESERVE RATIO OF A DE-
POSIT INSURANCE FUND.
(a) IN GENERAL.—Section 7(b)(2)(A)(i) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(i))
is amended in the matter preceding subclause (I) by in-
serting ‘‘when necessary, and only to the extent nec-
essary’’ after ‘‘insured depository institutions’’.
(b) 
LIMITATION
ON
ASSESSMENT.—Section
7(b)(2)(A)(iii) of the Federal Deposit Insurance Act (12
U.S.C. 1817(b)(2)(A)(iii)) is amended to read as follows:
‘‘(iii) LIMITATION ON ASSESSMENT.—
Except as provided in clause (v), the Board
of Directors shall not set semiannual as-
sessments with respect to a deposit insur-
ance fund in excess of the amount need-
ed—
‘‘(I) to maintain the reserve ratio
of the fund at the designated reserve
ratio; or
254
‘‘(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
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. 809. 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
255
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).
(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).
256
SEC. 810. DEFINITIONS.
For purposes of this title, 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.
(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’’, ‘‘in-
sured depository institution’’, ‘‘Federal savings asso-
ciation’’, ‘‘savings association’’, ‘‘State savings
bank’’, and ‘‘State depository institution’’ have the
same meanings as in section 3 of the Federal De-
posit 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 804(d) of this
title).
257
(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.
(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,
258
the deposits of which are assumed, is not an in-
sured depository institution when the special as-
sessment is imposed under section 2(a).
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