I
103D CONGRESS
1ST SESSION
H. R. 1594
To reduce the amount of deposit insurance for insured depository institutions
from $100,000 to $25,000.
IN THE HOUSE OF REPRESENTATIVES
APRIL 1, 1993
Mr. CRANE introduced the following bill; which was referred to the Committee
on Banking, Finance and Urban Affairs
A BILL
To reduce the amount of deposit insurance for insured
depository institutions from $100,000 to $25,000.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Deposit Insurance Re-
duction Act of 1993’’.
SEC. 2. REDUCTION IN DEPOSIT INSURANCE FROM $100,000
TO $25,000.
(a) FDIC INSURED DEPOSITORY INSTITUTIONS.—
(1) IN GENERAL.—Section 11(a)(1)(B) of the
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C.
1821(a)(1)(B)) is amended by striking ‘‘$100,000’’
and inserting ‘‘$25,000’’.
(2) TRUST FUNDS.—
(A) IN GENERAL.—Section 7(i) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1817(i))
is amended by striking ‘‘$100,000’’ and insert-
ing ‘‘$25,000’’.
(B) SUBSEQUENT AMENDMENT.—Effective
on the effective date of the amendment made by
section 311(b)(3) of the Federal Deposit Insur-
ance Corporation Improvement Act of 1991,
section 7(i)(1) of the Federal Deposit Insurance
Act (as amended by such section 311(b)(3)) is
amended by striking ‘‘$100,000’’ and inserting
‘‘$25,000’’.
(3) OTHER LIMITS ON DEPOSIT INSURANCE.—
(A) IN GENERAL.—Paragraphs (2)(A) and
(3) of section 11(a) of the Federal Deposit In-
surance Act (12 U.S.C. 1821(a)) are amended
by striking ‘‘$100,000’’ each place such term
appears and inserting ‘‘$25,000’’.
(B) SUBSEQUENT AMENDMENT.—Effective
on the effective date of the amendment made by
section 311(b)(2) of the Federal Deposit Insur-
ance Corporation Improvement Act of 1991,
section 11(a)(3)(A) of the Federal Deposit In-
surance Act (as amended by such section
311(b)(2)) is amended by striking ‘‘$100,000’’
and inserting ‘‘$25,000’’.
(4) EFFECTIVE DATE.—The amendments made
by paragraphs (1), (2), and (3) shall take effect at
the end of the 60-day period beginning on the date
of the enactment of this Act.
(5) TRANSITION PERIOD.—Notwithstanding the
amendments made by paragraphs (1), (2), and (3),
if the total amount of insured deposits of any de-
positor at any insured depository institution (deter-
mined as of the close of business on the day before
the effective date of such amendments under para-
graph (4)) exceeds $25,000, such excess amount
may continue to be treated, in accordance with regu-
lations which the Federal Deposit Insurance Cor-
poration shall prescribe, as insured deposits in the
manner provided in section 8(a)(7) of the Federal
Deposit Insurance Act during the 1-year period be-
ginning on such effective date.
(6) NOTICE.—The Federal Deposit Insurance
Corporation shall require, by regulation, each in-
sured depository institution to provide notice to each
accountholder at such institution before the end of
the 60-day period described in paragraph (4) of—
(A) the reduction in the amount of deposit
insurance available on deposits at the institu-
tion; and
(B) the transition rules prescribed pursu-
ant to paragraph (5).
(7) ENFORCEMENT.—For purposes of enforcing
any requirement of this subsection or any regulation
prescribed by the Federal Deposit Insurance Cor-
poration pursuant to this subsection, such Corpora-
tion shall be treated as the appropriate Federal
banking agency for any insured depository institu-
tion.
(8) INSURED
DEPOSITORY
INSTITUTIONS
DE-
FINED.—For purposes of this subsection, the term
‘‘insured depository institution’’ has the meaning
given to such term in section 3(c)(2) of the Federal
Deposit Insurance Act.
(b) NCUA INSURED CREDIT UNIONS.—
(1) IN GENERAL.—Paragraphs (1), (2)(A), and
(3) of section 207(k) of the Federal Credit Union
Act (12 U.S.C. 1787(k)) are amended by striking
‘‘$100,000’’ each place such term appears and in-
serting ‘‘$25,000’’.