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beginning on the date of the enactment of this Act
containing the findings and conclusions of the Cor-
poration with respect to the study required under
paragraph (1) together with such recommendations
for legislative or administrative action as the Board
of Directors of the Corporation may determine to be
appropriate.
(c) STUDY OF FURTHER POSSIBLE CHANGES TO DE-
POSIT INSURANCE SYSTEM.—
(1) STUDY REQUIRED.—The Board of Directors
of the Federal Deposit Insurance Corporation and
the National Credit Union Administration Board
shall each conduct a study of the following:
(A) The feasibility of establishing a vol-
untary deposit insurance system for deposits in
excess of the maximum amount of deposit in-
surance for any depositor and the potential ben-
efits and the potential adverse consequences
that may result from the establishment of any
such system.
(B) The feasibility of privatizing all deposit
insurance at insured depository institutions and
insured credit unions.
(2) REPORT.—Before the end of the 1-year pe-
riod beginning on the date of the enactment of this
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Act, the Board of Directors of the Federal Deposit
Insurance Corporation and the National Credit
Union Administration Board shall each submit a re-
port to the Congress on the study required under
paragraph (1) containing the findings and conclu-
sions of the reporting agency together with such rec-
ommendations for legislative or administrative
changes as the agency may determine to be appro-
priate.
(d) STUDY
REGARDING
APPROPRIATE
DEPOSIT
BASE IN DESIGNATING RESERVE RATIO.—
(1) STUDY
REQUIRED.—The Federal Deposit
Insurance Corporation shall conduct a study of the
feasibility of using actual domestic deposits rather
than estimated insured deposits in calculating the
reserve ratio of the Deposit Insurance Fund and
designating a reserve ratio for such Fund.
(2) REPORT.—The Federal Deposit Insurance
Corporation shall submit a report to the Congress
before the end of the 1-year period beginning on the
date of the enactment of this Act containing the
findings and conclusions of the Corporation with re-
spect to the study required under paragraph (1) to-
gether with such recommendations for legislative or
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administrative action as the Board of Directors of
the Corporation may determine to be appropriate.
(e) STUDY OF RESERVE METHODOLOGY AND AC-
COUNTING FOR LOSS.—
(1) STUDY
REQUIRED.—The Federal Deposit
Insurance Corporation, in consultation with the
Comptroller General, shall conduct a study of the re-
serve methodology and loss accounting used by the
Corporation during the period beginning on January
1, 1992, and ending December 31, 2002, with re-
spect to insured depository institutions in a troubled
condition (as defined in the regulations prescribed
pursuant to section 32(f) of the Federal Deposit In-
surance Act).
(2) FACTORS TO BE INCLUDED.—In conducting
the study pursuant to paragraph (1), the Federal
Deposit Insurance Corporation shall—
(A) consider the overall effectiveness and
accuracy of the methodology used by the Cor-
poration for establishing and maintaining re-
serves and estimating and accounting for losses
at insured depository institutions, during the
period described in such paragraph;
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(B) consider the appropriateness and reli-
ability of information and criteria used by the
Corporation in determining—
(i) whether an insured depository in-
stitution was in a troubled condition; and
(ii) the amount of any loss anticipated
at such institution;
(C) analyze the actual historical loss expe-
rience over the period described in paragraph
(1) and the causes of the exceptionally high
rate of losses experienced by the Corporation in
the final 3 years of that period; and
(D) rate the Corporation’s efforts of the
Corporation to reduce losses in such 3-year pe-
riod to minimally acceptable levels and to his-
torical levels.
(3) REPORT REQUIRED.—The Board of Direc-
tors of the Federal Deposit Insurance Corporation
shall submit a report to the Congress before June
30, 2003, containing the findings and conclusions of
the Corporation, in consultation with the Comp-
troller General, with respect to the study required
under paragraph (1), together with such rec-
ommendations for legislative or administrative action
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as the Board of Directors may determine to be ap-
propriate.
SEC. 11. TECHNICAL AND CONFORMING AMENDMENTS TO
THE FEDERAL DEPOSIT INSURANCE ACT RE-
LATING TO THE MERGER OF THE BIF AND
SAIF.
(a) IN GENERAL.—The Federal Deposit Insurance
Act (12 U.S.C. 1811 et seq.) is amended—
(1) in section 3 (12 U.S.C. 1813)—
(A) by striking subparagraph (B) of sub-
section (a)(1) and inserting the following new
subparagraph:
‘‘(B) includes any former savings associa-
tion.’’; and
(B) by striking paragraph (1) of sub-
section (y) (as so designated by section 5(b) of
this Act) and inserting the following new para-
graph:
‘‘(1) DEPOSIT
INSURANCE
FUND.—The term
‘Deposit Insurance Fund’ means the Deposit Insur-
ance Fund established under section 11(a)(4).’’;
(2) in section 5(b)(5) (12 U.S.C. 1815(b)(5)),
by striking ‘‘the Bank Insurance Fund or the Sav-
ings Association Insurance Fund,’’ and inserting
‘‘the Deposit Insurance Fund,’’;
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(3) in section 5(c)(4), by striking ‘‘deposit in-
surance fund’’ and inserting ‘‘Deposit Insurance
Fund’’;
(4) in section 5(d) (12 U.S.C. 1815(d)), by
striking paragraphs (2) and (3);
(5) in section 5(d)(1) (12 U.S.C. 1815(d)(1))—
(A) in subparagraph (A), by striking ‘‘re-
serve ratios in the Bank Insurance Fund and
the Savings Association Insurance Fund as re-
quired by section 7’’ and inserting ‘‘the reserve
ratio of the Deposit Insurance Fund’’;
(B) by striking subparagraph (B) and in-
serting 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.’’;
(C) by striking ‘‘(1) UNINSURED INSTITU-
TIONS.—’’; and
(D) by redesignating subparagraphs (A)
and (C) as paragraphs (1) and (3), respectively,
and moving the left margins 2 ems to the left;
(6) in section 5(e) (12 U.S.C. 1815(e))—
(A) in paragraph (5)(A), by striking
‘‘Bank Insurance Fund or the Savings Associa-
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tion Insurance Fund’’ and inserting ‘‘Deposit
Insurance Fund’’;
(B) by striking paragraph (6); and
(C) by redesignating paragraphs (7), (8),
and (9) as paragraphs (6), (7), and (8), respec-
tively;
(7) in section 6(5) (12 U.S.C. 1816(5)), by
striking ‘‘Bank Insurance Fund or the Savings As-
sociation Insurance Fund’’ and inserting ‘‘Deposit
Insurance Fund’’;
(8) in section 7(b) (12 U.S.C. 1817(b))—
(A) in paragraph (1)(C), by striking ‘‘de-
posit insurance fund’’ each place that term ap-
pears and inserting ‘‘Deposit Insurance Fund’’;
(B) in paragraph (1)(D), by striking ‘‘each
deposit insurance fund’’ and inserting ‘‘the De-
posit Insurance Fund’’; and
(C) in paragraph (5) (as so redesignated
by section 4(e)(4) of this Act)—
(i) by striking ‘‘any such assessment’’
and inserting ‘‘any such assessment is nec-
essary’’;
(ii) by striking subparagraph (B);
(iii) in subparagraph (A)—
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(I) by striking ‘‘(A) is nec-
essary—’’;
(II) by striking ‘‘Bank Insurance
Fund members’’ and inserting ‘‘in-
sured depository institutions’’; and
(III) by redesignating clauses (i),
(ii), and (iii) as subparagraphs (A),
(B), and (C), respectively, and moving
the margins 2 ems to the left; and
(iv) in subparagraph (C) (as so redes-
ignated)—
(I) by inserting ‘‘that’’ before
‘‘the Corporation’’; and
(II) by striking ‘‘; and’’ and in-
serting a period;
(9) 
in 
section 
7(j)(7)(F) 
(12 
U.S.C.
1817(j)(7)(F)), by striking ‘‘Bank Insurance Fund
or the Savings Association Insurance Fund’’ and in-
serting ‘‘Deposit Insurance Fund’’;
(10) 
in 
section 
8(t)(2)(C) 
(12 
U.S.C.
1818(t)(2)(C)), by striking ‘‘deposit insurance fund’’
and inserting ‘‘Deposit Insurance Fund’’;
(11) in section 11 (12 U.S.C. 1821)—
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(A) by striking ‘‘deposit insurance fund’’
each place that term appears and inserting
‘‘Deposit Insurance Fund’’;
(B) by striking paragraph (4) of sub-
section (a) and inserting the following new
paragraph:
‘‘(4) DEPOSIT INSURANCE FUND.—
‘‘(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 insured depository institutions
the deposits of which are insured by the De-
posit Insurance Fund.
‘‘(C) 
LIMITATION
ON
USE.—Notwith-
standing any provision of law other than section
13(c)(4)(G), the Deposit Insurance Fund shall
not be used in any manner to benefit any share-
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U.S.C. 1828a) is amended by striking ‘‘any Federal de-
posit insurance fund’’ in subsection (a)(1)(B), paragraphs
(2)(B) and (4)(B) of subsection (b), and subsection
(c)(1)(B), each place that term appears and inserting ‘‘the
Deposit Insurance Fund’’.
(k) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the first
day of the first calendar quarter that begins after the end
of the 90-day period beginning on the date of the enact-
ment of this Act.
Passed the House of Representatives May 22, 2002.
Attest:
JEFF TRANDAHL,
Clerk.