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per pound is equal to 1.5 percent of the loan rate
for raw cane sugar under this section.
‘‘(2) SUGAR BEETS.—Effective only for market-
ings of beet sugar during fiscal years 1996 through
2003, the first processor of sugar beets shall remit
to the Commodity Credit Corporation a nonrefund-
able marketing assessment for each pound of beet
sugar, processed by the processor from domestically
produced sugar beets or sugar beet molasses, that
has been marketed. The assessment rate per pound
is equal to 1.6083 percent of the loan rate for raw
cane sugar under this section.
‘‘(3) COLLECTION.—
‘‘(A) TIMING.—Marketing assessments re-
quired under this subsection shall be collected
on a monthly basis and shall be remitted to the
Commodity Credit Corporation within 30 days
after the end of each month. Any cane sugar or
beet sugar processed during a fiscal year that
has not been marketed by September 30 of that
year shall be subject to assessment on that
date. The sugar shall not be subject to a second
assessment at the time that it is marketed.
‘‘(B) MANNER.—Subject to subparagraph
(A), marketing assessments shall be collected
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under this subsection in the manner prescribed
by the Secretary and shall be nonrefundable.
‘‘(4) PENALTIES.—If any person fails to remit
the assessment required by this subsection or fails to
comply with such requirements for recordkeeping or
otherwise as are required by the Secretary to carry
out this subsection, the person shall be liable to the
Secretary for a civil penalty up to an amount deter-
mined by multiplying—
‘‘(A) the quantity of cane sugar or beet
sugar involved in the violation; by
‘‘(B) the loan rate in effect at the time of
the violation.
‘‘(5) ENFORCEMENT.—The Secretary may en-
force this subsection in the courts of the United
States.
‘‘(6) DEFINITION OF MARKET.—For purposes
of this subsection, the term ‘market’ means to sell
or otherwise dispose of in commerce in the United
States (including, with respect to any integrated
processor and refiner, the movement of raw cane
sugar into the refining process) and to deliver to a
buyer.
‘‘(h) INFORMATION REPORTING.—
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‘‘(1) DUTY OF PROCESSORS AND REFINERS TO
REPORT.—All sugarcane processors, cane sugar re-
finers, and sugar beet processors shall furnish the
Secretary, on a monthly basis, such information as
the Secretary may require to administer sugar pro-
grams, including the quantity of purchases of sugar-
cane, sugar beets, and sugar, and production, impor-
tation, distribution, and stock levels of sugar.
‘‘(2) DUTY
OF
PRODUCERS
TO
REPORT.—In
order to efficiently and effectively carry out the pro-
gram under this section, the Secretary may require
a producer of sugarcane or sugar beets to report, in
the manner prescribed by the Secretary, the produc-
er’s sugarcane or sugar beet yields and acres planted
to sugarcane or sugar beets, respectively.
‘‘(3) PENALTY.—Any person willfully failing or
refusing to furnish the information, or furnishing
willfully any false information, shall be subject to a
civil penalty of not more than $10,000 for each such
violation.
‘‘(4) MONTHLY REPORTS.—Taking into consid-
eration the information received under paragraph
(1), the Secretary shall publish on a monthly basis
composite data on production, imports, distribution,
and stock levels of sugar.
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‘‘(i) SUGAR ESTIMATES.—
‘‘(1) DOMESTIC REQUIREMENT.—Before the be-
ginning of each fiscal year, the Secretary shall esti-
mate the United States demand for sugar for that
fiscal year, which shall be equal to—
‘‘(A) the quantity of sugar, that will be
consumed in the United States during the fiscal
year (other than sugar imported for the produc-
tion of polyhydric alcohol or to be refined and
reexported in refined form or in sugar contain-
ing products); plus
‘‘(B) the quantity of sugar that would pro-
vide for adequate carryover stocks; minus
‘‘(C) the quantity of sugar that will be
available from carry-in stocks.
‘‘(2) QUARTERLY
REESTIMATES.—The Sec-
retary shall make quarterly reestimates of sugar
consumption, stocks, production, and imports for a
fiscal year no later than the beginning of each of the
second through fourth quarters of the fiscal year.
‘‘(j) REGULATIONS.—The Secretary shall issue such
regulations as the Secretary determines necessary to carry
out this section.’’.
(b) EFFECT ON EXISTING LOANS FOR SUGAR.—Sec-
tion 206 of the Agricultural Act of 1949 (7 U.S.C. 1446g),
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as in effect on the day before the date of the enactment
of this Act, shall continue to apply with respect to the
1991 through 1995 crops of sugarcane and sugar beets.
(c) TERMINATION OF MARKETING QUOTAS AND AL-
LOTMENTS.—
(1) TERMINATION.—Part VII of subtitle B of
title III of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359aa–1359jj) is repealed.
(2) 
CONFORMING
AMENDMENT.—Section
344(f)(2) of such Act (7 U.S.C. 1344(f)(2)) is
amended by striking ‘‘sugar cane for sugar; sugar
beets for sugar;’’.
SEC. 1303. REPEAL OF OBSOLETE AUTHORITY FOR PRICE
SUPPORT FOR COTTONSEED AND COTTON-
SEED PRODUCTS.
(a) REPEAL.—Section 301(b) of the Disaster Assist-
ance Act of 1988 (7 U.S.C. 1464 note) is amended by
striking paragraph (1).
(b) CONFORMING REPEAL.—Section 420 of the Agri-
cultural Act of 1949 (7 U.S.C. 1432) is repealed.
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Subtitle D—Miscellaneous Program
Changes
SEC. 1401. LIMITATIONS ON ASSISTANCE UNDER EMER-
GENCY LIVESTOCK FEED ASSISTANCE PRO-
GRAM.
Section 609 of the Emergency Livestock Feed Assist-
ance Act of 1988 (7 U.S.C. 1471g) is amended by striking
subsections (c) and (d) and inserting the following new
subsection:
‘‘(c) No person may receive benefits under this title
attributable to lost production of a feed commodity due
to a natural disaster if crop insurance protection or
noninsured crop disaster assistance for the loss of feed
produced on the farm is available to the person under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).’’.
SEC. 1402. CONSERVATION RESERVE PROGRAM.
(a) LIMITATIONS ON ACREAGE ENROLLMENTS.—
(1) LIMITATION.—Section 1231(d) of the Food
Security Act of 1985 (16 U.S.C. 3831(d)) is amend-
ed by striking ‘‘38,000,000 acres’’ and inserting
‘‘36,400,000 acres’’.
(2) PROHIBITION ON 1997 INCREASE.—Section
727 of the Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Ap-
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propriations Act, 1996, is amended by striking the
proviso relating to enrollment of new acres in 1997.
(b) OPTIONAL CONTRACT TERMINATION BY PRODUC-
ERS.—Section 1235 of such Act (16 U.S.C. 3835), is
amended by adding at the end the following new sub-
section:
‘‘(e) TERMINATION BY OWNER OR OPERATOR.—
‘‘(1) NOTICE OF TERMINATION.—An owner or
operator of land subject to a contract entered into
under this subchapter may terminate the contract by
submitting to the Secretary written notice of the in-
tention of the owner or operator to terminate the
contract.
‘‘(2) EFFECTIVE
DATE.—The contract termi-
nation shall take effect 60 days after the date on
which the owner or operator submits the written no-
tice under paragraph (1).
‘‘(3) PRO-RATED RENTAL PAYMENT.—If a con-
tract entered into under this subchapter is termi-
nated under this subsection before the end of the fis-
cal year for which a rental payment is due, the Sec-
retary shall provide a prorated rental payment cover-
ing the portion of the fiscal year during which the
contract was in effect.
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‘‘(4) RENEWED
ENROLLMENT.—The termi-
nation of a contract entered into under this sub-
chapter shall not affect the ability of the owner or
operator who requested such termination to submit
a subsequent bid to enroll the land that was subject
to the contract into the conservation reserve.
‘‘(5) CONSERVATION REQUIREMENTS.—If land
that was subject to a contract is returned to produc-
tion of an agricultural commodity, the Secretary
may impose conservation requirements under sub-
title A on the use of the land that are similar to the
requirements imposed on other lands subject to such
subtitle, but in no case shall such requirements be
more onerous that the requirements imposed on
other lands.’’.
(c) 
LIMITATION
ON
RENTAL
RATES.—Section
1234(c) of such Act (16 U.S.C. 3834) is amended by add-
ing at the end the following new paragraph:
‘‘(5) In the case of the extension of a contract, or
a new contract covering land which was previously enrolled
in the conservation reserve, annual rental payments under
the new or extended contract may not exceed 75 percent
of the annual rental payment under the previous con-
tract.’’.
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SEC. 1403. CROP INSURANCE.
(a) CONVERSION OF CATASTROPHIC RISK PROTEC-
TION PROGRAM TO VOLUNTARY PROGRAM.—Subsection
(b)(7) of section 508 of the Federal Crop Insurance Act
(7 U.S.C. 1508) is amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (C); and
(2) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
‘‘(B) EXCEPTION TO MANDATORY PARTICI-
PATION REQUIREMENT.—Notwithstanding sub-
paragraph (A), a producer may decline to ob-
tain catastrophic risk protection beginning with
spring-planted 1996 crops and in any subse-
quent crop year, yet remain eligible for any
market transition contract or marketing assist-
ance loan, the conservation reserve program, or
any benefit described in section 371 of the Con-
solidated Farm and Rural Development Act, if
the producer agrees in writing to waive any eli-
gibility for emergency crop loss assistance in
connection with losses to any crop for which the
producer declines to obtain catastrophic risk
protection.’’.
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(b) DELIVERY OF VOLUNTARY CATASTROPHIC PRO-
TECTION.—Subsection (b)(4) of such section is amended
by adding at the end the following new subparagraphs:
‘‘(C) ELIMINATION OF SECRETARIAL OP-
TION.—For crop years beginning after the im-
plementation of the exception under paragraph
(7)(B) to the mandatory participation require-
ment, the option for delivery of catastrophic
risk protection provided in subparagraph (A)(ii)
shall not be available to the Secretary. All risk
protection policies written by the Department
prior to that date shall be transferred, including
all fees collected for the crop year in which the
private sector will assume the policies, in an or-
derly manner to the private sector for perform-
ance of all service and loss adjustment func-
tions.
‘‘(D) GUARANTEE
OF
PRIVATE
SECTOR
SERVICE.—In full consultation and cooperation
with approved insurance providers, the Corpora-
tion shall develop a plan to ensure that each
producer of an insured crop has the opportunity
to be serviced by an approved insurance pro-
vider if insurance is available for that crop in
that county. Not later than May 1, 1996, the
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Corporation shall submit to the Committee on
Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition,
and Forestry of the Senate the plan in the form
it is to be implemented by the Secretary.’’.
(c) ESTABLISHMENT OF THE OFFICE OF RISK MAN-
AGEMENT.—
(1) ESTABLISHMENT.—The Department of Ag-
riculture Reorganization Act of 1994 is amended by
inserting after section 226 (7 U.S.C. 6932) the fol-
lowing new section:
‘‘SEC. 226A. OFFICE OF RISK MANAGEMENT.
‘‘(a) ESTABLISHMENT.—Subject to subsection (e),
the Secretary shall establish and maintain in the Depart-
ment an independent Office of Risk Management.
‘‘(b) FUNCTIONS OF THE OFFICE OF RISK MANAGE-
MENT.—The Office of Risk Management shall have juris-
diction over the following functions:
‘‘(1) Supervision of the Federal Crop Insurance
Corporation.
‘‘(2) Administration and oversight of all as-
pects, including delivery through local offices of the
Department, of all programs authorized under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
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‘‘(3) Any pilot or other programs involving reve-
nue insurance, risk management savings accounts,
or the use of the futures market to manage risk and
support farm income that may be established under
the Federal Crop Insurance Act or other law.
‘‘(4) Such other functions as the Secretary con-
siders appropriate.
‘‘(c) ADMINISTRATOR.—
‘‘(1) The Office of Risk Management shall be
headed by an Administrator who shall be appointed
by the Secretary.
‘‘(2) The Administrator of the Office of Risk
Management shall also serve as Manager of the Fed-
eral Crop Insurance Corporation.
‘‘(d) RESOURCES.—
‘‘(1) 
FUNCTIONAL
COORDINATION.—Certain
functions of the Office of Risk Management, such as
human resources, public affairs, and legislative af-
fairs, may be provided by a consolidation of such
functions under the Under Secretary of Agriculture
for Farm and Foreign Agricultural Services.
‘‘(2) MINIMUM
PROVISIONS.—Notwithstanding
paragraph (1) or any other provision of law or order
of the Secretary, the Secretary shall provide the Of-
fice of Risk Management with human and capital
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resources sufficient for the Office to carry out its
functions in a timely and efficient manner.
‘‘(3) FISCAL
YEAR
1996
FUNDING.—Not less
than $88,500,000 of the appropriation provided for
the salaries and expenses of the Consolidated Farm
Services Agency in the Agricultural, Rural Develop-
ment, Food and Drug Administration, and Related
Agencies Appropriations Act, 1996 shall be provided
to the Office of Risk Management for the salaries
and expenses of the Office.’’.
(2) 
CONFORMING
AMENDMENT.—Section
226(b) of such Act (7 U.S.C. 6932(b)) is amended
by striking paragraph (2).
(d) RECONFIGURATION OF BOARD OF DIRECTORS.—
Section 505 of the Federal Crop Insurance Act (7 U.S.C.
1505) is amended to read as follows:
‘‘SEC. 505. BOARD OF DIRECTORS.
‘‘(a) AUTHORITY.—The management of the Corpora-
tion shall be vested in a Board of Directors subject to the
general supervision of the Secretary.
‘‘(b) MEMBERSHIP.—
‘‘(1) IN GENERAL.—The Board shall consist of
the Manager of the Corporation, the Under Sec-
retary of Agriculture for Farm and Foreign Agricul-
tural Services, one person who is an officer or em-
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ployee of an approved insurance provider, one person
who is a licensed crop insurance agent, one person
experienced in the reinsurance business who is not
otherwise employed by the Federal Government, and
four active producers who are not otherwise em-
ployed by the Federal Government. The Secretary
shall not be a member of the Board.
‘‘(2) PRODUCER MEMBERS.—In appointing the
four active producers who are not otherwise em-
ployed by the Federal Government, the Secretary
shall ensure that three such members are policy-
holders and are from different geographic areas of
the United States, in order that diverse agricultural
interests in the United States are at all times rep-
resented on the Board. The Secretary shall ensure
that the fourth active producer, who may also be a
policyholder, receives a significant portion of crop in-
come from crops covered by the noninsured crop dis-
aster assistance program established under section
519.
‘‘(c) APPOINTMENT.—
‘‘(1) MANAGER.—The Administrator of the Of-
fice of Risk Management appointed by the Secretary
under section 226A(c) of the Department of Agri-
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culture Reorganization Act of 1994 shall serve as
Manager of the Corporation.
‘‘(2) TERMS OF OTHER MEMBERS.—Other than
the Manager of the Corporation and the Under Sec-
retary of Agriculture for Farm and Foreign Agricul-
tural Services, the members of the Board shall be
appointed by the Secretary for a term of three years.
However, in the initial appointment of such mem-
bers, the Secretary shall appoint two members for
one year, two members for two years, and two mem-
bers for three years in order to provide greater con-
tinuity to the Board.
‘‘(3) SUCCESSION.—A member of the Board ap-
pointed under paragraph (2) may serve after the ex-
piration of the term of office of such member until
the successor for such member has taken office.
‘‘(d) QUORUM.—Five of the members in office shall
constitute a quorum for the transaction of the business
of the Board.
‘‘(e) IMPAIRMENT OF POWERS.—The powers of the
Board to execute the functions of the Corporation shall
be impaired at any time there are not six members of the
Board in office. Any impairment of the powers of the
Board shall also serve to impair the powers of the Man-
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ager to act under any delegation of power provided under
subsection (g).
‘‘(f) COMPENSATION.—
‘‘(1) EMPLOYEES OF THE DEPARTMENT.—The
members of the Board who are employed in the De-
partment shall receive no additional compensation
for their services as members, but may be allowed
necessary traveling and subsistence expenses when
engaged in business of the Corporation outside of
the District of Columbia.
‘‘(2) NONEMPLOYEES OF THE FEDERAL GOV-
ERNMENT.—The members of the Board who are not
employed by the Federal Government shall be paid
such compensation for their services as members as
the Secretary shall determine, but such compensa-
tion shall not exceed the daily equivalent of the rate
prescribed for positions a level V of the Executive
Schedule under section 5316 of title 5, United
States Code, when actually employed. Such members
may also receive actual necessary traveling and sub-
sistence expenses, or a per diem allowance in lieu of
subsistence expenses, as authorized by section 5703
of such title for persons in Government service em-
ployed intermittently, when on the business of the
Corporation away from their homes or regular places
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of business. Any such compensation shall be paid
from the insurance fund established under section
516(c).
‘‘(g) CHIEF EXECUTIVE OFFICER.—The Manager of
the Corporation shall be its chief executive officer, with
such power and authority as may be conferred by the
Board.’’.
SEC. 1404. REPEAL OF FARMER OWNED RESERVE PRO-
GRAM.
(a) REPEAL.—Section 110 of the Agricultural Act of
1949 (7 U.S.C. 1445e) is repealed.
(b) EFFECT OF REPEAL ON EXISTING LOANS.—The
repeal of section 110 of the Agricultural Act of 1949 by
subsection (a) shall not affect the validity or terms and
conditions of any extended price support loan provided
under such section before the date of the enactment of
this Act.
SEC. 1405. REDUCTION IN FUNDING LEVELS FOR EXPORT
ENHANCEMENT PROGRAM.
Section 301(e) of the Agricultural Trade Act of 1978
(7 U.S.C. 5651(e)) is amended by striking paragraph (1)
and inserting the following new paragraph:
‘‘(1) IN GENERAL.—To carry out the program
established under this section, the Commodity Credit
Corporation shall make available—
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‘‘(A) for each of the fiscal years 1991
through 1995, not more than $500,000,000 of
the funds or commodities of the Commodity
Credit Corporation;
‘‘(B) for each of the fiscal years 1996 and
1997, not more than $400,000,000 of the funds
or commodities of the Commodity Credit Cor-
poration;
‘‘(C) for fiscal year 1998, not more than
$500,000,000 of the funds or commodities of
the Commodity Credit Corporation;
‘‘(D) for fiscal year 1999, not more than
$550,000,000 of the funds or commodities of
the Commodity Credit Corporation;
‘‘(E) for fiscal year 2000, not more than
$579,000,000 of the funds or commodities of
the Commodity Credit Corporation; and
‘‘(F) for each of the fiscal years 2001 and
2002, not more than $478,000,000 of the funds
or commodities of the Commodity Credit Cor-
poration.’’.
SEC. 1406. BUSINESS INTERRUPTION INSURANCE PRO-
GRAM.
(a) ESTABLISHMENT OF PROGRAM.—Not later than
December 31, 1996, the Secretary of Agriculture shall im-
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plement a program (to be known as the ‘‘Business Inter-
ruption Insurance Program’’), under which the producer
of a program crop could elect to obtain revenue insurance
coverage to ensure that the producer receives an indemnity
payment if the producer suffers a loss of revenue. The na-
ture and extent of the program and the manner of deter-
mining the amount of an indemnity payment shall be es-
tablished by the Secretary.
(b) REPORT ON PROGRESS AND PROPOSED EXPAN-
SION.—Not later than January 1, 1998, the Secretary
shall submit to the Commission on the 21st Century Pro-
duction Agriculture the data and results of the program
through October 1, 1997. In addition, the Secretary shall
submit information and recommendations to the Commis-
sion with respect to the program that will serve as the
basis for the Secretary to offer revenue insurance to agri-
cultural producers, at one or more levels of coverage,
that—
(1) is in addition to, or in lieu of, catastrophic
and higher levels of crop insurance;
(2) is offered through reinsurance arrange-
ments with private insurance companies;
(3) is actuarially sound; and
(4) requires the payment of premiums and ad-
ministrative fees by participating producers.
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(c) PROGRAM CROP DEFINED.—For purposes of this
section, the term ‘‘program crop’’ means a crop of wheat,
corn, grain sorghums, oats, barley, upland cotton, or rice.
Subtitle E—Commission on 21st
Century Production Agriculture
SEC. 1501. ESTABLISHMENT.
There is hereby established a commission to be known
as the ‘‘Commission on 21st Century Production Agri-
culture’’ (hereinafter in this title referred to as the ‘‘Com-
mission’’).
SEC. 1502. COMPOSITION.
(a) MEMBERSHIP AND APPOINTMENT.—The Com-
mission shall be composed of 11 members, appointed as
follows:
(1) Three members shall be appointed by the
President.
(2) Four members shall be appointed by the
Chairman of the Committee on Agriculture of the
House of Representatives in consultation with the
ranking minority member of the Committee.
(3) Four members shall be appointed by the
Chairman of the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate in consultation with
the ranking minority member of the Committee.
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(b) QUALIFICATIONS.—At least one of the members
appointed under each of the paragraphs (1), (2), and (3)
of subsection (a) shall be an individual who is primarily
involved in production agriculture. All other members of
the Commission shall be appointed from among individ-
uals having knowledge and experience in agricultural pro-
duction, marketing, finance, or trade.
(c) TERM OF MEMBERS; VACANCIES.—Members of
the Commission shall be appointed for the life of the Com-
mission. A vacancy on the Commission shall not affect its
powers, but shall be filled in the same manner as the origi-
nal appointment was made.
(d) TIME FOR APPOINTMENT; FIRST MEETING.—
The members of the Commission shall be appointed not
later than October 1, 1997. The Commission shall convene
its first meeting to carry out its duties under this title
30 days after six members of the Commission have been
appointed.
(e) CHAIRMAN.—The chairman of the Commission
shall be designated jointly by the Chairman of the Com-
mittee on Agriculture of the House of Representatives and
the Chairman of the Committee on Agriculture, Nutrition,
and Forestry of the Senate from among the members of
the Commission.
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SEC. 1503. COMPREHENSIVE REVIEW OF PAST AND FUTURE
OF PRODUCTION AGRICULTURE.
(a) INITIAL REVIEW.—The Commission shall conduct
a comprehensive review of changes in the condition of pro-
duction agriculture in the United States since the date of
the enactment of this Act and the extent to which such
changes are the result of the amendments made by this
Act. The review shall include the following:
(1) An assessment of the initial success of mar-
ket transition contracts under section 102 of the Ag-
ricultural Act of 1949 in supporting the economic vi-
ability of farming in the United States.
(2) An assessment of the food security situation
in the United States in the areas of trade, consumer
prices, international competitiveness of United
States production agriculture, food supplies, and hu-
manitarian relief.
(3) An assessment of the changes in farmland
values and agricultural producer incomes since the
date of the enactment of this Act.
(4) An assessment of the extent to which regu-
latory relief for agricultural producers has been en-
acted and implemented, including the application of
cost/benefit principles in the issuance of agricultural
regulations.
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(5) An assessment of the extent to which tax
relief for agricultural producers has been enacted in
the form of capital gains tax reductions, estate tax
exemptions, and mechanisms to average tax loads
over high and low income years.
(6) An assessment of the effect of any Govern-
ment interference in agricultural export markets,
such as the imposition of trade embargoes, and the
degree of implementation and success of inter-
national trade agreements.
(7) An assessment of the likely affect of the
sale, lease, or transfer of farm poundage quota for
peanuts across State lines.
(b) SUBSEQUENT REVIEW.—The Commission shall
conduct a comprehensive review of the future of produc-
tion agriculture in the United States and the appropriate
role of the Federal Government in support of production
agriculture. The review shall include the following:
(1) An assessment of changes in the condition
of production agriculture in the United States since
the initial review conducted under subsection (a).
(2) Identification of the appropriate future rela-
tionship of the Federal Government with production
agriculture after 2002.
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(3) An assessment of the personnel and infra-
structure requirements of the Department of Agri-
culture necessary to support the future relationship
of the Federal Government with production agri-
culture.
(c) RECOMMENDATIONS.—In carrying out the subse-
quent review under subsection (b), the Commission shall
develop specific recommendations for legislation to achieve
the appropriate future relationship of the Federal Govern-
ment with production agriculture identified under sub-
section (a)(2).
SEC. 1504. REPORTS.
(a) REPORT ON INITIAL REVIEW.—Not later than
June 1, 1998, the Commission shall submit to the Presi-
dent, the Committee on Agriculture of the House of Rep-
resentatives, and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report containing the results
of the initial review conducted under section 1503(a).
(b) REPORT ON SUBSEQUENT REVIEW.—Not later
than January 1, 2001, the Commission shall submit to
the President and the congressional committees specified
in subsection (a) a report containing the results of the
subsequent review conducted under section 1503(b).
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SEC. 1505. POWERS.
(a) HEARINGS.—The Commission may, for the pur-
pose of carrying out this title, conduct such hearings, sit
and act at such times, take such testimony, and receive
such evidence, as the Commission considers appropriate.
(b) ASSISTANCE
FROM
OTHER
AGENCIES.—The
Commission may secure directly from any department or
agency of the Federal Government such information as
may be necessary for the Commission to carry out its du-
ties under this title. Upon request of the chairman of the
Commission, the head of the department or agency shall,
to the extent permitted by law, furnish such information
to the Commission.
(c) MAIL.—The Commission may use the United
States mails in the same manner and under the same con-
ditions as the departments and agencies of the Federal
Government.
(d) ASSISTANCE FROM SECRETARY.—The Secretary
of Agriculture shall provide to the Commission appropriate
office space and such reasonable administrative and sup-
port services as the Commission may request.
SEC. 1506. COMMISSION PROCEDURES.
(a) MEETINGS.—The Commission shall meet on a
regular basis (as determined by the chairman) and at the
call of the chairman or a majority of its members.
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(b) QUORUM.—A majority of the members of the
Commission shall constitute a quorum for the transaction
of business.
SEC. 1507. PERSONNEL MATTERS.
(a) COMPENSATION.—Each member of the Commis-
sion shall serve without compensation, but shall be allowed
travel expenses including per diem in lieu of subsistence,
as authorized by section 5703 of title 5, United States
Code, when engaged in the performance of Commission
duties.
(b) STAFF.—The Commission shall appoint a staff
director, who shall be paid at a rate not to exceed the
maximum rate of basic pay under section 5376 of title
5, United States Code, and such professional and clerical
personnel as may be reasonable and necessary to enable
the Commission to carry out its duties under this title
without regard to the provisions of title 5, United States
Code, governing appointments in the competitive service,
and without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of such title, or any other
provision of law, relating to the number, classification, and
General Schedule rates. No employee appointed under this
subsection (other than the staff director) may be com-
pensated at a rate to exceed the maximum rate applicable
to level GS–15 of the General Schedule.
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(c) DETAILED PERSONNEL.—Upon request of the
chairman of the Commission, the head of any department
or agency of the Federal Government is authorized to de-
tail, without reimbursement, any personnel of such depart-
ment or agency to the Commission to assist the Commis-
sion in carrying out its duties under this section. The de-
tail of any such personnel may not result in the interrup-
tion or loss of civil service status or privilege of such per-
sonnel.
SEC. 1508. TERMINATION OF COMMISSION.
The Commission shall terminate upon submission of
the final report required by section 1504.
TITLE II—COMMITTEE ON BANK-
ING AND FINANCIAL SERV-
ICES
SEC. 2001. TABLE OF CONTENTS.
The table of contents for this title is as follows:
Subtitle A—Housing Provisions
Sec. 2101. Termination of RTC and FDIC affordable housing programs.
Sec. 2102. Foreclosure avoidance and borrower assistance.
Sec. 2103. Reform of HUD-owned multifamily property disposition program.
Sec. 2104. Recapture of rural housing loan subsidies by Rural Housing and
Community Development Service.
Sec. 2105. Reduction of section 8 annual adjustment factors for units without
tenant turnover.
Subtitle B—Thrift Charter Conversion
Sec. 2200. Short title.
CHAPTER 1—BANK INSURANCE FUND AND SAVINGS ASSOCIATION
INSURANCE FUND
Sec. 2201. Special assessment.
Sec. 2202. Assessments on insured depository institutions.
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Sec. 2203. Merger of Bank Insurance Fund and Savings Association Insurance
Fund after recapitalization of SAIF.
Sec. 2204. Refund of amounts in deposit insurance fund in excess of designated
reserve amount.
Sec. 2205. Assessments authorized only if needed to maintain the reserve ratio
of a deposit insurance fund.
CHAPTER 2—STATUS OF BANKS AND SAVINGS ASSOCIATIONS
Sec. 2221. Termination of Federal savings associations; treatment of State sav-
ings associations as banks for purposes of Federal banking law.
Sec. 2222. Treatment of certain activities and affiliations of bank holding com-
panies resulting from this Act.
Sec. 2223. Transition provisions for activities of savings associations which con-
vert into or become treated as banks.
Sec. 2224. Registration of bank holding companies resulting from conversions
of savings associations to banks or treatment of savings asso-
ciations as banks.
Sec. 2225. Additional transition provisions and special rules.
Sec. 2226. Technical and conforming amendments.
Sec. 2227. References to savings associations and State banks in Federal law.
Sec. 2228. Repeal of Home Owners’ Loan Act.
Sec. 2229. Effective date; definitions.
CHAPTER 3—TRANSFER OF FUNCTIONS, PERSONNEL, AND PROPERTY
Sec. 2241. Office of Thrift Supervision abolished.
Sec. 2242. Determination of transferred functions and employees.
Sec. 2243. Savings provisions.
Sec. 2244. References in Federal law to Director of the Office of Thrift Super-
vision.
Sec. 2245. Reconfiguration of board of directors of FDIC as a result of removal
of Director of the Office of Thrift Supervision.
Subtitle C—Community Reinvestment Act Amendments
Sec. 2301. Expression of congressional intent.
Sec. 2302. Community Reinvestment Act exemption.
Sec. 2303. Self-certification of CRA compliance.
Sec. 2304. Community input and conclusive rating.
Sec. 2305. Special purpose financial institutions.
Sec. 2306. Increased incentives for lending to low- and moderate-income com-
munities.
Sec. 2307. Prohibition on additional reporting under CRA.
Sec. 2308. Technical amendment.
Sec. 2309. Duplicative reporting.
Sec. 2310. CRA congressional oversight.
Sec. 2311. Consultation among examiners.
Sec. 2312. Limitation on regulations.
Subtitle D—Phase-Down of Oversight Board
Sec. 2401. Termination of authority of Oversight Board to employ staff.
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Subtitle A—Housing Provisions
SEC. 2101. TERMINATION OF RTC AND FDIC AFFORDABLE
HOUSING PROGRAMS.
(a) REPEAL OF UNIFIED PROGRAM AND TRANSFER
OF RTC WINDUP AUTHORITY TO HUD.—Section 21A(c)
of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)) is amended by striking paragraph (17) and in-
serting the following new paragraph:
‘‘(17) TRANSFER
OF
AUTHORITY.—The Sec-
retary shall assume, not later than December 31,
1995, and thereafter shall carry out, any remaining
authority and responsibilities of the Corporation to
recapture excess proceeds from resale of properties
and to monitor and enforce low-income occupancy
requirements or rent limitations under this sub-
section and shall assume any direct or contingent li-
ability of the Corporation to carry out such author-
ity and responsibilities.’’.
(b) TERMINATION OF RTC AFFORDABLE HOUSING
PROGRAM.—Section 21A(c) of the Federal Home Loan
Bank Act (12 U.S.C. 1441a(c)) is amended by adding at
the end the following new paragraph:
‘‘(18) TERMINATION.—
‘‘(A) IN GENERAL.—On and after the date
of the enactment of the Seven-Year Balanced
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Budget Reconciliation Act of 1995, the provi-
sions of this subsection (other than paragraph
(17)) shall not apply with respect to any eligible
residential property or eligible condominium
property.
‘‘(B) SAVINGS PROVISION.—Notwithstand-
ing subparagraph (A), the provisions of this
subsection shall continue to apply on and after
such date of enactment to any eligible residen-
tial property or eligible condominium property
that—
‘‘(i) has been sold or otherwise dis-
posed of by the Corporation before such
date of enactment; or
‘‘(ii) is subject to a contract of sale or
other disposition entered into before such
date of enactment.’’.
(c) TERMINATION OF AFFORDABLE HOUSING ADVI-
SORY BOARD.—Section 14(b)(9) of the Resolution Trust
Corporation Completion Act (12 U.S.C. 1831q note) is
amended by striking ‘‘September 30, 1998’’ and inserting
‘‘September 30, 1995’’.
(d) REPEAL OF FDIC PROGRAM AND TRANSFER OF
WINDUP AUTHORITY TO HUD.—
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(1) REPEAL.—Section 40 of the Federal De-
posit Insurance Act (12 U.S.C. 1831q) is hereby re-
pealed.
(2) TRANSFER OF WINDUP AUTHORITY.—Not-
withstanding paragraph (1)—
(A) effective December 31, 1995, the Sec-
retary shall carry out any remaining authority
and responsibilities of the Federal Deposit In-
surance Corporation under section 40 of the
Federal Deposit Insurance Act to recapture ex-
cess proceeds from resale of properties and to
monitor and enforce low-income occupancy re-
quirements or rent limitations under such sec-
tion and shall assume any direct or contingent
liability of the Corporation to carry out such
authority and responsibilities; and
(B) the Federal Deposit Insurance Cor-
poration shall consummate any sales of prop-
erty under section 40 of such Act that were
pending under contracts of sale on September
30, 1995.
(e) FDIC DISPOSITION OF ASSETS AS CONSERVATOR
OR RECEIVER.—Section 11(d)(13)(E) of the Federal De-
posit Insurance Act (12 U.S.C. 1821(d)(13)(E)) is amend-
ed—
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(1) in clause (iii), by inserting ‘‘and’’ after the
semicolon;
(2) in clause (iv), by striking ‘‘; and’’ and in-
serting a period; and
(3) by striking clause (v).
(f) 
DISPOSITION
OF
FDIC 
ASSETS.—Section
13(d)(3)(D) of the Federal Deposit Insurance Act (12
U.S.C. 1823(d)(3)(D)) is amended—
(1) in clause (iii), by inserting ‘‘and’’ after the
semicolon;
(2) in clause (iv), by striking ‘‘; and’’ and in-
serting a period; and
(3) by striking clause (v).
SEC. 2102. FORECLOSURE AVOIDANCE AND BORROWER AS-
SISTANCE.
(a) FORECLOSURE AVOIDANCE.—The last sentence
of section 204(a) of the National Housing Act (12 U.S.C.
1710(a)) is amended by inserting before the period the
following: ‘‘: And provided further, That the Secretary may
pay insurance benefits to the mortgagee to recompense the
mortgagee for its actions to provide an alternative to fore-
closure of a mortgage that is in default, which actions may
include such actions as special forbearance, loan modifica-
tion, and deeds in lieu of foreclosure, all upon such terms
and conditions as the mortgagee shall determine in the
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mortgagee’s sole discretion within guidelines provided by
the Secretary, but which may not include assignment of
a mortgage to the Secretary: And provided further, That
for purposes of the preceding proviso, no action authorized
by the Secretary and no action taken, nor any failure to
act, by the Secretary or the mortgagee shall be subject
to judicial review’’.
(b) AUTHORITY
TO ASSIST MORTGAGORS
IN DE-
FAULT.—Section 230 of the National Housing Act (12
U.S.C. 1715u) is amended to read as follows:
‘‘AUTHORITY TO ASSIST MORTGAGORS IN DEFAULT
‘‘SEC. 230. (a) PAYMENT OF PARTIAL CLAIM.—The
Secretary may establish a program for payment of a par-
tial insurance claim to a mortgagee that agrees to apply
the claim amount to payment of a mortgage on a 1- to
4-family residence that is in default. Any such payment
under such program to the mortgagee shall be made in
the Secretary’s sole discretion and on terms and conditions
acceptable to the Secretary, except that—
‘‘(1) the amount of the payment shall be in an
amount determined by the Secretary, which shall not
exceed an amount equivalent to 12 monthly mort-
gage payments and any costs related to the default
that are approved by the Secretary; and
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‘‘(2) the mortgagor shall agree to repay the
amount of the insurance claim to the Secretary upon
terms and conditions acceptable to the Secretary.
The Secretary may pay the mortgagee, from the appro-
priate insurance fund, in connection with any activities
that the mortgagee is required to undertake concerning
repayment by the mortgagor of the amount owed to the
Secretary.
‘‘(b) ASSIGNMENT.—
‘‘(1) PROGRAM
AUTHORITY.—The Secretary
may establish a program for assignment to the Sec-
retary, upon request of the mortgagee, of a mort-
gage on a 1- to 4-family residence insured under this
Act.
‘‘(2) PROGRAM
REQUIREMENTS.—The Sec-
retary may accept assignment of a mortgage under
a program under this subsection only if—
‘‘(A) the mortgage was in default;
‘‘(B) the mortgagee has modified the mort-
gage to cure the default and provide for mort-
gage payments within the reasonable ability of
the mortgagor to pay at interest rates not ex-
ceeding current market interest rates; and
‘‘(C) the Secretary arranges for servicing
of the assigned mortgage by a mortgagee
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(which may include the assigning mortgagee)
through procedures that the Secretary has de-
termined to be in the best interests of the ap-
propriate insurance fund.
‘‘(3) PAYMENT
OF
INSURANCE
BENEFITS.—
Upon accepting assignment of a mortgage under the
program under this subsection, the Secretary may
pay insurance benefits to the mortgagee from the
appropriate insurance fund in an amount that the
Secretary determines to be appropriate, but which
may not exceed the amount necessary to compensate
the mortgagee for the assignment and any losses
and expenses resulting from the mortgage modifica-
tion.
‘‘(c) PROHIBITION OF JUDICIAL REVIEW.—No deci-
sion by the Secretary to exercise or forego exercising any
authority under this section shall be subject to judicial re-
view.’’.
(c) SAVINGS PROVISION.—Any mortgage for which
the mortgagor has applied to the Secretary of Housing
and Urban Development, before the date of the enactment
of this Act, for assignment pursuant to section 230(b) of
the National Housing Act shall continue to be governed
by the provisions of such section, as in effect immediately
before such date of enactment.
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(d) APPLICABILITY OF OTHER LAWS.—No provision
of the National Housing Act or any other law shall be
construed to require the Secretary of Housing and Urban
Development to provide an alternative to foreclosure for
mortgagees with mortgages on 1- to 4-family residences
insured by the Secretary under the National Housing Act,
or to accept assignments of such mortgages.
SEC. 2103. REFORM OF HUD-OWNED MULTIFAMILY PROP-
ERTY DISPOSITION PROGRAM.
(a) IN GENERAL.—Effective October 1, 1995, section
203 of the Housing and Community Development Amend-
ments of 1978 (12 U.S.C. 1701z–11) is amended to read
as follows:
‘‘SEC. 203. MANAGEMENT AND DISPOSITION OF HUD-
OWNED MULTIFAMILY HOUSING PROJECTS.
‘‘(a) IN GENERAL.—The Secretary of Housing and
Urban Development may manage and dispose of (1) multi-
family housing projects that are owned by the Secretary
or that are subject to mortgages held by the Secretary,
and (2) mortgages on multifamily housing projects that
are held by the Secretary, without regard to any other pro-
vision of law.
‘‘(b) AUTHORITY TO DELEGATE.—The Secretary of
Housing and Urban Development may delegate to one or
more entities the authority to carry out some or all of the
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functions and responsibilities of the Secretary in connec-
tion with the foreclosure of mortgages on multifamily
housing projects held by the Secretary.
‘‘(c) DEFINITION.—For purposes of this section, the
term ‘multifamily housing project’ means any multifamily
rental housing project which is, or prior to acquisition by
the Secretary was, assisted or insured under the National
Housing Act, or was subject to a loan under section 202
of the Housing Act of 1959.’’.
(b) CONFORMING AMENDMENTS.—
(1) NONDISCRIMINATION AGAINST CERTIFICATE
AND
VOUCHER
HOLDERS.—Section 183(c) of the
Housing and Community Development Act of 1987
(42 U.S.C. 1437f note) is amended by striking ‘‘sec-
tion 203(i)(2) of the Housing and Community De-
velopment Amendments of 1978, as amended by sec-
tion 181(h) of this Act’’ and inserting ‘‘section
203(b) of the Housing and Community Development
Amendments of 1978 (as in effect before October 1,
1995)’’.
(2) LIHPRH ACT OF 1990.—Section 212(c) of
the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 (12 U.S.C. 4102(c)) is
amended by striking the last sentence.
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(3) HOPE
HOMEOWNERSHIP
PROGRAM.—Sec-
tion 427 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12877) is amended by
striking ‘‘subject to—’’ and all that follows and in-
serting ‘‘subject to the Low-Income Housing Preser-
vation and Resident Homeownership Act of 1990.’’.
(4) FHA MULTIFAMILY
HOUSING
MORTGAGE
INSURANCE.—Section 207(k) of the National Hous-
ing Act (12 U.S.C. 1713(k)) is amended by striking
the third sentence.
(5) MULTIFAMILY
MORTGAGE
FORECLOSURE
ACT OF 1981.—Section 367(b)(2) of the Multifamily
Mortgage 
Foreclosure 
Act 
of 
1981 
(12
U.S.C.3706(b)(2)) is amended—
(A) by striking subparagraph (B); and
(B) by striking ‘‘(A)’’.
(6) PREVENTING MORTGAGE DEFAULTS ON IN-
SURED
MULTIFAMILY
PROJECTS.—Section
103(h)(2)(B) of the Multifamily Housing Property
Disposition Reform Act of 1994 (12 U.S.C. 1715z–
1a note) is amended by inserting ‘‘(as in effect be-
fore October 1, 1995)’’ after ‘‘1978’’.
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SEC. 2104. RECAPTURE OF RURAL HOUSING LOAN SUB-
SIDIES BY RURAL HOUSING AND COMMUNITY
DEVELOPMENT SERVICE.
The first sentence of section 521(a)(1)(D)(i) of the
Housing Act of 1949 (42 U.S.C. 1490a(a)(1)(D)(i)) is
amended by inserting ‘‘upon the repayment of any loan
made under this title or’’ after ‘‘assistance rendered’’.
SEC. 2105. REDUCTION OF SECTION 8 ANNUAL ADJUST-
MENT FACTORS FOR UNITS WITHOUT TEN-
ANT TURNOVER.
Paragraph (2)(A) of section 8(c) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)) is
amended by striking the last sentence.
Subtitle B—Thrift Charter
Conversion
SEC. 2200. SHORT TITLE.
This subtitle may be cited as the ‘‘Thrift Charter
Conversion Act of 1995’’.
CHAPTER 1—BANK INSURANCE FUND AND
SAVINGS ASSOCIATION INSURANCE FUND
SEC. 2201. SPECIAL ASSESSMENT.
Section 7(b)(6) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(b)(6)) is amended—
(1) by redesignating clauses (i), (ii), and (iii) of
subparagraph (A) as subclauses (I), (II), and (III),
respectively;
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(2) by redesignating subparagraphs (A) and
(B) as clauses (i) and (ii), respectively;
(3) by moving the left margin of such clauses
and subclauses (as so redesignated) 2 ems to the
right;
(4) by striking ‘‘SPECIAL
ASSESSMENTS.—In
addition to’’ and inserting ‘‘SPECIAL
ASSESS-
MENTS.—
‘‘(A) IN GENERAL.—In addition to’’; and
(5) by adding at the end the following new sub-
paragraphs:
‘‘(B) SINGLE
ADDITIONAL
SPECIAL
AS-
SESSMENT
WITH
RESPECT
TO
CERTAIN
AC-
COUNTS.—
‘‘(i) IN
GENERAL.—The Corporation
shall impose, on the basis of such factors
as the Board of Directors considers to be
appropriate, a single special assessment on
the institutions described in the following
subclauses (other than institutions exempt
under subparagraph (C)):
‘‘(I) Each Savings Association
Insurance Fund member (including
any Savings Association Insurance
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Fund member referred to in section
5(d)(2)(G)).
‘‘(II) Each Bank Insurance Fund
member which has deposits which are
treated, under section 5(d)(3), as de-
posits which are insured by the Sav-
ings Association Insurance Fund.
‘‘(ii) AMOUNT OF ASSESSMENT.—The
assessment imposed under clause (i) shall
be in an amount equal to such percentage
of the Savings Association Insurance Fund
assessment base (of the institutions subject
to such assessment) as of March 31, 1995,
as the Board of Directors determines, in
the Board of Directors’ discretion, to be
necessary in order for the reserve ratio of
the Savings Association Insurance Fund to
meet the designated reserve ratio on the
1st business day of January, 1996.
‘‘(iii) DEPOSIT
OF
ASSESSMENT.—
Notwithstanding any other provision of
law, the proceeds of any assessment im-
posed under clause (i) shall be deposited in
the Savings Association Insurance Fund.
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‘‘(iv) DATE PAYMENT DUE.—The spe-
cial assessment imposed under this sub-
paragraph shall be—
‘‘(I) due on the 1st business day
of January, 1996; and
‘‘(II) paid to the Corporation on
the later of the due date or such other
date as the Corporation may prescribe
which may not be later than the end
of the 60-day period beginning on the
date of the Thrift Charter Conversion
Act of 1995.
‘‘(v) SAVINGS
ASSOCIATION
INSUR-
ANCE
FUND
ASSESSMENT
BASE
DE-
FINED.—For purposes of this subpara-
graph, the term Savings Association Insur-
ance Fund assessment base means—
‘‘(I) the assessment base of Sav-
ings 
Association 
Insurance 
Fund
members on which assessments are
imposed under the risk-based assess-
ment system established pursuant to
paragraph (1); and
‘‘(II) in the case of an institution
described in clause (i)(II), the ad-
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justed attributable deposit amount de-
termined under subparagraph (C) of
section 5(d)(3) for purposes of sub-
paragraph (B)(i) of such section.
‘‘(C) SPECIAL
RULES
FOR
CERTAIN
EX-
EMPT INSTITUTIONS.—
‘‘(i) IN GENERAL.—The Board of Di-
rectors may exempt any weak insured de-
pository institution from the payment of
the assessment imposed under subpara-
graph (B)(i) if the exemption would reduce
risk to the Savings Association Insurance
Fund.
‘‘(ii) CONTINUATION OF ASSESSMENT
RATES APPLICABLE AS OF JUNE 30, 1995.—
Notwithstanding any other provision of
this subsection or any determination by the
Corporation pursuant to paragraph (2),
the semiannual assessment rate applicable
under paragraph (2) during the period be-
ginning on January 1, 1996, and ending
on December 31, 1999, with respect to any
insured depository institution which re-
ceives an exemption under clause (i) shall
be the semiannual assessment rate which
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would be applicable to such institution
under paragraph (2) if such assessment
rate were calculated in the manner in
which semiannual assessment rates for
Savings Association Insurance Fund mem-
bers were determined by the Corporation
under such paragraph as of June 30,
1995.
‘‘(iii) SPECIAL
RULE
FOR
OAKAR
BANKS.—If an insured depository institu-
tion to which clause (ii) applies is an insti-
tution 
described 
in 
subparagraph
(B)(i)(II), section 5(d)(3) (as in effect on
September 13, 1995) shall continue to
apply with respect to such institution for
purposes of clause (ii) without regard to
the repeal of such section by section
2202(c) of the Thrift Charter Conversion
Act of 1995.
‘‘(iv) DEPOSIT OF ASSESSMENT.—As-
sessments imposed under paragraph (2) in
accordance with clause (i) on depository in-
stitutions to which such clause applies
shall be deposited—
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‘‘(I) in the Savings Association
Insurance Fund until such fund is
merged into the deposit insurance
fund pursuant to section 2203(a)(2)
of the Thrift Charter Conversion Act
of 1995; and
‘‘(II) after such merger, in the
deposit insurance fund.
‘‘(v) GUIDELINES.—
‘‘(I) GUIDELINES
REQUIRED.—
Not later than 30 days after the date
of the enactment of the Thrift Char-
ter Conversion Act of 1995, the Board
of Directors shall prescribe guidelines
containing the criteria to be used by
the Board of Directors in making any
determination under clause (i).
‘‘(II) PUBLICATION.—The guide-
lines prescribed under subclause (I)
shall be published in the Federal Reg-
ister.
‘‘(D) PRO RATA PAYMENT OF SPECIAL AS-
SESSMENT BY EXEMPT INSTITUTIONS AUTHOR-
IZED.—In the case of any depository institution
which receives an exemption under subpara-
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graph (C)(i) from the special assessment im-
posed under subparagraph (B) and any succes-
sor to such institution, subparagraph (C)(ii)
shall cease to apply with respect to such institu-
tion as of the date on which the institution
makes a payment to the Corporation, on such
terms as the Board of Directors may prescribe,
in an amount equal to the product of—
‘‘(i) 12.5 percent of the product of—
‘‘(I) the Savings Association In-
surance Fund assessment base of the
institution which would have been
used in the calculation of the amount
of such special assessment if the insti-
tution had not received the exemption
from such assessment; and
‘‘(II) the percentage rate cal-
culated by the Board of Directors
under subparagraph (B)(ii) for use in
determining the amount of the special
assessment for depository institutions
which did not receive an exemption
under subparagraph (C); and
‘‘(ii) the whole number of full semi-
annual periods which begin after the date
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of such payment and end before January
1, 2000.
‘‘(E) ASSESSMENT FOR CERTAIN DEPOS-
ITS.—
‘‘(i) IN
GENERAL.—Notwithstanding
any other provision of law, in carrying out
the special assessment under subparagraph
(B), the Corporation may set assessment
rates on the basis of the factors described
in clause (iii) for deposits treated under
section 5(d)(3) as deposits insured by the
Savings Association Insurance Fund.
‘‘(ii) MINIMUM RATE.—Notwithstand-
ing clause (i), any rate assessed under
such clause may not be less than 2⁄3 of the
assessment rate imposed under subpara-
graph (B).
‘‘(iii) FACTORS.—In setting any as-
sessment rate under clause (i), the Cor-
poration shall consider the following fac-
tors:
‘‘(I) The extent to which deposits
treated under section 5(d)(3) as de-
posits insured by the Savings Associa-
tion Insurance Fund do not reflect the
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actual amount of deposits insured by
such fund because of the growth attri-
bution rule contained in clause (iii) of
such section.
‘‘(II) The ability of an insured
depository institution to demonstrate
with deposit data the amount of ac-
tual deposits which should be treated
as deposits insured by the Savings As-
sociation Insurance Fund notwith-
standing the growth attribution rule
referred to in subclause (I).
‘‘(iv) NO NET BUDGET EFFECT.—Not-
withstanding any other provision of this
subparagraph, the Corporation shall not
set any assessment rate under clause (i)
that would result in an increased budget
outlay or a decrease in offsetting receipts
under this paragraph.’’.
SEC. 2202. ASSESSMENTS ON INSURED DEPOSITORY INSTI-
TUTIONS.
(a) FINANCING CORPORATION ASSESSMENTS ON ALL
FDIC-INSURED
DEPOSITORY
INSTITUTIONS.—Section
21(f) of the Federal Home Loan Bank Act (12 U.S.C.
1441(f)) is amended—
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(1) in the portion of paragraph (2) which pre-
cedes subparagraph (A)—
(A) by striking ‘‘each Savings Association
Insurance Fund member’’ and inserting ‘‘each
insured depository institution (as defined in sec-
tion 3(c)(2) of the Federal Deposit Insurance
Act)’’; and
(B) by striking ‘‘such members’’ and in-
serting ‘‘such institutions’’; and
(2) by striking ‘‘, except that—’’ and all that
follows through the end of the paragraph and insert-
ing ‘‘, except that the Financing Corporation shall
have first priority to make the assessment.’’.
(b) ASSESSMENT RATES FOR SAIF MEMBERS MAY
NOT BE LESS THAN ASSESSMENT RATES FOR BIF MEM-
BERS.—Section 7(b)(2)(F) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1817(b)(2)(F)) 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, assessment rates
for Savings Association Insurance Fund
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members may not be less than assessment
rates for Bank Insurance Fund mem-
bers.’’.
(c) REPEAL
OF EXIT MORATORIUM
AND OAKAR
BANK PROVISIONS.—Effective January 1, 1998, section
5(d) of the Federal Deposit Insurance Act (12 U.S.C.
1815(d)) is amended by striking paragraphs (2) and (3).
(d) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 7(b)(2)(D) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(b)(2)(D)) is amend-
ed by striking ‘‘Savings Association Insurance Fund
members’’ and inserting ‘‘members of a deposit in-
surance fund’’.
(2) Section 21(k) of the Federal Home Loan
Bank Act (12 U.S.C. 1441(k)) is amended—
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) and
(3) as paragraphs (1) and (2), respectively.
(e) EFFECTIVE DATE.—The amendments made by
subsections (a), (b), and (d) shall take effect on January
1, 1996.
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SEC. 2203. MERGER OF BANK INSURANCE FUND AND SAV-
INGS ASSOCIATION INSURANCE FUND AFTER
RECAPITALIZATION OF SAIF.
(a) ESTABLISHMENT
OF
DEPOSIT
INSURANCE
FUND.—
(1) IN GENERAL.—Effective January 1, 1998,
section 11(a)(5) of the Federal Deposit Insurance
Act (12 U.S.C. 1821(a)(5)) is amended to read as
follows:
‘‘(5) DEPOSIT INSURANCE FUND.—
‘‘(A) ESTABLISHMENT.—There is estab-
lished a fund to be known as the deposit insur-
ance fund which shall—
‘‘(i) be maintained and administered
by the Corporation; and
‘‘(ii) initially consist of the assets and
liabilities of the Bank Insurance Fund and
Savings Association Insurance Fund which
have been merged by the Corporation into
the deposit insurance fund pursuant to
section 2203(a)(2) of the Thrift Charter
Conversion Act of 1995, other than any as-
sets of the Savings Association Insurance
Fund which have been deposited in the
special reserve of the deposit insurance
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fund pursuant to section 2203(b)(2) of
such Act.
‘‘(B) USES.—The deposit insurance fund
shall be available to the Corporation for use in
carrying out the insurance purposes of the Cor-
poration in accordance with this Act with re-
spect to insured depository institutions.
‘‘(C) DEPOSITS.—All amounts assessed
against insured depository institutions by the
Corporation shall be deposited into the deposit
insurance fund.’’.
(2) MERGER BY CORPORATION.—Except with
respect to any assets of the Savings Association In-
surance Fund which are required to be deposited in
the special reserve of the deposit insurance fund
pursuant to subsection (b)(2), the Corporation shall
merge the Bank Insurance Fund and the Savings
Association Insurance Fund on January 1, 1998,
into the deposit insurance fund established by the
amendment made by paragraph (1).
(b) ESTABLISHMENT OF SPECIAL RESERVE OF THE
DEPOSIT INSURANCE FUND.—
(1) IN GENERAL.—Effective January 1, 1998,
section 11(a)(6) of the Federal Deposit Insurance
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Act (12 U.S.C. 1821(a)(6)) is amended to read as
follows:
‘‘(6) SPECIAL RESERVE OF THE DEPOSIT IN-
SURANCE FUND.—
‘‘(A) IN GENERAL.—There is established a
fund to be known as the special reserve of the
deposit insurance fund which shall—
‘‘(i) be maintained and administered
by the Corporation; and
‘‘(ii) initially consist of amounts de-
posited in the special reserve pursuant to
section 2203(b)(2) of the Thrift Charter
Conversion Act of 1995.
‘‘(B) EMERGENCY
USE
OF
SPECIAL
RE-
SERVE.—
‘‘(i) USE
AUTHORIZED.—Subject to
clause (ii) and notwithstanding subpara-
graph (C), the Corporation may, in the
sole discretion of the Board of Directors,
transfer amounts from the special reserve
for deposit in the deposit insurance fund
for use in accordance with paragraph
(5)(B).
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‘‘(ii) CONDITIONS
ON
TRANSFER.—
The Board of Directors may authorize a
transfer under clause (i) only if—
‘‘(I) the Board of Directors de-
termines that the reserve ratio of the
deposit insurance fund is less than 50
percent of the designated reserve
ratio; and
‘‘(II) the Board of Directors
finds that the reserve ratio of the de-
posit insurance will likely be less than
the designated reserve ratio of the
fund for each of the 4 calendar quar-
ters beginning after the date of such
determination.
‘‘(C) NO REFUNDS OR OTHER USES AU-
THORIZED.—Except as provided in subpara-
graph (B), the Corporation may not make any
payment from the special reserve, make any re-
fund or provide any credit to any insured de-
pository institution with respect to any amount
in the special reserve, or use any amount in the
special reserve for any other purpose (including
the use of any such amount as security for the
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repayment of any obligation of the Corpora-
tion).
‘‘(D) EXCLUSION OF SPECIAL RESERVE IN
CALCULATING
THE
RESERVE
RATIO.—No
amount in the special reserve may be taken into
account in calculating the reserve ratio of the
deposit insurance fund under section 7.’’.
(2) TRANSFER
AND
DEPOSIT
BY
CORPORA-
TION.—If, at the time of the merger of the Bank In-
surance Fund and the Savings Association Insur-
ance Fund pursuant to subsection (a)(2), the reserve
ratio of the Savings Association Insurance Fund ex-
ceeds the designated reserve ratio, the Corporation
shall transfer from such fund to the special reserve
of the deposit insurance fund established by the
amendment made by paragraph (1) an amount equal
to the amount which causes the reserve ratio of the
Savings Association Insurance Fund to exceed the
designated reserve ratio.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 3(y) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813(y)) is amended by strik-
ing ‘‘the Bank Insurance Fund or the Savings Asso-
ciation Insurance Fund, as appropriate’’ and insert-
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ing ‘‘the deposit insurance fund established under
section 11(a)(5)’’.
(2) Section 11(a) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1821(a)) is amended by strik-
ing paragraphs (4)(A) and (7).
(3) Section 5(d)(1) of the Federal Deposit In-
surance Act (12 U.S.C. 1815(d)(1)) is amended—
(A) in subparagraph (A), by striking ‘‘re-
serve ratios’’ and all that follows through the
period and inserting ‘‘the reserve ratio of the
deposit insurance fund.’’;
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B).
(4) Section 7 of the Federal Deposit Insurance
Act (12 U.S.C. 1817) is amended by striking sub-
section (l).
(5) Section 7(b)(2) of the Federal Deposit In-
surance Act (12 U.S.C. 1817(b)(2)) is amended—
(A) by striking subparagraphs (B), (F),
and (G);
(B) in clauses (i) and (iv) of subparagraph
(A), by striking ‘‘each deposit insurance fund’’
and inserting ‘‘the deposit insurance fund’’;
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(C) in subparagraph (A)(iii), by striking
‘‘a deposit insurance fund’’ and inserting ‘‘the
deposit insurance fund’’; and
(D) by inserting after subparagraph (E)
the following new subparagraph:
‘‘(F) RESERVE RATIO DEFINED.—For pur-
poses of this subsection, the term ‘reserve ratio’
means the ratio of the net worth of the deposit
insurance fund to the aggregate estimated in-
sured deposits held in all insured depository in-
stitutions.’’.
(6) Section 7(b)(3) of the Federal Deposit In-
surance Act (12 U.S.C. 1817(b)(3)) is amended—
(A) in subparagraph (A) by striking ‘‘any
deposit insurance fund’’ and inserting ‘‘the de-
posit insurance fund’’; and
(B) by striking subparagraphs (C) and
(D).
(7) Subparagraph (A) of section 7(b)(6) of the
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C.
1817(b)(6)) (as so redesignated by section 2201 of
this subtitle) is amended—
(A) in clause (i)—
(i) by inserting ‘‘or’’ after the semi-
colon at the end of subclause (I);
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(ii) by striking subclause (II); and
(iii) by striking ‘‘; and’’ at the end of
subclause (III) and inserting a period; and
(B) by striking clause (ii).
(8) Section 11(a)(4)(B) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)(4)(B)) is amend-
ed by striking ‘‘Bank Insurance Fund and the Sav-
ings Association Insurance Fund’’ and inserting ‘‘de-
posit insurance fund’’.
(9) Paragraph (1) of section 11(f) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1821(f)) is
amended by striking ‘‘depositor, except that—’’ and
all that follows through the period at the end of the
paragraph and inserting ‘‘depositor.’’.
(10) Section 11(i)(3) of the Federal Deposit In-
surance Act (12 U.S.C. 1821(i)(3)) is amended—
(A) by striking subparagraph (B); and
(B) in subparagraph (C), by striking ‘‘sub-
paragraphs (A) and (B)’’ and inserting ‘‘sub-
paragraph (A)’’.
(11) Section 11A(a)(3) of the Federal Deposit
Insurance Act (12 U.S.C. 1821a(a)(3)) is amended
by striking ‘‘Bank Insurance Fund, the Savings As-
sociation Insurance Fund,’’ and inserting ‘‘deposit
insurance fund’’.
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(12) Section 11A(f) of the Federal Deposit In-
surance Act (12 U.S.C. 1821a(f)) is amended by
striking ‘‘Savings Association Insurance Fund’’ and
inserting ‘‘deposit insurance fund’’.
(13) Section 13(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1823(a)(1)) is amended
by striking ‘‘Bank Insurance Fund, the Savings As-
sociation Insurance Fund,’’ and inserting ‘‘deposit
insurance fund, the special reserve of the deposit in-
surance fund,’’.
(14) Section 13(c)(4)(G)(ii) of the Federal De-
posit Insurance Act (12 U.S.C. 1823(c)(4)(G)(ii)) is
amended—
(A) by striking ‘‘appropriate insurance
fund’’ and inserting ‘‘deposit insurance fund’’;
(B) by striking ‘‘the members of the insur-
ance fund (of which such institution is a mem-
ber)’’ and inserting ‘‘insured depository institu-
tions’’;
(C) by striking ‘‘each member’s’’ and in-
serting ‘‘each insured depository institution’s’’;
and
(D) by striking ‘‘the member’s’’ each place
such term appears and inserting ‘‘the institu-
tion’s’’.
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(15) Section 13(c) of the Federal Deposit In-
surance Act (12 U.S.C. 1823(c)) is amended by
striking paragraph (11).
(16) Section 13(h) of the Federal Deposit In-
surance Act (12 U.S.C. 1823(h)) is amended by
striking ‘‘Bank Insurance Fund’’ and inserting ‘‘de-
posit insurance fund’’.
(17) Section 14(a) of the Federal Deposit In-
surance Act (12 U.S.C. 1824(a)) is amended—
(A) by striking ‘‘Bank Insurance Fund or
the Savings Association Insurance Fund’’ and
inserting ‘‘deposit insurance fund’’; and
(B) by striking ‘‘each such fund’’ and in-
serting ‘‘the fund’’.
(18) Section 14(b) of the Federal Deposit In-
surance Act (12 U.S.C. 1824(b)) is amended by
striking ‘‘Bank Insurance Fund or Savings Associa-
tion Insurance Fund’’ and inserting ‘‘deposit insur-
ance fund’’.
(19) Section 14(c) of the Federal Deposit In-
surance Act (12 U.S.C. 1824(c)) is amended by
striking paragraph (3).
(20) Section 14 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1824) is amended by striking
subsection (d).
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(21) Section 15(c)(5) of the Federal Deposit
Insurance Act (12 U.S.C. 1825(c)(5)) is amended—
(A) by striking ‘‘Bank Insurance Fund or
Savings Association Insurance Fund, respec-
tively,’’ and inserting ‘‘deposit insurance fund’’;
(B) by striking ‘‘Bank Insurance Fund or
Savings Association Insurance Fund, respec-
tively;’’ and inserting ‘‘deposit insurance fund;’’;
and
(C) by striking ‘‘Bank Insurance Fund or
the Savings Association Insurance Fund, re-
spectively,’’ and inserting ‘‘deposit insurance
fund,’’.
(22) Section 17(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1827(a)(1)) is amended
by striking ‘‘Bank Insurance Fund, the Savings As-
sociation Insurance Fund,’’ each place such term ap-
pears and inserting ‘‘deposit insurance fund’’.
(23) Section 17(d) of the Federal Deposit In-
surance Act (12 U.S.C. 1827(d)) is amended by
striking ‘‘Bank Insurance Fund, the Savings Asso-
ciation Insurance Fund,’’ each place such term ap-
pears and inserting ‘‘deposit insurance fund’’.
(24) The heading for section 17(a) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1827(a)) is
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amended by striking ‘‘BIF, SAIF,’’ and inserting
‘‘THE DEPOSIT INSURANCE FUND’’.
(25) Subsections (a)(1) and (d)(1)(A) of section
24 of the Federal Deposit Insurance Act (12 U.S.C.
1831a) are each amended by striking ‘‘appropriate’’.
(26) Section 24(e)(2) of the Federal Deposit
Insurance Act (12 U.S.C. 1831a(e)(2)) is amend-
ed—
(A) in subparagraph (A), by striking ‘‘of
which such banks are members’’; and
(B) in subparagraph (B)(ii), by striking
‘‘of which such bank is a member’’.
(27) Section 24(f)(6)(B) of the Federal Deposit
Insurance Act (12 U.S.C. 1831a(f)(6)(B)) is amend-
ed by striking ‘‘of which such bank is a member’’.
(28) Section 31 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1831h) is hereby repealed.
(29) Section 36(i)(3) of the Federal Deposit In-
surance Act (12 U.S.C. 1831m(i)(3)) is amended by
striking ‘‘affected’’.
(30) Section 38 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1831o) is amended by striking
subsection (o).
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(31) Section 21B(f)(2)(C)(ii) of the Federal
Home 
Loan 
Bank 
Act 
(12 
U.S.C.
1441b(f)(2)(C)(ii)) is amended to read as follows:
‘‘(C) PAYMENTS BY FEDERAL HOME
LOAN BANKS.—To the extent the amounts
available pursuant to subparagraphs (A)
and (B) are insufficient to cover the
amount of interest payments, each Federal
home loan bank shall pay to the Funding
Corporation each calendar year an amount
equal to 23.7 percent of the bank’s net
earnings for the year for which such
amount is required to be paid.’’.
(d) EFFECTIVE
DATE
OF
AMENDMENTS.—The
amendments made by subsection (c) shall take effect on
January 1, 1998.
SEC. 2204. 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 by an insured depository in-
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determines to be appropriate, taking into ac-
count 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 period may not exceed the total amount
of assessments paid by such member to the in-
surance fund with respect to such period.’’.
SEC. 2205. 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 portion of such section preceding
subclause (I) by inserting ‘‘when necessary, and only to
the extent necessary’’ after ‘‘insured depository institu-
tions’’.
(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.—
The Board of Directors shall not set semi-
annual assessments with respect to a de-
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posit insurance fund in excess of the
amount needed—
‘‘(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.’’.
CHAPTER 2—STATUS OF BANKS AND
SAVINGS ASSOCIATIONS
SEC. 2221. TERMINATION OF FEDERAL SAVINGS ASSOCIA-
TIONS; TREATMENT OF STATE SAVINGS ASSO-
CIATIONS AS BANKS FOR PURPOSES OF FED-
ERAL BANKING LAW.
(a) TERMINATION OF FEDERAL SAVINGS ASSOCIA-
TION CHARTERS.—
(1) IN GENERAL.—Each Federal savings asso-
ciation shall—
(A) convert to a national bank charter;
(B) convert to a State depository institu-
tion charter; or
(C) surrender the charter of such savings
association and liquidate the institution.
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(2) CONVERSION TO NATIONAL BANK BY OPER-
ATION OF LAW.—If any Federal savings association
has not taken any action required under paragraph
(1) as of January 1, 1998, the savings association
shall—
(A) become a national bank on such date
by operation of law;
(B) immediately file articles of association
and an organizational certificate with the
Comptroller of the Currency in accordance with
sections 5133, 5134, and 5135 of the Revised
Statutes of the United States; and
(C) cease to exist as a Federal savings as-
sociation as of such date.
(3) PROHIBITION ON NEW CHARTERS OF FED-
ERAL SAVINGS ASSOCIATIONS.—The Director of the
Office of Thrift Supervision may not grant any char-
ter for a Federal savings association for which an
application was received after the date of the enact-
ment of this Act.
(b) TREATMENT OF STATE SAVINGS ASSOCIATIONS
AS
BANKS
FOR
PURPOSES
OF
FEDERAL
BANKING
LAW.—
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(1) AMENDMENTS
TO
FEDERAL
DEPOSIT
IN-
SURANCE ACT.—Section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813) is amended—
(A) by striking paragraph (2) of subsection
(a) and inserting the following new paragraph:
‘‘(2) STATE BANK.—
‘‘(A) IN GENERAL.—The term ‘State bank’
means any bank, banking association, trust
company, savings bank, industrial bank (or
similar depository institution which the Board
of Directors finds to be operating substantially
in the same manner as an industrial bank),
building and loan association, savings and loan
association, homestead association, cooperative
bank, or other banking institution—
‘‘(i) which is engaged in the business
of receiving deposits, other than trust
funds (as defined in this section); and
‘‘(ii) which—
‘‘(I) is incorporated under the
laws of any State;
‘‘(II) is organized and operating
according to the laws of the State in
which such institution is chartered or
organized; or
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‘‘(III) is operating under the
Code of Law for the District of Co-
lumbia (except a national bank).
‘‘(B) 
CERTAIN
INSURED
BANKS
IN-
CLUDED.—The term ‘State bank’ includes any
cooperative bank or other unincorporated bank
the deposits of which were insured by the Cor-
poration on the day before the date of the en-
actment of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989.
‘‘(C) CERTAIN
UNINSURED
BANKS
EX-
CLUDED.—The term ‘State bank’ does not in-
clude any cooperative bank or other unincor-
porated bank the deposits of which were not in-
sured by the Corporation on the day before the
date of the enactment of the Financial Institu-
tions Reform, Recovery, and Enforcement Act
of 1989.’’; and
(B) in subsection (q)—
(i) by inserting ‘‘and’’ after the semi-
colon at the end of paragraph (2);
(ii) by striking ‘‘; and’’ at the end of
paragraph (3) and inserting a period; and
(iii) by striking paragraph (4).