I
104TH CONGRESS
1ST SESSION
H. R. 1481
To clarify the regulatory authority of the Federal Deposit Insurance Corpora-
tion with respect to deposit insurance fund management, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 7, 1995
Mr. LAFALCE introduced the following bill; which was referred to the
Committee on Banking and Financial Services
A BILL
To clarify the regulatory authority of the Federal Deposit
Insurance Corporation with respect to deposit insurance
fund management, and for other purposes.
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 ‘‘Federal Deposit Insur-
ance Corporation Regulatory Flexibility Act of 1995’’.
SEC. 2. ADMINISTRATION OF FICO ASSESSMENTS BY FDIC.
Section 21(f)(2) of the Federal Home Loan Bank Act
(12 U.S.C. 1441(f)(2)) is amended by striking ‘‘the Fi-
nancing Corporation, with the approval of the Board of
Directors of the Federal Deposit Insurance Corporation’’
and inserting ‘‘the Board of Directors of the Federal De-
posit Insurance Corporation, after consultation with the
Financing Corporation,’’.
SEC. 3. AVAILABILITY OF RTC FUNDS FOR DEPOSIT INSUR-
ANCE PURPOSES.
Section 11(a) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(a)) is amended—
(1) by adding at the end the following new
paragraph:
‘‘(9) AVAILABILITY OF RTC FUNDING.—
‘‘(A) IN GENERAL.—The Secretary of the
Treasury shall provide, out of funds appro-
priated to the Resolution Trust Corporation
under section 21A(i)(3) of the Federal Home
Loan Bank Act and not needed by the Resolu-
tion Trust Corporation, to the Corporation, at
the request of the Board of Directors, such
amounts as the Board of Directors requests for
any of the following purposes:
‘‘(i) To cover the interest payments,
issuance costs, and custodial fees on obli-
gations issued by the Financing Corpora-
tion.
‘‘(ii) To make deposits in the Savings
Association 
Insurance 
Fund 
of 
such
amounts as may be needed to carry out the
purposes of this Act.
‘‘(iii) To satisfy claims against the
Federal Government arising from changes
in the statutory treatment of supervisory
goodwill (on the books of the Corporation
as of the date of the enactment of Finan-
cial Institutions Reform, Recovery, and
Enforcement Act of 1989) pursuant to sec-
tion 5(t) of the Home Owners’ Loan Act.
‘‘(B) RETURN TO TREASURY.—If the ag-
gregate amount of funds transferred to the Cor-
poration under subparagraph (A) exceeds the
amount necessary to carry out the purposes of
such subparagraph, such excess amounts shall
be deposited in the general fund of the Treas-
ury.’’.
SEC. 4. LIMITED FDIC AUTHORITY TO TEMPORARILY
TRANSFER FUNDS BETWEEN THE BIF AND
SAIF.
Section 11(a)(4) of the Federal Deposit Insurance
Act (12 U.S.C. 1821(a)) is amended by adding at the end
the following new subparagraph:
‘‘(C) TRANSFER
OF
FUNDS.—Notwith-
standing subparagraph (A), the Corporation
may transfer, for such period of time and under
such conditions as the Corporation determines
to be appropriate, an amount not to exceed the
amount equal to .03 percent of the assessment
base of any deposit insurance fund from such
fund to another deposit insurance fund to the
extent necessary to achieve or maintain the des-
ignated reserve ratio of the fund to which such
assets are transferred.’’.
SEC. 5. 1-TIME SPECIAL SAIF CAPITALIZATION ASSESS-
MENT.
Section 7(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(b)) is amended by adding at the end the
following new paragraph:
‘‘(8) SPECIAL 1-TIME ASSESSMENT TO RECAPI-
TALIZE SAIF.—
‘‘(A) IN GENERAL.—The Corporation may,
in the discretion of the Board of Directors, im-
pose a special assessment on each Savings As-
sociation Insurance Fund member in an
amount not greater than 0.40 percent of the as-
sessment base, as of January 1, 1995, on which
assessments are imposed under the risk-based
of the Federal Deposit Insurance Act (12 U.S.C.
1817(b)(2)(A)) is amended by adding at the end the fol-
lowing new clause:
‘‘(v) CLARIFICATION
OF
AUTHORITY
TO REDUCE ASSESSMENTS AMOUNTS.—The
authority of the Board of Directors to set
semiannual assessments to maintain the
reserve ratio of any insurance fund at the
designated reserve ratio includes the au-
thority to reduce such assessments by any
appropriate amount if the reserve ratio of
such fund is equal to or greater than the
minimum designated reserve ratio of such
fund.’’.
SEC. 7. CLARIFICATION ON USE OF INSURANCE FUND AS-
SESSMENTS.
Section 7(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(b)) is amended by adding at the end the
following new paragraph:
‘‘(8) USE
OF
INSURANCE
ASSESSMENTS.—
Amounts received by the Corporation pursuant to
assessments on insured depository institution under
this subsection shall be used primarily for insurance
fund purposes and shall not be unduly diverted to
other uses.’’.
SEC. 8. CLARIFICATION THAT CERTAIN INSTITUTIONS IN-
SURED BY THE SAIF ARE SUBJECT TO FICO
ASSESSMENTS.
Section 21(f)(2) of the Federal Home Loan Bank Act
(12 U.S.C. 1441(f)(2)) is amended by inserting after
‘‘Savings Association Insurance Fund member’’ the fol-
lowing: ‘‘, including any Savings Association Insurance
Fund member referred to in section 5(d)(2)(G) of the Fed-
eral Deposit Insurance Act and, in the case of any Bank
Insurance Fund member which has deposits which are
treated (under section 5(d)(3) of such Act) as deposits
which are insured by the Savings Association Insurance
Fund, the adjusted attributable deposit amount with re-
spect to such member as determined under subparagraph
(C) of section 5(e)(3) of such Act for purposes of subpara-
graph (B)(i) of such section,’’.
SEC. 9. REPEAL OF MINIMUM SAIF ASSESSMENT RULE.
Section 7(b)(2) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(b)(2)) is amended by striking subpara-
graph (E).
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