‘‘(D) RULE OF CONSTRUCTION.—No provi-
sion of this paragraph shall be construed as au-
thorizing an insured credit union to accept the
deposits of an employee benefit plan in an
amount greater than such credit union is author-
ized to accept under any other provision of Fed-
eral or State law.
‘‘(5) STANDARD
MAXIMUM
SHARE
INSURANCE
AMOUNT
DEFINED.—For purposes of this Act, the
term ‘standard maximum share insurance amount’
means—
‘‘(A) until the effective date of final regula-
tions prescribed pursuant to section 10(a)(2) of
the Federal Deposit Insurance Reform Act of
2002, $100,000; and
‘‘(B) on and after such effective date,
$130,000, adjusted as provided under section
11(a)(1)(F) of the Federal Deposit Insurance
Act.’’.
(2) DOUBLING OF SHARE INSURANCE FOR CER-
TAIN RETIREMENT ACCOUNTS.—Section 207(k)(3) of
the Federal Credit Union Act (12 U.S.C. 1787(k)(3))
is amended by striking ‘‘$100,000’’ and inserting ‘‘2
times the standard maximum share insurance
amount (as determined under paragraph (1))’’.
(h) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the date the
final regulations required under section 10(a)(2) take effect.
SEC. 4. SETTING ASSESSMENTS AND REPEAL OF SPECIAL
RULES 
RELATING 
TO 
MINIMUM 
ASSESS-
MENTS AND FREE DEPOSIT INSURANCE.
(a) SETTING ASSESSMENTS.—Section 7(b)(2) of the
Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)) is
amended—
(1) by striking subparagraphs (A) and (B) and
inserting the following new subparagraphs:
‘‘(A) IN GENERAL.—The Board of Directors
shall set assessments for insured depository insti-
tutions in such amounts as the Board of Direc-
tors may determine to be necessary or appro-
priate, subject to subparagraph (D).
‘‘(B) FACTORS TO BE CONSIDERED.—In set-
ting assessments under subparagraph (A), the
Board of Directors shall consider the following
factors:
‘‘(i) The estimated operating expenses
of the Deposit Insurance Fund.
‘‘(ii) The estimated case resolution ex-
penses and income of the Deposit Insurance
Fund.
‘‘(iii) The projected effects of the pay-
ment of assessments on the capital and
earnings of insured depository institutions.
‘‘(iv) the risk factors and other factors
taken into account pursuant to paragraph
(1) under the risk-based assessment system,
including the requirement under such para-
graph to maintain a risk-based system.
‘‘(v) Any other factors the Board of Di-
rectors may determine to be appropriate.’’;
and
(2) by inserting after subparagraph (C) the fol-
lowing new subparagraph:
‘‘(D) BASE RATE FOR ASSESSMENTS.—
‘‘(i) IN GENERAL.—In setting assess-
ment rates pursuant to subparagraph (A),
the Board of Directors shall establish a base
rate of not more than 1 basis point (exclu-
sive of any credit or dividend) for those in-
sured depository institutions in the lowest-
risk category under the risk-based assess-
ment system established pursuant to para-
graph (1).
‘‘(ii) SUSPENSION.—Clause (i) shall
not apply during any period in which the
reserve ratio of the Deposit Insurance Fund
is less than the amount which is equal to
1.15 percent of the aggregate estimated in-
sured deposits.’’.
(b) ASSESSMENT RECORDKEEPING PERIOD SHORT-
ENED.—Paragraph (5) of section 7(b) of the Federal De-
posit Insurance Act (12 U.S.C. 1817(b)) is amended to read
as follows:
‘‘(5) DEPOSITORY
INSTITUTION
REQUIRED
TO
MAINTAIN
ASSESSMENT-RELATED
RECORDS.—Each
insured depository institution shall maintain all
records that the Corporation may require for
verifying the correctness of any assessment on the in-
sured depository institution under this subsection
until the later of—
‘‘(A) the end of the 3-year period beginning
on the due date of the assessment; or
‘‘(B) in the case of a dispute between the in-
sured depository institution and the Corporation
with respect to such assessment, the date of a
final determination of any such dispute.’’.
(c) SHORTENED
STATUTE
OF
LIMITATIONS
FOR
CAUSES OF ACTION RELATING TO ASSESSMENTS.—
(1) IN GENERAL.—Subsection (g) of section 7 of
the Federal Deposit Insurance Act (12 U.S.C.
1817(g)) is amended—
(A) by striking ‘‘(g) The Corporation, in a
suit brought at law or in equity’’ and inserting
the following:
‘‘(g) ACTIONS ON CLAIMS ARISING FROM ASSESS-
MENTS.—
‘‘(1) CAUSE OF ACTION ESTABLISHED.—The Cor-
poration, in an action brought’’; and
(B) by striking all that follows the first sen-
tence and inserting the following new para-
graphs:
‘‘(2) CLAIMS OF INSURED DEPOSITORY INSTITU-
TIONS.—An action by an insured depository institu-
tion to recover from the Corporation on a claim relat-
ing to the alleged overpayment of any assessment may
not be brought against the Corporation after the end
of the 3-year period beginning on the date the pay-
ment of the assessment is due.
‘‘(3) CLAIMS OF THE CORPORATION.—Subject to
paragraph (4), an action by the Corporation to re-
cover from an insured depository institution on a
claim relating to the alleged nonpayment or under-
payment of an assessment may not be brought by the
Corporation after the end of the 3-year period begin-
ning on the date the payment of the assessment is
due.
‘‘(4) FALSE
OR
FRAUDULENT
STATEMENT.—If
an insured depository institution has made or filed a
false or fraudulent statement with the intent to evade
any amount of any assessment, the 3-year period re-
ferred to in paragraph (3) shall commence on the date
the Corporation discovers the falsity or fraudulent na-
ture of the statement.
‘‘(5) TOLLING OF STATUTE OF LIMITATIONS.—In
accordance with regulations which the Corporation
shall prescribe establishing procedures for administra-
tive review of claims described in paragraphs (2), (3),
and (4), the period of any administrative review by
the Corporation of any such claim shall not be taken
into account for purposes of the 3-year period referred
to in any such paragraph.
‘‘(6) FINALITY OF RECORDS.—Deposit informa-
tion that is relevant to the determination of the
amount of an assessment and is based on records re-
quired to be maintained under subsection (b)(5) shall
become conclusive and not subject to change after the
expiration of the period described in such subsection.
‘‘(7) COORDINATION
WITH
OTHER
LAW.—The
provisions of this subsection shall apply with respect
to actions described in this subsection, notwith-
standing any provision of any other Federal or State
law.’’.
(2) SCOPE OF APPLICATION.—Paragraph (1) and
the amendments made by paragraph (1) shall apply
only to assessments on insured depository institutions
which become due after the date of the enactment of
this Act.
(d) INCREASE IN FEES FOR LATE ASSESSMENT PAY-
MENTS.—Subsection (h) of section 18 of the Federal Deposit
Insurance Act (12 U.S.C. 1828(h)) is amended to read as
follows:
‘‘(h) PENALTY FOR FAILURE TO TIMELY PAY ASSESS-
MENTS.—
‘‘(1) IN GENERAL.—Any insured depository in-
stitution which fails or refuses to pay any assessment
shall be subject to a penalty in an amount not more
than 1 percent of the amount of the assessment due
for each day that such violation continues.
‘‘(2) EXCEPTION IN CASE OF DISPUTE.—Para-
graph (1) shall not apply if—
‘‘(A) the failure to pay an assessment is due
to a dispute between the insured depository insti-
tution and the Corporation over the amount of
such assessment; and
‘‘(B) the insured depository institution de-
posits security satisfactory to the Corporation for
payment upon final determination of the issue.
‘‘(3) AUTHORITY
TO
MODIFY
OR
REMIT
PEN-
ALTY.—The Corporation, in the sole discretion of the
Corporation, may compromise, modify or remit any
penalty which the Corporation may assess or has al-
ready assessed under paragraph (1) upon a finding
that good cause prevented the timely payment of an
assessment.’’.
(e) ASSESSMENTS FOR LIFELINE ACCOUNTS.—
(1) IN GENERAL.—Section 232 of the Federal
Deposit Insurance Corporation Improvement Act of
1991 (12 U.S.C. 1834) is amended by striking sub-
section (c).
(2) CLARIFICATION OF RATE APPLICABLE TO DE-
POSITS ATTRIBUTABLE TO LIFELINE ACCOUNTS.—Sec-
tion 7(b)(2)(H) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(b)(2)(H)) is amended by striking ‘‘at
a rate determined in accordance with such Act’’ and
inserting ‘‘at 1⁄2 the assessment rate otherwise appli-
cable for such insured depository institution’’.
(3) REGULATIONS.—Section 232(a)(1) of the
Federal Deposit Insurance Corporation Improvement
Act of 1991 (12 U.S.C. 1834(a)(1)) is amended by
striking ‘‘Board of Governors of the Federal Reserve
System, and the’’.
(f) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Paragraph (3) of section 7(a) of the Federal
Deposit Insurance Act (12 U.S.C. 1817(a)(3)) is
amended by striking the 3d sentence and inserting the
following: ‘‘Such reports of condition shall be the
basis for the certified statements to be filed pursuant
to subsection (c).’’.
(2) Subparagraphs (B)(ii) and (C) of section
7(b)(1) of the Federal Deposit Insurance Act (12
U.S.C. 1817(b)(1)) are each amended by striking
‘‘semiannual’’ where such term appears in each such
subparagraph.
(3) Section 7(b)(2) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1817(b)(2)) is amended—
(A) by striking subparagraphs (E), (F), and
(G);
(B) in subparagraph (C), by striking ‘‘semi-
annual’’; and
(C) by redesignating subparagraph (H) (as
amended by subsection (e)(2) of this section) as
subparagraph (E).
(4) Section 7(b) of the Federal Deposit Insurance
Act (12 U.S.C. 1817(b)) (as amended by subsection
(c) of this section) is amended by striking paragraph
(4) and redesignating paragraphs (5) (as amended by
subsection (b) of this section), (6), and (7) as para-
graphs (4), (5), and (6) respectively.
(5) Section 7(c) of the Federal Deposit Insurance
Act (12 U.S.C. 1817(c)) is amended—
(A) in paragraph (1)(A), by striking ‘‘semi-
annual’’;
(B) in paragraph (2)(A), by striking ‘‘semi-
annual’’; and
(C) in paragraph (3), by striking ‘‘semi-
annual period’’ and inserting ‘‘initial assessment
period’’.
(6) Section 7(g)(6) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1817(g)(6)) (as amended by sub-
section (c) of this section) is amended by striking
‘‘(b)(5)’’ and inserting ‘‘(b)(4)’’.
(7) Section 8(p) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1818(p)) is amended by striking
‘‘semiannual’’.
(8) Section 8(q) of the Federal Deposit Insurance
Act (12 U.S.C. 1818(q)) is amended by striking
‘‘semiannual period’’ and inserting ‘‘assessment pe-
riod’’.
(9) Section 13(c)(4)(G)(ii)(II) of the Federal De-
posit Insurance Act (12 U.S.C. 1823(c)(4)(G)(ii)(II))
is amended by striking ‘‘semiannual period’’ and in-
serting ‘‘assessment period’’.
(10) Section 232(a) of the Federal Deposit Insur-
ance Corporation Improvement Act of 1991 (12
U.S.C. 1834(a)) is amended—
(A) in the matter preceding subparagraph
(A) of paragraph (2), by striking ‘‘the Board
and’’;
(B) in subparagraph (J) of paragraph (2),
by striking ‘‘the Board’’ and inserting ‘‘the Cor-
poration’’;
(C) by striking subparagraph (A) of para-
graph (3) and inserting the following new sub-
paragraph:
‘‘(A) CORPORATION.—The term ‘Corpora-
tion’ means the Federal Deposit Insurance Cor-
poration.’’; and
(D) in subparagraph (C) of paragraph (3),
by striking ‘‘Board’’ and inserting ‘‘Corpora-
tion’’.
(g) EFFECTIVE DATE.—Except as provided in sub-
section (c), this section and the amendments made by this
section shall take effect on the date that the final regulations
required under section 10(a)(5) take effect.
SEC. 5. ASSESSMENTS ON RAPID-GROWTH DEPOSITS TO
MAINTAIN FUND RESERVES WITHOUT PENAL-
IZING LOW-GROWTH INSTITUTIONS.
(a) IN GENERAL.—Section 5(d) of the Federal Deposit
Insurance Act (12 U.S.C. 1815(d)) is amended by adding
at the end the following new paragraph:
‘‘(4) NET INCREASE IN NEW DEPOSITS.—
‘‘(A) IN GENERAL.—In the case of any in-
sured depository institution that experiences a
net increase in new insured deposits, during the
most recent assessment period, in excess of such
percentage as the Corporation may determine to
be appropriate, the Board of Directors may, sub-
ject to subparagraph (B), impose a fee on the de-
pository institution in the manner provided
under paragraph (1) with respect to the amount
of such net increase in new insured deposits, tak-
ing into account the levels of assessments paid by
such insured depository institution in prior as-
sessment periods.
‘‘(B) REGULATIONS.—The Corporation shall
prescribe regulations, after notice and oppor-
tunity for comment, establishing procedures for
imposing fees under subparagraph (A).’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect at the end of the 60-day period
beginning on the date of the enactment of this Act.
SEC. 6. REPLACEMENT OF FIXED DESIGNATED RESERVE
RATIO WITH RESERVE RANGE.
(a) IN GENERAL.—Section 7(b)(3) of the Federal De-
posit Insurance Act (12 U.S.C. 1817(b)(3)) is amended to
read as follows:
‘‘(3) DESIGNATED RESERVE RATIO.—
‘‘(A) ESTABLISHMENT.—
‘‘(i) IN GENERAL.—The Board of Di-
rectors shall designate, by regulation after
notice and opportunity for comment, the re-
serve ratio applicable with respect to the
Deposit Insurance Fund.
‘‘(ii) NOT LESS THAN ANNUAL REDE-
TERMINATION.—A 
determination 
under
clause (i) shall be made by the Board of Di-
rectors at least before the beginning of each
calendar year, for such calendar year, and
at such other times as the Board of Direc-
tors may determine to be appropriate.
‘‘(B) RANGE.—The reserve ratio designated
by the Board of Directors for any year—
‘‘(i) may not exceed 1.4 percent of esti-
mated insured deposits; and
‘‘(ii) may not be less than 1.15 percent
of estimated insured deposits.
‘‘(C) FACTORS.—In designating a reserve
ratio for any year, the Board of Directors
shall—
‘‘(i) take into account the risk of losses
to the Deposit Insurance Fund in such year
and future years, including historic experi-
ence and potential and estimated losses
from insured depository institutions;
‘‘(ii) take into account economic condi-
tions generally affecting insured depository
institutions so as to allow the designated re-
serve ratio to increase during more favor-
able economic conditions and to decrease
during less favorable economic conditions,
notwithstanding the increased risks of loss
that may exist during such less favorable
conditions, as determined to be appropriate
by the Board of Directors;
‘‘(iii) seek to prevent sharp swings in
the assessment rates for insured depository
institutions; and
‘‘(iv) take into account such other fac-
tors as the Board of Directors may deter-
mine to be appropriate, consistent with the
requirements of this subparagraph.
‘‘(D) PUBLICATION OF PROPOSED CHANGE
IN RATIO.—In soliciting comment on any pro-
posed change in the designated reserve ratio in
accordance with subparagraph (A), the Board of
Directors shall include in the published proposal
a thorough analysis of the data and projections
on which the proposal is based.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 3(y) of the Federal Deposit Insurance Act (12 U.S.C.
1813(y)) is amended—
(1) by striking ‘‘(y) The term’’ and inserting
‘‘(y) DEFINITIONS RELATING TO DEPOSIT INSURANCE
FUND.—
‘‘(1) DEPOSIT
INSURANCE
FUND.—The term’’;
and
(2) by inserting after paragraph (1) (as so des-
ignated by paragraph (1) of this subsection) the fol-
lowing new paragraph:
‘‘(2) DESIGNATED RESERVE RATIO.—The term
‘designated reserve ratio’ means the reserve ratio des-
ignated by the Board of Directors in accordance with
section 7(b)(3).’’.
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the date that
the final regulations required under section 10(a)(1) take
effect.
SEC. 7. REQUIREMENTS APPLICABLE TO THE RISK-BASED
ASSESSMENT SYSTEM.
Section 7(b)(1) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(b)(1)) is amended by adding at the end
the following new subparagraphs:
‘‘(E) INFORMATION
CONCERNING
RISK
OF
LOSS AND ECONOMIC CONDITIONS.—
‘‘(i) SOURCES OF INFORMATION.—For
purposes of determining risk of losses at in-
sured depository institutions and economic
conditions generally affecting depository in-
stitutions, the Corporation shall collect in-
formation, as appropriate, from all sources
the Board of Directors considers appro-
priate, such as reports of condition, inspec-
tion reports, and other information from all
Federal banking agencies, any information
available from State bank supervisors, State
insurance and securities regulators, the Se-
curities and Exchange Commission (includ-
ing information described in section 35),
the Secretary of the Treasury, the Com-
modity Futures Trading Commission, the
Farm Credit Administration, the Federal
Trade Commission, any Federal reserve
bank or Federal home loan bank, and other
regulators of financial institutions, and any
information available from credit rating en-
tities, and other private economic or busi-
ness analysts.
‘‘(ii) CONSULTATION
WITH
FEDERAL
BANKING AGENCIES.—
‘‘(I) IN GENERAL.—Except as pro-
vided in subclause (II), in assessing the
risk of loss to the Deposit Insurance
Fund with respect to any insured de-
pository institution, the Corporation
shall consult with the appropriate Fed-
eral banking agency of such institu-
tion.
‘‘(II) TREATMENT ON AGGREGATE
BASIS.—In the case of insured deposi-
tory institutions that are well capital-
ized (as defined in section 38) and, in
the most recent examination, were
found to be well managed, the consulta-
tion under subclause (I) concerning the
assessment of the risk of loss posed by
such institutions may be made on an
aggregate basis.
‘‘(iii) RULE
OF
CONSTRUCTION.—No
provision of this paragraph shall be con-
strued as providing any new authority for
the Corporation to require submission of in-
formation by insured depository institutions
to the Corporation.
‘‘(F) MODIFICATIONS TO THE RISK-BASED
ASSESSMENT SYSTEM ALLOWED ONLY AFTER NO-
TICE AND COMMENT.—In revising or modifying
the risk-based assessment system at any time
after the date of the enactment of the Federal De-
posit Insurance Reform Act of 2002, the Board
of Directors may implement such revisions or
cess of the amount required to maintain the re-
serve ratio at the designated reserve ratio in ef-
fect at such time, as dividends to be paid to in-
sured depository institutions.
‘‘(B) RESERVE RATIO EQUAL TO OR IN EX-
CESS OF 1.35 PERCENT OF ESTIMATED INSURED
DEPOSITS AND LESS THAN 1.4 PERCENT.—When-
ever the reserve ratio of the Deposit Insurance
Fund equals or exceeds 1.35 percent of estimated
insured deposits and is less than 1.4 percent of
such deposits, the Corporation shall declare the
amount in the Fund that is equal to 50 percent
of the amount in excess of the amount required
to maintain the reserve ratio at 1.35 percent of
the estimated insured deposits as dividends to be
paid to insured depository institutions.
‘‘(C) BASIS
FOR
DISTRIBUTION
OF
DIVI-
DENDS.—
‘‘(i) IN
GENERAL.—The Corporation
shall determine each insured depository in-
stitution’s relative share of the Deposit In-
surance Fund, for the purposes of deter-
mining that institution’s relative percentage
share of any dividends declared under this
paragraph, based upon the contributions
made by such institution (and any prede-
cessor institution) to such Fund or the
Bank Insurance Fund or the Savings Asso-
ciation Insurance Fund, as the case may be.
‘‘(ii) FACTORS.—The Corporation shall
determine, pursuant to clause (i), the rel-
ative percentage share of any insured depos-
itory institution in any dividend declared
under this paragraph based on—
‘‘(I) 
the 
institution’s 
relative
share of the Deposit Insurance Fund as
determined using the assessment base
of the institution (including any prede-
cessor institution) on December 31,
1996, compared to the assessment base
of all insured depository institutions
on such date, taking into account such
other factors as the Corporation may
determine to be appropriate; and
‘‘(II) the effect on such share of
any assessments paid after December
31, 1996, by such insured depository
institution (including any predecessor
institution) to the Deposit Insurance
Fund or the Bank Insurance Fund or
the Savings Association Insurance
Fund, as the case may be, excluding
that portion of any assessment paid for
any assessment period that exceeds, if
any, the amount of the assessment such
institution would have paid for such
assessment period if the institution had
been classified in the lowest-risk cat-
egory under the risk-based assessment
established under subsection (b)(1).
‘‘(D) NOTICE AND OPPORTUNITY FOR COM-
MENT.—The declaration and payment of divi-
dends under this paragraph shall be made in
such manner and on such conditions as the Cor-
poration shall prescribe by regulation, after no-
tice and opportunity for comment.
‘‘(3) CREDIT POOL.—
‘‘(A) ONE-TIME CREDIT BASED ON TOTAL
ASSESSMENT BASE AT YEAR-END 1996.—
‘‘(i) IN GENERAL.—Before the end of
the 270-day period beginning on the date of
the enactment of the Federal Deposit Insur-
ance Reform Act of 2002, the Board of Di-
rectors shall, by regulation, provide for a
credit to each eligible insured depository in-
stitution, based on the assessment base of
the institution (including any predecessor
institution) on December 31, 1996, as com-
pared to the combined aggregate assessment
base of all eligible insured depository insti-
tutions, taking into account such factors as
the Board of Directors may determine to be
appropriate.
‘‘(ii) CREDIT
LIMIT.—The aggregate
amount of credits available under clause (i)
to all eligible insured depository institu-
tions shall equal the amount that the Cor-
poration could collect if the Corporation im-
posed an assessment of 12 basis points on
the combined assessment base of the Bank
Insurance Fund and the Savings Associa-
tion Insurance Fund as of December 31,
2001.
‘‘(iii) ELIGIBLE INSURED DEPOSITORY
INSTITUTION
DEFINED.—For purposes of
this paragraph, the term ‘eligible insured
depository institution’ means any insured
depository institution that—
‘‘(I) was in existence on December
31, 1996, and paid a deposit insurance
assessment prior to that date; or
‘‘(II) is a successor to any insured
depository institution described in sub-
clause (II).
‘‘(iv) APPLICATION OF CREDITS.—
‘‘(I) IN GENERAL.—The amount of
a credit to any eligible insured deposi-
tory institution under this paragraph
may be applied by the Corporation to
those portions of the assessments im-
posed on such institution under sub-
section (b) that become due for assess-
ment periods beginning after the effec-
tive date of regulations prescribed
under clause (i).
‘‘(II) REGULATIONS.—The regula-
tions prescribed under clause (i) shall
establish the qualifications and proce-
dures governing the application of as-
sessment credits pursuant to subclause
(I).
‘‘(v) CRITERIA FOR DETERMINATION.—
In determining whether to provide assess-