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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Federal Deposit Insurance Reform Act of 2003’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec.
1. Short title; table of contents. 
Sec.
2. Merging the BIF and SAIF. 
Sec.
3. Increase in deposit insurance coverage. 
Sec.
4. Setting assessments and repeal of special rules relating to minimum 
assessments and free deposit insurance. 
Sec.
5. Replacement of fixed designated reserve ratio with reserve range. 
Sec.
6. Requirements applicable to the risk-based assessment system. 
Sec.
7. Refunds, dividends, and credits from Deposit Insurance Fund. 
Sec.
8. Deposit Insurance Fund restoration plans. 
Sec.
9. Regulations required. 
Sec. 10. Studies of FDIC structure and expenses and certain activities and fur-
ther possible changes to deposit insurance system. 
Sec. 11. Bi-annual FDIC survey and report on increasing the deposit base by 
encouraging use of depository institutions by the unbanked. 
Sec. 12. Technical and conforming amendments to the Federal Deposit Insur-
ance Act relating to the merger of the BIF and SAIF. 
Sec. 13. Other technical and conforming amendments relating to the merger of 
the BIF and SAIF.
SEC. 2. MERGING THE BIF AND SAIF. 
(a) IN GENERAL.—
(1) MERGER.—The Bank Insurance Fund and 
the Savings Association Insurance Fund shall be 
merged into the Deposit Insurance Fund. 
(2) DISPOSITION
OF
ASSETS
AND
LIABIL-
ITIES.—All assets and liabilities of the Bank Insur-
ance Fund and the Savings Association Insurance 
Fund shall be transferred to the Deposit Insurance 
Fund. 
(3) NO SEPARATE EXISTENCE.—The separate 
existence of the Bank Insurance Fund and the Sav-
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ings Association Insurance Fund shall cease on the 
effective date of the merger thereof under this sec-
tion. 
(b) REPEAL OF OUTDATED MERGER PROVISION.—
Section 2704 of the Deposit Insurance Funds Act of 1996 
(12 U.S.C. 1821 note) is repealed. 
(c) EFFECTIVE DATE.—This section shall take effect 
on the first day of the first calendar quarter that begins 
after the end of the 90-day period beginning on the date 
of the enactment of this Act. 
SEC. 3. INCREASE IN DEPOSIT INSURANCE COVERAGE. 
(a) IN GENERAL.—Section 11(a)(1) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amend-
ed—
(1) by striking subparagraph (B) and inserting 
the following new subparagraph: 
‘‘(B) NET
AMOUNT
OF
INSURED
DE-
POSIT.—The net amount due to any depositor 
at an insured depository institution shall not 
exceed the standard maximum deposit insur-
ance amount as determined in accordance with 
subparagraphs (C), (D), (E) and (F) and para-
graph (3).’’; and 
(2) by adding at the end the following new sub-
paragraphs:
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‘‘(E) STANDARD
MAXIMUM
DEPOSIT
IN-
SURANCE AMOUNT DEFINED.—For purposes of 
this Act, the term ‘standard maximum deposit 
insurance amount’ means—
‘‘(i) until the effective date of final 
regulations prescribed pursuant to section 
9(a)(2) of the Federal Deposit Insurance 
Reform Act of 2003, $100,000; and 
‘‘(ii) on and after such effective date, 
$130,000, adjusted as provided under sub-
paragraph (F). 
‘‘(F) INFLATION ADJUSTMENT.—
‘‘(i) IN
GENERAL.—By April 1 of 
2005, and the 1st day of each subsequent 
5-year period, the Board of Directors and 
the National Credit Union Administration 
Board shall jointly prescribe the amount 
by which the standard maximum deposit 
insurance amount and the standard max-
imum share insurance amount (as defined 
in section 207(k) of the Federal Credit 
Union Act) applicable to any depositor at 
an insured depository institution shall be 
increased by calculating the product of—
‘‘(I) $130,000; and
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‘‘(II) the ratio of the value of the 
Personal Consumption Expenditures
Chain-Type Index (or any successor 
index thereto), published by the De-
partment of Commerce, as of Decem-
ber 31 of the year preceding the year 
in which the adjustment is calculated 
under this clause, to the value of such 
index as of the date this subpara-
graph takes effect. 
‘‘(ii) ROUNDING.—If the amount de-
termined under clause (ii) for any period is 
not a multiple of $10,000, the amount so 
determined shall be rounded to the nearest 
$10,000. 
‘‘(iii) PUBLICATION AND REPORT TO 
THE CONGRESS.—Not later than April 5 of 
any calendar year in which an adjustment 
is required to be calculated under clause (i) 
to the standard maximum deposit insur-
ance amount and the standard maximum 
share insurance amount under such clause, 
the Board of Directors and the National 
Credit 
Union 
Administration 
Board 
shall—
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‘‘(I) publish in the Federal Reg-
ister the standard maximum deposit 
insurance amount, the standard max-
imum share insurance amount, and 
the amount of coverage under para-
graph (3)(A) and section 207(k)(3) of 
the Federal Credit Union Act, as so 
calculated; and 
‘‘(II) jointly submit a report to 
the Congress containing the amounts 
described in subclause (I). 
‘‘(iv) 6-MONTH IMPLEMENTATION PE-
RIOD.—Unless an Act of Congress enacted 
before July 1 of the calendar year in which 
an adjustment is required to be calculated 
under clause (i) provides otherwise, the in-
crease in the standard maximum deposit 
insurance amount and the standard max-
imum share insurance amount shall take 
effect on January 1 of the year imme-
diately succeeding such calendar year.’’. 
(b) COVERAGE FOR CERTAIN EMPLOYEE BENEFIT 
PLAN DEPOSITS.—Section 11(a)(1)(D) of the Federal De-
posit Insurance Act (12 U.S.C. 1821(a)(1)(D)) is amend-
ed to read as follows:
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‘‘(D) COVERAGE FOR CERTAIN EMPLOYEE 
BENEFIT PLAN DEPOSITS.—
‘‘(i) PASS-THROUGH
INSURANCE.—
The 
Corporation 
shall 
provide 
pass-
through deposit insurance for the deposits 
of any employee benefit plan. 
‘‘(ii) PROHIBITION
ON
ACCEPTANCE 
OF BENEFIT PLAN DEPOSITS.—An insured 
depository institution that is not well cap-
italized or adequately capitalized may not 
accept employee benefit plan deposits. 
‘‘(iii) DEFINITIONS.—For purposes of 
this subparagraph, the following definitions 
shall apply: 
‘‘(I) CAPITAL STANDARDS.—The 
terms ‘well capitalized’ and ‘ade-
quately capitalized’ have the same 
meanings as in section 38. 
‘‘(II) 
EMPLOYEE
BENEFIT 
PLAN.—The term ‘employee benefit 
plan’ has the same meaning as in 
paragraph (8)(B)(ii), and includes any 
eligible deferred compensation plan 
described in section 457 of the Inter-
nal Revenue Code of 1986.
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(2) by striking ‘‘(2)(A) Notwithstanding’’ and 
all that follows through ‘‘a depositor who is—’’ and 
inserting the following: 
‘‘(2) MUNICIPAL DEPOSITORS.—
‘‘(A) IN GENERAL.—Notwithstanding any 
limitation in this Act or in any other provision 
of law relating to the amount of deposit insur-
ance available to any 1 depositor—
‘‘(i) a municipal depositor shall, for 
the purpose of determining the amount of 
insured deposits under this subsection, be 
deemed to be a depositor separate and dis-
tinct from any other officer, employee, or 
agent of the United States or any public 
unit referred to in subparagraph (E); and 
‘‘(ii) except as provided in subpara-
graph (B), the deposits of a municipal de-
positor shall be insured in an amount 
equal to the standard maximum deposit in-
surance amount (as determined under 
paragraph (1)). 
‘‘(B) IN-STATE MUNICIPAL DEPOSITORS.—
In the case of the deposits of an in-State mu-
nicipal depositor described in clause (ii), (iii), 
(iv), or (v) of subparagraph (E) at an insured
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depository institution, such deposits shall be in-
sured in an amount not to exceed the lesser 
of—
‘‘(i) $2,000,000; or 
‘‘(ii) the sum of the standard max-
imum deposit insurance amount and 80 
percent of the amount of any deposits in 
excess of the standard maximum deposit 
insurance amount. 
‘‘(C) MUNICIPAL
DEPOSIT
PARITY.—No 
State may deny to insured depository institu-
tions within its jurisdiction the authority to ac-
cept deposits insured under this paragraph, or 
prohibit the making of such deposits in such in-
stitutions by any in-State municipal depositor. 
‘‘(D) IN-STATE MUNICIPAL DEPOSITOR DE-
FINED.—For purposes of this paragraph, the 
term ‘in-State municipal depositor’ means a 
municipal depositor that is located in the same 
State as the office or branch of the insured de-
pository institution at which the deposits of 
that depositor are held. 
‘‘(E) MUNICIPAL
DEPOSITOR.—In this 
paragraph, the term ‘municipal depositor’ 
means a depositor that is—’’;
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(3) by striking ‘‘(B) The’’ and inserting the fol-
lowing: 
‘‘(F) AUTHORITY
TO
LIMIT
DEPOSITS.—
The’’; and 
(4) by striking ‘‘depositor referred to in sub-
paragraph (A) of this paragraph’’ each place such 
term appears and inserting ‘‘municipal depositor’’. 
(e) TECHNICAL AND CONFORMING AMENDMENT RE-
LATING TO INSURANCE OF TRUST FUNDS.—Paragraphs 
(1) and (3) of section 7(i) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1817(i)) are each amended by strik-
ing ‘‘$100,000’’ and inserting ‘‘the standard maximum de-
posit insurance amount (as determined under section 
11(a)(1))’’. 
(f) OTHER TECHNICAL AND CONFORMING AMEND-
MENTS.—
(1) Section 11(m)(6) of the Federal Deposit In-
surance Act (12 U.S.C. 1821(m)(6)) is amended by 
striking ‘‘$100,000’’ and inserting ‘‘an amount equal 
to 
the 
standard 
maximum 
deposit 
insurance 
amount’’. 
(2) Subsection (a) of section 18 of the Federal 
Deposit Insurance Act (12 U.S.C. 1828(a)) is 
amended to read as follows: 
‘‘(a) INSURANCE LOGO.—
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‘‘(1) INSURED DEPOSITORY INSTITUTIONS.—
‘‘(A) IN GENERAL.—Each insured deposi-
tory institution shall display at each place of 
business maintained by that institution a sign 
or signs relating to the insurance of the depos-
its of the institution, in accordance with regula-
tions to be prescribed by the Corporation. 
‘‘(B) STATEMENT
TO
BE
INCLUDED.—
Each sign required under subparagraph (A) 
shall include a statement that insured deposits 
are backed by the full faith and credit of the 
United States Government. 
‘‘(2) REGULATIONS.—The Corporation shall 
prescribe regulations to carry out this subsection, in-
cluding regulations governing the substance of signs 
required by paragraph (1) and the manner of dis-
play or use of such signs. 
‘‘(3) PENALTIES.—For each day that an in-
sured depository institution continues to violate this 
subsection or any regulation issued under this sub-
section, it shall be subject to a penalty of not more 
than $100, which the Corporation may recover for 
its use.’’. 
(3) Section 43(d) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1831t(d)) is amended by strik-
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ing ‘‘$100,000’’ and inserting ‘‘an amount equal to 
the standard maximum deposit insurance amount’’.
(4) Section 6 of the International Banking Act 
of 1978 (12 U.S.C. 3104) is amended—
(A) by striking ‘‘$100,000’’ each place 
such term appears and inserting ‘‘an amount 
equal to the standard maximum deposit insur-
ance amount’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(e) STANDARD
MAXIMUM
DEPOSIT
INSURANCE 
AMOUNT DEFINED.—For purposes of this section, the 
term ‘standard maximum deposit insurance amount’ 
means the amount of the maximum amount of deposit in-
surance as determined under section 11(a)(1) of the Fed-
eral Deposit Insurance Act.’’. 
(g) CONFORMING CHANGE TO CREDIT UNION SHARE 
INSURANCE FUND.—
(1) IN GENERAL.—Section 207(k) of the Fed-
eral Credit Union Act (12 U.S.C. 1787(k)) is 
amended—
(A) by striking ‘‘(k)(1)’’ and all that fol-
lows through the end of paragraph (1) and in-
serting the following: 
‘‘(k) INSURED AMOUNTS PAYABLE.—
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‘‘(1) NET INSURED AMOUNT.—
‘‘(A) IN GENERAL.—Subject to the provi-
sions of paragraph (2), the net amount of share 
insurance payable to any member at an insured 
credit union shall not exceed the total amount 
of the shares or deposits in the name of the 
member (after deducting offsets), less any part 
thereof which is in excess of the standard max-
imum share insurance amount, as determined 
in accordance with this paragraph and para-
graphs (5) and (6), and consistently with ac-
tions taken by the Federal Deposit Insurance 
Corporation under section 11(a) of the Federal 
Deposit Insurance Act. 
‘‘(B) 
AGGREGATION.—Determination 
of 
the net amount of share insurance under sub-
paragraph (A), shall be in accordance with such 
regulations as the Board may prescribe, and, in 
determining the amount payable to any mem-
ber, there shall be added together all accounts 
in the credit union maintained by that member 
for that member’s own benefit, either in the 
member’s own name or in the names of others. 
‘‘(C) AUTHORITY TO DEFINE THE EXTENT 
OF COVERAGE.—The Board may define, with
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such classifications and exceptions as it may 
prescribe, the extent of the share insurance cov-
erage provided for member accounts, including 
member accounts in the name of a minor, in 
trust, or in joint tenancy.’’; 
(B) in paragraph (2)—
(i) in subparagraph (A)—
(I) in clauses (i) through (v), by 
moving the margins 4 ems to the 
right; 
(II) in the matter following 
clause (v), by striking ‘‘his account’’ 
and all that follows through the pe-
riod; and 
(III) by striking the semicolon at 
the end of clause (v) and inserting a 
period; 
(ii) by striking ‘‘(2)(A) Notwith-
standing’’ and all that follows through ‘‘a 
depositor or member who is—’’ and insert-
ing the following: 
‘‘(2) MUNICIPAL DEPOSITORS OR MEMBERS.—
‘‘(A) IN GENERAL.—Notwithstanding any 
limitation in this Act or in any other provision 
of law relating to the amount of insurance
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available to any 1 depositor or member, depos-
its or shares of a municipal depositor or mem-
ber shall be insured in an amount equal to the 
standard maximum share insurance amount (as 
determined under paragraph (5)), except as 
provided in subparagraph (B). 
‘‘(B) IN-STATE MUNICIPAL DEPOSITORS.—
In the case of the deposits of an in-State mu-
nicipal depositor described in clause (ii), (iii), 
(iv), or (v) of subparagraph (E) at an insured 
credit union, such deposits shall be insured in 
an amount equal to the lesser of—
‘‘(i) $2,000,000; or 
‘‘(ii) the sum of the standard max-
imum deposit insurance amount and 80 
percent of the amount of any deposits in 
excess of the standard maximum deposit 
insurance amount. 
‘‘(C) RULE OF CONSTRUCTION.—No provi-
sion of this paragraph shall be construed as au-
thorizing an insured credit union to accept the 
deposits of a municipal depositor in an amount 
greater than such credit union is authorized to 
accept under any other provision of Federal or 
State law.
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‘‘(D) IN-STATE MUNICIPAL DEPOSITOR DE-
FINED.—For purposes of this paragraph, the 
term ‘in-State municipal depositor’ means a 
municipal depositor that is located in the same
State as the office or branch of the insured 
credit union at which the deposits of that de-
positor are held. 
‘‘(E) MUNICIPAL
DEPOSITOR.—In this 
paragraph, the term ‘municipal depositor’ 
means a depositor that is—’’; 
(iii) by striking ‘‘(B) The’’ and insert-
ing the following: 
‘‘(F) AUTHORITY
TO
LIMIT
DEPOSITS.—
The’’; and 
(iv) by striking ‘‘depositor or member 
referred to in subparagraph (A)’’ and in-
serting ‘‘municipal depositor or member’’; 
and 
(C) by adding at the end the following new 
paragraphs: 
‘‘(4) COVERAGE FOR CERTAIN EMPLOYEE BEN-
EFIT PLAN DEPOSITS.—
‘‘(A) PASS-THROUGH
INSURANCE.—The 
Administration shall provide pass-through share
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insurance for the deposits or shares of any em-
ployee benefit plan. 
‘‘(B) PROHIBITION
ON
ACCEPTANCE
OF 
DEPOSITS.—An insured credit union that is not 
well capitalized or adequately capitalized may 
not accept employee benefit plan deposits. 
‘‘(C) DEFINITIONS.—For purposes of this 
paragraph, the following definitions shall apply: 
‘‘(i) 
CAPITAL
STANDARDS.—The 
terms ‘well capitalized’ and ‘adequately 
capitalized’ have the same meanings as in 
section 216(c). 
‘‘(ii) EMPLOYEE
BENEFIT
PLAN.—
The term ‘employee benefit plan’—
‘‘(I) has the meaning given to 
such term in section 3(3) of the Em-
ployee Retirement Income Security 
Act of 1974; 
‘‘(II) includes any plan described 
in section 401(d) of the Internal Rev-
enue Code of 1986; and 
‘‘(III) includes any eligible de-
ferred compensation plan described in 
section 457 of the Internal Revenue 
Code of 1986.
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‘‘(iii) PASS-THROUGH
SHARE
INSUR-
ANCE.—The term ‘pass-through share in-
surance’ means, with respect to an em-
ployee benefit plan, insurance coverage 
provided on a pro rata basis to the partici-
pants in the plan, in accordance with the 
interest of each participant. 
‘‘(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 au-
thorized to accept under any other provision of 
Federal 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 9(a)(2) of 
the Federal Deposit Insurance Reform Act of 
2003, $100,000; and 
‘‘(B) on and after such effective date, 
$130,000, adjusted as provided under section