Source: https://www.federalregister.gov/documents/2006/04/21/06-3721/revisions-to-reflect-the-merger-of-the-bank-insurance-fund-and-the-savings-association-insurance
Timestamp: 2017-10-19 04:32:00
Document Index: 522480789

Matched Legal Cases: ['art 312', 'art 362', 'art 367', 'art 367', 'art 364', 'art 327', 'art 362', 'art 363', 'art 364', '§\u2009303', '§\u2009303', '§\u2009303', '§\u2009303', '§\u2009303', '§\u2009362', '§\u2009367', '§\u2009367']

Federal Register :: Revisions To Reflect the Merger of the Bank Insurance Fund and the Savings Association Insurance Fund
A Rule by the Federal Deposit Insurance Corporation on 04/21/2006
71 FR 20524
20524-20528 (5 pages)
12 CFR 312
3064-AD04
Part 312—Assessment of Fees Upon Entrance to or Exit From the Bank Insurance Fund or the Savings Association Insurance Fund
Part 362—Activities of Insured State Banks and Insured Savings Association
Part 367—Suspension and Exclusion of Contractors and Termination of Contracts
III. Waiver of APA Requirements
12 CFR Part 367
Appendix A to Part 364 [Amended]
https://www.federalregister.gov/d/06-3721 https://www.federalregister.gov/d/06-3721
The FDIC is amending its regulations to reflect the recent merger of the Bank Insurance Fund and the Savings Association Insurance Fund, forming the Deposit Insurance Fund. The merger of the two deposit insurance funds was required by the Federal Deposit Insurance Reform Act of 2005 and was effectuated by the FDIC as of March 31, 2006. All revisions to the FDIC's regulations made by the final rule are conforming changes necessitated by the funds merger.
Effective Date: The final rule is effective on April 21, 2006.
Section 2102 of the Federal Deposit Insurance Reform Act of 2005 (“Reform Act”) (Pub. L. 109-171, 120 Stat. 9) required that the FDIC merge the Bank Insurance Fund (“BIF”) and Savings Association Insurance Fund (“SAIF”) into the Deposit Insurance Fund (“DIF”) effective no later than July 1, 2006. The FDIC effectuated the funds merger as of March 31, 2006. As a result of the funds merger, the BIF and SAIF were abolished. Section 8 of the Federal Deposit Insurance Reform Conforming Amendments Act of 2005 (Pub. L. 109-173, 119 Stat. 3601) (“Amendments Act”) made numerous technical and conforming amendments to the FDI Act relating to the merger of BIF and SAIF into the DIF.
Neither the recent legislation nor the funds merger will affect the authority of the Financing Corporation (“FICO”) to impose and collect, with approval of the FDIC, assessments for anticipated payments, issuance costs and custodial fees on obligations issued by the FICO.[1]
The final rule: (1) Eliminates the defined term “optional conversion (Oakar transaction)” in section 303.61(d) because, with the elimination of BIF and SAIF and the formation of the DIF, fund conversions are now obsolete; (2) excludes “deposit insurance fund conversions” from the transactions listed in section 303.62 Start Printed Page 20525requiring prior FDIC approval; (3) replaces “federal deposit insurance funds” in section 303.162 with “Deposit Insurance Fund'; (4) replaces “Bank Insurance Fund” in section 303.187(a)(2)(vi) with “Deposit Insurance Fund'; (5) replaces “Bank Insurance Fund (BIF) or the Savings Association Insurance Fund (SAIF)” with “Deposit Insurance Fund” in section 303.245(a); and (6) eliminates section 303.246, entitled “Insurance Fund Conversions.”
The final rule revises section 308.111(f) by replacing “the Bank Insurance Fund or the Savings Association Insurance Fund” with “the Deposit Insurance Fund.”
The final rule deletes this entire part because the funds merger has made fund conversions and the accompanying entrance and exit fees obsolete. Also, Section 8(a)(4) of the Amendments Act expressly provides that any funds held in the SAIF exit fee reserve account provided for in section 312.5(e) be deposited into the general fund of the DIF. This action was effectuated upon the merger of the funds.
As a result of the Reform Act, the FDIC is in the process of revamping its risk-based assessment system. Technical changes to part 327 involving the funds merger will be made as part of the FDIC's future rulemaking to implement the substantive overhaul of the assessment system. Section 2109 of the Reform Act specifies that, during the interim period between the time of the funds merger and the effective date of new assessment regulations, the existing assessment regulations shall apply to all DIF members, even though they may refer to BIF members or SAIF members.
The final rule revises section 336.3(f) by replacing “Bank Insurance Fund, the Savings Association Insurance Fund” with “Deposit Insurance Fund, the former Bank Insurance Fund, the former Savings Association Insurance Fund.”
The final rule revises section 347.202(u) by replacing “Bank Insurance Fund” with “Deposit Insurance Fund.” Sections 347.209(a) and 347.209(b)(3) are revised by replacing “deposit insurance fund” in each place it appears with “Deposit Insurance Fund.” Also, in section 347.212(b) “affected deposit insurance fund” is replaced by “Deposit Insurance Fund.”
The final rule revises a cross-reference citation in section 348.6(d).
The final rule revises section 357.1(a) by replacing “Savings Association Insurance Fund members” with “insured savings associations.”
Part 362 is revised: in section 362.1(d) by replacing “deposit insurance funds” with “Deposit Insurance Fund”; in section 362.2(p) by replacing “deposit insurance fund” with “Deposit Insurance Fund” and replacing “any insurance fund” with “the Deposit Insurance Fund”; in section 362.3(a)(2)(iii)(A)(2) by replacing “appropriate deposit insurance fund” with “Deposit Insurance Fund” in section 362.3(b)(2)(i) by replacing “affected deposit insurance fund” and “deposit insurance funds” with “Deposit Insurance Fund”; in section 362.3(b)(2)(iii)(A) and (B) by replacing references to “deposit insurance funds” with “Deposit Insurance Fund”; in section 362.4(b)(1) by replacing “affected deposit insurance fund” with “Deposit Insurance Fund”; in sections 362.4(b)(3), 362.4(b)(5), 362.4(b)(6), 362.4(b)(7) and 362.9(c) by replacing “deposit insurance funds” with “Deposit Insurance Fund”; and in sections 362.11 and 362.12 by replacing all references to “affected deposit insurance fund” with “Deposit Insurance Fund” and by replacing all references to “deposit insurance funds” with “Deposit Insurance Fund.”
Part 363 is revised by replacing “affected deposit insurance fund” in section 363.1(b)(3) with “Deposit Insurance Fund.”
Part 364 (Appendix A I. vi) is revised by replacing “deposit insurance funds” with “Deposit Insurance Fund.”
Section 366.3(d) and 366.5 are revised by replacing all references to “a federal deposit insurance fund” with “the Deposit Insurance Fund (or any predecessor deposit insurance fund).”
Section 367.2(s)(1) is revised by replacing “Bank Insurance Fund (BIF), the Savings Association Insurance Fund (SAIF)” with “the former Bank Insurance Fund (BIF), the former Savings Association Insurance Fund (SAIF) or the Deposit Insurance Fund”. Section 367.2(s)(3) is revised by replacing “or the BIF, the SAIF” with “or the former BIF, the former SAIF, the Deposit Insurance Fund.” Section 367.6(d) is revised by replacing “Federal deposit insurance funds” with “the Deposit Insurance Fund (or any predecessor deposit insurance fund).”
The revisions to the FDIC's regulations made by the final rule are all technical, conforming and non-discretionary changes required by the Reform Act and the Amendments Act incident to the merger of BIF and SAIF and the formation of the DIF. Thus, the FDIC Board of Directors has determined that the public notice and participation that ordinarily would be required by the Administrative Procedure Act (5 U.S.C. 553) before a regulation may take effect are unnecessary and that good cause exists for an exception to the customary 30-day delayed effective date.
The final rule will not create or modify any collections of information pursuant to the Paperwork Reduction Act (44 U.S.C. 3501 et seq.). Consequently, no information has been submitted to the Office of Management and Budget for review.
A regulatory flexibility analysis is required only when an agency must publish a notice of proposed rulemaking (5 U.S.C. 603, 604). Because the revisions to the FDIC's regulations are published in final form without a notice of proposed rulemaking, no regulatory flexibility analysis is required. Start Printed Page 20526
For the reasons stated above, the Board of Directors of the Federal Deposit Insurance Corporation hereby amends chapter III of title 12 of the Code of Federal Regulations as follows:
Authority: 12 U.S.C. 378, 1813, 1815, 1817, 1818, 1819, (Seventh and Tenth), 1820, 1823, 1828, 1831a, 1831e, 1831o, 1831p-1, 1831w, 1835a, 1843(l), 3104, 3105, 3108, 3207; 15 U.S.C. 1601-1607.
§ 303.62
§ 303.162
4. Section 303.162 (b) is amended by removing “federal deposit insurance funds” and adding in its place “Deposit Insurance Fund”.
5. Section 303.187 (a)(2)(vi) is amended by removing “Bank Insurance Fund” and adding in its place “Deposit Insurance Fund”.
§ 303.245
6. Section 303.245(a) is amended by removing “Bank Insurance Fund (BIF) or the Savings Association Insurance Fund (SAIF)” and adding in its place “Deposit Insurance Fund”.
§ 303.246
[Removed]; §§ 303.247, 303.248, 303.249, 303.250, 303.251 and 303.252 [Redesignated]
7. Section 303.246 is removed and sections 303.247, 303.248, 303.249, 303.250, 303.251 and 303.252 are redesignated, respectively, as sections 303.246, 303.247, 3030.248, 303.249, 303.250 and 303.251.
8. The authority citation continues to read as follows:
Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 93(b), 164, 505, 1815(e), 1817, 1818, 1820, 1828, 1829, 1829b, 1831i, 1831m(g)(4), 1831o, 1831p-1, 1832(c), 1884(b), 1972, 3102, 3108(a), 3349, 3909, 4717; 15 U.S.C. 78(h) and (i), 78o-4(c), 78o-5, 78q-1, 78s, 78u, 78u-2, 78u-3, and 78w, 6801(b), 6805(b)(1); 28 U.S.C. 2461 note; 31 U.S.C. 330, 5321; 42 U.S.C. 4012a; Sec. 3100(s), Pub. L. 104-134, 110 Stat. 1321-358.
9. Section 308.111(f) is amended by removing “Bank Insurance Fund or the Savings Association Insurance Fund” and adding in its place “Deposit Insurance Fund”.
10. Under section 8 of the Federal Deposit Insurance Reform Conforming Amendments Act of 2005 (
Start Printed Page 20527 Authority: 12 U.S.C. 1813, 1815, 1817, 1819, 1820, 1828, 3103, 3104, 3105, 3108, 3109; Title IX, Pub. L. 98-181, 97 Stat. 1153.
14. Section 347.202(u) is amended by removing “Bank Insurance Fund” and adding in its place “Deposit Insurance Fund”.
15. Section 347.209(a) and (b)(3) are amended by removing “deposit insurance fund” in each place it appears and adding in its place “Deposit Insurance Fund'.
16. Section 347.212(b) is amended by removing “affected deposit insurance fund” and adding in its place “Deposit Insurance Fund”.
18. Section 348.6(d) is amended by removing “
Authority: 12 U.S.C. 1819(k)(5).
20. Section 357.1(a) is amended by removing “Savings Association Insurance Fund members” and adding in its place “insured savings associations”.
Authority: 12 U.S.C. 1816, 1818, 1819(a)(Tenth), 1828(j), 1828(m), 1828a, 1831e, 1831w, 1843(l).
22. Section 362.1(d) is amended by removing “deposit insurance funds” and adding in its place “Deposit Insurance Fund”.
23. Section 362.2(p) is amended by removing “deposit insurance fund” and adding in its place “Deposit Insurance Fund” and removing “any insurance fund” and adding in its place “the Deposit Insurance Fund”.
§ 362.3
A. Paragraph (a)(2)(iii)(A)(2) is amended by removing “appropriate deposit insurance fund” and adding in its place “Deposit Insurance Fund”.
B. Paragraph (b)(2)(i) is amended by removing “affected deposit insurance fund” and adding in its place “Deposit Insurance Fund” and by removing “deposit insurance funds” and adding in its place “Deposit Insurance Fund”.
C. Paragraphs (b)(2)(iii)(A) and (B) are amended by removing “deposit insurance funds” in both places it appears and adding in each place “Deposit Insurance Fund”.
A. Paragraph (b)(1) is amended by removing “affected deposit insurance fund” and adding in its place “Deposit Insurance Fund” and by removing “deposit insurance funds” and adding in its place “Deposit Insurance Fund”.
B. Paragraphs (b)(3), (b)(5), (b)(6), and (b)(7) are amended by removing “deposit insurance funds” in each place it appears and adding in each such place “Deposit Insurance Fund”.
26. Section 362.9(c) is amended by removing “deposit insurance funds” and adding in its place “Deposit Insurance Fund”.
27-28. Section 362.11 is amended by removing “affected deposit insurance fund” each place it appears and adding in each such place “Deposit Insurance Fund” and by removing “deposit insurance funds” each place it appears and adding in each such place “Deposit Insurance Fund”.
29. Section 362.12 is amended by removing “affected deposit insurance fund” each place it appears and adding in each such place “Deposit Insurance Fund” and by removing “deposit insurance funds” each place it appears and adding in each such place “Deposit Insurance Fund”.
31. Section 363.1(b)(3) is amended by removing “affected deposit insurance fund” and adding in its place “Deposit Insurance Fund”.
33. Appendix A I. vi, is amended by removing “deposit insurance funds” and adding in its place “Deposit Insurance Fund”.
35. Section 366.3(d) is amended by removing “a federal deposit insurance fund” and adding in its place “the Deposit Insurance Fund (or any predecessor deposit insurance fund)”.
36. Section 366.5 introductory text is amended by removing “a federal deposit insurance fund” and adding in its place “the Deposit Insurance Fund (or any predecessor deposit insurance fund)”.
Authority: 12 U.S.C. 1822(f)(4) and (5).
38. Amend § 367.2 as follows:
A. Paragraph (s)(1) is amended by removing “Bank Insurance Fund (BIF), the Savings Association Insurance Fund (SAIF)” and adding in its place “former
B. Paragraph (s)(3) is amended by removing “or the BIF, the SAIF” and adding in its place “or the former BIF, the former SAIF, the Deposit Insurance Fund”.
§ 367.6
39. Section 367.6(d) is amended by removing “Federal deposit insurance funds” and adding in its place “Deposit Insurance Fund (or any predecessor deposit insurance fund)”.
Dated at Washington DC, this 4th day of April, 2006.
1. FICO is a mixed-ownership government corporation created in 1987 to recapitalize the Federal Savings and Loan Insurance Corporation (“FSLIC”) by issuing bonds to purchase capital stock or capital certificates issued by the FSLIC. FICO issued 30-year non-callable bonds of approximately $8.2 billion that mature in 2017 through 2019. Competitive Equality Banking Act, Public Law 100-86, Title III, amending section 21 of the Federal Home Loan Bank Act, 12 U.S.C. 1441.
[FR Doc. 06-3721 Filed 4-20-06; 8:45 am]