5-4-05,
Bill Passed House 413-10
Referred to Senate
109th CONGRESS
1st Session
H. R. 1185
IN THE SENATE OF THE UNITED STATES
May 9, 2005
Received; read twice and referred to the Committee on Banking, Housing, and
Urban Affairs
AN ACT
To reform the Federal deposit insurance system, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Federal Deposit Insurance Reform
Act of 2005'.
(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
further 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 Insurance
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.
(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 LIABILITIES- All assets and liabilities of
the Bank Insurance 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 Savings Association Insurance Fund shall cease on the effective
date of the merger thereof under this section.
(b) Repeal of Outdated Merger Provision- Section 2704 of the Deposit Insurance
Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.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 amended--
(1) by striking subparagraph (B) and inserting the following new subparagraph:
`(B) NET AMOUNT OF INSURED DEPOSIT- The net amount due to any depositor
at an insured depository institution shall not exceed the standard maximum
deposit insurance amount as determined in accordance with subparagraphs
(C), (D), (E) and (F) and paragraph (3).'; and
(2) by adding at the end the following new subparagraphs:
`(E) STANDARD MAXIMUM DEPOSIT INSURANCE 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 2005,
$100,000; and
`(ii) on and after such effective date, $130,000, adjusted as provided
under subparagraph (F).
`(F) INFLATION ADJUSTMENT-
`(i) IN GENERAL- By April 1 of 2007, 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 maximum 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--
`(II) the ratio of the value of the Personal Consumption Expenditures
Chain-Type Index (or any successor index thereto), published by the
Department of Commerce, as of December 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 subparagraph takes effect.
`(ii) ROUNDING- If the amount determined 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 insurance amount and
the standard maximum share insurance amount under such clause, the Board
of Directors and the National Credit Union Administration Board shall--
`(I) publish in the Federal Register the standard maximum deposit
insurance amount, the standard maximum share insurance amount, and
the amount of coverage under paragraph (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 PERIOD- 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 increase in
the standard maximum deposit insurance amount and the standard maximum
share insurance amount shall take effect on January 1 of the year immediately
succeeding such calendar year.'.
(b) Coverage for Certain Employee Benefit Plan Deposits- Section 11(a)(1)(D)
of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)(D)) is amended
to read as follows:
`(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 capitalized 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 `adequately
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 Internal
Revenue Code of 1986.
`(III) PASS-THROUGH DEPOSIT INSURANCE- The term `pass-through deposit
insurance' means, with respect to an employee benefit plan, deposit
insurance coverage provided on a pro rata basis to the participants
in the plan, in accordance with the interest of each participant.'.
(c) Doubling of Deposit Insurance for Certain Retirement Accounts- Section
11(a)(3)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(3)(A))
is amended by striking `$100,000' and inserting `2 times the standard maximum
deposit insurance amount (as determined under paragraph (1))'.
(d) Increased Insurance Coverage for Municipal Deposits- Section 11(a)(2)
of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(2)) is amended--
(1) in subparagraph (A)--
(A) by moving the margins of clauses (i) through (v) 4 ems to the right;
(B) by striking, in the matter following clause (v), `such depositor shall'
and all that follows through the period; and
(C) by striking the semicolon at the end of clause (v) and inserting a
period;
(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 insurance 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 distinct 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 subparagraph (B), the deposits of a municipal
depositor shall be insured in an amount equal to the standard maximum
deposit insurance amount (as determined under paragraph (1)).
`(B) IN-STATE MUNICIPAL DEPOSITORS- In the case of the deposits of an
in-State municipal depositor described in clause (ii), (iii), (iv), or
(v) of subparagraph (E) at an insured depository institution, such deposits
shall be insured in an amount not to exceed the lesser of--
`(ii) the sum of the standard maximum 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
institutions within its jurisdiction the authority to accept deposits
insured under this paragraph, or prohibit the making of such deposits
in such institutions by any in-State municipal depositor.
`(D) IN-STATE MUNICIPAL DEPOSITOR DEFINED- 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 depository
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--';
(3) by striking `(B) The' and inserting the following:
`(F) AUTHORITY TO LIMIT DEPOSITS- The'; and
(4) by striking `depositor referred to in subparagraph (A) of this paragraph'
each place such term appears and inserting `municipal depositor'.
(e) Technical and Conforming Amendment Relating to Insurance of Trust Funds-
Paragraphs (1) and (3) of section 7(i) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(i)) are each amended by striking `$100,000' and inserting
`the standard maximum deposit insurance amount (as determined under section
11(a)(1))'.
(f) Other Technical and Conforming Amendments-
(1) Section 11(m)(6) of the Federal Deposit Insurance 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:
`(1) INSURED DEPOSITORY INSTITUTIONS-
`(A) IN GENERAL- Each insured depository institution shall display at
each place of business maintained by that institution a sign or signs
relating to the insurance of the deposits of the institution, in accordance
with regulations 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, including regulations governing the substance of signs
required by paragraph (1) and the manner of display or use of such signs.
`(3) PENALTIES- For each day that an insured depository institution continues
to violate this subsection or any regulation issued under this subsection,
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 Insurance Act (12 U.S.C. 1831t(d))
is amended by striking `$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 insurance 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 insurance as determined under section 11(a)(1)
of the Federal Deposit Insurance Act.'.
(g) Conforming Change to Credit Union Share Insurance Fund-
(1) IN GENERAL- Section 207(k) of the Federal Credit Union Act (12 U.S.C.
1787(k)) is amended--
(A) by striking `(k)(1)' and all that follows through the end of paragraph
(1) and inserting the following:
`(k) Insured Amounts Payable-
`(A) IN GENERAL- Subject to the provisions 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 maximum share insurance amount, as determined in accordance
with this paragraph and paragraphs (5) and (6), and consistently with
actions 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
subparagraph (A), shall be in accordance with such regulations as the
Board may prescribe, and, in determining the amount payable to any member,
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 such classifications and exceptions as it may prescribe, the extent
of the share insurance coverage provided for member accounts, including
member accounts in the name of a minor, in trust, or in joint tenancy.';
(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 period; and
(III) by striking the semicolon at the end of clause (v) and inserting
a period;
(ii) by striking `(2)(A) Notwithstanding' and all that follows through
`a depositor or member who is--' and inserting 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 available to
any 1 depositor or member, deposits or shares of a municipal depositor
or member 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 municipal 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--
`(ii) the sum of the standard maximum 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 provision of this paragraph shall be construed
as authorizing 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.
`(D) IN-STATE MUNICIPAL DEPOSITOR DEFINED- 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 depositor are held.
`(E) MUNICIPAL DEPOSITOR- In this paragraph, the term `municipal depositor'
means a depositor that is--';
(iii) by striking `(B) The' and inserting the following:
`(F) AUTHORITY TO LIMIT DEPOSITS- The'; and
(iv) by striking `depositor or member referred to in subparagraph (A)'
and inserting `municipal depositor or member'; and
(C) by adding at the end the following new paragraphs:
`(4) COVERAGE FOR CERTAIN EMPLOYEE BENEFIT PLAN DEPOSITS-
`(A) PASS-THROUGH INSURANCE- The Administration shall provide pass-through
share insurance for the deposits or shares of any employee 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 Employee
Retirement Income Security Act of 1974;
`(II) includes any plan described in section 401(d) of the Internal
Revenue Code of 1986; and
`(III) includes any eligible deferred compensation plan described
in section 457 of the Internal Revenue Code of 1986.
`(iii) PASS-THROUGH SHARE INSURANCE- The term `pass-through share insurance'
means, with respect to an employee benefit plan, insurance coverage
provided on a pro rata basis to the participants in the plan, in accordance
with the interest of each participant.
`(D) RULE OF CONSTRUCTION- No provision of this paragraph shall be construed
as authorizing an insured credit union to accept the deposits of an employee
benefit plan in an amount greater than such credit union is authorized
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 regulations prescribed pursuant
to section 9(a)(2) of the Federal Deposit Insurance Reform Act of 2005,
$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 CERTAIN 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 amendments made by this section shall
take effect on the date the final regulations required under section 9(a)(2)
take effect.
SEC. 4. SETTING ASSESSMENTS AND REPEAL OF SPECIAL RULES RELATING TO MINIMUM
ASSESSMENTS 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 institutions in such amounts as the Board of Directors may
determine to be necessary or appropriate, subject to subparagraph (D).
`(B) FACTORS TO BE CONSIDERED- In setting 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 expenses and income of the Deposit
Insurance Fund.
`(iii) The projected effects of the payment 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 paragraph to maintain a risk-based system.
`(v) Any other factors the Board of Directors may determine to be appropriate.';
and
(2) by inserting after subparagraph (C) the following new subparagraph:
`(D) BASE RATE FOR ASSESSMENTS-
`(i) IN GENERAL- In setting assessment rates pursuant to subparagraph
(A), the Board of Directors shall establish a base rate of not more
than 1 basis point (exclusive of any credit or dividend) for those insured
depository institutions in the lowest-risk category under the risk-based
assessment system established pursuant to paragraph (1). No insured
depository institution shall be barred from the lowest-risk category
solely because of size.
`(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 insured deposits.'.
(b) Assessment Recordkeeping Period Shortened- Paragraph (5) of section 7(b)
of the Federal Deposit 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 insured 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 insured depository institution
and the Corporation with respect to such assessment, the date of a final
determination of any such dispute.'.
(c) Increase in Fees for Late Assessment Payments- 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 Assessments-
`(1) IN GENERAL- Subject to paragraph (3), any insured depository institution
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- Paragraph (1) shall not apply if--
`(A) the failure to pay an assessment is due to a dispute between the
insured depository institution and the Corporation over the amount of
such assessment; and
`(B) the insured depository institution deposits security satisfactory
to the Corporation for payment upon final determination of the issue.
`(3) SPECIAL RULE FOR SMALL ASSESSMENT AMOUNTS- If the amount of the assessment
which an insured depository institution fails or refuses to pay is less
than $10,000 at the time of such failure or refusal, the amount of any penalty
to which such institution is subject under paragraph (1) shall not exceed
$100 for each day that such violation continues.
`(4) AUTHORITY TO MODIFY OR REMIT PENALTY- The Corporation, in the sole
discretion of the Corporation, may compromise, modify or remit any penalty
which the Corporation may assess or has already assessed under paragraph
(1) upon a finding that good cause prevented the timely payment of an assessment.'.
(d) 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 subsection
(c).
(2) CLARIFICATION OF RATE APPLICABLE TO DEPOSITS ATTRIBUTABLE TO LIFELINE
ACCOUNTS- Section 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 applicable
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'.
(e) 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 Insurance Act (12 U.S.C. 1817(b)(2))
is amended--
(A) by striking subparagraphs (E), (F), and (G);
(B) in subparagraph (C), by striking `semiannual'; 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))
is amended by striking paragraph (4) and redesignating paragraphs (5) (as
amended by subsection (b) of this section), (6), and (7) as paragraphs (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 `semiannual';
(B) in paragraph (2)(A), by striking `semiannual'; and
(C) in paragraph (3), by striking `semiannual period' and inserting `initial
assessment period'.
(6) Section 8(p) of the Federal Deposit Insurance Act (12 U.S.C. 1818(p))
is amended by striking `semiannual'.
(7) Section 8(q) of the Federal Deposit Insurance Act (12 U.S.C. 1818(q))
is amended by striking `semiannual period' and inserting `assessment period'.
(8) Section 13(c)(4)(G)(ii)(II) of the Federal Deposit Insurance Act (12
U.S.C. 1823(c)(4)(G)(ii)(II)) is amended by striking `semiannual period'
and inserting `assessment period'.
(9) Section 232(a) of the Federal Deposit Insurance 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 Corporation';
(C) by striking subparagraph (A) of paragraph (3) and inserting the following
new subparagraph:
`(A) CORPORATION- The term `Corporation' means the Federal Deposit Insurance
Corporation.'; and
(D) in subparagraph (C) of paragraph (3), by striking `Board' and inserting
`Corporation'.
(f) Effective Date- This section and the amendments made by this section shall
take effect on the date that the final regulations required under section
9(a)(5) take effect.
SEC. 5. REPLACEMENT OF FIXED DESIGNATED RESERVE RATIO WITH RESERVE RANGE.
(a) In General- Section 7(b)(3) of the Federal Deposit Insurance Act (12 U.S.C.
1817(b)(3)) is amended to read as follows:
`(3) DESIGNATED RESERVE RATIO-
`(i) IN GENERAL- The Board of Directors shall designate, by regulation
after notice and opportunity for comment, the reserve ratio applicable
with respect to the Deposit Insurance Fund.
`(ii) NOT LESS THAN ANNUAL REDETERMINATION- A determination under clause
(i) shall be made by the Board of Directors at least before the beginning
of each calendar year, for such calendar year, and at such other times
as the Board of Directors 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 estimated 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 experience and potential
and estimated losses from insured depository institutions;
`(ii) take into account economic conditions generally affecting insured
depository institutions so as to allow the designated reserve ratio
to increase during more favorable 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 factors as the Board of Directors
may determine to be appropriate, consistent with the requirements of
this subparagraph.
`(D) PUBLICATION OF PROPOSED CHANGE IN RATIO- In soliciting comment on
any proposed 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- Section 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 designated by paragraph (1)
of this subsection) the following new paragraph:
`(2) DESIGNATED RESERVE RATIO- The term `designated reserve ratio' means
the reserve ratio designated by the Board of Directors in accordance with
section 7(b)(3).'.
(c) Effective Date- This section and the amendments made by this section shall
take effect on the date that the final regulations required under section
9(a)(1) take effect.
SEC. 6. 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 insured depository institutions and economic conditions generally
affecting depository institutions, the Corporation shall collect information,
as appropriate, from all sources the Board of Directors considers appropriate,
such as reports of condition, inspection reports, and other information
from all Federal banking agencies, any information available from State
bank supervisors, State insurance and securities regulators, the Securities
and Exchange Commission (including information described in section
35), the Secretary of the Treasury, the Commodity 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 entities,
and other private economic or business analysts.
`(ii) CONSULTATION WITH FEDERAL BANKING AGENCIES-
`(I) IN GENERAL- Except as provided in subclause (II), in assessing
the risk of loss to the Deposit Insurance Fund with respect to any
insured depository institution, the Corporation shall consult with
the appropriate Federal banking agency of such institution.
`(II) TREATMENT ON AGGREGATE BASIS- In the case of insured depository
institutions that are well capitalized (as defined in section 38)
and, in the most recent examination, were found to be well managed,
the consultation 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
construed as providing any new authority for the Corporation to require
submission of information by insured depository institutions to the
Corporation.
`(F) MODIFICATIONS TO THE RISK-BASED ASSESSMENT SYSTEM ALLOWED ONLY AFTER
NOTICE AND COMMENT- In revising or modifying the risk-based assessment
system at any time after the date of the enactment of the Federal Deposit
Insurance Reform Act of 2005, the Board of Directors may implement such
revisions or modification in final form only after notice and opportunity
for comment.'.
SEC. 7. REFUNDS, DIVIDENDS, AND CREDITS FROM DEPOSIT INSURANCE FUND.
(a) In General- Subsection (e) of section 7 of the Federal Deposit Insurance
Act (12 U.S.C. 1817(e)) is amended to read as follows:
`(e) Refunds, Dividends, and Credits-
`(1) REFUNDS OF OVERPAYMENTS- In the case of any payment of an assessment
by an insured depository institution in excess of the amount due to the
Corporation, the Corporation may--
`(A) refund the amount of the excess payment to the insured depository
institution; or
`(B) credit such excess amount toward the payment of subsequent assessments
until such credit is exhausted.
`(2) DIVIDENDS FROM EXCESS AMOUNTS IN DEPOSIT INSURANCE FUND-
`(A) RESERVE RATIO IN EXCESS OF 1.4 PERCENT OF ESTIMATED INSURED DEPOSITS-
Whenever the reserve ratio of the Deposit Insurance Fund exceeds 1.4 percent
of estimated insured deposits, the Corporation shall declare the amount
in the Fund in excess of the amount required to maintain the reserve ratio
at 1.4 percent of estimated insured deposits, as dividends to be paid
to insured depository institutions.
`(B) RESERVE RATIO EQUAL TO OR IN EXCESS OF 1.35 PERCENT OF ESTIMATED
INSURED DEPOSITS AND NOT MORE THAN 1.4 PERCENT- Whenever the reserve ratio
of the Deposit Insurance Fund equals or exceeds 1.35 percent of estimated
insured deposits and is not more 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 DIVIDENDS-
`(i) IN GENERAL- Solely for the purposes of dividend distribution under
this paragraph and credit distribution under paragraph (3)(B), the Corporation
shall determine each insured depository institution's relative contribution
to the Deposit Insurance Fund (or any predecessor deposit insurance
fund) for calculating such institution's share of any dividend or credit
declared under this paragraph or paragraph (3)(B), taking into account
the factors described in clause (ii).
`(ii) FACTORS FOR DISTRIBUTION- In implementing this paragraph and paragraph
(3)(B) in accordance with regulations, the Corporation shall take into
account the following factors:
`(I) The ratio of the assessment base of an insured depository institution
(including any predecessor) on December 31, 1996, to the assessment
base of all eligible insured depository institutions on that date.
`(II) The total amount of assessments paid on or after January 1,
1997, by an insured depository institution (including any predecessor)
to the Deposit Insurance Fund (and any predecessor deposit insurance
fund).
`(III) That portion of assessments paid by an insured depository institution
(including any predecessor) that reflects higher levels of risk assumed
by such institution.
`(IV) Such other factors as the Corporation may determine to be appropriate.
`(D) NOTICE AND OPPORTUNITY FOR COMMENT- The Corporation shall prescribe
by regulation, after notice and opportunity for comment, the method for
the calculation, declaration, and payment of dividends under this paragraph.
`(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 Insurance Reform Act of
2005, the Board of Directors shall, by regulation, provide for a credit
to each eligible insured depository institution, based on the assessment
base of the institution (including any predecessor institution) on December
31, 1996, as compared to the combined aggregate assessment base of all
eligible insured depository institutions, 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 institutions shall equal
the amount that the Corporation could collect if the Corporation imposed
an assessment of 12 basis points on the combined assessment base of
the Bank Insurance Fund and the Savings Association 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 subclause (I).
`(iv) APPLICATION OF CREDITS-
`(I) IN GENERAL- The amount of a credit to any eligible insured depository
institution under this paragraph shall be applied by the Corporation,
subject to subsection (b)(3)(E), to the assessments imposed on such
institution under subsection (b) that become due for assessment periods
beginning after the effective date of regulations prescribed under
clause (i).
`(II) REGULATIONS- The regulations prescribed under clause (i) shall
establish the qualifications and procedures governing the application
of assessment credits pursuant to subclause (I).
`(v) LIMITATION ON AMOUNT OF CREDIT FOR CERTAIN DEPOSITORY INSTITUTIONS-
In the case of an insured depository institution that exhibits financial,
operational, or compliance weaknesses ranging from moderately severe
to unsatisfactory, or is not adequately capitalized (as defined in section
38) at the beginning of an assessment period, the amount of any credit
allowed under this paragraph against the assessment on that depository
institution for such period may not exceed the amount calculated by
applying to that depository institution the average assessment rate
on all insured depository institutions for such assessment period.
`(vi) PREDECESSOR DEFINED- For purposes of this paragraph, the term
`predecessor', when used with respect to any insured depository institution,
includes any other insured depository institution acquired by or merged
with such insured depository institution.
`(B) ON-GOING CREDIT POOL-
`(i) IN GENERAL- In addition to the credit provided pursuant to subparagraph
(A) and subject to the limitation contained in clause (v) of such subparagraph,
the Corporation shall, by regulation, establish an on-going system of
credits to be applied against future assessments under subsection (b)(1)
on the same basis as the dividends provided under paragraph (2)(C).
`(ii) LIMITATION ON CREDITS UNDER CERTAIN CIRCUMSTANCES- No credits
may be awarded by the Corporation under this subparagraph during any
period in which--
`(I) the reserve ratio of the Deposit Insurance Fund is less than
the designated reserve ratio of such Fund; or
`(II) the reserve ratio of the Fund is less than 1.25 percent of the
amount of estimated insured deposits.
`(iii) CRITERIA FOR DETERMINATION- In determining the amounts of any
assessment credits under this subparagraph, the Board of Directors shall
take into account the factors for designating the reserve ratio under
subsection (b)(3) and the factors for setting assessments under subsection
(b)(2)(B).
`(4) ADMINISTRATIVE REVIEW-
`(A) IN GENERAL- The regulations prescribed under paragraph (2)(D) and
subparagraphs (A) and (B) of paragraph (3) shall include provisions allowing
an insured depository institution a reasonable opportunity to challenge
administratively the amount of the credit or dividend determined under
paragraph (2) or (3) for such institution.
`(B) ADMINISTRATIVE REVIEW- Any review under subparagraph (A) of any determination
of the Corporation under paragraph (2) or (3) shall be final and not subject
to judicial review.'.
(b) Definition of Reserve Ratio- Section 3(y) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(y)) (as amended by section 5(b) of this Act) is amended
by adding at the end the following new paragraph:
`(3) RESERVE RATIO- The term `reserve ratio', when used with regard to the
Deposit Insurance Fund other than in connection with a reference to the
designated reserve ratio, means the ratio of the net worth of the Deposit
Insurance Fund to the value of the aggregate estimated insured deposits.'.
SEC. 8. DEPOSIT INSURANCE FUND RESTORATION PLANS.
Section 7(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(3))
(as amended by section 5(a) of this Act) is amended by adding at the end the
following new subparagraph:
`(E) DIF RESTORATION PLANS-
`(i) IN GENERAL- Whenever--
`(I) the Corporation projects that the reserve ratio of the Deposit
Insurance Fund will, within 6 months of such determination, fall below
the minimum amount specified in subparagraph (B)(ii) for the designated
reserve ratio; or
`(II) the reserve ratio of the Deposit Insurance Fund actually falls
below the minimum amount specified in subparagraph (B)(ii) for the
designated reserve ratio without any determination under subclause
(I) having been made,
the Corporation shall establish and implement a Deposit Insurance Fund
restoration plan within 90 days that meets the requirements of clause
(ii) and such other conditions as the Corporation determines to be appropriate.
`(ii) REQUIREMENTS OF RESTORATION PLAN- A Deposit Insurance Fund restoration
plan meets the requirements of this clause if the plan provides that
the reserve ratio of the Fund will meet or exceed the minimum amount
specified in subparagraph (B)(ii) for the designated reserve ratio before
the end of the 10-year period beginning upon the implementation of the
plan.
`(iii) RESTRICTION ON ASSESSMENT CREDITS- As part of any restoration
plan under this subparagraph, the Corporation may elect to restrict
the application of assessment credits provided under subsection (e)(3)
for any period that the plan is in effect.
`(iv) LIMITATION ON RESTRICTION- Notwithstanding clause (iii), while
any restoration plan under this subparagraph is in effect, the Corporation
shall apply credits provided to an insured depository institution under
subsection (e)(3) against any assessment imposed on the institution
for any assessment period in an amount equal to the lesser of--
`(I) the amount of the assessment; or
`(II) the amount equal to 3 basis points of the institution's assessment
base.
`(v) TRANSPARENCY- Not more than 30 days after the Corporation establishes
and implements a restoration plan under clause (i), the Corporation
shall publish in the Federal Register a detailed analysis of the factors
considered and the basis for the actions taken with regard to the plan.'.
SEC. 9. REGULATIONS REQUIRED.
(a) In General- Not later than 270 days after the date of the enactment of
this Act, the Board of Directors of the Federal Deposit Insurance Corporation
shall prescribe final regulations, after notice and opportunity for comment--
(1) designating the reserve ratio for the Deposit Insurance Fund in accordance
with section 7(b)(3) of the Federal Deposit Insurance Act (as amended by
section 5 of this Act);
(2) implementing increases in deposit insurance coverage in accordance with
the amendments made by section 3 of this Act;
(3) implementing the dividend requirement under section 7(e)(2) of the Federal
Deposit Insurance Act (as amended by section 7 of this Act);
(4) implementing the 1-time assessment credit to certain insured depository
institutions in accordance with section 7(e)(3) of the Federal Deposit Insurance
Act, as amended by section 7 of this Act, including the qualifications and
procedures under which the Corporation would apply assessment credits; and
(5) providing for assessments under section 7(b) of the Federal Deposit
Insurance Act, as amended by this Act.
(b) Rule of Construction- No provision of this Act or any amendment made by
this Act shall be construed as affecting the authority of the Corporation
to set or collect deposit insurance assessments before the effective date
of the final regulations prescribed under subsection (a).
SEC. 10. STUDIES OF FDIC STRUCTURE AND EXPENSES AND CERTAIN ACTIVITIES AND
FURTHER POSSIBLE CHANGES TO DEPOSIT INSURANCE SYSTEM.
(a) Study by Comptroller General-
(1) STUDY REQUIRED- The Comptroller General shall conduct a study of the
following issues:
(A) The efficiency and effectiveness of the administration of the prompt
corrective action program under section 38 of the Federal Deposit Insurance
Act by the Federal banking agencies (as defined in section 3 of such Act),
including the degree of effectiveness of such agencies in identifying
troubled depository institutions and taking effective action with respect
to such institutions, and the degree of accuracy of the risk assessments
made by the Corporation.
(B) The appropriateness of the organizational structure of the Federal
Deposit Insurance Corporation for the mission of the Corporation taking
into account--
(i) the current size and complexity of the business of insured depository
institutions (as such term is defined in section 3 of the Federal Deposit
Insurance Act);
(ii) the extent to which the organizational structure contributes to
or reduces operational inefficiencies that increase operational costs;
and
(iii) the effectiveness of internal controls.
(2) REPORT TO THE CONGRESS- The Comptroller General shall submit a report
to the Congress before the end of the 1-year period beginning on the date
of the enactment of this Act containing the findings and conclusions of
the Comptroller General with respect to the study required under paragraph
(1) together with such recommendations for legislative or administrative
action as the Comptroller General may determine to be appropriate.
(b) Study of Further Possible Changes to Deposit Insurance System-
(1) STUDY REQUIRED- The Board of Directors of the Federal Deposit Insurance
Corporation and the National Credit Union Administration Board shall each
conduct a study of the following:
(A) The feasibility of establishing a voluntary deposit insurance system
for deposits in excess of the maximum amount of deposit insurance for
any depositor and the potential benefits and the potential adverse consequences
that may result from the establishment of any such system.
(B) The feasibility of privatizing all deposit insurance at insured depository
institutions and insured credit unions.
(2) REPORT- Before the end of the 1-year period beginning on the date of
the enactment of this Act, the Board of Directors of the Federal Deposit
Insurance Corporation and the National Credit Union Administration Board
shall each submit a report to the Congress on the study required under paragraph
(1) containing the findings and conclusions of the reporting agency together
with such recommendations for legislative or administrative changes as the
agency may determine to be appropriate.
(c) Study Regarding Appropriate Deposit Base in Designating Reserve Ratio-
(1) STUDY REQUIRED- The Federal Deposit Insurance Corporation shall conduct
a study of the feasibility of using actual domestic deposits rather than
estimated insured deposits in calculating the reserve ratio of the Deposit
Insurance Fund and designating a reserve ratio for such Fund.
(2) REPORT- The Federal Deposit Insurance Corporation shall submit a report
to the Congress before the end of the 1-year period beginning on the date
of the enactment of this Act containing the findings and conclusions of
the Corporation with respect to the study required under paragraph (1) together
with such recommendations for legislative or administrative action as the
Board of Directors of the Corporation may determine to be appropriate.
(d) Study of Reserve Methodology and Accounting for Loss-
(1) STUDY REQUIRED- The Federal Deposit Insurance Corporation shall conduct
a study of the reserve methodology and loss accounting used by the Corporation
during the period beginning on January 1, 1992, and ending December 31,
2004, with respect to insured depository institutions in a troubled condition
(as defined in the regulations prescribed pursuant to section 32(f) of the
Federal Deposit Insurance Act). The Corporation shall obtain comments on
the design of the study from the Comptroller General.
(2) FACTORS TO BE INCLUDED- In conducting the study pursuant to paragraph
(1), the Federal Deposit Insurance Corporation shall--
(A) consider the overall effectiveness and accuracy of the methodology
used by the Corporation for establishing and maintaining reserves and
estimating and accounting for losses at insured depository institutions,
during the period described in such paragraph;
(B) consider the appropriateness and reliability of information and criteria
used by the Corporation in determining--
(i) whether an insured depository institution was in a troubled condition;
and
(ii) the amount of any loss anticipated at such institution;
(C) analyze the actual historical loss experience over the period described
in paragraph (1) and the causes of the exceptionally high rate of losses
experienced by the Corporation in the final 3 years of that period; and
(D) rate the efforts of the Corporation to reduce losses in such 3-year
period to minimally acceptable levels and to historical levels.
(3) REPORT REQUIRED- The Board of Directors of the Federal Deposit Insurance
Corporation shall submit a report to the Congress before the end of the
6-month period beginning on the date of the enactment of this Act, containing
the findings and conclusions of the Corporation with respect to the study
required under paragraph (1), together with such recommendations for legislative
or administrative action as the Board of Directors may determine to be appropriate.
Before submitting the report to Congress, the Board of Directors shall provide
a draft of the report to the Comptroller General for comment.
SEC. 11. BI-ANNUAL FDIC SURVEY AND REPORT ON INCREASING THE DEPOSIT BASE
BY ENCOURAGING USE OF DEPOSITORY INSTITUTIONS BY THE UNBANKED.
The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by adding
at the end the following new section:
`SEC. 49. BI-ANNUAL FDIC SURVEY AND REPORT ON ENCOURAGING USE OF DEPOSITORY
INSTITUTIONS BY THE UNBANKED.
`(1) IN GENERAL- The Corporation shall conduct a bi-annual survey on efforts
by insured depository institutions to bring those individuals and families
who have rarely, if ever, held a checking account, a savings account or
other type of transaction or check cashing account at an insured depository
institution (hereafter in this section referred to as the `unbanked') into
the conventional finance system.
`(2) FACTORS AND QUESTIONS TO CONSIDER- In conducting the survey, the Corporation
shall take the following factors and questions into account:
`(A) To what extent do insured depository institutions promote financial
education and financial literacy outreach?
`(B) Which financial education efforts appear to be the most effective
in bringing `unbanked' individuals and families into the conventional
finance system?
`(C) What efforts are insured institutions making at converting `unbanked'
money order, wire transfer, and international remittance customers into
conventional account holders?
`(D) What cultural, language and identification issues as well as transaction
costs appear to most prevent `unbanked' individuals from establishing
conventional accounts?
`(E) What is a fair estimate of the size and worth of the `unbanked' market
in the United States?
`(b) Reports- The Chairperson of the Board of Directors shall submit a bi-annual
report to the Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the Senate containing
the Corporation's findings and conclusions with respect to the survey conducted
pursuant to subsection (a), together with such recommendations for legislative
or administrative action as the Chairperson may determine to be appropriate.'.
SEC. 12. TECHNICAL AND CONFORMING AMENDMENTS TO THE FEDERAL DEPOSIT INSURANCE
ACT RELATING TO THE MERGER OF THE BIF AND SAIF.
(a) In General- The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.)
is amended--
(1) in section 3 (12 U.S.C. 1813)--
(A) by striking subparagraph (B) of subsection (a)(1) and inserting the
following new subparagraph:
`(B) includes any former savings association.'; and
(B) by striking paragraph (1) of subsection (y) (as so designated by section
5(b) of this Act) and inserting the following new paragraph:
`(1) DEPOSIT INSURANCE FUND- The term `Deposit Insurance Fund' means the
Deposit Insurance Fund established under section 11(a)(4).';
(2) in section 5(b)(5) (12 U.S.C. 1815(b)(5)), by striking `the Bank Insurance
Fund or the Savings Association Insurance Fund,' and inserting `the Deposit
Insurance Fund,';
(3) in section 5(c)(4), by striking `deposit insurance fund' and inserting
`Deposit Insurance Fund';
(4) in section 5(d) (12 U.S.C. 1815(d)), by striking paragraphs (2) and
(3) (and any funds resulting from the application of such paragraph (2)
prior to its repeal shall be deposited into the general fund of the Deposit
Insurance Fund);
(5) in section 5(d)(1) (12 U.S.C. 1815(d)(1))--
(A) in subparagraph (A), by striking `reserve ratios in the Bank Insurance
Fund and the Savings Association Insurance Fund as required by section
7' and inserting `the reserve ratio of the Deposit Insurance Fund';
(B) by striking subparagraph (B) and inserting the following:
`(2) FEE CREDITED TO THE DEPOSIT INSURANCE FUND- The fee paid by the depository
institution under paragraph (1) shall be credited to the Deposit Insurance
Fund.';
(C) by striking `(1) UNINSURED INSTITUTIONS- '; and
(D) by redesignating subparagraphs (A) and (C) as paragraphs (1) and (3),
respectively, and moving the left margins 2 ems to the left;
(6) in section 5(e) (12 U.S.C. 1815(e))--
(A) in paragraph (5)(A), by striking `Bank Insurance Fund or the Savings
Association Insurance Fund' and inserting `Deposit Insurance Fund';
(B) by striking paragraph (6); and
(C) by redesignating paragraphs (7), (8), and (9) as paragraphs (6), (7),
and (8), respectively;
(7) in section 6(5) (12 U.S.C. 1816(5)), by striking `Bank Insurance Fund
or the Savings Association Insurance Fund' and inserting `Deposit Insurance
Fund';
(8) in section 7(b) (12 U.S.C. 1817(b))--
(A) in paragraph (1)(C), by striking `deposit insurance fund' each place
that term appears and inserting `Deposit Insurance Fund';
(B) in paragraph (1)(D), by striking `each deposit insurance fund' and
inserting `the Deposit Insurance Fund'; and
(C) in paragraph (5) (as so redesignated by section 4(e)(4) of this Act)--
(i) by striking `any such assessment' and inserting `any such assessment
is necessary';
(ii) by striking subparagraph (B);
(iii) in subparagraph (A)--
(I) by striking `(A) is necessary--';
(II) by striking `Bank Insurance Fund members' and inserting `insured
depository institutions'; and
(III) by redesignating clauses (i), (ii), and (iii) as subparagraphs
(A), (B), and (C), respectively, and moving the margins 2 ems to the
left; and
(iv) in subparagraph (C) (as so redesignated)--
(I) by inserting `that' before `the Corporation'; and
(II) by striking `; and' and inserting a period;
(9) in section 7(j)(7)(F) (12 U.S.C. 1817(j)(7)(F)), by striking `Bank Insurance
Fund or the Savings Association Insurance Fund' and inserting `Deposit Insurance
Fund';
(10) in section 8(t)(2)(C) (12 U.S.C. 1818(t)(2)(C)), by striking `deposit
insurance fund' and inserting `Deposit Insurance Fund';
(11) in section 11 (12 U.S.C. 1821)--
(A) by striking `deposit insurance fund' each place that term appears
and inserting `Deposit Insurance Fund';
(B) by striking paragraph (4) of subsection (a) and inserting the following
new paragraph:
`(4) DEPOSIT INSURANCE FUND-
`(A) ESTABLISHMENT- There is established the Deposit Insurance Fund, which
the Corporation shall--
`(i) maintain and administer;
`(ii) use to carry out its insurance purposes, in the manner provided
by this subsection; and
`(iii) invest in accordance with section 13(a).
`(B) USES- The Deposit Insurance Fund shall be available to the Corporation
for use with respect to insured depository institutions the deposits of
which are insured by the Deposit Insurance Fund.
`(C) LIMITATION ON USE- Notwithstanding any provision of law other than
section 13(c)(4)(G), the Deposit Insurance Fund shall not be used in any
manner to benefit any shareholder or affiliate (other than an insured
depository institution that receives assistance in accordance with the
provisions of this Act) of--
`(i) any insured depository institution for which the Corporation has
been appointed conservator or receiver, in connection with any type
of resolution by the Corporation;
`(ii) any other insured depository institution in default or in danger
of default, in connection with any type of resolution by the Corporation;
or
`(iii) any insured depository institution, in connection with the provision
of assistance under this section or section 13 with respect to such
institution, except that this clause shall not prohibit any assistance
to any insured depository institution that is not in default, or that
is not in danger of default, that is acquiring (as defined in section
13(f)(8)(B)) another insured depository institution.
`(D) DEPOSITS- All amounts assessed against insured depository institutions
by the Corporation shall be deposited into the Deposit Insurance Fund.';
(C) by striking paragraphs (5), (6), and (7) of subsection (a); and
(D) by redesignating paragraph (8) of subsection (a) as paragraph (5);
(12) in section 11(f)(1) (12 U.S.C. 1821(f)(1)), by striking `, except that--'
and all that follows through the end of the paragraph and inserting a period;
(13) in section 11(i)(3) (12 U.S.C. 1821(i)(3))--
(A) by striking subparagraph (B);
(B) by redesignating subparagraph (C) as subparagraph (B); and
(C) in subparagraph (B) (as so redesignated), by striking `subparagraphs
(A) and (B)' and inserting `subparagraph (A)';
(14) in section 11(p)(2)(B) (12 U.S.C. 1821(p)(2)(B)), by striking `institution,
any' and inserting `institution, the';
(15) in section 11A(a) (12 U.S.C. 1821a(a))--
(A) in paragraph (2), by striking `LIABILITIES- ' and all that follows
through `Except' and inserting `LIABILITIES- Except';
(B) by striking paragraph (2)(B); and
(C) in paragraph (3), by striking `the Bank Insurance Fund, the Savings
Association Insurance Fund,' and inserting `the Deposit Insurance Fund';
(16) in section 11A(b) (12 U.S.C. 1821a(b)), by striking paragraph (4);
(17) in section 11A(f) (12 U.S.C. 1821a(f)), by striking `Savings Association
Insurance Fund' and inserting `Deposit Insurance Fund';
(18) in section 12(f)(4)(E)(iv) (12 U.S.C. 1822(f)(4)(E)(iv)), by striking
`Federal deposit insurance funds' and inserting `the Deposit Insurance Fund
(or any predecessor deposit insurance fund)';
(19) in section 13 (12 U.S.C. 1823)--
(A) by striking `deposit insurance fund' each place that term appears
and inserting `Deposit Insurance Fund';
(B) in subsection (a)(1), by striking `Bank Insurance Fund, the Savings
Association Insurance Fund,' and inserting `Deposit Insurance Fund';
(C) in subsection (c)(4)(E)--
(i) in the subparagraph heading, by striking `funds' and inserting `fund';
and
(ii) in clause (i), by striking `any insurance fund' and inserting `the
Deposit Insurance Fund';
(D) in subsection (c)(4)(G)(ii)--
(i) by striking `appropriate insurance fund' and inserting `Deposit
Insurance Fund';
(ii) by striking `the members of the insurance fund (of which such institution
is a member)' and inserting `insured depository institutions';
(iii) by striking `each member's' and inserting `each insured depository
institution's'; and
(iv) by striking `the member's' each place that term appears and inserting
`the institution's';
(E) in subsection (c), by striking paragraph (11);
(F) in subsection (h), by striking `Bank Insurance Fund' and inserting
`Deposit Insurance Fund';
(G) in subsection (k)(4)(B)(i), by striking `Savings Association Insurance
Fund member' and inserting `savings association'; and
(H) in subsection (k)(5)(A), by striking `Savings Association Insurance
Fund members' and inserting `savings associations';
(20) in section 14(a) (12 U.S.C. 1824(a)), in the 5th sentence--
(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 inserting `the Deposit Insurance
Fund';
(21) in section 14(b) (12 U.S.C. 1824(b)), by striking `Bank Insurance Fund
or Savings Association Insurance Fund' and inserting `Deposit Insurance
Fund';
(22) in section 14(c) (12 U.S.C. 1824(c)), by striking paragraph (3);
(23) in section 14(d) (12 U.S.C. 1824(d))--
(A) by striking `Bank Insurance Fund member' each place that term appears
and inserting `insured depository institution';
(B) by striking `Bank Insurance Fund members' each place that term appears
and inserting `insured depository institutions';
(C) by striking `Bank Insurance Fund' each place that term appears (other
than in connection with a reference to a term amended by subparagraph
(A) or (B) of this paragraph) and inserting `Deposit Insurance Fund';
(D) by striking the subsection heading and inserting the following:
`(d) Borrowing for the Deposit Insurance Fund From Insured Depository Institutions-
';
(E) in paragraph (3), in the paragraph heading, by striking `BIF' and
inserting `THE DEPOSIT INSURANCE FUND'; and
(F) in paragraph (5), in the paragraph heading, by striking `BIF MEMBERS'
and inserting `INSURED DEPOSITORY INSTITUTIONS';
(24) in section 14 (12 U.S.C. 1824), by adding at the end the following
new subsection:
`(e) Borrowing for the Deposit Insurance Fund From Federal Home Loan Banks-
`(1) IN GENERAL- The Corporation may borrow from the Federal home loan banks,
with the concurrence of the Federal Housing Finance Board, such funds as
the Corporation considers necessary for the use of the Deposit Insurance
Fund.
`(2) TERMS AND CONDITIONS- Any loan from any Federal home loan bank under
paragraph (1) to the Deposit Insurance Fund shall--
`(A) bear a rate of interest of not less than the current marginal cost
of funds to that bank, taking into account the maturities involved;
`(B) be adequately secured, as determined by the Federal Housing Finance
Board;
`(C) be a direct liability of the Deposit Insurance Fund; and
`(D) be subject to the limitations of section 15(c).';
(25) in section 15(c)(5) (12 U.S.C. 1825(c)(5))--
(A) by striking `the Bank Insurance Fund or Savings Association Insurance
Fund, respectively' each place that term appears and inserting `the Deposit
Insurance Fund'; and
(B) in subparagraph (B), by striking `the Bank Insurance Fund or the Savings
Association Insurance Fund, respectively' and inserting `the Deposit Insurance
Fund';
(26) in section 17(a) (12 U.S.C. 1827(a))--
(A) in the subsection heading, by striking `BIF, SAIF,' and inserting
`the Deposit Insurance Fund'; and
(i) by striking `the Bank Insurance Fund, the Savings Association Insurance
Fund,' each place that term appears and inserting `the Deposit Insurance
Fund'; and
(ii) in subparagraph (D), by striking `each insurance fund' and inserting
`the Deposit Insurance Fund';
(27) in section 17(d) (12 U.S.C. 1827(d)), by striking `, the Bank Insurance
Fund, the Savings Association Insurance Fund,' each place that term appears
and inserting `the Deposit Insurance Fund';
(28) in section 18(m)(3) (12 U.S.C. 1828(m)(3))--
(A) by striking `Savings Association Insurance Fund' in the 1st sentence
of subparagraph (A) and inserting `Deposit Insurance Fund';
(B) by striking `Savings Association Insurance Fund member' in the last
sentence of subparagraph (A) and inserting `savings association'; and
(C) by striking `Savings Association Insurance Fund or the Bank Insurance
Fund' in subparagraph (C) and inserting `Deposit Insurance Fund';
(29) in section 18(o) (12 U.S.C. 1828(o)), by striking `deposit insurance
funds' and `deposit insurance fund' each place those terms appear and inserting
`Deposit Insurance Fund';
(30) in section 18(p) (12 U.S.C. 1828(p)), by striking `deposit insurance
funds' and inserting `Deposit Insurance Fund';
(31) in section 24 (12 U.S.C. 1831a)--
(A) in subsections (a)(1) and (d)(1)(A), by striking `appropriate deposit
insurance fund' each place that term appears and inserting `Deposit Insurance
Fund';
(B) in subsection (e)(2)(A), by striking `risk to' and all that follows
through the period and inserting `risk to the Deposit Insurance Fund.';
and
(C) in subsections (e)(2)(B)(ii) and (f)(6)(B), by striking `the insurance
fund of which such bank is a member' each place that term appears and
inserting `the Deposit Insurance Fund';
(32) in section 28 (12 U.S.C. 1831e), by striking `affected deposit insurance
fund' each place that term appears and inserting `Deposit Insurance Fund';
(33) by striking section 31 (12 U.S.C. 1831h);
(34) in section 36(i)(3) (12 U.S.C. 1831m(i)(3)), by striking `affected
deposit insurance fund' and inserting `Deposit Insurance Fund';
(35) in section 37(a)(1)(C) (12 U.S.C. 1831n(a)(1)(C)), by striking `insurance
funds' and inserting `Deposit Insurance Fund';
(36) in section 38 (12 U.S.C. 1831o), by striking `the deposit insurance
fund' each place that term appears and inserting `the Deposit Insurance
Fund';
(37) in section 38(a) (12 U.S.C. 1831o(a)), in the subsection heading, by
striking `Funds' and inserting `Fund';
(38) in section 38(k) (12 U.S.C. 1831o(k))--
(A) in paragraph (1), by striking `a deposit insurance fund' and inserting
`the Deposit Insurance Fund';
(B) in paragraph (2), by striking `A deposit insurance fund' and inserting
`The Deposit Insurance Fund'; and
(C) in paragraphs (2)(A) and (3)(B), by striking `the deposit insurance
fund's outlays' each place that term appears and inserting `the outlays
of the Deposit Insurance Fund'; and
(39) in section 38(o) (12 U.S.C. 1831o(o))--
(A) by striking `Associations- ' and all that follows through `Subsections
(e)(2)' and inserting `Associations- Subsections (e)(2)';
(B) by redesignating subparagraphs (A), (B), and (C) as paragraphs (1),
(2), and (3), respectively, and moving the margins 2 ems to the left;
and
(C) in paragraph (1) (as so redesignated), by redesignating clauses (i)
and (ii) as subparagraphs (A) and (B), respectively, and moving the margins
2 ems to the left.
(b) Effective Date- This section and the amendments made by 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. 13. OTHER TECHNICAL AND CONFORMING AMENDMENTS RELATING TO THE MERGER
OF THE BIF AND SAIF.
(a) Section 5136 of the Revised Statutes- The paragraph designated the `Eleventh'
of section 5136 of the Revised Statutes of the United States (12 U.S.C. 24)
is amended in the 5th sentence, by striking `affected deposit insurance fund'
and inserting `Deposit Insurance Fund'.
(b) Investments Promoting Public Welfare; Limitations on Aggregate Investments-
The 23d undesignated paragraph of section 9 of the Federal Reserve Act (12
U.S.C. 338a) is amended in the 4th sentence, by striking `affected deposit
insurance fund' and inserting `Deposit Insurance Fund'.
(c) Advances to Critically Undercapitalized Depository Institutions- Section
10B(b)(3)(A)(ii) of the Federal Reserve Act (12 U.S.C. 347b(b)(3)(A)(ii))
is amended by striking `any deposit insurance fund in' and inserting `the
Deposit Insurance Fund of'.
(d) Amendments to the Balanced Budget and Emergency Deficit Control Act of
1985- Section 255(g)(1)(A) of the Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 905(g)(1)(A)) is amended--
(1) by striking `Bank Insurance Fund' and inserting `Deposit Insurance Fund';
and
(2) by striking `Federal Deposit Insurance Corporation, Savings Association
Insurance Fund (51-4066-0-3-373);'.
(e) Amendments to the Federal Home Loan Bank Act- The Federal Home Loan Bank
Act (12 U.S.C. 1421 et seq.) is amended--
(1) in section 11(k) (12 U.S.C. 1431(k))--
(A) in the subsection heading, by striking `SAIF' and inserting `the Deposit
Insurance Fund'; and
(B) by striking `Savings Association Insurance Fund' each place such term
appears and inserting `Deposit Insurance Fund';
(2) in section 21 (12 U.S.C. 1441)--
(A) in subsection (f)(2), by striking `, except that' and all that follows
through the end of the paragraph and inserting a period; and
(B) in subsection (k), by striking paragraph (4);
(3) in section 21A(b)(4)(B) (12 U.S.C. 1441a(b)(4)(B)), by striking `affected
deposit insurance fund' and inserting `Deposit Insurance Fund';
(4) in section 21A(b)(6)(B) (12 U.S.C. 1441a(b)(6)(B))--
(A) in the subparagraph heading, by striking `SAIF-INSURED BANKS' and
inserting `Charter Conversions'; and
(B) by striking `Savings Association Insurance Fund member' and inserting
`savings association';
(5) in section 21A(b)(10)(A)(iv)(II) (12 U.S.C. 1441a(b)(10)(A)(iv)(II)),
by striking `Savings Association Insurance Fund' and inserting `Deposit
Insurance Fund';
(6) in section 21A(n)(6)(E)(iv) (12 U.S.C. 1441(n)(6)(E)(iv)), by striking
`Federal deposit insurance funds' and inserting `the Deposit Insurance Fund';
(7) in section 21B(e) (12 U.S.C. 1441b(e))--
(A) in paragraph (5), by inserting `as of the date of funding' after `Savings
Association Insurance Fund members' each place that term appears; and
(B) by striking paragraphs (7) and (8); and
(8) in section 21B(k) (12 U.S.C. 1441b(k))--
(A) by inserting before the colon `, the following definitions shall apply';
(B) by striking paragraph (8); and
(C) by redesignating paragraphs (9) and (10) as paragraphs (8) and (9),
respectively.
(f) Amendments to the Home Owners' Loan Act- The Home Owners' Loan Act (12
U.S.C. 1461 et seq.) is amended--
(1) in section 5 (12 U.S.C. 1464)--
(A) in subsection (c)(5)(A), by striking `that is a member of the Bank
Insurance Fund';
(B) in subsection (c)(6), by striking `As used in this subsection--' and
inserting `For purposes of this subsection, the following definitions
shall apply:';
(C) in subsection (o)(1), by striking `that is a Bank Insurance Fund member';
(D) in subsection (o)(2)(A), by striking `a Bank Insurance Fund member
until such time as it changes its status to a Savings Association Insurance
Fund member' and inserting `insured by the Deposit Insurance Fund';
(E) in subsection (t)(5)(D)(iii)(II), by striking `affected deposit insurance
fund' and inserting `Deposit Insurance Fund';
(F) in subsection (t)(7)(C)(i)(I), by striking `affected deposit insurance
fund' and inserting `Deposit Insurance Fund'; and
(G) in subsection (v)(2)(A)(i), by striking `the Savings Association Insurance
Fund' and inserting `or the Deposit Insurance Fund'; and
(2) in section 10 (12 U.S.C. 1467a)--
(A) in subsection (c)(6)(D), by striking `this title' and inserting `this
Act';
(B) in subsection (e)(1)(B), by striking `Savings Association Insurance
Fund or Bank Insurance Fund' and inserting `Deposit Insurance Fund';
(C) in subsection (e)(2), by striking `Savings Association Insurance Fund
or the Bank Insurance Fund' and inserting `Deposit Insurance Fund';
(D) in subsection (e)(4)(B), by striking `subsection (1)' and inserting
`subsection (l)';
(E) in subsection (g)(3)(A), by striking `(5) of this section' and inserting
`(5) of this subsection';
(F) in subsection (i), by redesignating paragraph (5) as paragraph (4);
(G) in subsection (m)(3), by striking subparagraph (E) and by redesignating
subparagraphs (F), (G), and (H) as subparagraphs (E), (F), and (G), respectively;
(H) in subsection (m)(7)(A), by striking `during period' and inserting
`during the period'; and
(I) in subsection (o)(3)(D), by striking `sections 5(s) and (t) of this
Act' and inserting `subsections (s) and (t) of section 5'.
(g) Amendments to the National Housing Act- The National Housing Act (12 U.S.C.
1701 et seq.) is amended--
(1) in section 317(b)(1)(B) (12 U.S.C. 1723i(b)(1)(B)), by striking `Bank
Insurance Fund for banks or through the Savings Association Insurance Fund
for savings associations' and inserting `Deposit Insurance Fund'; and
(2) in section 536(b)(1)(B)(ii) (12 U.S.C. 1735f-14(b)(1)(B)(ii)), by striking
`Bank Insurance Fund for banks and through the Savings Association Insurance
Fund for savings associations' and inserting `Deposit Insurance Fund'.
(h) Amendments to the Financial Institutions Reform, Recovery, and Enforcement
Act of 1989- The Financial Institutions Reform, Recovery, and Enforcement
Act of 1989 (12 U.S.C. 1811 note) is amended--
(1) in section 951(b)(3)(B) (12 U.S.C. 1833a(b)(3)(B)), by inserting `and
after the merger of such funds, the Deposit Insurance Fund,' after `the
Savings Association Insurance Fund,'; and
(2) in section 1112(c)(1)(B) (12 U.S.C. 3341(c)(1)(B)), by striking `Bank
Insurance Fund, the Savings Association Insurance Fund,' and inserting `Deposit
Insurance Fund'.
(i) Amendment to the Bank Holding Company Act of 1956- The Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.) is amended--
(1) in section 2(j)(2) (12 U.S.C. 1841(j)(2)), by striking `Savings Association
Insurance Fund' and inserting `Deposit Insurance Fund'; and
(2) in section 3(d)(1)(D)(iii) (12 U.S.C. 1842(d)(1)(D)(iii)), by striking
`appropriate deposit insurance fund' and inserting `Deposit Insurance Fund'.
(j) Amendments to the Gramm-Leach-Bliley Act- Section 114 of the Gramm-Leach-Bliley
Act (12 U.S.C. 1828a) is amended by striking `any Federal deposit insurance
fund' in subsection (a)(1)(B), paragraphs (2)(B) and (4)(B) of subsection
(b), and subsection (c)(1)(B), each place that term appears and inserting
`the Deposit Insurance Fund'.
(k) Effective Date- This section and the amendments made by 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.
Passed the House of Representatives May 4, 2005.
Attest:
JEFF TRANDAHL,
Clerk.
END
