[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1419 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1419

  To provide for regional equity in funding the resolution of failed 
             savings associations, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               August 6 (legislative day, June 30), 1993

 Mr. Grassley introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To provide for regional equity in funding the resolution of failed 
             savings associations, 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. AMENDMENT TO FEDERAL HOME LOAN BANK ACT.

    Section 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) is 
amended by adding at the end the following new subsection:
    ``(w) State Contributions.--
            ``(1) Cumulative determinations of state resolution 
        costs.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), not later than 90 days after the end 
                of each calendar year beginning with calendar year 
                1993, the Corporation shall determine the aggregate of 
                the amounts expended during the period beginning on 
                January 1, 1989, and ending at the end of each such 
                calendar year, in providing assistance for case 
                resolutions and other assistance with respect to all 
                institutions that were State savings associations on or 
                after January 1, 1989, and--
                            ``(i) were then insured by the Federal 
                        Savings and Loan Insurance Corporation; or
                            ``(ii) are members of the Savings 
                        Association Insurance Fund.
                    ``(B) Calendar year 1993.--The Corporation shall 
                make the determination described in subparagraph (A) 
                with respect to amounts expended during calendar year 
                1993 on the later of the date which is 90 days after 
                the end of such calendar year, or the date of the 
                enactment of this subsection.
                    ``(C) Expenditures by any fdic, fslic resolution 
                fund, and other applicable agencies taken into 
                account.--In making the determination under 
                subparagraph (A) of the amount of assistance for case 
                resolutions and other assistance with respect to 
                institutions described in such subparagraph, assistance 
                provided by the Federal Savings and Loan Insurance 
                Corporation, the FSLIC Resolution Fund, the Federal 
                Deposit Insurance Corporation, the Federal Home Loan 
                Bank Board, any Federal home loan bank, and any other 
                appropriate Federal agency shall be taken into account 
                by the Corporation.
            ``(2) Cumulative apportionments of state resolution costs 
        among the states.--After determining the amount for a period 
        under paragraph (1), the Corporation shall apportion that 
        amount among the States according to the amounts expended 
        during such period in providing assistance for case resolutions 
        and other assistance with respect to all institutions described 
        in paragraph (1) located in each respective State.
            ``(3) Contributions required from high risk states.--Each 
        high risk State shall pay the Corporation an amount equal to--
                    ``(A) the product of--
                            ``(i) the current State percentage share of 
                        State resolution costs, minus 2 times the State 
                        percentage share of 1980 State deposits; and
                            ``(ii) 25 percent of the aggregate amount 
                        currently determined by the Corporation under 
                        paragraph (1); minus
                    ``(B) the aggregate of the amounts previously paid 
                by the State under this paragraph, minus the aggregate 
                of the rebates (if any) paid to the State under 
                paragraph (8).
            ``(4) High risk states.--A State is a high risk State for 
        purposes of this subsection if--
                    ``(A) the current State percentage share of State 
                resolution costs; exceeds
                    ``(B) 2 times the State percentage share of 1980 
                State deposits.
            ``(5) Current state percentage share of state resolution 
        costs.--For purposes of this subsection, the term `current 
        State percentage share of State resolution costs' means--
                    ``(A) the amount apportioned to the State under 
                paragraph (2) based on the determination made under 
                paragraph (1) for the period beginning on January 1, 
                1989, and ending at the end of the most recent calendar 
                year; divided by
                    ``(B) the amount determined under paragraph (1) 
                with respect to the State for the period beginning on 
                January 1, 1989, and ending at the end of the most 
                recent calendar year.
            ``(6) State percentage share of 1980 state deposits.--For 
        purposes of this subsection, the term `State percentage share 
        of 1980 State deposits' means--
                    ``(A) the amount of deposits in 1980 in 
                institutions described in paragraph (1) located in the 
                State; divided by
                    ``(B) the total deposits in 1980 in all 
                institutions described in paragraph (1).
            ``(7) Contribution payment terms.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the contribution currently required 
                of any State under paragraph (3) shall be due at the 
                end of the 6-month period beginning on the date the 
                Corporation makes its current apportionment to the 
                State under paragraph (2).
                    ``(B) Multiyear agreements.--If the contribution 
                currently required of any State under paragraph (3) 
                exceeds $1,000,000,000, such State may enter into an 
                agreement with the Corporation to pay such amount, with 
                interest accruing in accordance with section 3717(a) of 
                title 31, United States Code, over the 4-year period 
                beginning on the date on which such contribution would 
                otherwise be due under subparagraph (A), and such State 
                shall be treated as meeting the requirements of this 
                subsection so long as such State is in compliance with 
                the terms of such agreement.
            ``(8) Contribution rebates.--If, with respect to a State, 
        the result of the calculation described in paragraph (3)(B) 
        exceeds the result of the calculation described in paragraph 
        (3)(A), the Corporation shall rebate such excess amount to the 
        State, with interest accruing in accordance with section 
        3717(a) of title 31, United States Code.
            ``(9) Termination of insurance if state fails to pay 
        required contributions.--
                    ``(A) In general.--If any State fails to pay the 
                contribution required of such State under paragraph 
                (3)--
                            ``(i) the Corporation shall notify the 
                        Federal Deposit Insurance Corporation of such 
                        failure; and
                            ``(ii) the Federal Deposit Insurance 
                        Corporation shall terminate, subject to 
                        paragraphs (2)(B) and (6) of section 8(a) of 
                        the Federal Deposit Insurance Act, the deposit 
                        insurance for State depository institutions (as 
                        defined in section 3(c)(5) of the Federal 
                        Deposit Insurance Act) located in such State at 
                        the end of the 6-month period beginning on the 
                        date the contribution was due under paragraph 
                        (7).
                    ``(B) Transition.--The insured deposits of each 
                depositor at any State depository institution the 
                insured status of which is terminated pursuant to 
                subparagraph (A) shall continue to be insured on a 
                temporary basis in the manner provided in section 
                8(a)(7) of the Federal Deposit Insurance Act.
            ``(10) Restoration of insurance.--Paragraph (9) shall cease 
        to apply with respect to State depository institutions located 
        in any State described in such paragraph after the date on 
        which the Corporation notifies the Federal Deposit Insurance 
        Corporation that such State has paid all of the contributions 
        required of the State under this subsection, together with any 
        interest accrued on such amount in accordance with section 
        3717(a) of title 31, United States Code.''.

                                 <all>