[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.J. Res. 175 Introduced in House (IH)]
2d Session
H. J. RES. 175
Making further continuing appropriations for the fiscal year 1996, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 23, 1996
Mr. Livingston introduced the following joint resolution; which was
referred to the Committee on Appropriations, and in addition to the
Committees on Banking and Financial Services, and the Budget, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
JOINT RESOLUTION
Making further continuing appropriations for the fiscal year 1996, and
for other purposes.
Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled,
TITLE I--CONTINUING APPROPRIATIONS
Sec. 101. Public Law 104-99 is further amended by striking out
``April 24, 1996'' in sections 106(c), 112, 126(c), 202(c), and 214 and
inserting in lieu thereof ``April 25, 1996''; and that Public Law 104-
92 is further amended by striking out ``April 24, 1996'' in section
106(c) and inserting in lieu thereof ``April 25, 1996''.
TITLE II--DEPOSIT INSURANCE FUNDS
SEC. 201. SHORT TITLE.
This title may be cited as the ``Deposit Insurance Funds Act of
1996''.
SEC. 202. SPECIAL ASSESSMENT TO CAPITALIZE SAIF.
(a) In General.--Except as provided in subsections (f) and (k), the
Board of Directors shall impose a special assessment on the SAIF-
assessable deposits of each insured depository institution at a rate
applicable to all such institutions that the Board of Directors, in its
sole discretion, determines (after taking into account the adjustments
described in subsections (g) through (j)) will cause the Savings
Association Insurance Fund to achieve the designated reserve ratio on
the first business day of the 1st month beginning after the date of the
enactment of this Act.
(b) Factors To Be Considered.--In carrying out subsection (a), the
Board of Directors shall base its determination on--
(1) the monthly Savings Association Insurance Fund balance
most recently calculated;
(2) data on insured deposits reported in the most recent
reports of condition filed not later than 70 days before the
date of enactment of this Act by insured depository
institutions; and
(3) any other factors that the Board of Directors deems
appropriate.
(c) Date of Determination.--For purposes of subsection (a), the
amount of the SAIF-assessable deposits of an insured depository
institution shall be determined as of March 31, 1995.
(d) Date Payment Due.--Except as provided in subsection (g), the
special assessment imposed under this section shall be--
(1) due on the first business day of the 1st month
beginning after the date of the enactment of this Act; and
(2) paid to the Corporation on the later of--
(A) the first business day of the 1st month
beginning after such date of enactment; or
(B) such other date as the Corporation shall
prescribe, but not later than 60 days after the date of
enactment of this Act.
(e) Assessment Deposited in SAIF.--Notwithstanding any other
provision of law, the proceeds of the special assessment imposed under
this section shall be deposited in the Savings Association Insurance
Fund.
(f) Exemptions for Certain Institutions.--
(1) Exemption for weak institutions.--The Board of
Directors may, by order, in its sole discretion, exempt any
insured depository institution that the Board of Directors
determines to be weak, from paying the special assessment
imposed under this section if the Board of Directors determines
that the exemption would reduce risk to the Savings Association
Insurance Fund.
(2) Guidelines required.--Not later than 30 days after the
date of enactment of this Act, the Board of Directors shall
prescribe guidelines setting forth the criteria that the Board
of Directors will use in exempting institutions under paragraph
(1). Such guidelines shall be published in the Federal
Register.
(3) Exemption for certain newly chartered and other defined
institutions.--
(A) In general.--In addition to the institutions
exempted from paying the special assessment under
paragraph (1), the Board of Directors shall exempt any
insured depository institution from payment of the
special assessment if the institution--
(i) was in existence on October 1, 1995,
and held no SAIF-assessable deposits prior to
January 1, 1993;
(ii) is a Federal savings bank which--
(I) was established de novo in
April 1994 in order to acquire the
deposits of a savings association which
was in default or in danger of default;
and
(II) received minority interim
capital assistance from the Resolution
Trust Corporation under section 21A(w)
of the Federal Home Loan Bank Act in
connection with the acquisition of any
such savings association; or
(iii) is a savings association, the
deposits of which are insured by the Savings
Association Insurance Fund, which--
(I) prior to January 1, 1987, was
chartered as a Federal savings bank
insured by the Federal Savings and Loan
Insurance Corporation for the purpose
of acquiring all or substantially all
of the assets and assuming all or
substantially all of the deposit
liabilities of a national bank in a
transaction consummated after July 1,
1986; and
(II) as of the date of that
transaction, had assets of less than
$150,000,000.
(B) Definition.--For purposes of this paragraph, an
institution shall be deemed to have held SAIF-
assessable deposits prior to January 1, 1993, if--
(i) it directly held SAIF-assessable
insured deposits before that date; or
(ii) it succeeded to, acquired, purchased,
or otherwise holds any SAIF-assessable deposits
as of the date of enactment of this Act that
were SAIF-assessable deposits before January 1,
1993.
(4) Exempt institutions required to pay assessments at
former rates.--
(A) Payments to saif and dif.--Any insured
depository institution that the Board of Directors
exempts under this subsection from paying the special
assessment imposed under this section shall pay semiannual
assessments--
(i) during calendar years 1996 and 1997,
into the Savings Association Insurance Fund,
based on SAIF-assessable deposits of that
institution, at assessment rates calculated
under the schedule in effect for Savings
Association Insurance Fund members on June 30,
1995; and
(ii) during calendar years 1998 and 1999--
(I) into the Deposit Insurance
Fund, based on SAIF-assessable deposits
of that institution as of December 31,
1997, at assessment rates calculated
under the schedule in effect for
Savings Association Insurance Fund
members on June 30, 1995; or
(II) in accordance with clause (i),
if the Bank Insurance Fund and the
Savings Association Insurance Fund are
not merged into the Deposit Insurance
Fund.
(B) Optional pro rata payment of special
assessment.--This paragraph shall not apply with
respect to any insured depository institution (or
successor insured depository institution) that has
paid, during any calendar year from 1997 through 1999,
upon such terms as the Corporation may announce, an
amount equal to the product of--
(i) 12.5 percent of the special assessment
that the institution would have been required
to pay under subsection (a), if the Board of
Directors had not exempted the institution; and
(ii) the number of full semiannual periods
remaining between the date of the payment and
December 31, 1999.
(g) Special Election for Certain Institutions Facing Hardship as a
Result of the Special Assessment.--
(1) Election authorized.--If--
(A) an insured depository institution, or any
depository institution holding company which, directly
or indirectly, controls such institution, is subject to
terms or covenants in any debt obligation or preferred
stock outstanding on September 13, 1995; and
(B) the payment of the special assessment under
subsection (a) would pose a significant risk of causing
such depository institution or holding company to
default or violate any such term or covenant,
the depository institution may elect, with the approval of the
Corporation, to pay such special assessment in accordance with
paragraphs (2) and (3) in lieu of paying such assessment in the
manner required under subsection (a).
(2) 1st assessment.--An insured depository institution
which makes an election under paragraph (1) shall pay an
assessment of 50 percent of the amount of the special
assessment that would otherwise apply under subsection (a), by
the date on which such special assessment is payable under
subsection (d).
(3) 2d assessment.--An insured depository institution which
makes an election under paragraph (1) shall pay a 2d
assessment, by the date established by the Board of Directors
in accordance with paragraph (4), in an amount equal to the
product of 51 percent of the rate determined by the Board of
Directors under subsection (a) for determining the amount of
the special assessment and the SAIF-assessable deposits of the
institution on March 31, 1996, or such other date in calendar
year 1996 as the Board of Directors determines to be
appropriate.
(4) Due date of 2d assessment.--The date established by the
Board of Directors for the payment of the assessment under
paragraph (3) by a depository institution shall be the earliest
practicable date which the Board of Directors determines to be
appropriate, which is at least 15 days after the date used by
the Board of Directors under paragraph (3).
(5) Supplemental special assessment.--An insured depository
institution which makes an election under paragraph (1) shall
pay a supplemental special assessment, at the same time the
payment under paragraph (3) is made, in an amount equal to the
product of--
(A) 50 percent of the rate determined by the Board
of Directors under subsection (a) for determining the
amount of the special assessment; and
(B) 95 percent of the amount by which the SAIF-
assessable deposits used by the Board of Directors for
determining the amount of the 1st assessment under
paragraph (2) exceeds, if any, the SAIF-assessable
deposits used by the Board for determining the amount
of the 2d assessment under paragraph (3).
(h) Adjustment of Special Assessment for Certain Bank Insurance
Fund Member Banks.--
(1) In general.--For purposes of computing the special
assessment imposed under this section with respect to a Bank
Insurance Fund member bank, the amount of any deposits of any
insured depository institution which section 5(d)(3) of the
Federal Deposit Insurance Act treats as insured by the Savings
Association Insurance Fund shall be reduced by 20 percent--
(A) if the adjusted attributable deposit amount of
the Bank Insurance Fund member bank is less than 50
percent of the total domestic deposits of that member
bank as of June 30, 1995; or
(B) if, as of June 30, 1995, the Bank Insurance
Fund member--
(i) had an adjusted attributable deposit
amount equal to less than 75 percent of the
total assessable deposits of that member bank;
(ii) had total assessable deposits greater
than $5,000,000,000; and
(iii) was owned or controlled by a bank
holding company that owned or controlled
insured depository institutions having an
aggregate amount of deposits insured or treated
as insured by the Bank Insurance Fund greater
than the aggregate amount of deposits insured
or treated as insured by the Savings
Association Insurance Fund.
(2) Adjusted attributable deposit amount.--For purposes of
this subsection, the ``adjusted attributable deposit amount''
shall be determined in accordance with section 5(d)(3)(C) of
the Federal Deposit Insurance Act.
(i) Adjustment to the Adjusted Attributable Deposit Amount for
Certain Bank Insurance Fund Member Banks.--Section 5(d)(3) of the
Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)) is amended--
(1) in subparagraph (C), by striking ``The adjusted
attributable deposit amount'' and inserting ``Except as
provided in subparagraph (K), the adjusted attributable deposit
amount''; and
(2) by adding at the end the following new subparagraph:
``(K) Adjustment of adjusted attributable deposit
amount.--The amount determined under subparagraph
(C)(i) for deposits acquired by March 31, 1995, shall
be reduced by 20 percent for purposes of computing the
adjusted attributable deposit amount for the payment of
any assessment for any semiannual period that begins
after the date of the enactment of the Deposit
Insurance Funds Act of 1996 (other than the special
assessment imposed under section 202(a) of such Act),
for a Bank Insurance Fund member bank that, as of June
30, 1995--
``(i) had an adjusted attributable deposit
amount that was less than 50 percent of the
total deposits of that member bank; or
``(ii)(I) had an adjusted attributable
deposit amount equal to less than 75 percent of
the total assessable deposits of that member
bank;
``(II) had total assessable deposits
greater than $5,000,000,000; and
``(III) was owned or controlled by a bank
holding company that owned or controlled
insured depository institutions having an
aggregate amount of deposits insured or treated
as insured by the Bank Insurance Fund greater
than the aggregate amount of deposits insured
or treated as insured by the Savings
Association Insurance Fund.''.
(j) Adjustment of Special Assessment for Certain Savings
Associations.--
(1) Special assessment reduction.--For purposes of
computing the special assessment imposed under this section, in
the case of any converted association, the amount of any
deposits of such association which were insured by the Savings
Association Insurance Fund as of March 31, 1995, shall be
reduced by 20 percent.
(2) Converted association.--For purposes of this
subsection, the term ``converted association'' means--
(A) any Federal savings association--
(i) that is a member of the Savings
Association Insurance Fund and that has
deposits subject to assessment by that fund
which did not exceed $4,000,000,000, as of
March 31, 1995; and
(ii) that had been, or is a successor by
merger, acquisition, or otherwise to an
institution that had been, a State savings
bank, the deposits of which were insured by the
Federal Deposit Insurance Corporation prior to
August 9, 1989, that converted to a Federal
savings association pursuant to section 5(i) of
the Home Owners' Loan Act prior to January 1,
1985;
(B) a State depository institution that is a member
of the Savings Association Insurance Fund that had been
a State savings bank prior to October 15, 1982, and was
a Federal savings association on August 9, 1989;
(C) an insured bank that--
(i) was established de novo in order to
acquire the deposits of a savings association
in default or in danger of default;
(ii) did not open for business before
acquiring the deposits of such savings
association; and
(iii) was a Savings Association Insurance
Fund member as of the date of enactment of this
Act; and
(D) an insured bank that--
(i) resulted from a savings association
before December 19, 1991, in accordance with
section 5(d)(2)(G) of the Federal Deposit
Insurance Act; and
(ii) had an increase in its capital in
conjunction with the conversion in an amount
equal to more than 75 percent of the capital of
the institution on the day before the date of
the conversion.
(k) Exemption for Certain Institutions Paying Exit and Entrance
Fees.--The Board of Directors of the Federal Deposit Insurance
Corporation may, in the sole discretion of the Board of Directors,
exempt any insured depository institution from paying the special
assessment imposed under subsection (a) if--
(1) the institution participated in a conversion
transaction pursuant to section 5(d)(2)(C) of the Federal
Deposit Insurance Act during the period beginning on March 31,
1995, and ending on the date of the enactment of this Act;
(2) exit and entrance fees have been assessed in connection
with such conversion transaction in accordance with
subparagraphs (E) and (F) of section 5(d)(2) of the Federal
Deposit Insurance Act; and
(3) as of the date of the enactment of this Act, the
institution--
(A) has paid, in whole or in part, the amount of
such exit and entrance fees; and
(B) is obligated to pay the balance of any unpaid
portion of any such fee in accordance with a schedule
agreed to by such Corporation.
SEC. 203. FINANCING CORPORATION ASSESSMENTS SHARED PROPORTIONALLY BY
ALL INSURED DEPOSITORY INSTITUTIONS.
(a) In General.--Section 21 of the Federal Home Loan Bank Act (12
U.S.C. 1441) is amended--
(1) in subsection (f)(2)--
(A) in the matter immediately preceding
subparagraph (A)--
(i) by striking ``Savings Association
Insurance Fund member'' and inserting ``insured
depository institution''; and
(ii) by striking ``members'' and inserting
``institutions''; and
(B) by striking ``, except that--'' and all that
follows through the end of the paragraph and inserting
``, except that--
``(A) the Financing Corporation shall have first
priority to make the assessment; and
``(B) no limitation under clause (i) or (iii) of
section 7(b)(2)(A) of the Federal Deposit Insurance Act
shall apply for purposes of this paragraph.''; and
(2) in subsection (k)--
(A) by striking ``section--'' and inserting
``section, the following definitions shall apply:'';
(B) by striking paragraph (1);
(C) by redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively; and
(D) by adding at the end the following new
paragraph:
``(3) Insured depository institution.--The term `insured
depository institution' has the same meaning as in section 3 of
the Federal Deposit Insurance Act.''.
(b) Conforming Amendment.--Section 7(b)(2) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(b)(2)) is amended by striking
subparagraph (D).
(c) Effective Date.--Subsections (a) and (b) and the amendments
made by such subsections shall apply with respect to semiannual periods
which begin after December 31, 1996.
(d) Applicability of FICO Assessments to Certain SAIF-Assessable
Deposits.--In the case of any insured depository institution which has
SAIF-assessable deposits, such SAIF-assessable deposits shall be
subject to assessments under section 21(f)(2) of the Federal Home Loan
Bank Act as a Savings Association Insurance Fund member (with respect
to such deposits) during the period beginning on the 1st day of the 1st
quarter which begins after the date of the enactment of this Act and
ending on December 31, 1996.
SEC. 204. MERGER OF BIF AND SAIF.
(a) In General.--
(1) Merger.--The Bank Insurance Fund and the Savings
Association Insurance Fund shall be merged into the Deposit
Insurance Fund established by section 11(a)(4) of the Federal
Deposit Insurance Act, as amended by this section.
(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.
(b) Special Reserve of the Deposit Insurance Fund.--
(1) In general.--Immediately before the merger of the Bank
Insurance Fund and the Savings Association Insurance Fund, if
the reserve ratio of the Savings Association Insurance Fund
exceeds the designated reserve ratio, the amount by which that
reserve ratio exceeds the designated reserve ratio shall be
placed in the Special Reserve of the Deposit Insurance Fund,
established under section 11(a)(5) of the Federal Deposit
Insurance Act, as amended by this section.
(2) Definition.--For purposes of this subsection, the term
``reserve ratio'' means the ratio of the net worth of the
Savings Association Insurance Fund to the aggregate estimated
amount of deposits insured by the Savings Association Insurance
Fund.
(c) Effective Date.--This section and the amendments made by this
section shall become effective on January 1, 1998, if no insured
depository institution is a savings association on that date.
(d) Technical and Conforming Amendments.--
(1) Deposit insurance fund.--Section 11(a)(4) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is
amended--
(A) by redesignating subparagraph (B) as
subparagraph (C);
(B) by striking subparagraph (A) and inserting the
following:
``(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
Deposit Insurance Fund members.''; and
(C) by striking ``(4) General provisions relating
to funds.--'' and inserting the following:
``(4) Establishment of the deposit insurance fund.--''.
(2) Other references.--Section 11(a)(4)(C) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)(4)(C), as redesignated
by paragraph (1) of this subsection) is amended by striking
``Bank Insurance Fund and the Savings Association Insurance
Fund'' and inserting ``Deposit Insurance Fund''.
(3) Deposits into fund.--Section 11(a)(4) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended by
adding at the end the following new subparagraph:
``(D) Deposits.--All amounts assessed against
insured depository institutions by the Corporation
shall be deposited in the Deposit Insurance Fund.''.
(4) Special reserve of deposits.--Section 11(a)(5) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(a)(5)) is amended
to read as follows:
``(5) Special reserve of deposit insurance fund.--
``(A) Establishment.--
``(i) In general.--There is established a
Special Reserve of the Deposit Insurance Fund,
which shall be administered by the Corporation
and shall be invested in accordance with
section 13(a).
``(ii) Limitation.--The Corporation shall
not provide any assessment credit, refund, or
other payment from any amount in the Special
Reserve.
``(B) Emergency use of special reserve.--
Notwithstanding subparagraph (A)(ii), the Corporation
may, in its sole discretion, transfer amounts from the
Special Reserve to the Deposit Insurance Fund, for the
purposes set forth in paragraph (4), only if--
``(i) the reserve ratio of the Deposit
Insurance Fund is less than 50 percent of the
designated reserve ratio; and
``(ii) the Corporation expects the reserve
ratio of the Deposit Insurance Fund to remain
at less than 50 percent of the designated
reserve ratio for each of the next 4 calendar
quarters.
``(C) Exclusion of special reserve in calculating
reserve ratio.--Notwithstanding any other provision of
law, any amounts in the Special Reserve shall be
excluded in calculating the reserve ratio of the
Deposit Insurance Fund under section 7.''.
(5) Federal home loan bank act.--Section 21B(f)(2)(C)(ii)
of the Federal Home Loan Bank Act (12 U.S.C.
1441b(f)(2)(C)(ii)) is amended--
(A) in subclause (I), by striking ``to Savings
Associations Insurance Fund members'' and inserting
``to insured depository institutions, and their
successors, which were Savings Association Insurance
Fund members on September 1, 1995''; and
(B) in subclause (II), by striking ``to Savings
Associations Insurance Fund members'' and inserting
``to insured depository institutions, and their
successors, which were Savings Association Insurance
Fund members on September 1, 1995''.
(6) Repeals.--
(A) Section 3.--Section 3(y) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(y)) is amended to read as
follows:
``(y) Definitions Relating to the Deposit Insurance Fund.--
``(1) Deposit insurance fund.--The term `Deposit Insurance
Fund' means the fund established under section 11(a)(4).
``(2) Reserve ratio.--The term `reserve ratio' means the
ratio of the net worth of the Deposit Insurance Fund to
aggregate estimated insured deposits held in all insured
depository institutions.
``(3) Designated reserve ratio.--The designated reserve
ratio of the Deposit Insurance Fund for each year shall be--
``(A) 1.25 percent of estimated insured deposits;
or
``(B) a higher percentage of estimated insured
deposits that the Board of Directors determines to be
justified for that year by circumstances raising a
significant risk of substantial future losses to the
fund.
(B) Section 7.--Section 7 of the Federal Deposit
Insurance Act (12 U.S.C. 1817) is amended--
(i) by striking subsection (l);
(ii) by redesignating subsections (m) and
(n) as subsections (l) and (m), respectively;
(iii) in subsection (b)(2), by striking
subparagraphs (B) and (F), and by redesignating
subparagraphs (C), (E), (G), and (H) as
subparagraphs (B) through (E), respectively.
(C) Section 11.--Section 11(a) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)) is amended--
(i) by striking paragraphs (6) and (7); and
(ii) by redesignating paragraph (8) as
paragraph (6).
(7) Section 5136 of the revised statutes.--Paragraph
Eleventh of section 5136 of the Revised Statutes (12 U.S.C. 24)
is amended in the fifth sentence, by striking ``affected
deposit insurance fund'' and inserting ``Deposit Insurance
Fund''.
(8) 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 fourth sentence, by striking ``affected deposit
insurance fund'' and inserting ``Deposit Insurance Fund''.
(9) 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''.
(10) 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--
(A) by striking ``Bank Insurance Fund'' and
inserting ``Deposit Insurance Fund''; and
(B) by striking ``Federal Deposit Insurance
Corporation, Savings Association Insurance Fund;''.
(11) Further amendments to the federal home loan bank
act.--The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.)
is amended--
(A) in section 11(k) (12 U.S.C. 1431(k))--
(i) in the subsection heading, by striking
``SAIF'' and inserting ``the Deposit Insurance
Fund''; and
(ii) by striking ``Savings Association
Insurance Fund'' each place such term appears
and inserting ``Deposit Insurance Fund'';
(B) 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'';
(C) in section 21A(b)(6)(B) (12 U.S.C.
1441a(b)(6)(B))--
(i) in the subparagraph heading, by
striking ``SAIF-insured banks'' and inserting
``Charter conversions''; and
(ii) by striking ``Savings Association
Insurance Fund member'' and inserting ``savings
association'';
(D) 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'';
(E) in section 21B(e) (12 U.S.C. 1441b(e))--
(i) in paragraph (5), by inserting ``as of
the date of funding'' after ``Savings
Association Insurance Fund members'' each place
such term appears;
(ii) by striking paragraph (7); and
(iii) by redesignating paragraph (8) as
paragraph (7); and
(F) in section 21B(k) (12 U.S.C. 1441b(k))--
(i) by striking paragraph (8); and
(ii) by redesignating paragraphs (9) and
(10) as paragraphs (8) and (9), respectively.
(12) Amendments to the home owners' loan act.--The Home
Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended--
(A) in section 5 (12 U.S.C. 1464)--
(i) in subsection (c)(5)(A), by striking
``that is a member of the Bank Insurance
Fund'';
(ii) in subsection (c)(6), by striking ``As
used in this subsection--'' and inserting ``For
purposes of this subsection, the following
definitions shall apply:'';
(iii) in subsection (o)(1), by striking
``that is a Bank Insurance Fund member'';
(iv) 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'';
(v) in subsection (t)(5)(D)(iii)(II), by
striking ``affected deposit insurance fund''
and inserting ``Deposit Insurance Fund'';
(vi) in subsection (t)(7)(C)(i)(I), by
striking ``affected deposit insurance fund''
and inserting ``Deposit Insurance Fund''; and
(vii) in subsection (v)(2)(A)(i), by
striking ``, the Savings Association Insurance
Fund'' and inserting ``or the Deposit Insurance
Fund''; and
(B) in section 10 (12 U.S.C. 1467a)--
(i) in subsection (e)(1)(A)(iii)(VII), by
adding ``or'' at the end;
(ii) in subsection (e)(1)(A)(iv), by adding
``and'' at the end;
(iii) in subsection (e)(1)(B), by striking
``Savings Association Insurance Fund or Bank
Insurance Fund'' and inserting ``Deposit
Insurance Fund'';
(iv) in subsection (e)(2), by striking
``Savings Association Insurance Fund or the
Bank Insurance Fund'' and inserting ``Deposit
Insurance Fund''; and
(v) in subsection (m)(3), by striking
subparagraph (E), and by redesignating
subparagraphs (F), (G), and (H) as
subparagraphs (E), (F), and (G), respectively.
(13) Amendments to the national housing act.--The National
Housing Act (12 U.S.C. 1701 et seq.) is amended--
(A) 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
(B) in section 526(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''.
(14) Further amendments to the federal deposit insurance
act.--The Federal Deposit Insurance Act (12 U.S.C. 1811 et
seq.) is amended--
(A) in section 3(a)(1) (12 U.S.C. 1813(a)(1)), by
striking subparagraph (B) and inserting the following:
``(B) includes any former savings association.'';
(B) 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 ``Deposit
Insurance Fund,'';
(C) in section 5(d) (12 U.S.C. 1815(d)), by
striking paragraphs (2) and (3);
(D) in section 5(d)(1) (12 U.S.C. 1815(d)(1))--
(i) in subparagraph (A), by striking
``reserve ratios in the Bank Insurance Fund and
the Savings Association Insurance Fund'' and
inserting ``the reserve ratio of the Deposit
Insurance Fund'';
(ii) 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.'';
(iii) by striking ``(1) Uninsured
institutions.--''; and
(iv) by redesignating subparagraphs (A) and
(C) as paragraphs (1) and (3), respectively,
and moving the margins 2 ems to the left;
(E) in section 5(e) (12 U.S.C. 1815(e))--
(i) in paragraph (5)(A), by striking ``Bank
Insurance Fund or the Savings Association
Insurance Fund'' and inserting ``Deposit
Insurance Fund'';
(ii) by striking paragraph (6); and
(iii) by redesignating paragraphs (7), (8),
and (9) as paragraphs (6), (7), and (8),
respectively;
(F) 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'';
(G) in section 7(b) (12 U.S.C. 1817(b))--
(i) in paragraph (1)(D), by striking ``each
deposit insurance fund'' and inserting ``the
Deposit Insurance Fund'';
(ii) in clauses (i)(I) and (iv) of
paragraph (2)(A), by striking ``each deposit
insurance fund'' each place such term appears
and inserting ``the Deposit Insurance Fund'';
(iii) in paragraph (2)(A)(iii), by striking
``a deposit insurance fund'' and inserting
``the Deposit Insurance Fund'';
(iv) by striking clause (iv) of paragraph
(2)(A);
(v) in paragraph (2)(C) (as redesignated by
paragraph (6)(B) of this subsection)--
(I) by striking ``any deposit
insurance fund'' and inserting ``the
Deposit Insurance Fund''; and
(II) by striking ``that fund'' each
place such term appears and inserting
``the Deposit Insurance Fund'';
(vi) in paragraph (2)(D) (as redesignated
by paragraph (6)(B) of this subsection)--
(I) in the subparagraph heading, by
striking ``funds achieve'' and
inserting ``fund achieves''; and
(II) by striking ``a deposit
insurance fund'' and inserting ``the
Deposit Insurance Fund'';
(vii) in paragraph (3)--
(I) in the paragraph heading, by
striking ``funds'' and inserting
``fund'';
(II) by striking ``members of that
fund'' where such term appears in the
portion of subparagraph (A) which
precedes clause (i) of such
subparagraph and inserting ``insured
depository institutions'';
(III) by striking ``that fund''
each place such term appears (other
than in connection with term amended in
subclause (II) of this clause) and
inserting ``the Deposit Insurance
Fund'';
(IV) in subparagraph (A), by
striking ``Except as provided in
paragraph (2)(F), if'' and inserting
``If'';
(V) in subparagraph (A), by
striking ``any deposit insurance fund''
and inserting ``the Deposit Insurance
Fund''; and
(VI) by striking subparagraphs (C)
and (D) and inserting the following:
``(C) Amending schedule.--The Corporation may, by
regulation, amend a schedule promulgated under
subparagraph (B).''; and
(viii) in paragraph (6)--
(I) by striking ``any such
assessment'' and inserting ``any such
assessment is necessary'';
(II) by striking ``(A) is
necessary--'';
(III) by striking subparagraph (B);
(IV) by redesignating clauses (i),
(ii), and (iii) as subparagraphs (A),
(B), and (C), respectively, and moving
the margins 2 ems to the left; and
(V) in subparagraph (C) (as
redesignated), by striking ``; and''
and inserting a period;
(H) 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;
(I) in section 11(i)(3) (12 U.S.C. 1821(i)(3))--
(i) by striking subparagraph (B);
(ii) by redesignating subparagraph (C) as
subparagraph (B); and
(iii) in subparagraph (B) (as
redesignated), by striking ``subparagraphs (A)
and (B)'' and inserting ``subparagraph (A)'';
(J) in section 11A(a) (12 U.S.C. 1821a(a))--
(i) in paragraph (2), by striking
``liabilities.--'' and all that follows through
``Except'' and inserting ``liabilities.--
Except'';
(ii) by striking paragraph (2)(B); and
(iii) in paragraph (3), by striking ``the
Bank Insurance Fund, the Savings Association
Insurance Fund,'' and inserting ``the Deposit
Insurance Fund'';
(K) in section 11A(b) (12 U.S.C. 1821a(b)), by
striking paragraph (4);
(L) in section 11A(f) (12 U.S.C. 1821a(f)), by
striking ``Savings Association Insurance Fund'' and
inserting ``Deposit Insurance Fund'';
(M) in section 13 (12 U.S.C. 1823)--
(i) in subsection (a)(1), by striking
``Bank Insurance Fund, the Savings Association
Insurance Fund,'' and inserting ``Deposit
Insurance Fund, the Special Reserve of the
Deposit Insurance Fund,'';
(ii) 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'';
(iii) 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 such term appears and
inserting ``the institution's'';
(iv) in subsection (c), by striking
paragraph (11);
(v) in subsection (h), by striking ``Bank
Insurance Fund'' and inserting ``Deposit
Insurance Fund'';
(vi) in subsection (k)(4)(B)(i), by
striking ``Savings Association Insurance Fund''
and inserting ``Deposit Insurance Fund''; and
(vii) in subsection (k)(5)(A), by striking
``Savings Association Insurance Fund'' and
inserting ``Deposit Insurance Fund'';
(N) in section 14(a) (12 U.S.C. 1824(a)) in the
fifth sentence--
(i) by striking ``Bank Insurance Fund or
the Savings Association Insurance Fund'' and
inserting ``Deposit Insurance Fund''; and
(ii) by striking ``each such fund'' and
inserting ``the Deposit Insurance Fund'';
(O) 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'';
(P) in section 14(c) (12 U.S.C. 1824(c)), by
striking paragraph (3);
(Q) in section 14(d) (12 U.S.C. 1824(d))--
(i) by striking ``BIF'' each place such
term appears and inserting ``DIF''; and
(ii) by striking ``Bank Insurance Fund''
each place such term appears and inserting
``Deposit Insurance Fund'';
(R) in section 15(c)(5) (12 U.S.C. 1825(c)(5))--
(i) by striking ``the Bank Insurance Fund
or Savings Association Insurance Fund,
respectively'' each place such term appears and
inserting ``the Deposit Insurance Fund''; and
(ii) in subparagraph (B), by striking ``the
Bank Insurance Fund or the Savings Association
Insurance Fund, respectively'' and inserting
``the Deposit Insurance Fund'';
(S) in section 17(a) (12 U.S.C. 1827(a))--
(i) in the subsection heading, by striking
``BIF, SAIF,'' and inserting ``the Deposit
Insurance Fund''; and
(ii) in paragraph (1), by striking ``the
Bank Insurance Fund, the Savings Association
Insurance Fund,'' each place such term appears
and inserting ``the Deposit Insurance Fund'';
(T) in section 17(d) (12 U.S.C. 1827(d)), by
striking ``the Bank Insurance Fund, the Savings
Association Insurance Fund,'' each place such term
appears and inserting ``the Deposit Insurance Fund'';
(U) in section 18(m)(3) (12 U.S.C. 1828(m)(3))--
(i) by striking ``Savings Association
Insurance Fund'' each place such term appears
and inserting ``Deposit Insurance Fund''; and
(ii) in subparagraph (C), by striking ``or
the Bank Insurance Fund'';
(V) in section 18(p) (12 U.S.C. 1828(p)), by
striking ``deposit insurance funds'' and inserting
``Deposit Insurance Fund'';
(W) in section 24 (12 U.S.C. 1831a) in subsections
(a)(1) and (d)(1)(A), by striking ``appropriate deposit
insurance fund'' each place such term appears and
inserting ``Deposit Insurance Fund'';
(X) in section 28 (12 U.S.C. 1831e), by striking
``affected deposit insurance fund'' each place such
term appears and inserting ``Deposit Insurance Fund'';
(Y) by striking section 31 (12 U.S.C. 1831h);
(Z) in section 36(i)(3) (12 U.S.C. 1831m(i)(3)) by
striking ``affected deposit insurance fund'' and
inserting ``Deposit Insurance Fund'';
(AA) in section 38(a) (12 U.S.C. 1831o(a)) in the
subsection heading, by striking ``Funds'' and inserting
``Fund'';
(BB) in section 38(k) (12 U.S.C. 1831o(k))--
(i) in paragraph (1), by striking ``a
deposit insurance fund'' and inserting ``the
Deposit Insurance Fund''; and
(ii) in paragraph (2)(A)--
(I) by striking ``A deposit
insurance fund'' and inserting ``The
Deposit Insurance Fund''; and
(II) by striking ``the deposit
insurance fund's outlays'' and
inserting ``the outlays of the Deposit
Insurance Fund''; and
(CC) in section 38(o) (12 U.S.C. 1831o(o))--
(i) by striking ``Associations.--'' and all
that follows through ``Subsections (e)(2)'' and
inserting ``Associations.--Subsections
(e)(2)'';
(ii) by redesignating subparagraphs (A),
(B), and (C) as paragraphs (1), (2), and (3),
respectively, and moving the margins 2 ems to
the left; and
(iii) in paragraph (1) (as redesignated),
by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively, and
moving the margins 2 ems to the left.
(15) Amendments to the financial institutions reform,
recovery, and enforcement act of 1989.--The Financial
Institutions Reform, Recovery, and Enforcement Act is amended--
(A) in section 951(b)(3)(B) (12 U.S.C.
1833a(b)(3)(B)), by striking ``Bank Insurance Fund, the
Savings Association Insurance Fund,'' and inserting
``Deposit Insurance Fund''; and
(B) 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''.
(16) Amendment to the bank enterprise act of 1991.--Section
232(a)(1) of the Bank Enterprise Act of 1991 (12 U.S.C.
1834(a)(1)) is amended by striking ``section 7(b)(2)(H)'' and
inserting ``section 7(b)(2)(G)''.
(17) Amendment to the bank holding company act.--Section
2(j)(2) of the Bank Holding Company Act of 1956 (12 U.S.C.
1841(j)(2)) is amended by striking ``Savings Association
Insurance Fund'' and inserting ``Deposit Insurance Fund''.
SEC. 205. CREATION OF SAIF SPECIAL RESERVE.
Section 11(a)(6) of the Federal Deposit Insurance Act (12 U.S.C.
1821(a)(6)) is amended by adding at the end the following new
subparagraph:
``(L) Establishment of saif special reserve.--
``(i) Establishment.--If, on January 1, 1998, the
reserve ratio of the Savings Association Insurance Fund
exceeds the designated reserve ratio, there is
established a Special Reserve of the Savings
Association Insurance Fund, which shall be administered
by the Corporation and shall be invested in accordance
with section 13(a).
``(ii) Amounts in special reserve.--If, on January
1, 1998, the reserve ratio of the Savings Association
Insurance Fund exceeds the designated reserve ratio,
the amount by which the reserve ratio exceeds the
designated reserve ratio shall be placed in the Special
Reserve of the Savings Association Insurance Fund
established by clause (i).
``(iii) Limitation.--The Corporation shall not
provide any assessment credit, refund, or other payment
from any amount in the Special Reserve of the Savings
Association Insurance Fund.
``(iv) Emergency use of special reserve.--
Notwithstanding clause (iii), the Corporation may, in
its sole discretion, transfer amounts from the Special
Reserve of the Savings Association Insurance Fund to
the Savings Association Insurance Fund for the purposes
set forth in paragraph (4), only if--
``(I) the reserve ratio of the Savings
Association Insurance Fund is less than 50
percent of the designated reserve ratio; and
``(II) the Corporation expects the reserve
ratio of the Savings Association Insurance Fund
to remain at less than 50 percent of the
designated reserve ratio for each of the next 4
calendar quarters.
``(v) Exclusion of special reserve in calculating
reserve ratio.--Notwithstanding any other provision of
law, any amounts in the Special Reserve of the Savings
Association Insurance Fund shall be excluded in
calculating the reserve ratio of the Savings
Association Insurance Fund.''.
SEC. 206. REFUND OF AMOUNTS IN DEPOSIT INSURANCE FUND IN EXCESS OF
DESIGNATED RESERVE AMOUNT.
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.--
``(1) 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 semiannual assessments until such credit
is exhausted.
``(2) Balance in insurance fund in excess of designated
reserve.--
``(A) In general.--Subject to subparagraphs (B) and
(C), if, as of the end of any semiannual assessment
period, the amount of the actual reserves in--
``(i) the Bank Insurance Fund (until the
merger of such fund into the Deposit Insurance
Fund pursuant to section __04 of the Deposit
Insurance Funds Act of 1996); or
``(ii) the Deposit Insurance Fund (after
the establishment of such fund),
exceeds the balance required to meet the designated
reserve ratio applicable with respect to such fund,
such excess amount shall be refunded to insured
depository institutions by the Corporation on such
basis as the Board of Directors determines to be
appropriate, taking into account the factors considered
under the risk-based assessment system.
``(B) Refund not to exceed previous semiannual
assessment.--The amount of any refund under this
paragraph to any member of a deposit insurance fund for
any semiannual assessment period may not exceed the
total amount of assessments paid by such member to the
insurance fund with respect to such period.
``(C) Refund limitation for certain institutions.--
No refund may be made under this paragraph with respect
to the amount of any assessment paid for any semiannual
assessment period by any insured depository institution
described in clause (v) of subsection (b)(2)(A).''.
SEC. 207. ASSESSMENT RATES FOR SAIF MEMBERS MAY NOT BE LESS THAN
ASSESSMENT RATES FOR BIF MEMBERS.
Section 7(b)(2)(C) of the Federal Deposit Insurance Act (12 U.S.C.
1817(b)(2)(E), as redesignated by section 204(d)(6) of this Act) is
amended--
(1) by striking ``and'' at the end of clause (i);
(2) by striking the period at the end of clause (ii) and
inserting ``; and''; and
(3) by adding at the end the following new clause:
``(iii) notwithstanding any other provision
of this subsection, during the period beginning
on the date of enactment of the Deposit
Insurance Funds Act of 1996, and ending on
January 1, 1998, the assessment rate for a
Savings Association Insurance Fund member may
not be less than the assessment rate for a Bank
Insurance Fund member that poses a comparable
risk to the deposit insurance fund.''.
SEC. 208. ASSESSMENTS AUTHORIZED ONLY IF NEEDED TO MAINTAIN THE RESERVE
RATIO OF A DEPOSIT INSURANCE FUND.
(a) In General.--Section 7(b)(2)(A)(i) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(b)(2)(A)(i)) is amended in the matter
preceding subclause (I) by inserting ``when necessary, and only to the
extent necessary'' after ``insured depository institutions''.
(b) Limitation on Assessment.--Section 7(b)(2)(A)(iii) of the
Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(iii)) is amended
to read as follows:
``(iii) Limitation on assessment.--Except
as provided in clause (v), the Board of
Directors shall not set semiannual assessments
with respect to a deposit insurance fund in
excess of the amount needed--
``(I) to maintain the reserve ratio
of the fund at the designated reserve
ratio; or
``(II) if the reserve ratio is less
than the designated reserve ratio, to
increase the reserve ratio to the
designated reserve ratio.''.
(c) Exception to Limitation on Assessments.--Section 7(b)(2)(A) of
the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)) is amended
by adding at the end the following new clause:
``(v) Exception to limitation on
assessments.--The Board of Directors may set
semiannual assessments in excess of the amount
permitted under clauses (i) and (iii) with
respect to insured depository institutions that
exhibit financial, operational, or compliance
weaknesses ranging from moderately severe to
unsatisfactory, or are not well capitalized, as
that term is defined in section 38.''.
SEC. 209. DEFINITIONS.
For purposes of this title--
(1) the term ``Bank Insurance Fund'' means the fund
established pursuant to section (11)(a)(5)(A) of the Federal
Deposit Insurance Act, as that section existed on the day
before the date of enactment of this Act;
(2) the terms ``Bank Insurance Fund member'' and ``Savings
Association Insurance Fund member'' have the same meanings as
in section 7(l) of the Federal Deposit Insurance Act;
(3) the terms ``bank'', ``Board of Directors'',
``Corporation'', ``insured depository institution'', ``Federal
savings association'', ``savings association'', ``State savings
bank'', and ``State depository institution'' have the same
meanings as in section 3 of the Federal Deposit Insurance Act;
(4) the term ``Deposit Insurance Fund'' means the fund
established under section 11(a)(4) of the Federal Deposit
Insurance Act (as amended by section 204(d) of this Act);
(5) the term ``depository institution holding company'' has
the same meaning as in section 3 of the Federal Deposit
Insurance Act;
(6) the term ``designated reserve ratio'' has the same
meaning as in section 7(b)(2)(A)(iv) of the Federal Deposit
Insurance Act;
(7) the term ``Savings Association Insurance Fund'' means
the fund established pursuant to section 11(a)(6)(A) of the
Federal Deposit Insurance Act, as that section existed on the
day before the date of enactment of this Act; and
(8) the term ``SAIF-assessable deposit''--
(A) means--
(i) a deposit that is subject to assessment
for purposes of the Savings Association
Insurance Fund under the Federal Deposit
Insurance Act; and
(ii) a deposit that section 5(d)(3) of the
Federal Deposit Insurance Act treats as insured
by the Savings Association Insurance Fund; and
(B) includes any deposit assumed after March 31,
1995, if the insured depository institution, the
deposits of which are assumed, is not an insured
depository institution when the special assessment is
imposed under section 202(a).
<all>