[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1475 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1475

To merge the Bank Insurance Fund and the Savings Association Insurance 
Fund, to require savings associations to continue to pay assessments to 
           the Financing Corporation, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 7, 1995

 Mr. LaFalce introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
To merge the Bank Insurance Fund and the Savings Association Insurance 
Fund, to require savings associations to continue to pay assessments to 
           the Financing Corporation, 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.

    This Act may be cited as the ``Deposit Insurance Fund Merger Act of 
1995''.

SEC. 2. MERGER OF FDIC INSURANCE FUNDS.

    (a) In General.--Section 11(a) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821(a)) is amended--
            (1) by striking paragraphs (5) and (6) and inserting the 
        following new paragraph:
            ``(5) Deposit insurance fund.--
                    ``(A) Establishment.--There is hereby established a 
                fund to be known as the deposit insurance fund.
                    ``(B) Transfer to fund.--On the date of the 
                enactment of the Deposit Insurance Fund Merger Act of 
                1995, the Bank Insurance Fund and the Savings 
                Association Insurance Fund shall be abolished and all 
                assets and liabilities of each such fund shall be 
                transferred to the deposit insurance fund.
                    ``(C) Uses.--The deposit insurance fund shall be 
                available to the Corporation for use with respect to 
                insured depository institutions.
                    ``(D) Deposits.--All amounts assessed against 
                insured depository institutions under this Act shall be 
                deposited in the deposit insurance fund.
            ``(6) Accounting requirements.--
                    ``(A) Accounting for use of facilities and 
                resources.--The Corporation shall keep a full and 
                complete accounting of all costs and expenses 
                associated with the use of any facility or resource 
                used in the course of conducting supervisory, 
                regulatory, conservatorship, receivership, or 
                liquidation functions with respect to insured 
                depository institutions.
                    ``(B) Accounting for holding and managing assets 
                and liabilities.--The Corporation shall keep a full and 
                complete accounting of all costs and expenses 
                associated with the holding and management of any asset 
                or liability belonging to insured depository 
                institutions in conservatorship or receivership.
                    ``(C) Accounting for disposition of assets and 
                liabilities.--The Corporation shall keep a full and 
                complete accounting of all expenses and receipts 
                associated with the disposition of any asset or 
                liability belonging to insured depository institutions 
                in conservatorship or receivership.'';
            (2) by striking subparagraph (A) of paragraph (4); and
            (3) by striking paragraph (7) and redesignating paragraph 
        (8) as paragraph (7).
    (b) Assessments of Former BIF Members Capped at Rates Applicable 
Before Merger of Funds.--Section 7(b)(2) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(b)(2)) is amended by inserting after 
subparagraph (G) the following new subparagraphs:
                    ``(H) Reduced assessment rates continue to apply to 
                former bif members.--Until the deposit insurance fund 
                first meets or exceeds the designated reserve ratio, 
                the average assessment rates applicable under the risk-
                based assessment system for any semiannual period with 
                respect to insured depository institutions which were 
                Bank Insurance Fund members on the day before the date 
                of the enactment of the Deposit Insurance Fund Merger 
                Act of 1995 shall not exceed the greater of--
                            ``(i) the average of the assessment rates 
                        which would be applicable to such institutions 
                        under this section for any semiannual period if 
                        the amendments made by such Act had not been 
                        enacted; or
                            ``(ii) 6 basis points.
                    ``(I) Schedule for meeting designated reserve 
                ratio.--Notwithstanding paragraph (3), upon the 
                enactment of the Deposit Insurance Fund Merger Act of 
                1995, the Corporation shall prescribe a schedule in the 
                manner provided in paragraph (3)(B) which culminates in 
                a reserve ratio that is equal to or greater than the 
                designated reserve ratio not later than 5 years after 
                the date of the enactment of such Act.''.
    (c) Repeal of Conversion Moratorium, Exit Fee, and ``Oakar Bank'' 
Provisions.--Section 5(d) of the Federal Deposit Insurance Act (12 
U.S.C. 1815(d)) is amended by striking paragraphs (2) and (3).
    (D) Technical and Conforming Amendments.--
            (1) Section 5(d)(1) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1815(d)(1)) is amended by striking ``Bank Insurance 
        Fund and the Savings Association Insurance Fund'' and inserting 
        ``deposit insurance fund''.
            (2) Section 7(b) of the Federal Deposit Insurance Act (12 
        U.S.C. 1817(b)) is amended--
                    (A) in paragraph (1)(D), by striking ``each'' and 
                inserting ``the'';
                    (B) in paragraph (2)(A)(i)(I), by striking ``each'' 
                and inserting ``the'';
                    (C) in paragraph (2)(A)(iii), by striking ``a 
                deposit'' and inserting ``the deposit'';
                    (D) in paragraph (2)(A)(iv), by striking ``each'' 
                and inserting ``the'';
                    (E) by striking subparagraph (B) of paragraph (2);
                    (F) in paragraph (2)(C), by striking ``each'' and 
                inserting ``the'';
                    (G) by striking subparagraphs (E) and (F) of 
                paragraph (2);
                    (H) in paragraph (2)(G), by striking ``a deposit'' 
                and inserting ``the deposit'';
                    (I) in paragraph (3)(A), by striking ``any 
                deposit'' and inserting ``the deposit'';
                    (J) in paragraph (3)(C), by striking everything 
                after ``subparagraph (B)'' the 1st time such term 
                appears and inserting a period.
                    (K) by striking subparagraph (D) of paragraph (3);
                    (L) in paragraph (6)(A)(ii), by striking ``Bank 
                Insurance Fund members'' and inserting ``insured 
                depository institutions''; and
                    (M) by striking subparagraph (B) of paragraph (6).
            (3) Section 7 of the Federal Deposit Insurance Act (12 
        U.S.C. 1817) is amended by striking subsection (l).
            (4) Section 11(f)(1) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(f)(1)) is amended by striking ``, except that--
        '' and all that follows through the period at the end and 
        inserting a period.
            (5) Section 11(i)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(i)(3)) is amended by striking subparagraph (B) 
        and by redesignating subparagraph (C) as subparagraph (B).
            (6) Section 11A(a) of the Federal Deposit Insurance Act (12 
        U.S.C. 1821A(a)) is amended--
                    (A) in paragraph (2)(B), by striking ``Savings 
                Association Insurance Fund'' and inserting ``deposit 
                insurance fund''; and
                    (B) in paragraph (3), by striking ``Bank Insurance 
                Fund, the Savings Association Insurance Fund,'' and 
                inserting ``deposit insurance fund''.
            (7) Section 13 of the Federal Deposit Insurance Act (12 
        U.S.C. 1823) is amended--
                    (A) in subsection (a)(1) by striking ``Bank 
                Insurance Fund, Savings Association Insurance Fund,'' 
                and inserting ``deposit insurance fund'';
                    (B) by striking paragraph (11) of subsection (c);
                    (C) in subsection (k)(4)(B)(ii), by striking 
                ``Savings Association Insurance Fund member'' and 
                inserting ``savings association''; and
                    (D) in subsection (k)(5)(A), by striking ``Savings 
                Association Insurance Fund members'' and inserting 
                ``savings associations''.
            (8) Section 14 of the Federal Deposit Insurance Act (12 
        U.S.C. 1824) is amended--
                    (A) in subsection (a), by striking ``Bank Insurance 
                Fund or the Savings Association Insurance Fund'' and 
                inserting ``deposit insurance fund'';
                    (B) in subsection (a), by striking ``Bank Insurance 
                Fund or Savings Association Insurance Fund'' and 
                inserting ``deposit insurance fund'';
                    (C) in subsection (c), by striking paragraph (3); 
                and
                    (D) in subsection (d)--
                            (i) by striking ``Bank Insurance Fund 
                        members'' each place such term appears and 
                        inserting ``insured depository institutions'';
                            (ii) by striking ``Bank Insurance Fund 
                        member'' each place such term appears and 
                        inserting ``insured depository institution''; 
                        and
                            (iii) by striking ``Bank Insurance Fund'' 
                        each place such term appears (other than in 
                        connection with a term referred to in clause 
                        (i) or (ii)) and inserting ``deposit insurance 
                        fund''.
            (9) Section 15(c)(5) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1825(c)(5)) is amended--
                    (A) by striking ``Bank Insurance Fund or Savings 
                Association Insurance Fund, respectively,'' each place 
                such term appears and inserting ``deposit insurance 
                fund''; and
                    (B) by striking ``Bank Insurance Fund or the 
                Savings Association Insurance Fund, respectively,'' 
                each place such term appears and inserting ``deposit 
                insurance fund''.
            (10) Section 17 of the Federal Deposit Insurance Act (12 
        U.S.C. 1827) is amended by striking ``Bank Insurance Fund, 
        Savings Association Insurance Fund,'' each place such term 
        appears and inserting ``deposit insurance fund''.
            (11) Section 18(m)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1828(m)(3)) is amended--
                    (A) in subparagraph (A)--
                            (i) by inserting ``of an insured savings 
                        association or a subsidiary of any such 
                        association'' after ``specific activity'';
                            (ii) by striking ``Savings Association 
                        Insurance Fund.'' and inserting ``deposit 
                        insurance fund.''; and
                            (iii) by striking ``that Savings 
                        Association Insurance Fund member'' and 
                        inserting ``such savings association''; and
                    (B) in subparagraph (C), by striking ``Savings 
                Association Insurance Fund or the Bank Insurance Fund'' 
                and inserting ``deposit insurance fund''.
            (12) Section 31 of the Federal Deposit Insurance Act (12 
        U.S.C. 1831h) is amended--
                    (A) in subsection (a), by striking ``Insurance 
                Fund''; and
                    (B) in subsection (b)(2), by striking ``Savings 
                Association Insurance Fund members'' and inserting 
                ``savings associations''.
            (13) Section 38(o)(1)(B) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1831o(o)(1)(B)) is amended by striking ``Savings 
        Association Insurance Fund'' and inserting ``deposit insurance 
        fund''.

SEC. 3. PAYMENT OF FICO COSTS BY FORMER SAIF MEMBERS AND THEIR 
              SUCCESSORS.

    (a) In General.--Section 21(f)(2) of the Federal Home Loan Bank Act 
(12 U.S.C. 1441(f)(2)) is amended--
            (1) in the provision preceding subparagraph (A)--
                    (A) by striking ``each Savings Association 
                Insurance Fund member'' and inserting ``each designated 
                insured depository institution''; and
                    (B) by striking ``such members'' and inserting 
                ``such institutions''; and
            (2) in subparagraph (A), by striking ``Savings Association 
        Insurance Fund members'' and inserting ``insured depository 
        institutions''.
    (b) Designated Insured Depository Institution Defined.--Section 
21(f) of the Federal Home Loan Bank Act (12 U.S.C. 1441(f)) is amended 
by adding at the end the following new paragraph:
            ``(4) Designated insured depository institution defined.--
        For purposes of paragraph (2), the term `designated insured 
        depository institution'--
                    ``(A) means any insured depository institution 
                which, as of January 1, 1995, or at any time after such 
                date, was a Savings Association Insurance Fund member 
                under the Federal Deposit Insurance Act (as in effect 
                on the day before the date of the enactment of the 
                Deposit Insurance Fund Merger Act of 1995), including 
                any Savings Association Insurance Fund member referred 
                to in section 5(d)(2)(G) of such Act (as in effect on 
                such day);
                    ``(B) includes, in the case of any insured 
                depository institution which, as of January 1, 1995, or 
                at any time after such date, was a Bank Insurance Fund 
                member which had deposits which were treated, under 
                section 5(d)(3) of the Federal Deposit Insurance Act 
                (as in effect on the day before the date of the 
                enactment of the Deposit Insurance Fund Merger Act of 
                1995), as deposits which were insured by the Savings 
                Association Insurance Fund, the adjusted attributable 
                deposit amount with respect to such member as 
                determined under section 5(e)(3)(C) of such Act (as in 
                effect on such day) (and such section, as in effect on 
                such day, shall continue to apply with respect to the 
                determination of the adjusted attributable deposit 
                amount of such institution for purposes of this 
                subsection); and
                    ``(C) includes any other insured depository 
                institution which acquires (as defined in section 
                13(f)(8)(B) of the Federal Deposit Insurance Act) such 
                insured depository institution or is otherwise a 
                successor in interest to such institution.''.

SEC. 4. 1-TIME SPECIAL SAIF CAPITALIZATION ASSESSMENT.

    Section 7(b) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(b)) is amended by inserting after paragraph (7) the following new 
paragraph:
            ``(8) Special 1-time assessment to recapitalize saif.--
                    ``(A) In general.--The Corporation may, in the 
                discretion of the Board of Directors, impose a special 
                assessment on--
                            ``(i) each insured depository institution 
                        which, as of January 1, 1995, or at any time 
                        after such date, was a Savings Association 
                        Insurance Fund member under the Federal Deposit 
                        Insurance Act (as in effect on the day before 
                        the date of the enactment of the Deposit 
                        Insurance Fund Merger Act of 1995); and
                            ``(ii) any other insured depository 
                        institution which acquires (as defined in 
                        section 13(f)(8)(B) of the Federal Deposit 
                        Insurance Act) such insured depository 
                        institution or is otherwise a successor in 
                        interest to such institution,
                in an amount not greater than 0.40 percent of the 
                assessment base, as of January 1, 1995, on which 
                assessments are imposed under the risk-based assessment 
                system established pursuant to paragraph (1).
                    ``(B) Deposit of assessment in saif.--The proceeds 
                of any assessment imposed under subparagraph (A) shall 
                be deposited in the Savings Association Insurance Fund.
                    ``(C) Imposition over period of years.--The 
                assessment authorized under subparagraph (A) may be 
                imposed incrementally over such period of years as the 
                Board of Directors may determine to be appropriate, 
                except the larger percentage of any such incremental 
                assessment shall be allocated to the first year of the 
                effective period for such assessment.
                    ``(D) Abatement for troubled institutions.--The 
                Board of Directors may abate any portion of any 
                assessment under this paragraph in the case of any 
                undercapitalized institution or any institution which 
                would become undercapitalized as a result of the 
                imposition of such assessment.''.
                                 <all>