[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1769 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1769

   To provide for adequate funding for the Financing Corporation, to 
  provide for the merger of the deposit insurance funds, to merge the 
positions of Comptroller of the Currency and Director of the Office of 
     Thrift Supervision, to provide for the conversion of savings 
            associations into banks, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 7, 1995

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

_______________________________________________________________________

                                 A BILL


 
   To provide for adequate funding for the Financing Corporation, to 
  provide for the merger of the deposit insurance funds, to merge the 
positions of Comptroller of the Currency and Director of the Office of 
     Thrift Supervision, to provide for the conversion of savings 
            associations into banks, 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 ``Federal Deposit Insurance Amendments 
Act of 1995''.

  TITLE I--BANK INSURANCE FUND AND SAVINGS ASSOCIATION INSURANCE FUND

SEC. 101. REFUND OF AMOUNTS IN BIF AND SAIF 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.--The amount by which the actual reserves in any 
        insurance fund exceed the balance required to meet the 
        designated reserve applicable with respect to such fund shall 
        be refunded to members of the fund 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.''.

SEC. 102. PAYMENT OF FICO CARRYING COSTS FROM INTEREST EARNED ON 
              DEPOSIT INSURANCE FUNDS.

    (a) In General.--Section 11(a) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821(a)) is amended by adding at the end the following new 
paragraph:
            ``(9) Availability of interest for fico carrying costs.--
                    ``(A) In general.--Interest earned on the balance 
                in any deposit insurance fund maintained by the 
                Corporation (other than the FSLIC Resolution Fund) 
                shall be available for transfer to the Financing 
                Corporation for purposes of section 21(f)(1) of the 
                Federal Home Loan Bank Act.
                    ``(B) Amount of interest proportional to amount of 
                insured deposits.--The amount of interest paid to the 
                Financing Corporation from any insurance fund pursuant 
                to subparagraph (A) shall bear the same proportion to 
                the total amount of interest paid pursuant to such 
                subparagraph as the amount of deposits insured by such 
                insurance fund bears to the total amount of insured 
                deposits, as determined by the Corporation on the basis 
                of the most recent certified statements submitted to 
                the Corporation pursuant to section 7(c)(1) and such 
                other information as the Corporation may consider 
                appropriate.
                    ``(C) Payment by corporation.--Upon receiving 
                notice from the Financing Corporation of the amount 
                needed for purposes of section 21(f) of the Federal 
                Home Loan Bank Act, the Corporation shall pay such 
                amount from the interest earned on the balances in the 
                deposit insurance funds in accordance with subparagraph 
                (B).''.
    (b) Conforming Amendment to Federal Home Loan Bank Act.--Section 
21(f)(1) of the Federal Home Loan Bank Act (12 U.S.C. 1441(f)(1)) is 
amended to read as follows:
            ``(1) Interest earned on insured deposit funds.--The 
        interest earned on the balance in any deposit insurance fund 
        maintained by the Federal Deposit Insurance Corporation (other 
        than the FSLIC Resolution Fund) as provided in section 11(a)(9) 
        of the Federal Deposit Insurance Act.''.
    (c) Assessment Authority to Cover Interest Shortfall.--Section 
21(f)(2) of the Federal Home Loan Bank Act (12 U.S.C. 1441(f)(2)) is 
amended to read as follows:
            ``(2) Assessment authority.--
                    ``(A) In general.--If the amount of interest earned 
                on the balance in any deposit insurance fund referred 
                to in paragraph (1) is less than such insurance fund's 
                proportional share of the amount of interest payments, 
                issuance costs, and custodial fees under section 
                11(a)(9)(B) of the Federal Deposit Insurance Act, the 
                Financing Corporation, with the approval of the Board 
                of Directors of the Federal Deposit Insurance 
                Corporation, shall assess against each member of such 
                fund an assessment (in the same manner as assessments 
                are assessed against such members by the Federal 
                Deposit Insurance Corporation under section 7 of the 
                Federal Deposit Insurance Act).
                    ``(B) Maximum amount of assessment.--No assessment 
                under subparagraph (A) with respect to members of a 
                deposit insurance fund maintained by the Federal 
                Deposit Insurance Corporation may exceed the amount 
                authorized to be assessed against members Savings 
                Association Insurance Fund members pursuant to section 
                7 of the Federal Deposit Insurance Act.
                    ``(C) Priority.--The Financing Corporation shall 
                have first priority to make the assessment authorized 
                under subparagraph (A).''.
    (d) Technical and Conforming Amendment to the Federal Deposit 
Insurance Act.--Section 7(b)(2)(D) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(b)(2)(D)) is amended by striking ``Savings Association 
Insurance Fund members'' and inserting ``members of a deposit insurance 
fund''.

SEC. 103. REPEAL OF CERTAIN CERTIFICATION REQUIREMENTS RELATING TO RTC 
              FUNDS.

    Subparagraph (F) of section 11(a)(6) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(a)(6)) is amended--
            (1) by striking ``At any time'' and all that follows 
        through ``Resolution Trust Corporation,'' (the 1st place such 
        term appears) and inserting ``At any time before the on the 
        date of publication in the Federal Register of the notice of 
        the merger of the Bank Insurance Fund and the Savings 
        Association Insurance Fund into 1 deposit insurance fund under 
        section 104(a) of the Federal Deposit Insurance Amendments Act 
        of 1995,'';
            (2) by inserting ``to pay for losses which have been 
        incurred or can reasonably be expected to be incurred by the 
        Fund'' after ``are needed by the Fund''; and
            (3) by striking ``Corporation, if the Chairperson'' and all 
        that follows through the end of such subparagraph and inserting 
        ``Corporation.''.

SEC. 104. MERGER OF BIF AND SAIF AFTER RECAPITALIZATION.

    (a) In General.--Effective at the end of first calendar year during 
which the Bank Insurance Fund and the Savings Association Insurance 
Fund have each been determined by the Federal Deposit Insurance 
Corporation to have achieved the designated reserve ratio applicable 
with respect to each such fund under section 7(b) of the Federal 
Deposit Insurance Act, the Corporation shall--
            (1) merge the 2 insurance funds into 1 deposit insurance 
        fund; and
            (2) publish a notice of such merger in the Federal Register 
        at the time such merger becomes effective.
    (b) Technical and Conforming Amendments.--
            (1) Section 11(a)(5) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(a)(5)) is amended to read as follows:
            ``(5) Deposit insurance fund.--
                    ``(A) Establishment.--There is established a fund 
                to be known as the deposit insurance fund which shall--
                            ``(i) be maintained and administered by the 
                        Corporation; and
                            ``(ii) initially consist of the assets and 
                        liabilities of the Bank Insurance Fund and 
                        Savings Association Insurance Fund which have 
                        been merged by the Corporation into the deposit 
                        insurance fund pursuant to section 5(a) of the 
                        Federal Deposit Insurance Amendments Act of 
                        1995.
                    ``(B) Uses.--The deposit insurance fund shall be 
                available to the Corporation for use with respect to 
                insured depository institutions.
                    ``(C) Deposits.--All amounts assessed against 
                insured depository institutions by the Corporation 
                shall be deposited into the deposit insurance fund.''.
            (2) Section 11(a) of the Federal Deposit Insurance Act (12 
        U.S.C. 1821(a)) is amended by striking paragraphs 4(A), (6), 
        and (7).
            (3) Section 7 of the Federal Deposit Insurance Act (12 
        U.S.C. 1817) is amended by striking subsection (l).
            (4) Section 7(b)(2) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1817(b)(2)) is amended--
                    (A) by striking subparagraphs (B), (F), and (G);
                    (B) in clauses (i) and (iv) of subparagraph (A), by 
                striking ``each deposit insurance fund'' and inserting 
                ``the deposit insurance fund'';
                    (C) in subparagraph (A)(iii), by striking ``a 
                deposit insurance fund'' and inserting ``the deposit 
                insurance fund''; and
                    (D) by inserting after subparagraph (E) the 
                following new subparagraph:
                    ``(F) Reserve ratio defined.--For purposes of this 
                subsection, the term `reserve ratio' means the ratio of 
                the net worth of the deposit insurance fund to the 
                value of the aggregate estimated insured deposits held 
                in all insured depository institutions.''.
            (5) Section 7(b)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1817(b)(3)) is amended--
                    (A) in subparagraph (A) by striking ``any deposit 
                insurance fund'' and inserting ``the deposit insurance 
                fund''; and
                    (B) by striking subparagraphs (C) and (D).
            (6) Section 7(b)(6) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1817(b)(6)) is amended--
                    (A) in subparagraph (A)--
                            (i) by inserting ``or'' after the semicolon 
                        at the end of clause (i);
                            (ii) by striking clause (ii); and
                            (iii) by striking ``; and'' at the end of 
                        clause (iii) and inserting a period; and
                    (B) by striking subparagraph (B).
            (7) Section 7 of the Federal Deposit Insurance Act (12 
        U.S.C. 1817) is amended by striking subsection (l).
            (8) Section 11(a)(4)(B) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1821(a)(4)(B)) is amended by striking ``Bank 
        Insurance Fund and the Savings Association Insurance Fund'' and 
        inserting ``deposit insurance fund''.
            (9) Paragraph (1) of section 11(f) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1821(f)) is amended by striking 
        ``depositor, except that--'' and all that follows through the 
        period at the end of the paragraph and inserting 
        ``depositor.''.
            (10) Section 11(i)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(i)(3)) is amended--
                    (A) by striking subparagraph (B); and
                    (B) in subparagraph (C), by striking 
                ``subparagraphs (A) and (B)'' and inserting 
                ``subparagraph (A)''.
            (11) Section 11A(a)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821a(a)(3)) is amended by striking ``Bank Insurance 
        Fund, the Savings Association Insurance Fund,'' and inserting 
        ``deposit insurance fund''.
            (12) Section 11A(f) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821a(f)) is amended by striking ``Savings 
        Association Insurance Fund'' and inserting ``deposit insurance 
        fund''.
            (13) Section 13(a)(1) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1823(a)(1)) is amended by striking ``Bank Insurance 
        Fund, Savings Association Insurance Fund,'' and inserting 
        ``deposit insurance fund''.
            (14) Section 13(c)(4)(G) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1823(c)(4)(G)) is amended--
                    (A) in clause (ii)--
                            (i) by striking ``appropriate insurance 
                        fund'' and inserting ``depository 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'' and 
                        inserting ``the institution's''.
            (15) Section 13(c) of the Federal Deposit Insurance Act (12 
        U.S.C. 1823(c)) is amended by striking paragraph (11).
            (16) Section 13(h) of the Federal Deposit Insurance Act (12 
        U.S.C. 1823(h)) is amended by striking ``Bank Insurance Fund'' 
        and inserting ``deposit insurance fund''.
            (17) Section 13(k)(4)(B)(i) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1823(k)(4)(B)(i)) is amended by 
        striking ``Savings Association Insurance Fund member'' and 
        inserting ``savings association''.
            (18) Section 13(k)(5)(A) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1823(k)(5)(A)) is amended by striking ``Savings 
        Association Insurance Fund members'' and inserting ``savings 
        associations''.
            (19) Section 14(a) of the Federal Deposit Insurance Act (12 
        U.S.C. 1824(a)) is amended by striking ``Bank Insurance Fund or 
        the Savings Association Insurance Fund'' and inserting 
        ``depository institution fund''.
            (20) Section 14(b) of the Federal Deposit Insurance Act (12 
        U.S.C. 1824(b)) is amended by striking ``Bank Insurance Fund or 
        Savings Association Insurance Fund'' and inserting ``deposit 
        insurance fund''.
            (21) Section 14(c) of the Federal Deposit Insurance Act (12 
        U.S.C. 1824(c)) is amended by striking paragraph (3).
            (22) Section 14 of the Federal Deposit Insurance Act (12 
        U.S.C. 1824) is amended by striking subsection (d).
            (23) 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,'' and 
                inserting ``deposit insurance fund'';
                    (B) by striking ``Bank Insurance Fund or Savings 
                Association Insurance Fund, respectively;'' and 
                inserting ``deposit insurance fund;''; and
                    (C) by striking ``Bank Insurance Fund or the 
                Savings Association Insurance Fund, respectively,'' and 
                inserting ``deposit insurance fund,''.
            (24) Section 17(a)(1) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1827(a)(1)) is amended by striking ``Bank Insurance 
        Fund, the Savings Association Insurance Fund,'' each place such 
        term appears and inserting ``deposit insurance fund''.
            (25) Section 17(d) of the Federal Deposit Insurance Act (12 
        U.S.C. 1827(d)) is amended by striking ``Bank Insurance Fund, 
        the Savings Association Insurance Fund,'' each place such term 
        appears and inserting ``deposit insurance fund''.
            (26) The heading for section 17(a) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1827(a)) is amended by striking ``BIF, 
        SAIF,'' and inserting ``the Deposit Insurance Fund''.
            (27) 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 striking ``Savings Association 
                        Insurance Fund.'' and inserting ``deposit 
                        insurance fund.''; and
                            (ii) by striking ``Savings Association 
                        Insurance Fund member'' and inserting ``savings 
                        association''; and
                    (B) in subparagraph (C), by striking ``Savings 
                Association Insurance Fund or the Bank Insurance Fund'' 
                and inserting ``deposit insurance fund''.
            (28) Subsections (a)(1) and (d)(1)(A) of section 24 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1831a) are each 
        amended by striking ``appropriate''.
            (29) Section 24(e)(2) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1831a(e)(2)) is amended--
                    (A) in subparagraph (A), by striking ``of which 
                such banks are members''; and
                    (B) in subparagraph (B)(ii), by striking ``of which 
                such bank is a member''.
            (30) Section 24(f)(6)(B) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1831a(f)(6)(B)) is amended by striking ``of 
        which such bank is a member''.
            (31) Section 28 of the Federal Deposit Insurance Act (12 
        U.S.C. 1831e) is amended by striking ``affected deposit 
        insurance fund'' each place such term appears and inserting 
        ``deposit insurance fund''.
            (32) Section 31(a) of the Federal Deposit Insurance Act (12 
        U.S.C. 1831h(a)) is amended by striking ``Insurance Fund''.
            (33) The heading for section 31 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1831h) is amended by striking 
        ``insurance fund''.
            (34) Section 31(b)(1) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1831h(b)(1)) is amended by striking ``insured 
        depository institutions that are Savings Association Insurance 
        Fund members'' and inserting ``savings associations''.
            (35) Section 31(f)(1) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1831h(f)(1)) is amended by striking ``insured 
        financial institutions that are members of the Savings 
        Association Insurance Fund'' and inserting ``savings 
        associations''.
            (36) Section 36(i)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1831m(i)(3)) is amended by striking ``affected''.
            (37) Section 38(o)(1) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1831o(o)(1)) is amended by striking ``Savings 
        Association Insurance Fund'' and inserting ``deposit insurance 
        fund''.
    (c) Effective Date of Amendments.--The amendments made by 
subsection (b) shall take effect as of the date of publication in the 
Federal Register of the notice required under subsection (a)(2).
                    TITLE II--MERGER OF OCC AND OTS

                    Subtitle A--Federal Bank Agency

SEC. 201. ESTABLISHMENT.

    (a) Establishment of the Agency.--Effective January 1, 1996, there 
is established the Federal Bank Agency which shall be an independent 
establishment.
    (b) Definitions.--For purposes of this subtitle, the following 
definitions shall apply:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Bank Agency.
            (2) Agency.--The term ``Agency'' means the Federal Bank 
        Agency.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.

SEC. 202. ADMINISTRATOR OF THE FEDERAL BANK AGENCY.

    (a) In General.--The Agency shall have an Administrator who shall 
be the head of the Agency.
    (b) Appointment.--The Administrator shall be appointed by the 
President, by and with the advice and consent of the Senate, from among 
individuals who are citizens of the United States.
    (c) Term.--The Administrator shall be appointed for a term of 5 
years.
    (d) Vacancy.--A vacancy in the position of Administrator which 
occurs before expiration of the term for which an Administrator was 
appointed shall be filled in the manner established in subsection (b), 
and the Administrator appointed to fill such vacancy shall be appointed 
only for the remainder of said term.
    (e) Service After End of Term.--An individual may serve as 
Administrator after the expiration of the term for which appointed 
until a successor Administrator has been appointed.
    (f) Deputy Administrators.--
            (1) Deputy administrator for national banks.--
                    (A) In general.--The Agency shall have a Deputy 
                Administrator for National Banks who shall be appointed 
                by the President, by and with the advice and consent of 
                the Senate.
                    (B) Duties and powers.--The Deputy Administrator 
                for National Banks shall--
                            (i) perform such duties and exercise such 
                        powers as the Administrator may prescribe; and
                            (ii) perform the functions which are 
                        transferred to the agency from the Comptroller 
                        of the Currency until the Administrator 
                        provides otherwise.
            (2) Deputy administrator for savings associations.--
                    (A) In general.--The Agency shall have a Deputy 
                Administrator for Savings Associations who shall be 
                appointed by the President, by and with the advice and 
                consent of the Senate.
                    (B) Duties and powers.--The Deputy Administrator 
                for Savings Associations shall--
                            (i) perform such duties and exercise such 
                        powers as the Administrator may prescribe; and
                            (ii) perform the functions which are 
                        transferred to the agency from the Director of 
                        the Office of Thrift Supervision until the 
                        Administrator provides otherwise.
    (g) Effective Date.--This section shall take effect on January 1, 
1996.

SEC. 203. AUTHORITY OF THE ADMINISTRATOR.

    (a) Delegation of Authority.--The Administrator may delegate to any 
employee, representative, or agent of the Agency any authority of the 
Administrator.
    (b) Effective Date.--This section shall take effect on January 1, 
1996.
SEC. 204. PERSONNEL.

    (a) In General.--The Administrator shall fix the number and 
compensation of, and appoint and direct, all employees of the Agency.
    (b) Effective Date.--This section shall take effect on January 1, 
1997.

SEC. 205. REGULATIONS AND ORDERS.

    The Administrator may prescribe such regulations and issue such 
orders as the Administrator may determine to be necessary or 
appropriate for carrying out any law within the Administrator's 
jurisdiction.

SEC. 206. FUNDING.

    (a) Authority To Impose and Collect Assessments, Fees, and Other 
Charges.--
            (1) In general.--The Administrator may impose and collect 
        such assessments, fees, and other charges on any institution or 
        entity (including any affiliates of any such institution or 
        entity) for which the Administrator is the appropriate Federal 
        banking agency, as defined in section 3(q)(1) of the Federal 
        Deposit Insurance Act, as the Administrator determines to be 
        necessary or appropriate to carry out the responsibilities of 
        the Agency.
            (2) No net cost to government.--The amount of any 
        assessment, fee, or other charge shall be not less than the 
        amount necessary to meet the full cost to the Federal 
        Government of the service provided by the Agency.
    (b) Use of Funds.--The Administrator may use the funds obtained 
through assessments, fees, and other charges imposed pursuant to this 
subtitle to pay the full cost to the Federal Government of the services 
provided by the Agency.
    (c) Agency Not Subject to Apportionment of Funds.--Notwithstanding 
any other provision of law, amounts received by the Agency pursuant to 
any assessment, fee, or other charge imposed under this Act or any 
other provision of law and any other money received by the Agency shall 
not be subject to apportionment for the purpose of chapter 15 of title 
31, United States Code, or under any other authority.
    (d) Technical and Conforming Amendment Relating to Sequestration.--
Paragraph (1) of section 255(g) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended--
            (1) by striking the items relating to the Comptroller of 
        the Currency and the Director of the Office of Thrift 
        Supervision; and
            (2) by inserting after the item relating to the Farm Credit 
        System Financial Assistance Corporation, interest payment (20-
        1850-0-1-351) the following new item:
                    ``Federal Bank Agency;''.
    (e) Effective Date.--This section and the amendments made by this 
section shall take effect on Jan- uary 1, 1997.
 Subtitle B--Interim Provisions; Transfer of Functions, Personnel, and 
                                Property

SEC. 211. INTERIM PROVISIONS FOR THE FEDERAL BANK AGENCY.

    (a) Interim Authority of the Administrator.--Prior to the date upon 
which the functions of the Office of the Comptroller of the Currency 
and the Office of Thrift Supervision are transferred to the 
Administrator pursuant to this Act, the Administrator shall--
            (1) consult and cooperate with the Director of the Office 
        of Thrift Supervision and the Comptroller of the Currency to 
        facilitate the orderly transfer of functions to the Office; and
            (2) take such actions as may be necessary to provide for 
        the establishment of the Agency and for the orderly 
        implementation of this subtitle.
    (b) Interim Staff.--Prior to the date upon which the Office of the 
Comptroller of the Currency and the Office of Thrift Supervision are 
abolished, each such Office shall detail to the Agency such personnel 
as the Administrator deems appropriate to assist the Administrator in 
carrying out the duties of subtitle A.
    (c) Interim Administrative Services.--The Secretary may provide all 
administrative services necessary to support the Agency prior to the 
date upon which the Office of the Comptroller of the Currency and the 
Office of Thrift Supervision are abolished, and obtain reimbursement 
for the cost of such services pursuant to subsection (d).
    (d) Interim Funding.--Prior to the date upon which the Office of 
the Comptroller of the Currency and the Office of Thrift Supervision 
are abolished, each such Office shall pay to the Secretary one-half of 
the total amount determined by the Secretary to be necessary to fund 
all direct and indirect salary and administrative expenses of the 
Agency, including the salary of the Administrator, through January 1, 
1997, from the funds obtained by such Offices through assessments, 
fees, and other charges which they are authorized to impose by law. The 
Secretary may credit to an appropriation and spend amounts received 
pursuant to this subsection. Upon the appointment of the Administrator, 
the amounts paid to the Secretary under this subsection shall be paid 
by the Secretary to the Administrator.
    (e) Interim Authority of the Secretary.--The Secretary is 
authorized to perform the functions of the Administrator under this 
section until the Administrator is appointed.
    (f) Merger of Transferred Employees.--The Administrator shall, to 
the maximum extent practicable, merge and consolidate the work force 
structures of the Office of the Comptroller of the Currency and the 
Office of Thrift Supervision. In merging the work forces, the 
Administrator shall establish procedures which take into account the 
job experience of, and the compensation and benefits provided to, the 
transferred employees at the prior agency.
    (g) Effective Date.--This section shall take effect on January 1, 
1996.

SEC. 212. OFFICE OF THRIFT SUPERVISION ABOLISHED.

    (a) Office of Thrift Supervision Abolished.--Effective January 1, 
1997, the Office of Thrift Supervision and the position of Director of 
the Office of Thrift Supervision are hereby abolished.
    (b) Disposition of Affairs.--
            (1) In general.--In winding up the affairs of the Office of 
        Thrift Supervision, the Director of the Office of Thrift 
        Supervision shall consult and cooperate with the Administrator 
        of the Agency, the Comptroller of the Currency, and, with 
        respect to savings and loan holding companies, the Board of 
        Governors of the Federal Reserve System to facilitate the 
        orderly transfer of the functions to the
         Agency or such Board. Any matter not resolved pursuant to such 
consultation and cooperation shall be resolved by the Secretary.
            (2) Continuing authority of director of the office of 
        thrift supervision.--Except as provided in paragraph (1) and 
        section 211, no provision of this subtitle shall be construed 
        as affecting the authority vested in the Director of the Office 
        of Thrift Supervision before the date of enactment of this Act 
        which is necessary to carry out the duties of the position 
        until the date upon which the position of Director of the 
        Office of Thrift Supervision is abolished.
            (3) Continuation of agency services.--Any agency, 
        department, or other instrumentality of the United States, or 
        any successor to any such agency, department, or 
        instrumentality, which was providing support services to the 
        Office of Thrift Supervision on the day before the date the 
        Office of Thrift Supervision is abolished shall--
                    (A) continue to provide such services on a 
                reimbursable basis, in accordance with the terms of the 
                arrangement pursuant to which such services were 
                provided until the arrangement is modified or 
                terminated in accordance with such terms, except that 
                effective Jan- uary 1, 1997, the Agency shall be 
                substituted for the Office of Thrift Supervision as a 
                party to the arrangement; and
                    (B) consult with the Administrator to coordinate 
                and facilitate a prompt and reasonable transition.
    (c) Savings Provisions.--
            (1) Existing rights, duties, and obligations not 
        affected.--No provision of this subtitle shall be construed as 
        affecting the validity of any right, duty, or obligation of the 
        United States, the Office of Thrift Supervision, or any person, 
        which existed on the day before the date upon which the Office 
        of Thrift Supervision is abolished.
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the Office of Thrift Supervision shall 
        abate by reason of enactment of this Act, except that, 
        effective January 1, 1997, the Administrator shall be 
        substituted as a party to any such action or proceeding.
            (3) Continuation of administrative rules.--All orders, 
        resolutions, determinations, regulations, interpretative rules, 
        other interpretations, guidelines, procedures, and other 
        advisory material which--
                    (A) have been issued, made, prescribed, or 
                permitted to become effective by the Office of Thrift 
                Supervision, and
                    (B) are in effect on December 31, 1996, (or become 
                effective after such date pursuant to the terms of the 
                order, resolution, determination, rule, other 
                interpretation, guideline, procedure, and other 
                advisory material, as in effect on such date), shall--
                            (i) continue in effect according to the 
                        terms of such orders, resolutions, 
                        determinations, regulations, interpretative 
                        rules, other interpretations, guidelines, 
                        procedures, or other advisory material;
                            (ii) be administered by the Administrator 
                        or, in the case of a savings and loan holding 
                        company or a subsidiary of such holding company 
                        (other than a depository institution), the 
                        Board of Governors of the Federal Reserve 
                        System; and
                            (iii) be enforceable by or against the 
                        Administrator or such Board until modified, 
                        terminated, set aside, or superseded in 
                        accordance with applicable law by the 
                        Administrator or Board, by any court of 
                        competent jurisdiction, or by operation of law.
    (d) Transfer of Property.--Effective January 1, 1997, all property 
of the Office of Thrift Supervision shall be transferred to the Agency.

SEC. 213. OFFICE OF THE COMPTROLLER OF THE CURRENCY ABOLISHED.

    (a) Office of the Comptroller of the Currency Abolished.--Effective 
January 1, 1997, the Office of the Comptroller of the Currency and the 
position of the Comptroller of the Currency are abolished.
    (b) Disposition of Affairs.--
            (1) In general.--In winding up the affairs of the Office of 
        the Comptroller of the Currency, the Comptroller of the 
        Currency shall consult and cooperate with the Administrator of 
        the Federal Bank Agency and the Director of the Office of 
        Thrift Supervision to facilitate the orderly transfer of 
        functions to the Agency. Any matter not resolved pursuant to 
        such consultation and cooperation shall be resolved by the 
        Secretary.
            (2) Continuing authority of the comptroller of the 
        currency.--Except as provided
         in paragraph (1) and section 211, no provision of this Act 
shall be construed as affecting the authority vested in the Comptroller 
of the Currency before the date of enactment of this Act which is 
necessary to carry out the duties of the position until the date upon 
which the position of Comptroller is abolished.
            (3) Continuation of agency services.--Any agency, 
        department, or other instrumentality of the United States, or 
        any successor to any such agency, department, or 
        instrumentality, which was providing support services to the 
        Office of the Comptroller of the Currency on the day before the 
        date the Office of the Comptroller of the Currency is abolished 
        shall--
                    (A) continue to provide such services, on a 
                reimbursable basis, in accordance with the terms of the 
                arrangement pursuant to which such services were 
                provided until the arrangement is modified or 
                terminated in accordance with such terms, except that 
                effective Jan- uary 1, 1997, the Agency shall be 
                substituted for the Office of the Comptroller of the 
                Currency as a party to the arrangement; and
                    (B) consult with the Administrator to coordinate 
                and facilitate a prompt and reasonable transition.
    (c) Savings Provisions.--
            (1) Existing rights, duties, and obligations not 
        affected.--No provision of this subtitle shall be construed as 
        affecting the validity of any right, duty, or obligation of the 
        United States, the Office of the Comptroller of the Currency, 
        or any person, which existed on the day before the date upon 
        which the Office of the Comptroller of the Currency is 
        abolished by this subtitle.
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the Comptroller of the Currency or the 
        Office of the Comptroller of the Currency shall abate by reason 
        of enactment of this Act, except that effective Jan- uary 1, 
        1997, the Administrator shall be substituted as a party to any 
        such action or proceeding.
            (3) Continuation of administrative rules.--All orders, 
        resolutions, determinations, regulations, interpretative rules, 
        other interpretations, guidelines, procedures, and other 
        advisory material which--
                    (A) have been issued, made, prescribed, or 
                permitted to become effective by the Comptroller of the 
                Currency; and
                    (B) are in effect on December 31, 1996, (or become 
                effective after such date pursuant to the terms of the 
                order, resolution, determination, rule, other 
                interpretation, guideline, procedure, and other 
                advisory material, as in effect on such date) shall--
                            (i) continue in effect according to the 
                        terms of such orders, resolutions, 
                        determinations, regulations, interpretative 
                        rules, guidelines, procedures or other advisory 
                        material;
                            (ii) be administered by the Administrator; 
                        and
                            (iii) be enforceable by or against the 
                        Administrator until modified, terminated, set 
                        aside, or superseded in accordance with 
                        applicable law by the Administrator, by any 
                        court of competent jurisdiction, or by 
                        operation of law.
    (d) Transfer of Property.--Effective January 1, 1997, all property 
of the Office of the Comptroller of the Currency shall be transferred 
to the Agency.

SEC. 214. REFERENCES IN FEDERAL LAW TO FEDERAL BANKING AGENCIES.

    Any reference in any Federal law to the Comptroller of the 
Currency, the Office of the Comptroller of the Currency, the Director 
of the Office of Thrift Supervision, or the Office of Thrift 
Supervision shall be deemed to be a reference to the appropriate 
Federal banking agency (as defined in section 3(q) of the Federal 
Deposit Insurance Act).

         Subtitle C--Regulatory and Supervisory Responsibility

SEC. 221. TRANSFER OF POWERS AND DUTIES.

    (a) Director of the Office of Thrift Supervision.--Effective 
January 1, 1997, all powers and duties which were vested in the 
Director of the Office of Thrift Supervision on December 31, 1996, are 
transferred to the Administrator, except as otherwise provided in this 
Act.
    (b) Comptroller of the Currency.--Effective January 1, 1997, all 
powers and duties which were vested in the Comptroller of the Currency 
on December 31, 1996, are transferred to the Administrator, except as 
otherwise provided in this Act.
SEC. 222. TRANSFER OF REGULATION OF SAVINGS AND LOAN HOLDING COMPANIES 
              TO FEDERAL RESERVE BOARD.

    The Bank Holding Company Act of 1956 (12 U.S.C. 1441 et seq.) is 
amended--
            (1) by redesignating sections 11 and 12 as sections 13 and 
        14, respectively; and
            (2) by transferring section 10 of the Home Owners' Loan Act 
        from such Act and inserting such section after section 10 of 
        the Bank Holding Company Act of 1956;
            (3) by redesignating the section transferred and inserted 
        after section 10 by paragraph (2) of this section as section 
        11; and
            (4) by striking ``Director'' each place such term appears 
        in section 11 (as so redesignated by paragraph (3) of this 
        section) and inserting ``Board''.

SEC. 223. APPROPRIATE FEDERAL BANKING AGENCY.

    (a) In General.--Effective January 1, 1997, section 3(q) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813(q)) is amended to read as 
follows:
    ``(q) Appropriate Federal Banking Agency.--The term `appropriate 
Federal banking agency' means--
            ``(1) the Administrator of the Federal Bank Agency in the 
        case of any national banking association, any savings 
        association, any District bank, or any Federal branch or agency 
        of a foreign bank;
            (2) the Board of Governors of the Federal Reserve System, 
        in the case of--
                    (A) any State member insured bank (except a 
                District bank),
                    (B) any branch or agency of a foreign bank with 
                respect to any provision of the Federal Reserve Act 
                which is made applicable under the International 
                Banking Act of 1978,
                    (C) any foreign bank which does not operate an 
                insured branch,
                    (D) any agency or commercial lending company other 
                than a Federal agency,
                    (E) supervisory or regulatory proceedings arising 
                from the authority given to the Board of Governors 
                under section 7(c)(1) of the International Banking Act 
                of 1978, including such proceedings under the Financial 
                Institutions Supervisory Act of 1966, and
                    (F) any depository institution holding company and 
                any subsidiary of a depository institution holding 
                company (other than a depository institution); and
            (3) the Federal Deposit Insurance Corporation in the case 
        of a State nonmember insured bank (except a District bank), or 
        a foreign bank having an insured branch.
Under the rule set forth in this subsection, more than one agency may 
be an appropriate Federal banking agency with respect to any given 
institution.''.
    (b) Responsible Agency.--Section 18(c)(2) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(c)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``Comptroller of the Currency'' and 
                inserting ``Federal Banking Agency'';
                    (B) by striking ``resulting bank'' and inserting 
                ``resulting institution''; and
                    (C) by striking ``or a District bank'' and 
                inserting ``District bank, or savings association'';
            (2) by inserting ``and'' after the semicolon at the end of 
        subparagraph (B);
            (3) by striking ``; and'' at the end of subparagraph (C) 
        and inserting a period; and
            (4) by striking subparagraph (D).

         Subtitle D--Reorganization of FDIC Board of Directors

SEC. 241. FEDERAL DEPOSIT INSURANCE CORPORATION.

    (a) Reorganization.--Section 2(a) of the Federal Deposit Insurance 
Act (12 U.S.C. 1812) is amended to read as follows:
    ``(a) Board of Directors.--
            ``(1) In general.--The management of the Corporation shall 
        be vested in a Board of Directors consisting of 3 members 
        appointed by the President, by and with the advice and consent 
        of the Senate, from among individuals who are citizens of the 
        United States.
            ``(2) Political affiliation.--Not more than 2 of the 
        members of the Board of Directors may be members of the same 
        political party.

             TITLE III--MERGER OF BANK AND THRIFT CHARTERS

SEC. 301. TREASURY STUDY ON MERGER OF CHARTERS.

    (a) Study Required.--Before the end of the 12-month period 
beginning on the date of the enactment of this Act, the Secretary of 
the Treasury shall--
            (1) conduct a study on--
                    (A) the consolidation of national bank and savings 
                association charters into a unified charter for 
                depository institutions; and
                    (B) the most feasible means for the conversion of 
                national banks and savings associations into depository 
                institutions with a unified charter; and
            (2) identify any difficulties or problems which may arise 
        in connection with such conversions.
    (b) Factors To Be Considered.--In conducting the study under 
subsection (a) with respect to the conversion of national banks and 
savings associations into depository institutions with a unified 
charter, the Secretary shall consider and make recommendations with 
respect to the following issues:
            (1) The tax consequences of any such conversion.
            (2) Membership in Federal home loan banks.
            (3) The regulation of holding companies.
            (4) The continuation of the mutual form of ownership of 
        depository institutions following any conversion to a unified 
        charter.
            (5) Any other issue with respect to such conversions which 
        the Secretary considers appropriate, especially any issue 
        relating to any adverse or unanticipated consequence of any 
        such conversion.
    (c) Report to Congress.--
            (1) Report required.--Before the end of the 12-month period 
        described in subsection (a), the Secretary of the Treasury 
        shall submit a report to the Congress on the findings and 
        conclusions of the Secretary with respect to the study 
        conducted in accordance with subsection (a).
            (2) Contents.--The report submitted to the Congress 
        pursuant to paragraph (1) shall contain such recommendations 
        for legislative or administrative action as the Secretary of 
        the Treasury may determine to be appropriate.
            (3) Legislative recommendations.--Any legislative 
        recommendation included in the report under paragraph (2) shall 
        be accompanied by draft legislative language which, if enacted 
        by the Congress, would carry out such recommendation.

SEC. 302. CONVERSION OF SAVINGS ASSOCIATIONS TO BANKS AFTER MERGER OF 
              BIF AND SAIF.

    (a) In General.--Before the end of the 12-month period beginning on 
the date of publication in the Federal Register of the notice of the 
merger of the Bank Insurance Fund and the Savings Association Insurance 
Fund into 1 deposit insurance fund under section 104(a), each Federal 
savings association shall surrender the saving association charter of 
such association and obtain a bank charter in accordance with 
applicable law.
    (b) Termination of Deposit Insurance of Savings Associations.--
Section 8(a) of the Federal Deposit Insurance Act (12 U.S.C. 1818(a)) 
is amended by adding at the end the following new paragraph:
            ``(11) Termination of insurance of savings association.--
        Before the end of the 12-month period beginning on the date of 
        publication in the Federal Register of the notice of the merger 
        of the Bank Insurance Fund and the Savings Association 
        Insurance Fund into 1 deposit insurance fund under section 
        104(a) of the Federal Deposit Insurance Amendments Act of 1995, 
        the Corporation shall terminate, in accordance with this 
        subsection, the insured status of any insured depository 
        institution which is not a bank.''.
    (c) Repeal of Home Owners' Loan Act.--Effective as of the end of 
the 12-month period described in subsection (a), the Home Owners' Loan 
Act (12 U.S.C. 1461 et seq.) is hereby repealed.
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