[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2123 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2123

To accelerate capitalization of the Savings Association Insurance Fund, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 1995

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

_______________________________________________________________________

                                 A BILL


 
To accelerate capitalization of the Savings Association Insurance Fund, 
                        and for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Savings 
Association Insurance Fund Capitalization Act of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Special assessment; access to loss funds.
Sec. 4. Payment of FICO carrying costs from interest earned on deposit 
                            insurance funds.
Sec. 5. Proportional sharing of Financing Corporation assessments to 
                            cover interest shortfall.
Sec. 6. Rebate of amounts in any deposit insurance fund in excess of 
                            the fund's designated reserve.
Sec. 7. Merger of deposit insurance funds 12 months after 
                            recapitalization of SAIF.
Sec. 8. Study by banking agencies on conversions to a unified charter.
SEC. 2. PURPOSES.

    The purposes of this Act are as follows:
            (1) To accelerate capitalization of the Savings Association 
        Insurance Fund.
            (2) To provide that interest earned on deposit insurance 
        funds shall be available to cover the remaining debt servicing 
        costs of the Financing Corporation.
            (3) To distribute among all insured depository institutions 
        any shortfall which exists after the applying the interest 
        earned on the deposit insurance funds to the remaining debt 
        servicing costs of the Financing Corporation.
            (4) To provide for refunds of amounts in the deposit 
        insurance funds in excess of the designated reserve ratio.
            (5) To merge the Bank Insurance Fund and the Savings 
        Association Insurance Fund 12 months after the date on which 
        the Savings Association Insurance Fund becomes fully 
        capitalized.
            (6) To require a study of the feasibility of merging bank 
        and thrift charters and recommendations and proposals for 
        achieving such merger.

SEC. 3. SPECIAL ASSESSMENT; ACCESS TO LOSS FUNDS.

    (a) Special Assessment.--Section 7(b)(6) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(b)(6)) is amended--
            (1) by redesignating clauses (i), (ii), and (iii) of 
        subparagraph (A) as subclauses (I), (II), and (III), 
        respectively;
            (2) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively;
            (3) by moving the left margin of such clauses and 
        subclauses (as so redesignated) 2 ems to the right;
            (4) by striking ``special assessments.--In addition to'' 
        and inserting ``special assessments.--
                    ``(A) In general.--In addition to''; and
            (5) by adding at the end the following new subparagraph:
                    ``(B) Single additional special assessment with 
                respect to certain accounts.--
                            ``(i) In general.--Before the end of the 
                        120-day period beginning on the date of the 
                        enactment of the Savings Association Insurance 
                        Fund Capitalization Act of 1995, the 
                        Corporation shall impose a single special 
                        assessment on--
                                    ``(I) each Savings Association 
                                Insurance Fund member (including any 
                                Savings Association Insurance Fund 
                                member referred to in section 
                                5(d)(2)(G)); and
                                    ``(II) each Bank Insurance Fund 
                                member which has deposits which are 
                                treated, under section 5(d)(3), as 
                                deposits which are insured by the 
                                Savings Association Insurance Fund,
                        in an amount equal to such percentage of the 
                        assessment base on which assessments are 
                        imposed under the risk-based assessment system 
                        established pursuant to paragraph (1) (or, in 
                        the case of an institution described in 
                        subclause (II), the adjusted attributable 
                        deposit amount determined under subparagraph 
                        (C) of section 5(d)(3) for purposes of 
                        subparagraph (B)(i) of such section) as of 
                        December 31, 1994, as may be necessary in order 
                        for the reserve ratio of the Savings 
                        Association Insurance Fund to meet or exceed 
                        the designated reserve ratio.
                            ``(ii) Deposit of assessment.--The proceeds 
                        of any assessment imposed under clause (i) 
                        shall be deposited in the Savings Association 
                        Insurance Fund.''.
    (b) Modifications of Conditions for SAIF Access to RTC Loss 
Funds.--Section 11(a)(6)(F) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(a)(6)(F)) is amended--
            (1) in that portion of such section which appears before 
        clause (i), by striking ``2-year period'' and inserting 
        ``before the merger of the Bank Insurance Fund and the Savings 
        Association Insurance Fund pursuant to section 7 of the Savings 
        Association Insurance Fund Capitalization Act of 1995'';
            (2) by striking clauses (ii) and (iii); and
            (3) by redesignating clauses (iv) through (viii) as clauses 
        (ii) through (vi), respectively.
SEC. 4. 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), to the extent available.''.
    (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.''.
SEC. 5. PROPORTIONAL SHARING OF FINANCING CORPORATION ASSESSMENTS TO 
              COVER INTEREST SHORTFALL.

    (a) In General.--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 of such fund 
                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).''.
    (b) 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''.
    (c) Technical and Conforming Amendment to the Federal Home Loan 
Bank Act.--Section 21(k) of the Federal Home Loan Bank Act (12 U.S.C. 
1441(k)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively.
SEC. 6. REBATE OF AMOUNTS IN ANY DEPOSIT INSURANCE FUND IN EXCESS OF 
              THE FUND'S DESIGNATED RESERVE.

    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. 7. MERGER OF DEPOSIT INSURANCE FUNDS 12 MONTHS AFTER 
              RECAPITALIZATION OF SAIF.

    (a) In General.--Effective at the end of the 12-month period 
beginning on the date on which the Savings Association Insurance Fund 
first achieves the designated reserve ratio applicable with respect to 
such fund under section 7(b) of the Federal Deposit Insurance Act, the 
Federal Deposit Insurance Corporation shall--
            (1) merge the Bank Insurance Fund and the Savings 
        Association Insurance Fund 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 7(a) of the 
                        Savings Association Insurance Fund 
                        Capitalization 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) Subparagraph (A) of section 7(b)(6) of the Federal 
        Deposit Insurance Act (as so redesignated by section 3(a) of 
        this Act) is amended--
                    (A) in clause (i) (as so redesignated)--
                            (i) by inserting ``or'' after the semicolon 
                        at the end of subclause (I);
                            (ii) by striking subclause (II); and
                            (iii) by striking ``; and'' at the end of 
                        subclause (III) and inserting a period; and
                    (B) by striking clause (ii) (as so redesignated).
            (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) The penultimate sentence of section 14(a) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1824(a)) is amended--
                    (A) by striking ``Bank Insurance Fund or the 
                Savings Association Insurance Fund'' and inserting 
                ``depository institution fund''; and
                    (B) by striking ``each such fund'' and inserting 
                ``the fund''.
            (20) The 1st sentence of 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 ``insured 
                        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 ``insured 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 ``insured 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)(A) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1831o(o)(1)(A)) 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 end of the 12-month period 
described in subsection (a).

SEC. 8. STUDY BY BANKING AGENCIES ON CONVERSIONS TO A UNIFIED CHARTER.

    (a) Study Required.--Before the end of the 12-month period 
beginning on the date of the enactment of this Act, the Federal banking 
agencies (as defined in section 3(z) of the Federal Deposit Insurance 
Act) shall jointly--
            (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;
            (2) identify any difficulties or problems which may arise 
        in connection with such conversions; and
            (3) develop proposals and recommendations for the 
        establishment of a unified charter and the implementation of 
        such conversions to a unified charter.
    (b) Report to Congress.--
            (1) Report required.--Before the end of the 12-month period 
        described in subsection (a), the agencies referred to in such 
        subsection shall submit a joint report to the Congress on the 
        findings and conclusions of the agencies 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 
        and proposals for legislative or administrative action as the 
        agencies referred to in subsection (a) may determine to be 
        appropriate.
                                 <all>
HR 2123 IH----2