[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3302 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3302

   To amend the Federal Deposit Insurance Act to provide additional 
  deposit insurance coverage for accounts at depository institutions 
which reduce net fee income in any year by 50 percent or more, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 23, 1996

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

_______________________________________________________________________

                                 A BILL


 
   To amend the Federal Deposit Insurance Act to provide additional 
  deposit insurance coverage for accounts at depository institutions 
which reduce net fee income in any year by 50 percent or more, 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 ``Bank Fee Reduction Incentive Act of 
1996''.

SEC. 2. INCREASE IN DEPOSIT INSURANCE FOR DEPOSITORY INSTITUTIONS WHICH 
              REDUCE FEES.

    Section 11(a) of the Federal Deposit Insurance Act (12 U.S.C. 
1922(a)) is amended by adding at the end the following new paragraph:
            ``(9) Increased deposit insurance for institutions which 
        reduce fees.--
                    ``(A) In general.--If the Corporation determines, 
                in accordance with such procedures as the Corporation 
                shall establish, that the net fee income of an insured 
                depository institution is reduced by 50 percent or more 
                over any 2 consecutive semiannual periods due to a 
                reduction in the number and amount of fees imposed by 
                the institution in connection with consumer accounts 
                and consumer transactions, paragraphs (1)(B), (2)(A), 
                and (3) and section 7(i) shall be applied, with respect 
                to such institution, during the 2 semiannual periods 
                which begin after the date of such determination by 
                substituting `$105,000' for `$100,000' each place such 
                term appears in such paragraphs and section.
                    ``(B) Exception authorized.--The Corporation may 
                waive the application of subparagraph (A) to any 
                insured depository institution if the Corporation 
                determines that the application of such subparagraph to 
                such institution would create a disproportionate 
                increase in risk to a deposit insurance fund.''.
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