[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3278 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 3278

 To amend the Federal Deposit Insurance Act and the Federal Home Loan 
 Bank Act to provide for the payment of Financing Corporation interest 
obligations from balances in the deposit insurance funds in excess of a 
                       designated reserve ratio.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 9, 1999

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

_______________________________________________________________________

                                 A BILL


 
 To amend the Federal Deposit Insurance Act and the Federal Home Loan 
 Bank Act to provide for the payment of Financing Corporation interest 
obligations from balances in the deposit insurance funds in excess of a 
                       designated reserve ratio.

    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 ``Financing Corporation Assessment 
Elimination Act of 1999''.

SEC. 2. USE OF DEPOSIT FUND RESERVES TO PAY FICO INTEREST OBLIGATIONS.

    (a) In General.--Section 7(b)(2) of the Federal Deposit Insurance 
Act (12 U.S.C. 1817(b)(2)) is amended by inserting after subparagraph 
(C) the following new subparagraph:
                    ``(D) Use of deposit insurance funds to pay fico 
                interest obligations.--Beginning January 1, 2000, and 
                annually thereafter, the Board of Directors shall 
                transfer the funds in the Bank Insurance Fund and the 
                Savings Association Insurance Fund in excess of the 
                amount which is equal to 1.35 percent of the estimated 
                insured deposits insured by each such Fund (or such 
                higher percentage as may have been established as the 
                designated reserve ratio for the respective Fund 
                pursuant to subparagraph (A)(iv)(II)) to the Financing 
                Corporation to pay the interest payments, issuance 
                costs, and custodial fees described in section 21(f) of 
                the Federal Home Loan Bank Act with regard to 
                obligations issued by the Financing Corporation.''.
    (b) Technical and Conforming Amendment.--
            (1) Section 21(f) of the Federal Home Loan Bank Act (12 
        U.S.C. 1441) is amended--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively;
                    (B) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Excess deposit insurance fund balances.--In addition 
        to the amounts obtained pursuant to paragraph (1), the 
        Financing Corporation shall have available the amounts 
        transferred by the Board of Directors of the Federal Deposit 
        Insurance Corporation pursuant to section 7(b)(2)(D) of the 
        Federal Deposit Insurance Act.'';
                    (C) in paragraph (3) (as so redesignated by 
                paragraph (2) of this subsection), by striking ``In 
                addition to the amounts obtained pursuant to paragraph 
                (1),'' and inserting ``To the extent the amounts 
                available under paragraphs (1) and (2) are insufficient 
                to cover the amount of interest payments, issuance 
                costs, and custodial fees,''; and
                    (D) in paragraph (4) (as so redesignated by 
                paragraph (2) of this subsection), by striking ``(1) 
                and (2)'' and inserting ``(1), (2), and (3)''.
            (2) Section 2703(c)(2) of the Deposit Insurance Funds Act 
        of 1996 (12 U.S.C. 1441 nt.) is amended--
                    (A) by striking ``21(f)(2)'' and inserting 
                ``21(f)(3)''; and
                    (B) by inserting ``and redesignated by section 
                2(b)(1)(A) of the Financing Corporation Assessment 
                Elimination Act of 1999'' after ``as amended by 
                subsection (a)''.
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