[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4674 Introduced in House (IH)]

  2d Session
                                H. R. 4674

To amend the Federal Deposit Insurance Act to require periodic cost of 
living adjustments to the maximum amount of deposit insurance available 
 under such Act to the extent such increase does not cause the reserve 
    ratios of the deposit insurance funds to decline, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 15, 2000

 Mr. Campbell 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 require periodic cost of 
living adjustments to the maximum amount of deposit insurance available 
 under such Act to the extent such increase does not cause the reserve 
    ratios of the deposit insurance funds to decline, 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 Adjustment 
and Protection Act''.

SEC. 2. PERIODIC ADJUSTMENT TO MAXIMUM AMOUNT OF DEPOSIT INSURANCE 
              COVERAGE.

    (a) In General.--Section 11(a)(1) of the Federal Deposit Insurance 
Act (12 U.S.C. 1821(a)(1)) is amended by striking subparagraph (B) and 
inserting the following new subparagraph:
                    ``(B) Net amount of insured deposit.--
                            ``(i) In general.--Subject to clauses (ii) 
                        and (iii), the net amount due to any depositor 
                        at an insured depository institution shall not 
                        exceed $100,000, as determined in accordance 
                        with subparagraphs (C) and (D).
                            ``(ii) Inflation adjustment.--As of the 1st 
                        day of the 3-year period beginning on January 
                        1, 2001, and the 1st day of each subsequent 3-
                        year period, the maximum net amount due to any 
                        depositor at an insured depository institution 
                        under clause (i) shall be increased by the 
                        product of--
                                    ``(I) the amount described in 
                                clause (i); and
                                    ``(II) the cost of living 
                                adjustment determined under section 
                                1(f)(3) of the Internal Revenue Code of 
                                1986 at the beginning of each such 3-
                                year period, in accordance with clause 
                                (iv).
                            ``(iii) Sufficiency of reserves.--
                        Notwithstanding clause (ii), if any increase 
                        pursuant to clause (ii) in the maximum net 
                        amount due to any depositor at an insured 
                        depository institution under clause (i) would 
                        cause the reserve ratio of any deposit 
                        insurance fund to decrease below the reserve 
                        ratio of that fund as of the date of the 
                        enactment of the Federal Deposit Insurance 
                        Adjustment and Protection Act, that portion of 
                        the increase under clause (ii), with respect to 
                        deposits insured by that fund, which would 
                        cause a decrease below such reserve ratio shall 
                        not take effect until such time as the 
                        Corporation determines that the reserve ratio 
                        of such deposit insurance fund is sufficient to 
                        allow such increase to be effective without 
                        causing such result.
                            ``(iv) Rule of application.--Section 
                        1(f)(3)(B) of the Internal Revenue Code of 1986 
                        shall be applied, for purposes of clause (ii) 
                        of this subsection, by substituting `calendar 
                        year 1980' for `calendar year 1992'.
                            ``(v) Rounding.--If the amount determined 
                        under clause (ii) for any period is not a 
                        multiple of $1,000, the amount so determined 
                        shall be rounded to the nearest $1,000.
                            ``(vi) Publication.--Not later than January 
                        15 of the 1st year of each 3-year period 
                        referred to in clause (ii), the Board of 
                        Directors shall publish in the Federal Register 
                        the maximum net amount which may be due to any 
                        depositor at an insured depository institution 
                        during such 3-year period.''.
    (b) Technical and Conforming Amendments.--
            (1) Paragraphs (2)(A) and (3)(A) of section 11(a) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1821(a)) are each 
        amended by striking ``$100,000'' and inserting ``the amount 
        determined under paragraph (1)(B)''.
            (2) Paragraph (6) of section 11(m) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1821(m)) is amended by striking 
        ``$100,000'' and inserting ``the amount determined under 
        subsection (a)(1)(B)''.
            (3) The following provisions of the Federal Deposit 
        Insurance Act are each amended by striking ``$100,000'' and 
        inserting ``the amount determined under section 11(a)(1)(B)''.
                    (A) Paragraphs (1) and (3) of section 7(i) (12 
                U.S.C. 1817(i)).
                    (B) Subsection (d) of section 43 (12 U.S.C. 1831t).
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