[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2798 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2798

To amend the Federal Deposit Insurance Act to require periodic cost-of-
    living adjustments to the amount of deposit insurance coverage 
                       available under that Act.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 27, 2000

  Mr. Allard introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Deposit Insurance Act to require periodic cost-of-
    living adjustments to the amount of deposit insurance coverage 
                       available under that Act.

    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 ``Deposit and Share Insurance 
Adjustment Act of 2000''.

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

    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:
                    ``(B) Net amount of insured deposit.--
                            ``(i) In general.--Subject to the 
                        adjustments to be made pursuant to clause (ii), 
                        the net amount due to any depositor under this 
                        Act at an insured depository institution shall 
                        not exceed $100,000, as determined in 
                        accordance with this subparagraph and 
                        subparagraphs (C) and (D).
                            ``(ii) Adjustments.--For the calendar year 
                        commencing January 1, 2001, and for 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 an amount equal to--
                                    ``(I) $100,000; multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) of the Internal Revenue Code of 
                                1986, for such calendar year, 
                                determined by substituting `calendar 
                                year 2000' for `calendar year 1992' in 
                                subparagraph (B) thereof.
                            ``(iii) Rounding.--If the amount determined 
                        under clause (ii) is not a multiple of $1,000, 
                        such amount shall be rounded to the nearest 
                        multiple of $1,000.
                            ``(iv) Notice.--Not later than January 15 
                        of the first year of each 3-year period 
                        referred to in clause (ii), commencing January 
                        15, 2001, the Board of Directors shall cause to 
                        be published in the Federal Register the 
                        maximum net amount due to any depositor at an 
                        insured depository institution for the ensuing 
                        3-year period.''.

SEC. 3. PERIODIC ADJUSTMENTS TO MAXIMUM AMOUNT OF SHARE INSURANCE 
              COVERAGE.

    Section 207(k)(1) of the Federal Credit Union Act (12 U.S.C. 
1787(k)(1)) is amended--
            (1) by striking ``(1) Subject'' and inserting the 
        following: ``Insured Amounts.--
            ``(1) Definition of `insured account'.--
                    ``(A) In general.--Subject'';
            (2) by inserting ``, subject to the adjustments made 
        pursuant to subparagraph (B)'' after ``$100,000''; and
            (3) by adding at the end the following:
                    ``(B) Adjustments.--
                            ``(i) In general.--For the calendar year 
                        commencing January 1, 2001, and for each 
                        subsequent 3-year period, the $100,000 amount 
                        referred to in subparagraph (A) shall be 
                        increased by an amount equal to--
                                    ``(I) $100,000; multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) of the Internal Revenue Code of 
                                1986, for such calendar year, 
                                determined by substituting `calendar 
                                year 2000' for `calendar year 1992' in 
                                subparagraph (B) thereof.
                            ``(ii) Rounding.--If the amount determined 
                        under clause (i) is not a multiple of $1,000, 
                        such amount shall be rounded to the nearest 
                        multiple of $1,000.
                            ``(iii) Notice.--Not later than January 15 
                        of the first year of each 3-year period 
                        referred to in clause (ii), commencing January 
                        15, 2001, the Board shall cause to be published 
                        in the Federal Register the maximum net amount 
                        due with respect to any member account at an 
                        insured credit union for the ensuing 3-year 
                        period.''.

SEC. 4. CONFORMING AMENDMENTS.

    (a) Federal Deposit Insurance Act.--Section 11(a) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821(a)) is amended--
    (1) in paragraph (2)(A), in the matter following clause (v), by 
striking ``$100,000 per account in an amount not to exceed $100,000 per 
account'' and inserting ``the amount determined in accordance with 
paragraph (1)(B) per account''; and
            (2) in paragraph (3)(A)(iii), by striking ``$100,000'' and 
        inserting ``the amount determined in accordance with paragraph 
        (1)(B)''.
    (b) Federal Credit Union Act.--Section 207(k) of the Federal Credit 
Union Act (12 U.S.C. 1787(k)) is amended--
            (1) in paragraph (2)(A), in the matter following clause 
        (v), by striking ``in an amount not to exceed $100,000 per 
        account'' and inserting ``the amount determined in accordance 
        with paragraph (1)(B) per account''; and
            (2) in paragraph (3), by striking ``in the amount of 
        $100,000 per account'' and inserting ``in an amount not to 
        exceed the amount determined in accordance with paragraph 
        (1)(B) per account''.
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