[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3717 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 3717

To reform the Federal deposit insurance system, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 12, 2002

   Mr. Bachus (for himself, Mr. Oxley, Mr. Gillmor, Mr. Leach, Mrs. 
   Roukema, Mr. Royce, Mr. Ney, Mr. King, Mr. Weldon of Florida, Mr. 
  Riley, Mr. Jones of North Carolina, Mr. Manzullo, Mr. Tiberi, Mrs. 
Biggert, Mr. Thune, and Ms. Hart) introduced the following bill; which 
          was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To reform the Federal deposit insurance system, 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 Reform Act 
of 2002''.

SEC. 2. MERGING THE BIF AND SAIF.

    (a) In General.--
            (1) Merger.--The Bank Insurance Fund and the Savings 
        Association Insurance Fund shall be merged into the Deposit 
        Insurance Fund.
            (2) Disposition of assets and liabilities.--All assets and 
        liabilities of the Bank Insurance Fund and the Savings 
        Association Insurance Fund shall be transferred to the Deposit 
        Insurance Fund.
            (3) No separate existence.--The separate existence of the 
        Bank Insurance Fund and the Savings Association Insurance Fund 
        shall cease on the effective date of the merger thereof under 
        this section.
    (b) Repeal of Outdated Merger Provision.--Section 2704 of the 
Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.
    (c) Effective Date.--This section shall take effect on the first 
day of the first calendar quarter that begins after the end of the 90-
day period beginning on the date of the enactment of this Act.

SEC. 3. INCREASE IN 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--
            (1) by striking subparagraph (B) and inserting the 
        following new subparagraph:
                    ``(B) Net amount of insured deposit.--The net 
                amount due to any depositor at an insured depository 
                institution shall not exceed the standard maximum 
                deposit insurance amount as determined in accordance 
                with subparagraphs (C), (D), (E) and (F) and paragraph 
                (3).''; and
            (2) by adding at the end the following new subparagraphs:
                    ``(E) Standard maximum deposit insurance amount 
                defined.--For purposes of this Act, the term `standard 
                maximum deposit insurance amount' means--
                            ``(i) until the end of the first calendar 
                        quarter that ends on or after the end of the 
                        90-day period beginning on the date of the 
                        enactment of the Federal Deposit Insurance 
                        Reform Act of 2002, $100,000; and
                            ``(ii) after the end of the calendar 
                        quarter referred to in clause (i), $130,000, 
                        adjusted as provided under subparagraph (F).
                    ``(F) Inflation adjustment.--
                            ``(i) In general.--As of January 1, 2010, 
                        and the 1st day of each subsequent 10-year 
                        period, the standard maximum deposit insurance 
                        amount applicable to any depositor at an 
                        insured depository institution shall be 
                        increased by the product of--
                                    ``(I) the amount described in 
                                subparagraph (E)(ii); 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 10-
                                year period, in accordance with clause 
                                (ii).
                            ``(ii) Rule of application.--Section 
                        1(f)(3)(B) of the Internal Revenue Code of 1986 
                        shall be applied, for purposes of clause (i), 
                        by substituting `calendar year 2002' for 
                        `calendar year 1992'.
                            ``(iii) Rounding.--If the amount determined 
                        under clause (ii) for any period is not a 
                        multiple of $10,000, the amount so determined 
                        shall be rounded to the nearest $10,000 that is 
                        less than the amount so determined.
                            ``(iv) Publication.--Before the end of the 
                        30-day period beginning on the date the Board 
                        of Directors determines under clause (i) that 
                        the standard maximum insurance amount 
                        applicable to any depositor has increased, 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 as so determined.''.
    (b) Doubling of Deposit Insurance for Certain Retirement 
Accounts.--Section 11(a)(3)(A) of the Federal Deposit Insurance Act (12 
U.S.C. 1921(a)(3)(A)) is amended by striking ``$100,000'' and inserting 
``2 times the standard maximum deposit insurance amount (as determined 
under paragraph (1))''.
    (c) Increased Insurance Coverage for Municipal Deposits.--Section 
11(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(2)) is 
amended by adding at the end the following:
    ``(C) Municipal depositors.--
            ``(i) In general.--Notwithstanding subparagraph (A), the 
        deposits of in-State municipal depositors at an insured 
        depository institution shall be insured in an aggregate amount 
        not to exceed the total equity capital of the institution.
            ``(ii) Definitions.--In this subparagraph--
                    ``(I) the term `in-State municipal depositor' means 
                a municipal depositor that is located in the same State 
                as the office or branch of the insured depository 
                institution at which the deposits of that depositor are 
                held; and
                    ``(II) the term `municipal depositor' means a 
                depositor described in any of clauses (i) through (v) 
                of subparagraph (A).''.
    (d) Technical and Conforming Amendment Relating to Insurance of 
Trust Funds.--Paragraphs (1) and (3) of section 7(i)(1) of the Federal 
Deposit Insurance Act (12 U.S.C. 1817(i)) are each amended by striking 
``$100,000'' and inserting ``the standard maximum deposit insurance 
amount (as determined under section 11(a)(1))''.
    (e) Other Technical and Conforming Amendments.--
            (1) Section 11(a)(2) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(a)(2)) is amended by striking ``$100,000'' the 
        first place such term appears and all that follows through the 
        period at the end and inserting ``the standard maximum deposit 
        insurance amount per account.''.
            (2) Section 11(m)(6) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(m)(6)) is amended by striking ``$100,000'' and 
        inserting ``an amount equal to the standard maximum deposit 
        insurance amount''.
            (3) Section 18(a)(1)(B) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1828(a)(1)(B)) is amended by striking 
        ``$100,000'' and inserting ``the standard maximum deposit 
        insurance amount in effect at the time''.
            (4) Section 43(d) of the Federal Deposit Insurance Act (12 
        U.S.C. 1831t(d)) is amended by striking ``$100,000'' and 
        inserting ``an amount equal to the standard maximum deposit 
        insurance amount''.
            (5) Section 6 of the International Banking Act of 1978 (12 
        U.S.C. 3104(b)) is amended--
                    (A) by striking ``$100,000'' each place such term 
                appears and inserting ``an amount equal to the standard 
                maximum deposit insurance amount''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(e) Standard Maximum Deposit Insurance Amount Defined.--For 
purposes of this section, the term `standard maximum deposit insurance 
amount' means the amount of the maximum amount of deposit insurance as 
determined under section 11(a)(1) of the Federal Deposit Insurance 
Act.''.
    (f) Conforming Change to Share Insurance Fund.--
            (1) In general.--Section 207(k) of the Federal Credit Union 
        Act (12 U.S.C. 1787(k)) is amended--
                    (A) in paragraph (1), by striking ``$100,000.'' and 
                inserting ``the standard maximum share insurance 
                amount, as determined in accordance with paragraph 
                (4).''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(4) Standard maximum share insurance amount defined.--For 
        purposes of this Act, the term `standard maximum share 
        insurance amount' means--
                    ``(A) until the end of the first calendar quarter 
                that ends on or after the end of the 90-day period 
                beginning on the date of the enactment of the Federal 
                Deposit Insurance Reform Act of 2002, $100,000; and
                    ``(B) after the end of the calendar quarter 
                referred to in clause (i), $130,000, adjusted as 
                provided under paragraph (5).
            ``(5) Inflation adjustment.--
                    ``(A) In general.--As of January 1, 2010, and the 
                1st day of each subsequent 10-year period, the standard 
                maximum share insurance amount applicable to any 
                insured account shall be increased by the product of--
                            ``(i) the amount described in subparagraph 
                        (4)(B); 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 10-year period, in accordance with 
                        subparagraph (B).
                    ``(B) Rule of application.--Section 1(f)(3)(B) of 
                the Internal Revenue Code of 1986 shall be applied, for 
                purposes of subparagraph (A), by substituting `calendar 
                year 2002' for `calendar year 1992'.
                    ``(C) Rounding.--If the amount determined under 
                subparagraph (B) for any period is not a multiple of 
$10,000, the amount so determined shall be rounded to the nearest 
$10,000 that is less than the amount so determined.
                    ``(D) Publication.--Not later than January 15 of 
                the 1st year of each 10-year period referred to in 
                clause (ii), the Board shall publish in the Federal 
                Register the maximum net amount which may be due with 
                respect to any insured account during such 10-year 
                period.''.
            (2) Doubling of share insurance for certain retirement 
        accounts.--Section 107(k)(3) of the Federal Credit Union Act 
        (12 U.S.C. 1787(k)(3)) is amended by striking ``$100,000'' and 
        inserting ``2 times the standard maximum share insurance amount 
        (as determined under paragraph (1))''.
            (3) Technical and conforming amendment.--Section 
        11(k)(2)(A) of the Federal Credit Union Act (12 U.S.C. 
        1787(k)(2)(A)) is amended by striking ``$100,000'' and 
        inserting ``the standard maximum share insurance amount (as 
        determined under paragraph (1))''.

SEC. 4. EXPANDED INVESTMENTS AUTHORIZED FOR DEPOSIT INSURANCE FUND.

    Section 13(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(a)(1)) is amended by striking ``shall be invested'' and all that 
follows through the period and inserting ``shall be invested. Such 
investments shall be limited to the following types of investments:
                    ``(A) Obligations of the United States or any 
                agency of the United States.
                    ``(B) Obligations guaranteed as to principal and 
                interest by the United States.
                    ``(C) Such other comparable obligations as the 
                Secretary of the Treasury specifically authorizes upon 
                the Secretary's own initiative or at the request of the 
                Chairperson of the Board of Directors.''.

SEC. 5. REPEAL OF SPECIAL RULE RELATING TO MINIMUM ASSESSMENTS.

    Subsection (b)(2) of section 7 of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(b)(2)) is amended--
            (1) by striking subparagraphs (B), (E), and (F); and
            (2) by redesignating subparagraphs (C), (G), and (H) as 
        subparagraphs (B), (C), and (D), respectively.

SEC. 6. REPEAL OF FREE DEPOSIT INSURANCE.

    Section 7(b)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(b)(2)(A)) is amended--
            (1) by striking clauses (iii) and (v); and
            (2) by redesignating clause (iv) as clause (iii).

SEC. 7. REPLACEMENT OF FIXED DESIGNATED RESERVE RATIO WITH RESERVE 
              RANGE.

    (a) In General.--Section 7(b)(3) of the Federal Deposit Insurance 
Act (12 U.S.C. 1817(b)(3)) is amended to read as follows:
            ``(3) Designated reserve ratio.--
                    ``(A) Establishment.--Before the beginning of each 
                calendar year, the Board of Directors shall designate, 
                by regulation after opportunity for comment, the 
                reserve ratio applicable for such year.
                    ``(B) Range.--The reserve ratio designated by the 
                Board of Directors for any year--
                            ``(i) may not exceed 1.5 percent of 
                        estimated insured deposits; and
                            ``(ii) may not be less than 1.0 percent of 
                        estimated insured deposits.
                    ``(C) Factors.--In designating a reserve ratio for 
                any year, the Board of Directors shall--
                            ``(i) take into account the risk of losses 
                        to the deposit insurance fund in such year and 
                        future years, based on an analysis of historic 
                        experience and potential losses from 
                        identifiable insured depository institutions 
                        that are in a troubled condition (as defined by 
                        the Corporation);
                            ``(ii) take into account economic 
                        conditions generally affecting insured 
                        depository institutions so as to allow the 
                        designated reserve ratio to increase during 
                        more favorable economic conditions and to 
                        decrease during less favorable economic 
                        conditions, notwithstanding the increased risks 
                        of loss that may exist during such less 
                        favorable conditions;
                            ``(iii) seek to prevent sharp swings in the 
                        assessment rates for insured depository 
                        institutions; and
                            ``(iv) take into account such other factors 
                        as the Board of Directors may determine to be 
                        appropriate, consistent with the requirements 
                        of this subparagraph.
                    ``(D) Publication of proposed change in ratio.--In 
                soliciting comment on any proposed change in the 
                designated reserve ratio in accordance with 
                subparagraph (A), the Board of Directors shall include 
                in the published proposal a detailed analysis of the 
                data and projections on which the proposal is based.''.
    (b) Technical and Conforming Amendments.--
            (1) Paragraph (3) of section 3(y) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813(y)) is amended to read as 
        follows:
            ``(3) Designated reserve ratio.--The term `designated 
        reserve ratio' means the reserve ratio designated by the Board 
        of Directors for each year in accordance with section 
        7(b)(3).''.
            (2) Section 7(b)(2)(A) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1817(b)(2)(A)) is amended by striking clause (iii) 
        (as so redesignated by section 6 of this Act).

SEC. 8. REQUIREMENTS APPLICABLE TO THE RISK-BASED ASSESSMENT SYSTEM.

    Section 7(b)(1) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(b)(1)) is amended by adding at the end the following new 
subparagraphs:
                    ``(E) Information concerning risk of loss and 
                economic conditions.--
                            ``(i) Sources of information.--For purposes 
                        of determining risk of losses at insured 
                        depository institutions and economic conditions 
                        generally affecting depository institutions, 
                        the Corporation shall collect information from 
                        appropriate sources, including reports of 
                        condition, inspection reports, and other 
                        information from all Federal banking agencies, 
                        any information available from State bank 
                        supervisors, State insurance and securities 
                        regulators, the Securities and Exchange 
                        Commission (including information described in 
                        section 35), Secretary of the Treasury, 
                        Commodity Futures Trading Commission, Farm 
                        Credit Administration, Federal Trade 
                        Commission, any Federal reserve bank or Federal 
                        home loan bank, and other regulators of 
                        financial institutions, and any information 
                        available from credit rating entities, and 
                        other private economic and business analysts.
                            ``(ii) Rule of construction.--No provision 
                        of this paragraph shall be construed as 
                        providing any new authority for the Corporation 
                        to require submission of information by insured 
                        depository institutions to the Corporation.
                    ``(F) Modifications to the risk-based assessment 
                system allowed only after notice and comment.--In 
                revising or modifying the risk-based assessment system 
                at any time after the date of the enactment of the 
                Federal Deposit Insurance Reform Act of 2002, the Board 
                of Directors may implement such revisions or 
                modification in final form only after notice and 
                opportunity for comment.''.

SEC. 9. REFUNDS, REBATES, AND CREDITS FROM DEPOSIT INSURANCE FUND.

    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, Rebates, and Credits.--
            ``(1) Refunds of 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) Rebates of excess amounts in deposit insurance 
        fund.--
                    ``(A) Fund balance in excess of 1.5 percent of 
                estimated insured deposits.--Whenever the balance in 
                the Deposit Insurance Fund equals or exceeds the amount 
                equal to 1.5 percent of estimated insured deposits, the 
                Corporation shall rebate the amount in the Fund in 
                excess of the amount required to maintain a balance at 
                the designated reserve ratio in effect at such time, to 
                insured depository institutions in such manner and on 
                such conditions as the Corporation shall prescribe by 
                regulation, after notice and opportunity for comment.
                    ``(B) Fund balance in excess of 1.4 percent of 
                estimated insured deposits.--Whenever the balance in 
                the Deposit Insurance Fund is equal to or greater than 
                the amount equal to 1.4 percent of estimated insured 
                deposits and less than 1.5 percent of such deposits, 
                the Corporation may credit or rebate the amount in 
                excess of the amount required to maintain a balance at 
                the designated reserve ratio in effect at such time, to 
                insured depository institutions in such manner and on 
                such conditions as the Corporation shall prescribe by 
                regulation, after notice and opportunity for comment.
            ``(3) Transitional credit for certain depository 
        institutions.--
                    ``(A) In general.--The individual transition credit 
                amount (as determined under subparagraph (C)) for each 
                eligible depository institution shall be available for 
                credit by the Corporation against assessments under 
                subsection (b) on the eligible depository institution 
                which become due for semiannual assessment periods 
                beginning after the effective date of the merger of the 
                Bank Insurance Fund and Savings Association Insurance 
                Fund into the Deposit Insurance Fund.
                    ``(B) Eligible depository institutions defined.--
                For purposes of this paragraph, the term `eligible 
                depository institution' means an insured depository 
                institution that--
                            ``(i) received, in the most recent 
                        examination of the institution before the 
                        effective date of the merger of the Bank 
                        Insurance Fund and the Savings Association 
                        Insurance Fund, a CAMEL composite rating of 1 
                        or 2 under the Uniform Financial Institutions 
                        Rating System, or an equivalent rating under a 
                        comparable rating system; and
                            ``(ii) paid assessments (or any predecessor 
                        of which paid assessments) under this section 
                        for any semiannual assessment period beginning 
                        after December 31, 1989, and ending before 
                        January 1, 1997.
                    ``(C) Amount of individual transition credit.--The 
                individual transition credit amount for each eligible 
                depository institution shall be the amount that bears 
                the same ratio to the total transition credit amount as 
                the ratio of the market share of insured deposits of 
                the eligible depository institution as of December 31, 
                1996 (including all predecessors of such insured 
                depository institution in existence on such date) bears 
                to the market share of insured deposits of all 
                depository institutions (as of such date) (including 
                all predecessors of such institutions in existence on 
                such date).
                    ``(D) Total transition credit amount.--For purposes 
                of subparagraph (C), the term `total transition credit 
                amount' means that portion of the balance in the 
                Deposit Insurance Fund (as of the effective date of the 
                merger of the Bank Insurance Fund and Savings 
                Association Insurance Fund) that is equal to income 
                earned by the Fund on premiums paid less expenses (as 
                of the effective date of such merger).
                    ``(E) Predecessor defined.--For purposes of this 
                paragraph, the term `predecessor', when used with 
                respect to any insured depository institution, includes 
                any other insured depository institution acquired by or 
                merged with such insured depository institution.''.

SEC. 10. DEPOSIT INSURANCE FUND RESTORATION PLANS.

    Section 7(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1917(b)(3)) (as amended by section 7(a) of this Act) is amended by 
adding at the end the following new subparagraph:
                    ``(F) DIF restoration plans.--
                            ``(i) In general.--Whenever--
                                    ``(I) the actual ratio of the 
                                balance in the Deposit Insurance Fund 
                                to the estimated insured deposits is 
                                less than 0.1 percent greater than the 
                                minimum amount permitted for the 
                                designated reserve ratio (or is 
                                projected to fall to a ratio that is 
                                less than 0.1 percent greater than such 
                                minimum designated reserve ratio) in 
                                any calendar year; and
                                    ``(II) the actual ratio of the 
                                balance in such Fund to estimated 
                                insured deposits has failed to meet or 
                                exceed the designated reserve ratio for 
                                the 2 preceding calendar years,
                        the Corporation shall immediately establish and 
                        implement a Deposit Insurance Fund Restoration 
                        Plan that will ensure that the Fund has, or 
                        will have within a reasonable period of time, 
                        adequate reserves for all projected 
                        contingencies and that the actual reserve ratio 
                        will be maintained at not less than minimum 
                        amount permitted for the designated reserve 
                        ratio, on such basis and after taking into 
                        account such factors as the Corporation 
                        determines to be appropriate.
                            ``(ii) Transparency.--Not more than 90 days 
                        after the Corporation establishes and 
                        implements a restoration plan under clause (i), 
                        the Corporation shall publish in the Federal 
                        Register a detailed analysis of the factors 
                        considered and the basis for the actions taken 
                        with regard to the plan.''.

SEC. 11. STUDIES OF FDIC ADMINISTRATIVE STRUCTURE AND EXPENSES AND 
              CERTAIN ACTIVITIES AND FURTHER POSSIBLE CHANGES TO 
              DEPOSIT INSURANCE SYSTEM.

    (a) Study by Comptroller General.--
            (1) Study required.--The Comptroller General shall conduct 
        a study of the following issues concerning the Federal Deposit 
        Insurance Corporation:
                    (A) The efficiency and effectiveness of the 
                administration of the prompt corrective action program 
                under section 38 of the Federal Deposit Insurance Act, 
                including the degree of effectiveness of the 
                Corporation in identifying troubled depository 
                institutions and the degree of accuracy of the risk 
                assessments made by the Corporation.
                    (B) The appropriateness of the administrative 
                structure of the Federal Deposit Insurance Corporation 
                for the mission of the Corporation, taking into account 
                the current size and complexity of the business of 
                insured depository institutions (as such term is 
                defined in section 3 of the Federal Deposit Insurance 
                Act).
                    (C) The extent to which the administrative 
                structure contributes to or reduces administrative 
                inefficiencies that increase administrative costs and 
                the effectiveness of internal controls on 
                administrative costs.
            (2) Report to the congress.--The Comptroller General shall 
        submit a report to the Congress before the end of the 1-year 
        period beginning on the date of the enactment of this Act 
        containing the findings and conclusions of the Comptroller 
        General with respect to the study required under paragraph (1) 
        together with such recommendations for legislative or 
        administrative action as the Comptroller General may determine 
        to be appropriate.
    (b) Internal Study by the FDIC.--
            (1) Study required.--Concurrently with the study required 
        to be conducted by the Comptroller General under subsection 
        (a), the Federal Deposit Insurance Corporation shall conduct an 
        internal study of the same conditions and factors included in 
        the study under subsection (a).
            (2) Report to the congress.--The Federal Deposit Insurance 
        Corporation shall submit a report to the Congress before the 
        end of the 1-year period beginning on the date of the enactment 
        of this Act containing the findings and conclusions of the 
        Corporation with respect to the study required under paragraph 
        (1) together with such recommendations for legislative or 
        administrative action as the Board of Directors of the 
        Corporation may determine to be appropriate.
    (c) Study of Further Possible Changes to Deposit Insurance 
System.--
            (1) Study required.--The Board of Directors of the Federal 
        Deposit Insurance Corporation and the National Credit Union 
        Administration Board shall each conduct a study of the 
        following:
                    (A) The feasibility of establishing a voluntary 
                deposit insurance system for deposits in excess of the 
                maximum amount of deposit insurance for any depositor 
                and the potential benefits and the potential adverse 
                consequences that may result from the establishment of 
any such system.
                    (B) The feasibility of privatizing all deposit 
                insurance at insured depository institutions and 
                insured credit unions.
            (2) Report.--Before the end of the 1-year period beginning 
        on the date of the enactment of this Act, the Board of 
        Directors of the Federal Deposit Insurance Corporation and the 
        National Credit Union Administration Board shall each submit a 
        report to the Congress on the study required under paragraph 
        (1) containing the findings and conclusions of the reporting 
        agency together with such recommendations for legislative or 
        administrative changes as the agency may determine to be 
        appropriate.

SEC. 12. TECHNICAL AND CONFORMING AMENDMENTS TO THE FEDERAL DEPOSIT 
              INSURANCE ACT RELATING TO THE MERGER OF THE BIF AND SAIF.

    The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is 
amended--
            (1) in section 3(a)(1) (12 U.S.C. 1813(a)(1)), by striking 
        subparagraph (B) and inserting the following:
                    ``(B) includes any former savings association.'';
            (2) in section 5(b)(5) (12 U.S.C. 1815(b)(5)), by striking 
        ``the Bank Insurance Fund or the Savings Association Insurance 
        Fund;'' and inserting ``the Deposit Insurance Fund,'';
            (3) in section 5(c)(4), by striking ``deposit insurance 
        fund'' and inserting ``Deposit Insurance Fund'';
            (4) in section 5(d) (12 U.S.C. 1815(d)), by striking 
        paragraphs (2) and (3);
            (5) in section 5(d)(1) (12 U.S.C. 1815(d)(1))--
                    (A) in subparagraph (A), by striking ``reserve 
                ratios in the Bank Insurance Fund and the Savings 
                Association Insurance Fund as required by section 7'' 
                and inserting ``the reserve ratio of the Deposit 
                Insurance Fund'';
                    (B) by striking subparagraph (B) and inserting the 
                following:
            ``(2) Fee credited to the deposit insurance fund.--The fee 
        paid by the depository institution under paragraph (1) shall be 
        credited to the Deposit Insurance Fund.'';
                    (C) by striking ``(1) Uninsured institutions.--''; 
                and
                    (D) by redesignating subparagraphs (A) and (C) as 
                paragraphs (1) and (3), respectively, and moving the 
                left margins 2 ems to the left;
            (6) in section 5(e) (12 U.S.C. 1815(e))--
                    (A) in paragraph (5)(A), by striking ``Bank 
                Insurance Fund or the Savings Association Insurance 
                Fund'' and inserting ``Deposit Insurance Fund'';
                    (B) by striking paragraph (6); and
                    (C) by redesignating paragraphs (7), (8), and (9) 
                as paragraphs (6), (7), and (8), respectively;
            (7) in section 6(5) (12 U.S.C. 1816(5)), by striking ``Bank 
        Insurance Fund or the Savings Association Insurance Fund'' and 
        inserting ``Deposit Insurance Fund'';
            (8) in section 7(b) (12 U.S.C. 1817(b))--
                    (A) in paragraph (1)(C), by striking ``deposit 
                insurance fund'' each place that term appears and 
                inserting ``Deposit Insurance Fund'';
                    (B) in paragraph (1)(D), by striking ``each deposit 
                insurance fund'' and inserting ``the Deposit Insurance 
                Fund'';
                    (C) in paragraph (2)(A)(i)(I), by striking ``each 
                deposit insurance fund'' and inserting ``the Deposit 
                Insurance Fund''; and
                    (D) in paragraph (6)--
                            (i) by striking ``any such assessment'' and 
                        inserting ``any such assessment is necessary'';
                            (ii) by striking subparagraph (B);
                            (iii) in subparagraph (A)--
                                    (I) by striking ``(A) is 
                                necessary--'';
                                    (II) by striking ``Bank Insurance 
                                Fund Members'' and inserting ``insured 
                                depository institutions''; and
                                    (III) by redesignating clauses (i), 
                                (ii), and (iii) as subparagraphs (A), 
                                (B), and (C), respectively, and moving 
                                the margins 2 ems to the left; and
                            (iv) in subparagraph (C) (as 
                        redesignated)--
                                    (I) by inserting ``that'' before 
                                ``the Corporation''; and
                                    (II) by striking ``; and'' and 
                                inserting a period;
            (9) in section 7(j)(7)(F) (12 U.S.C. 1817(j)(7)(F)), by 
        striking ``Bank Insurance Fund or the Savings Association 
        Insurance Fund'' and inserting ``Deposit Insurance Fund'';
            (10) in section 8(t)(2)(C) (12 U.S.C. 1818(t)(2)(C)), by 
        striking ``deposit insurance fund'' and inserting ``Deposit 
        Insurance Fund'';
            (11) in section 11 (12 U.S.C. 1821), by striking ``deposit 
        insurance fund'' each place that term appears and inserting 
        ``Deposit Insurance Fund'';
            (12) in section 11(f)(1) (12 U.S.C. 1821(f)(1)), by 
        striking ``, except that--'' and all that follows through the 
        end of the paragraph and inserting a period;
            (13) in section 11(i)(3) (12 U.S.C. 1821(i)(3))--
                    (A) by striking subparagraph (B);
                    (B) by redesignating subparagraph (C) as 
                subparagraph (B); and
                    (C) in subparagraph (B) (as redesignated), by 
                striking ``subparagraphs (A) and (B)'' and inserting 
                ``subparagraph (A)'';
            (14) in section 11(p)(2)(B) (12 U.S.C. 1821(p)(2)(B)), by 
        striking ``institution, any'' and inserting ``institution, 
        the'';
            (15) in section 11A(a) (12 U.S.C. 1821a(a))--
                    (A) in paragraph (2), by striking ``liabilities.--
                '' and all that follows through ``Except'' and 
                inserting ``liabilities.--Except'';
                    (B) by striking paragraph (2)(B); and
                    (C) in paragraph (3), by striking ``the Bank 
                Insurance Fund, the Savings Association Insurance 
                Fund,'' and inserting ``the Deposit Insurance Fund'';
            (16) in section 11A(b) (12 U.S.C. 1821a(b)), by striking 
        paragraph (4);
            (17) in section 11A(f) (12 U.S.C. 1821a(f)), by striking 
        ``Savings Association Insurance Fund'' and inserting ``Deposit 
        Insurance Fund'';
            (18) in section 12(f)(4)(E)(iv) (12 U.S.C. 
        1822(f)(4)(E)(iv)), by striking ``Federal deposit insurance 
        funds'' and inserting ``the Deposit Insurance Fund'';
            (19) in section 13 (12 U.S.C. 1823)--
                    (A) by striking ``deposit insurance fund'' each 
                place that term appears and inserting ``Deposit 
                Insurance Fund'';
                    (B) in subsection (a)(1), by striking ``Bank 
                Insurance Fund, the Savings Association Insurance 
                Fund,'' and inserting ``Deposit Insurance Fund'';
                    (C) in subsection (c)(4)(E)--
                            (i) in the subparagraph heading, by 
                        striking ``funds'' and inserting ``fund''; and
                            (ii) in clause (i), by striking ``any 
                        insurance fund'' and inserting ``the Deposit 
                        Insurance Fund'';
                    (D) in subsection (c)(4)(G)(ii)--
                            (i) by striking ``appropriate insurance 
                        fund'' and inserting ``Deposit 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'' each 
                        place that term appears and inserting ``the 
                        institution's'';
                    (E) in subsection (c), by striking paragraph (11);
                    (F) in subsection (h), by striking ``Bank Insurance 
                Fund'' and inserting ``Deposit Insurance Fund'';
                    (G) in subsection (k)(4)(B)(i), by striking 
                ``Savings Association Insurance Fund'' and inserting 
                ``savings association''; and
                    (H) in subsection (k)(5)(A), by striking ``Savings 
                Association Insurance Fund'' and inserting ``savings 
                association'';
            (20) in section 14(a) (12 U.S.C. 1824(a)), in the 5th 
        sentence--
                    (A) by striking ``Bank Insurance Fund or the 
                Savings Association Insurance Fund'' and inserting 
                ``Deposit Insurance Fund''; and
                    (B) by striking ``each such fund'' and inserting 
                ``the Deposit Insurance Fund'';
            (21) in section 14(b) (12 U.S.C. 1824(b)), by striking 
        ``Bank Insurance Fund or Savings Association Insurance Fund'' 
        and inserting ``Deposit Insurance Fund'';
            (22) in section 14(c) (12 U.S.C. 1824(c)), by striking 
        paragraph (3);
            (23) in section 14(d) (12 U.S.C. 1824(d))--
                    (A) by striking ``Bank Insurance Fund member'' each 
                place that term appears and inserting ``insured 
                depository institution'';
                    (B) by striking ``Bank Insurance Fund members'' 
                each place that term appears and inserting ``insured 
                depository institutions'';
                    (C) by striking ``Bank Insurance Fund'' each place 
                that term appears (other than in connection with a 
                reference to a Bank Insurance Fund member) and 
                inserting ``Deposit Insurance Fund'';
                    (D) by striking the subsection heading and 
                inserting the following:
    ``(d) Borrowing for the Deposit Insurance Fund From Insured 
Depository Institutions.--'';
                    (E) in paragraph (3), in the paragraph heading, by 
                striking ``bif'' and inserting ``the deposit insurance 
                fund''; and
                    (F) in paragraph (5), in the paragraph heading, by 
                striking ``bif members'' and inserting ``insured 
                depository institutions'';
            (24) in section 14 (12 U.S.C. 1824) by adding at the end 
        the following:
    ``(e) Borrowing for the Deposit Insurance Fund From Federal Home 
Loan Banks.--
            ``(1) In general.--The Corporation may borrow from the 
        Federal home loan banks, with the concurrence of the Federal 
        Housing Finance Board, such funds as the Corporation considers 
        necessary for the use of the Deposit Insurance Fund.
            ``(2) Terms and conditions.--Any loan from any Federal home 
        loan bank under paragraph (1) to the Deposit Insurance Fund 
        shall--
                    ``(A) bear a rate of interest of not less than the 
                current marginal cost of funds to that bank, taking 
                into account the maturities involved;
                    ``(B) be adequately secured, as determined by the 
                Federal Housing Finance Board;
                    ``(C) be a direct liability of the Deposit 
                Insurance Fund; and
                    ``(D) be subject to the limitations of section 
                15(c).'';
            (25) in section 15(c)(5) (12 U.S.C. 1825(c)(5))--
                    (A) by striking ``the Bank Insurance Fund or 
                Savings Association Insurance Fund, respectively'' each 
                place that term appears and inserting ``the Deposit 
                Insurance Fund''; and
                    (B) in subparagraph (B), by striking ``the Bank 
                Insurance Fund or the Savings Association Insurance 
                Fund, respectively'' and inserting ``the Deposit 
                Insurance Fund'';
            (26) in section 17(a) (12 U.S.C. 1827(a))--
                    (A) in the subsection heading, by striking ``BIF, 
                SAIF,'' and inserting ``the Deposit Insurance Fund''; 
                and
                    (B) in paragraph (1)--
                            (i) by striking ``the Bank Insurance Fund, 
                        the Savings Association Insurance Fund,'' each 
                        place that term appears and inserting ``the 
                        Deposit Insurance Fund''; and
                            (ii) in subparagraph (D), by striking 
                        ``each insurance fund'' and inserting ``each 
                        such fund'';
            (27) in section 17(d) (12 U.S.C. 1827(d)), by striking ``, 
        the Bank Insurance Fund, the Savings Association Insurance 
        Fund,'' each place that term appears and inserting ``the 
        Deposit Insurance Fund'';
            (28) in section 18(m)(3) (12 U.S.C. 1828(m)(3))--
                    (A) by striking ``Savings Association Insurance 
                Fund'' each place that term appears and inserting 
                ``Deposit Insurance Fund''; and
                    (B) in subparagraph (C), by striking ``or the Bank 
                Insurance Fund'';
            (29) in section 18(o) (12 U.S.C. 1828(o)), by striking 
        ``deposit insurance funds'' and ``deposit insurance fund'' each 
        place those terms appear and inserting ``Deposit Insurance 
        Fund'';
            (30) in section 18(p) (12 U.S.C. 1828(p)), by striking 
        ``deposit insurance funds'' and inserting ``Deposit Insurance 
        Fund'';
            (31) in section 24 (12 U.S.C. 1831a)--
                    (A) in subsections (a)(1) and (d)(1)(A), by 
                striking ``appropriate deposit insurance fund'' each 
                place that term appears and inserting ``Deposit 
                Insurance Fund'';
                    (B) in subsection (e)(2)(A), by striking ``risk 
                to'' and all that follows through the period and 
                inserting ``risk to the Deposit Insurance Fund.''; and
                    (C) in subsections (e)(2)(B)(ii) and (f)(6)(B), by 
                striking ``the insurance fund of which such bank is a 
                member'' each place that term appears and inserting 
                ``the Deposit Insurance Fund'';
            (32) in section 28 (12 U.S.C. 1831e), by striking 
        ``affected deposit insurance fund'' each place that term 
        appears and inserting ``Deposit Insurance Fund'';
            (33) by striking section 31 (12 U.S.C. 1831h);
            (34) in section 36(i)(3) (12 U.S.C. 1831m(i)(3)), by 
        striking ``affected deposit insurance fund'' and inserting 
        ``Deposit Insurance Fund'';
            (35) in section 37(a)(1)(C) (12 U.S.C. 1831n(a)(1)(C)), by 
        striking ``insurance funds'' and inserting ``Deposit Insurance 
        Fund'';
            (36) in section 38 (12 U.S.C. 1831o), by striking ``the 
        deposit insurance fund'' each place that term appears and 
        inserting ``the Deposit Insurance Fund'';
            (37) in section 38(a) (12 U.S.C. 1831o(a)), in the 
        subsection heading, by striking ``Funds'' and inserting 
        ``Fund'';
            (38) in section 38(k) (12 U.S.C. 1831o(k))--
                    (A) in paragraph (1), by striking ``a deposit 
                insurance fund'' and inserting ``the Deposit Insurance 
                Fund'';
                    (B) in paragraph (2), by striking ``A deposit 
                insurance fund'' and inserting ``The Deposit Insurance 
                Fund''; and
                    (C) in paragraphs (2)(A) and (3)(B), by striking 
                ``the deposit insurance fund's outlays'' each place 
                that term appears and inserting ``the outlays of the 
                Deposit Insurance Fund''; and
            (39) in section 38(o) (12 U.S.C. 1831o(o))--
                    (A) by striking ``Associations.--'' and all that 
                follows through ``Subsections (e)(2)'' and inserting 
                ``Associations.--Subsections (e)(2)'';
                    (B) by redesignating subparagraphs (A), (B), and 
                (C) as paragraphs (1), (2), and (3), respectively, and 
                moving the margins 2 ems to the left; and
                    (C) in paragraph (1) (as so redesignated), by 
                redesignating clauses (i) and (ii) as subparagraphs (A) 
                and (B), respectively, and moving the margins 2 ems to 
                the left.

SEC. 13. OTHER TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Section 5136 of the Revised Statutes.--The paragraph designated 
the ``Eleventh'' of section 5136 of the Revised Statutes of the United 
States (12 U.S.C. 24) is amended in the 5th sentence, by striking 
``affected deposit insurance fund'' and inserting ``Deposit Insurance 
Fund''.
    (b) Investments Promoting Public Welfare; Limitations on Aggregate 
Investments.--The 23d undesignated paragraph of section 9 of the 
Federal Reserve Act (12 U.S.C. 338a) is amended in the 4th sentence, by 
striking ``affected deposit insurance fund'' and inserting ``Deposit 
Insurance Fund''.
    (c) Advances to Critically Undercapitalized Depository 
Institutions.--Section 10B(b)(3)(A)(ii) of the Federal Reserve Act (12 
U.S.C. 347b(b)(3)(A)(ii)) is amended by striking ``any deposit 
insurance fund in'' and inserting ``the Deposit Insurance Fund of''.
    (d) Amendments to the Balanced Budget and Emergency Deficit Control 
Act of 1985.--Section 255(g)(1)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(A)) is amended--
            (1) by striking ``Bank Insurance Fund'' and inserting 
        ``Deposit Insurance Fund''; and
            (2) by striking ``Federal Deposit Insurance Corporation, 
        Savings Association Insurance Fund;''.
    (e) Amendments to the Federal Home Loan Bank Act.--The Federal Home 
Loan Bank Act (12 U.S.C. 1421 et seq.) is amended--
            (1) in section 11(k) (12 U.S.C. 1431(k))--
                    (A) in the subsection heading, by striking ``SAIF'' 
                and inserting ``the Deposit Insurance Fund''; and
                    (B) by striking ``Savings Association Insurance 
                Fund'' each place that term appears and inserting 
                ``Deposit Insurance Fund'';
            (2) in section 21 (12 U.S.C. 1441)--
                    (A) in subsection (f)(2), by striking ``, except 
                that'' and all that follows through the end of the 
                paragraph and inserting a period; and
                    (B) in subsection (k), by striking paragraph (4);
            (3) in section 21A(b)(4)(B) (12 U.S.C. 1441a(b)(4)(B)), by 
        striking ``affected deposit insurance fund'' and inserting 
        ``Deposit Insurance Fund'';
            (4) in section 21A(b)(6)(B) (12 U.S.C. 1441a(b)(6)(B))--
                    (A) in the subparagraph heading, by striking 
                ``SAIF-insured banks'' and inserting ``Charter 
                conversions''; and
                    (B) by striking ``Savings Association Insurance 
                Fund member'' and inserting ``savings association'';
            (5) in section 21A(b)(10)(A)(iv)(II) (12 U.S.C. 
        1441a(b)(10)(A)(iv)(II)), by striking ``Savings Association 
        Insurance Fund'' and inserting ``Deposit Insurance Fund'';
            (6) in section 21A(n)(6)(E)(iv) (12 U.S.C. 
        1441(n)(6)(E)(iv)) by striking ``Federal deposit insurance 
        funds'' and inserting ``The Deposit Insurance Fund'';
            (7) in section 21B(e) (12 U.S.C. 1441b(e))--
                    (A) in paragraph (5), by inserting ``as of the date 
                of funding'' after ``Savings Association Insurance Fund 
                members'' each place that term appears; and
                    (B) by striking paragraphs (7) and (8); and
            (8) in section 21B(k) (12 U.S.C. 1441b(k))--
                    (A) by inserting before the colon ``, the following 
                definitions shall apply'';
                    (B) by striking paragraph (8); and
                    (C) by redesignating paragraphs (9) and (10) as 
                paragraphs (8) and (9), respectively.
    (f) Amendments to the Home Owners' Loan Act.--The Home Owners' Loan 
Act (12 U.S.C. 1461 et seq.) is amended--
            (1) in section 5 (12 U.S.C. 1464)--
                    (A) in subsection (c)(5)(A), by striking ``that is 
                a member of the Bank Insurance Fund'';
                    (B) in subsection (c)(6), by striking ``As used in 
                this subsection--'' and inserting ``For purposes of 
                this subsection, the following definitions shall 
                apply:'';
                    (C) in subsection (o)(1), by striking ``that is a 
                Bank Insurance Fund member'';
                    (D) in subsection (o)(2)(A), by striking ``a Bank 
                Insurance Fund member until such time as it changes its 
                status to a Savings Association Insurance Fund member'' 
                and inserting ``insured by the Deposit Insurance 
                Fund'';
                    (E) in subsection (t)(5)(D)(iii)(II), by striking 
                ``affected deposit insurance fund'' and inserting 
                ``Deposit Insurance Fund'';
                    (F) in subsection (t)(7)(C)(i)(I), by striking 
                ``affected deposit insurance fund'' and inserting 
                ``Deposit Insurance Fund''; and
                    (G) in subsection (v)(2)(A)(i), by striking ``the 
                Savings Association Insurance Fund'' and inserting ``or 
                the Deposit Insurance Fund''; and
            (2) in section 10 (12 U.S.C. 1467a)--
                    (A) in subsection (c)(6)(D), by striking ``this 
                title'' and inserting ``this Act'';
                    (B) in subsection (e)(1)(B), by striking ``Savings 
                Association Insurance Fund or Bank Insurance Fund'' and 
                inserting ``Deposit Insurance Fund'';
                    (C) in subsection (e)(2), by striking ``Savings 
                Association Insurance Fund or the Bank Insurance Fund'' 
                and inserting ``Deposit Insurance Fund'';
                    (D) in subsection (e)(4)(B), by striking 
                ``subsection (1)'' and inserting ``subsection (l)'';
                    (E) in subsection (g)(3)(A), by striking ``(5) of 
                this section'' and inserting ``(5) of this 
                subsection'';
                    (F) in subsection (i), by redesignating paragraph 
                (5) as paragraph (4);
                    (G) in subsection (m)(3), by striking subparagraph 
                (E), and by redesignating subparagraphs (F), (G), and 
                (H) as subparagraphs (E), (F), and (G), respectively;
                    (H) in subsection (m)(7)(A), by striking ``during 
                period'' and inserting ``during the period''; and
                    (I) in subsection (o)(3)(D), by striking ``sections 
                5(s) and (t) of this Act'' and inserting ``subsections 
                (s) and (t) of section 5''.
    (g) Amendments to the National Housing Act.--The National Housing 
Act (12 U.S.C. 1701 et seq.) is amended--
            (1) in section 317(b)(1)(B) (12 U.S.C. 1723i(b)(1)(B)), by 
        striking ``Bank Insurance Fund for banks or through the Savings 
        Association Insurance Fund for savings associations'' and 
        inserting ``Deposit Insurance Fund''; and
            (2) in section 536(b)(1)(B)(ii) (12 U.S.C. 1735f-
        14(b)(1)(B)(ii)), by striking ``Bank Insurance Fund for banks 
        and through the Savings Association Insurance Fund for savings 
        associations'' and inserting ``Deposit Insurance Fund''.
    (h) Amendments to the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989.--The Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989 (12 U.S.C. 1811 note) is amended--
            (1) in section 951(b)(3)(B) (12 U.S.C. 1833a(b)(3)(B)), by 
        striking ``Bank Insurance Fund, the Savings Association 
        Insurance Fund,'' and inserting ``Deposit Insurance Fund''; and
            (2) in section 1112(c)(1)(B) (12 U.S.C. 3341(c)(1)(B)), by 
        striking ``Bank Insurance Fund, the Savings Association 
        Insurance Fund,'' and inserting ``Deposit Insurance Fund''.
    (i) Amendment to the Bank Holding Company Act of 1956.--The Bank 
Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended--
            (1) in section 2(j)(2) (12 U.S.C. 1841(j)(2)), by striking 
        ``Savings Association Insurance Fund'' and inserting ``Deposit 
        Insurance Fund''; and
            (2) in section 3(d)(1)(D)(iii) (12 U.S.C. 
        1842(d)(1)(D)(iii)), by striking ``appropriate deposit 
        insurance fund'' and inserting ``Deposit Insurance Fund''.
    (j) Amendments to the Gramm-Leach-Bliley Act.--Section 114 of the 
Gramm-Leach-Bliley Act (12 U.S.C. 1828a) is amended by striking ``any 
Federal deposit insurance fund'', in subsection (a)(1)(B), paragraphs 
(2)(B) and (4)(B) of subsection (b), and subsection (c)(1)(B), each 
place that term appears and inserting ``the Deposit Insurance Fund''.
                                 <all>