[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1185 Reported in House (RH)]






                                                  Union Calendar No. 33
109th CONGRESS
  1st Session
                                H. R. 1185

                          [Report No. 109-67]

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 9, 2005

     Mr. Bachus (for himself, Ms. Hooley, Mr. Oxley, Mr. Frank of 
   Massachusetts, Mr. Gillmor, Mr. Kanjorski, Ms. Pryce of Ohio, Mr. 
Leach, Mrs. Maloney, Mr. Jones of North Carolina, Mr. Moore of Kansas, 
Mr. Ryun of Kansas, Mr. Israel, Mr. Ney, Mr. Tiberi, Mrs. Biggert, Mr. 
 Gutierrez, Mr. Davis of Alabama, Mr. Hinojosa, Mr. King of New York, 
Mrs. McCarthy, Mr. LaTourette, Mr. Manzullo, Mr. Neugebauer, Mr. Ford, 
 Mr. Towns, Mr. Renzi, Mr. Clay, Mr. Gary G. Miller of California, Mr. 
 McHenry, and Mr. Bartlett of Maryland) introduced the following bill; 
       which was referred to the Committee on Financial Services

                             April 29, 2005

 Additional sponsors: Mr. Aderholt, Ms. Ginny Brown-Waite of Florida, 
Mr. Lucas, Mr. Crowley, Mr. Meeks of New York, Ms. Velazquez, Mr. Price 
        of Georgia, Mrs. Musgrave, Mr. Chabot, and Mr. Beauprez

                             April 29, 2005

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on March 
                                9, 2005]

_______________________________________________________________________

                                 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Deposit 
Insurance Reform Act of 2005''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Merging the BIF and SAIF.
Sec. 3. Increase in deposit insurance coverage.
Sec. 4. Setting assessments and repeal of special rules relating to 
                            minimum assessments and free deposit 
                            insurance.
Sec. 5. Replacement of fixed designated reserve ratio with reserve 
                            range.
Sec. 6. Requirements applicable to the risk-based assessment system.
Sec. 7. Refunds, dividends, and credits from Deposit Insurance Fund.
Sec. 8. Deposit Insurance Fund restoration plans.
Sec. 9. Regulations required.
Sec. 10. Studies of FDIC structure and expenses and certain activities 
                            and further possible changes to deposit 
                            insurance system.
Sec. 11. Bi-annual FDIC survey and report on increasing the deposit 
                            base by encouraging use of depository 
                            institutions by the unbanked.
Sec. 12. Technical and conforming amendments to the Federal Deposit 
                            Insurance Act relating to the merger of the 
                            BIF and SAIF.
Sec. 13. Other technical and conforming amendments relating to the 
                            merger of the BIF and SAIF.

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 effective date of final 
                        regulations prescribed pursuant to section 
                        9(a)(2) of the Federal Deposit Insurance Reform 
                        Act of 2005, $100,000; and
                            ``(ii) on and after such effective date, 
                        $130,000, adjusted as provided under 
                        subparagraph (F).
                    ``(F) Inflation adjustment.--
                            ``(i) In general.--By April 1 of 2007, and 
                        the 1st day of each subsequent 5-year period, 
                        the Board of Directors and the National Credit 
                        Union Administration Board shall jointly 
                        prescribe the amount by which the standard 
                        maximum deposit insurance amount and the 
                        standard maximum share insurance amount (as 
                        defined in section 207(k) of the Federal Credit 
                        Union Act) applicable to any depositor at an 
                        insured depository institution shall be 
                        increased by calculating the product of--
                                    ``(I) $130,000; and
                                    ``(II) the ratio of the value of 
                                the Personal Consumption Expenditures 
                                Chain-Type Index (or any successor 
                                index thereto), published by the 
                                Department of Commerce, as of December 
                                31 of the year preceding the year in 
                                which the adjustment is calculated 
                                under this clause, to the value of such 
                                index as of the date this subparagraph 
                                takes effect.
                            ``(ii) 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.
                            ``(iii) Publication and report to the 
                        congress.--Not later than April 5 of any 
                        calendar year in which an adjustment is 
                        required to be calculated under clause (i) to 
                        the standard maximum deposit insurance amount 
                        and the standard maximum share insurance amount 
                        under such clause, the Board of Directors and 
                        the National Credit Union Administration Board 
                        shall--
                                    ``(I) publish in the Federal 
                                Register the standard maximum deposit 
                                insurance amount, the standard maximum 
                                share insurance amount, and the amount 
                                of coverage under paragraph (3)(A) and 
                                section 207(k)(3) of the Federal Credit 
                                Union Act, as so calculated; and
                                    ``(II) jointly submit a report to 
                                the Congress containing the amounts 
                                described in subclause (I).
                            ``(iv) 6-month implementation period.--
                        Unless an Act of Congress enacted before July 1 
                        of the calendar year in which an adjustment is 
                        required to be calculated under clause (i) 
                        provides otherwise, the increase in the 
                        standard maximum deposit insurance amount and 
                        the standard maximum share insurance amount 
                        shall take effect on January 1 of the year 
                        immediately succeeding such calendar year.''.
    (b) Coverage for Certain Employee Benefit Plan Deposits.--Section 
11(a)(1)(D) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(a)(1)(D)) is amended to read as follows:
                    ``(D) Coverage for certain employee benefit plan 
                deposits.--
                            ``(i) Pass-through insurance.--The 
                        Corporation shall provide pass-through deposit 
                        insurance for the deposits of any employee 
                        benefit plan.
                            ``(ii) Prohibition on acceptance of benefit 
                        plan deposits.--An insured depository 
                        institution that is not well capitalized or 
                        adequately capitalized may not accept employee 
                        benefit plan deposits.
                            ``(iii) Definitions.--For purposes of this 
                        subparagraph, the following definitions shall 
                        apply:
                                    ``(I) Capital standards.--The terms 
                                `well capitalized' and `adequately 
                                capitalized' have the same meanings as 
                                in section 38.
                                    ``(II) Employee benefit plan.--The 
                                term `employee benefit plan' has the 
                                same meaning as in paragraph 
                                (8)(B)(ii), and includes any eligible 
                                deferred compensation plan described in 
                                section 457 of the Internal Revenue 
                                Code of 1986.
                                    ``(III) Pass-through deposit 
                                insurance.--The term `pass-through 
                                deposit insurance' means, with respect 
                                to an employee benefit plan, deposit 
                                insurance coverage provided on a pro 
                                rata basis to the participants in the 
                                plan, in accordance with the interest 
                                of each participant.''.
    (c) Doubling of Deposit Insurance for Certain Retirement 
Accounts.--Section 11(a)(3)(A) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(a)(3)(A)) is amended by striking ``$100,000'' and inserting 
``2 times the standard maximum deposit insurance amount (as determined 
under paragraph (1))''.
    (d) 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--
            (1) in subparagraph (A)--
                    (A) by moving the margins of clauses (i) through 
                (v) 4 ems to the right;
                    (B) by striking, in the matter following clause 
                (v), ``such depositor shall'' and all that follows 
                through the period; and
                    (C) by striking the semicolon at the end of clause 
                (v) and inserting a period;
            (2) by striking ``(2)(A) Notwithstanding'' and all that 
        follows through ``a depositor who is--'' and inserting the 
        following:
            ``(2) Municipal depositors.--
                    ``(A) In general.--Notwithstanding any limitation 
                in this Act or in any other provision of law relating 
                to the amount of deposit insurance available to any 1 
                depositor--
                            ``(i) a municipal depositor shall, for the 
                        purpose of determining the amount of insured 
                        deposits under this subsection, be deemed to be 
                        a depositor separate and distinct from any 
                        other officer, employee, or agent of the United 
                        States or any public unit referred to in 
                        subparagraph (E); and
                            ``(ii) except as provided in subparagraph 
                        (B), the deposits of a municipal depositor 
                        shall be insured in an amount equal to the 
                        standard maximum deposit insurance amount (as 
                        determined under paragraph (1)).
                    ``(B) In-state municipal depositors.--In the case 
                of the deposits of an in-State municipal depositor 
                described in clause (ii), (iii), (iv), or (v) of 
                subparagraph (E) at an insured depository institution, 
                such deposits shall be insured in an amount not to 
                exceed the lesser of--
                            ``(i) $2,000,000; or
                            ``(ii) the sum of the standard maximum 
                        deposit insurance amount and 80 percent of the 
                        amount of any deposits in excess of the 
                        standard maximum deposit insurance amount.
                    ``(C) Municipal deposit parity.--No State may deny 
                to insured depository institutions within its 
                jurisdiction the authority to accept deposits insured 
                under this paragraph, or prohibit the making of such 
                deposits in such institutions by any in-State municipal 
                depositor.
                    ``(D) In-state municipal depositor defined.--For 
                purposes of this paragraph, 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.
                    ``(E) Municipal depositor.--In this paragraph, the 
                term `municipal depositor' means a depositor that is--
                '';
            (3) by striking ``(B) The'' and inserting the following:
                    ``(F) Authority to limit deposits.--The''; and
            (4) by striking ``depositor referred to in subparagraph (A) 
        of this paragraph'' each place such term appears and inserting 
        ``municipal depositor''.
    (e) Technical and Conforming Amendment Relating to Insurance of 
Trust Funds.--Paragraphs (1) and (3) of section 7(i) 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))''.
    (f) Other Technical and Conforming Amendments.--
            (1) 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''.
            (2) Subsection (a) of section 18 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1828(a)) is amended to read as 
        follows:
    ``(a) Insurance Logo.--
            ``(1) Insured depository institutions.--
                    ``(A) In general.--Each insured depository 
                institution shall display at each place of business 
                maintained by that institution a sign or signs relating 
                to the insurance of the deposits of the institution, in 
                accordance with regulations to be prescribed by the 
                Corporation.
                    ``(B) Statement to be included.--Each sign required 
                under subparagraph (A) shall include a statement that 
                insured deposits are backed by the full faith and 
                credit of the United States Government.
            ``(2) Regulations.--The Corporation shall prescribe 
        regulations to carry out this subsection, including regulations 
        governing the substance of signs required by paragraph (1) and 
        the manner of display or use of such signs.
            ``(3) Penalties.--For each day that an insured depository 
        institution continues to violate this subsection or any 
        regulation issued under this subsection, it shall be subject to 
        a penalty of not more than $100, which the Corporation may 
        recover for its use.''.
            (3) 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''.
            (4) Section 6 of the International Banking Act of 1978 (12 
        U.S.C. 3104) 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.''.
    (g) Conforming Change to Credit Union Share Insurance Fund.--
            (1) In general.--Section 207(k) of the Federal Credit Union 
        Act (12 U.S.C. 1787(k)) is amended--
                    (A) by striking ``(k)(1)'' and all that follows 
                through the end of paragraph (1) and inserting the 
                following:
    ``(k) Insured Amounts Payable.--
            ``(1) Net insured amount.--
                    ``(A) In general.--Subject to the provisions of 
                paragraph (2), the net amount of share insurance 
                payable to any member at an insured credit union shall 
                not exceed the total amount of the shares or deposits 
                in the name of the member (after deducting offsets), 
                less any part thereof which is in excess of the 
                standard maximum share insurance amount, as determined 
                in accordance with this paragraph and paragraphs (5) 
                and (6), and consistently with actions taken by the 
                Federal Deposit Insurance Corporation under section 
                11(a) of the Federal Deposit Insurance Act.
                    ``(B) Aggregation.--Determination of the net amount 
                of share insurance under subparagraph (A), shall be in 
                accordance with such regulations as the Board may 
                prescribe, and, in determining the amount payable to 
                any member, there shall be added together all accounts 
                in the credit union maintained by that member for that 
                member's own benefit, either in the member's own name 
                or in the names of others.
                    ``(C) Authority to define the extent of coverage.--
                The Board may define, with such classifications and 
                exceptions as it may prescribe, the extent of the share 
                insurance coverage provided for member accounts, 
                including member accounts in the name of a minor, in 
                trust, or in joint tenancy.'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in clauses (i) through (v), by 
                                moving the margins 4 ems to the right;
                                    (II) in the matter following clause 
                                (v), by striking ``his account'' and 
                                all that follows through the period; 
                                and
                                    (III) by striking the semicolon at 
                                the end of clause (v) and inserting a 
                                period;
                            (ii) by striking ``(2)(A) Notwithstanding'' 
                        and all that follows through ``a depositor or 
                        member who is--'' and inserting the following:
            ``(2) Municipal depositors or members.--
                    ``(A) In general.--Notwithstanding any limitation 
                in this Act or in any other provision of law relating 
                to the amount of insurance available to any 1 depositor 
                or member, deposits or shares of a municipal depositor 
                or member shall be insured in an amount equal to the 
                standard maximum share insurance amount (as determined 
                under paragraph (5)), except as provided in 
                subparagraph (B).
                    ``(B) In-state municipal depositors.--In the case 
                of the deposits of an in-State municipal depositor 
                described in clause (ii), (iii), (iv), or (v) of 
                subparagraph (E) at an insured credit union, such 
                deposits shall be insured in an amount equal to the 
                lesser of--
                            ``(i) $2,000,000; or
                            ``(ii) the sum of the standard maximum 
                        deposit insurance amount and 80 percent of the 
                        amount of any deposits in excess of the 
                        standard maximum deposit insurance amount.
                    ``(C) Rule of construction.--No provision of this 
                paragraph shall be construed as authorizing an insured 
                credit union to accept the deposits of a municipal 
                depositor in an amount greater than such credit union 
                is authorized to accept under any other provision of 
                Federal or State law.
                    ``(D) In-state municipal depositor defined.--For 
                purposes of this paragraph, 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 credit union at which the deposits of that 
                depositor are held.
                    ``(E) Municipal depositor.--In this paragraph, the 
                term `municipal depositor' means a depositor that is--
                '';
                            (iii) by striking ``(B) The'' and inserting 
                        the following:
                    ``(F) Authority to limit deposits.--The''; and
                            (iv) by striking ``depositor or member 
                        referred to in subparagraph (A)'' and inserting 
                        ``municipal depositor or member''; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(4) Coverage for certain employee benefit plan 
        deposits.--
                    ``(A) Pass-through insurance.--The Administration 
                shall provide pass-through share insurance for the 
                deposits or shares of any employee benefit plan.
                    ``(B) Prohibition on acceptance of deposits.--An 
                insured credit union that is not well capitalized or 
                adequately capitalized may not accept employee benefit 
                plan deposits.
                    ``(C) Definitions.--For purposes of this paragraph, 
                the following definitions shall apply:
                            ``(i) Capital standards.--The terms `well 
                        capitalized' and `adequately capitalized' have 
                        the same meanings as in section 216(c).
                            ``(ii) Employee benefit plan.--The term 
                        `employee benefit plan'--
                                    ``(I) has the meaning given to such 
                                term in section 3(3) of the Employee 
                                Retirement Income Security Act of 1974;
                                    ``(II) includes any plan described 
                                in section 401(d) of the Internal 
                                Revenue Code of 1986; and
                                    ``(III) includes any eligible 
                                deferred compensation plan described in 
                                section 457 of the Internal Revenue 
                                Code of 1986.
                            ``(iii) Pass-through share insurance.--The 
                        term `pass-through share insurance' means, with 
                        respect to an employee benefit plan, insurance 
                        coverage provided on a pro rata basis to the 
                        participants in the plan, in accordance with 
                        the interest of each participant.
                    ``(D) Rule of construction.--No provision of this 
                paragraph shall be construed as authorizing an insured 
                credit union to accept the deposits of an employee 
                benefit plan in an amount greater than such credit 
                union is authorized to accept under any other provision 
                of Federal or State law.
            ``(5) Standard maximum share insurance amount defined.--For 
        purposes of this Act, the term `standard maximum share 
        insurance amount' means--
                    ``(A) until the effective date of final regulations 
                prescribed pursuant to section 9(a)(2) of the Federal 
                Deposit Insurance Reform Act of 2005, $100,000; and
                    ``(B) on and after such effective date, $130,000, 
                adjusted as provided under section 11(a)(1)(F) of the 
                Federal Deposit Insurance Act.''.
            (2) Doubling of share insurance for certain retirement 
        accounts.--Section 207(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))''.
    (h) Effective Date.--This section and the amendments made by this 
section shall take effect on the date the final regulations required 
under section 9(a)(2) take effect.

SEC. 4. SETTING ASSESSMENTS AND REPEAL OF SPECIAL RULES RELATING TO 
              MINIMUM ASSESSMENTS AND FREE DEPOSIT INSURANCE.

    (a) Setting Assessments.--Section 7(b)(2) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(b)(2)) is amended--
            (1) by striking subparagraphs (A) and (B) and inserting the 
        following new subparagraphs:
                    ``(A) In general.--The Board of Directors shall set 
                assessments for insured depository institutions in such 
                amounts as the Board of Directors may determine to be 
                necessary or appropriate, subject to subparagraph (D).
                    ``(B) Factors to be considered.--In setting 
                assessments under subparagraph (A), the Board of 
                Directors shall consider the following factors:
                            ``(i) The estimated operating expenses of 
                        the Deposit Insurance Fund.
                            ``(ii) The estimated case resolution 
                        expenses and income of the Deposit Insurance 
                        Fund.
                            ``(iii) The projected effects of the 
                        payment of assessments on the capital and 
                        earnings of insured depository institutions.
                            ``(iv) the risk factors and other factors 
                        taken into account pursuant to paragraph (1) 
                        under the risk-based assessment system, 
                        including the requirement under such paragraph 
                        to maintain a risk-based system.
                            ``(v) Any other factors the Board of 
                        Directors may determine to be appropriate.''; 
                        and
            (2) by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) Base rate for assessments.--
                            ``(i) In general.--In setting assessment 
                        rates pursuant to subparagraph (A), the Board 
                        of Directors shall establish a base rate of not 
                        more than 1 basis point (exclusive of any 
                        credit or dividend) for those insured 
                        depository institutions in the lowest-risk 
                        category under the risk-based assessment system 
                        established pursuant to paragraph (1). No 
                        insured depository institution shall be barred 
                        from the lowest-risk category solely because of 
                        size.
                            ``(ii) Suspension.--Clause (i) shall not 
                        apply during any period in which the reserve 
                        ratio of the Deposit Insurance Fund is less 
                        than the amount which is equal to 1.15 percent 
                        of the aggregate estimated insured deposits.''.
    (b) Assessment Recordkeeping Period Shortened.--Paragraph (5) of 
section 7(b) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)) 
is amended to read as follows:
            ``(5) Depository institution required to maintain 
        assessment-related records.--Each insured depository 
        institution shall maintain all records that the Corporation may 
        require for verifying the correctness of any assessment on the 
        insured depository institution under this subsection until the 
        later of--
                    ``(A) the end of the 3-year period beginning on the 
                due date of the assessment; or
                    ``(B) in the case of a dispute between the insured 
                depository institution and the Corporation with respect 
                to such assessment, the date of a final determination 
                of any such dispute.''.
    (c) Increase in Fees for Late Assessment Payments.--Subsection (h) 
of section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828(h)) 
is amended to read as follows:
    ``(h) Penalty for Failure to Timely Pay Assessments.--
            ``(1) In general.--Subject to paragraph (3), any insured 
        depository institution which fails or refuses to pay any 
        assessment shall be subject to a penalty in an amount not more 
        than 1 percent of the amount of the assessment due for each day 
        that such violation continues.
            ``(2) Exception in case of dispute.--Paragraph (1) shall 
        not apply if--
                    ``(A) the failure to pay an assessment is due to a 
                dispute between the insured depository institution and 
                the Corporation over the amount of such assessment; and
                    ``(B) the insured depository institution deposits 
                security satisfactory to the Corporation for payment 
                upon final determination of the issue.
            ``(3) Special rule for small assessment amounts.--If the 
        amount of the assessment which an insured depository 
        institution fails or refuses to pay is less than $10,000 at the 
        time of such failure or refusal, the amount of any penalty to 
        which such institution is subject under paragraph (1) shall not 
        exceed $100 for each day that such violation continues.
            ``(4) Authority to modify or remit penalty.--The 
        Corporation, in the sole discretion of the Corporation, may 
        compromise, modify or remit any penalty which the Corporation 
        may assess or has already assessed under paragraph (1) upon a 
        finding that good cause prevented the timely payment of an 
        assessment.''.
    (d) Assessments for Lifeline Accounts.--
            (1) In general.--Section 232 of the Federal Deposit 
        Insurance Corporation Improvement Act of 1991 (12 U.S.C. 1834) 
        is amended by striking subsection (c).
            (2) Clarification of rate applicable to deposits 
        attributable to lifeline accounts.--Section 7(b)(2)(H) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(H)) is 
        amended by striking ``at a rate determined in accordance with 
        such Act'' and inserting ``at \1/2\ the assessment rate 
        otherwise applicable for such insured depository institution''.
            (3) Regulations.--Section 232(a)(1) of the Federal Deposit 
        Insurance Corporation Improvement Act of 1991 (12 U.S.C. 
        1834(a)(1)) is amended by striking ``Board of Governors of the 
        Federal Reserve System, and the''.
    (e) Technical and Conforming Amendments.--
            (1) Paragraph (3) of section 7(a) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1817(a)(3)) is amended by striking the 
        3d sentence and inserting the following: ``Such reports of 
        condition shall be the basis for the certified statements to be 
        filed pursuant to subsection (c).''.
            (2) Subparagraphs (B)(ii) and (C) of section 7(b)(1) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1817(b)(1)) are each 
        amended by striking ``semiannual'' where such term appears in 
        each such subparagraph.
            (3) Section 7(b)(2) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1817(b)(2)) is amended--
                    (A) by striking subparagraphs (E), (F), and (G);
                    (B) in subparagraph (C), by striking 
                ``semiannual''; and
                    (C) by redesignating subparagraph (H) (as amended 
                by subsection (e)(2) of this section) as subparagraph 
                (E).
            (4) Section 7(b) of the Federal Deposit Insurance Act (12 
        U.S.C. 1817(b)) is amended by striking paragraph (4) and 
        redesignating paragraphs (5) (as amended by subsection (b) of 
        this section), (6), and (7) as paragraphs (4), (5), and (6) 
        respectively.
            (5) Section 7(c) of the Federal Deposit Insurance Act (12 
        U.S.C. 1817(c)) is amended--
                    (A) in paragraph (1)(A), by striking 
                ``semiannual'';
                    (B) in paragraph (2)(A), by striking 
                ``semiannual''; and
                    (C) in paragraph (3), by striking ``semiannual 
                period'' and inserting ``initial assessment period''.
            (6) Section 8(p) of the Federal Deposit Insurance Act (12 
        U.S.C. 1818(p)) is amended by striking ``semiannual''.
            (7) Section 8(q) of the Federal Deposit Insurance Act (12 
        U.S.C. 1818(q)) is amended by striking ``semiannual period'' 
        and inserting ``assessment period''.
            (8) Section 13(c)(4)(G)(ii)(II) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1823(c)(4)(G)(ii)(II)) is amended by 
        striking ``semiannual period'' and inserting ``assessment 
        period''.
            (9) Section 232(a) of the Federal Deposit Insurance 
        Corporation Improvement Act of 1991 (12 U.S.C. 1834(a)) is 
        amended--
                    (A) in the matter preceding subparagraph (A) of 
                paragraph (2), by striking ``the Board and'';
                    (B) in subparagraph (J) of paragraph (2), by 
                striking ``the Board'' and inserting ``the 
                Corporation'';
                    (C) by striking subparagraph (A) of paragraph (3) 
                and inserting the following new subparagraph:
                    ``(A) Corporation.--The term `Corporation' means 
                the Federal Deposit Insurance Corporation.''; and
                    (D) in subparagraph (C) of paragraph (3), by 
                striking ``Board'' and inserting ``Corporation''.
    (f) Effective Date.--This section and the amendments made by this 
section shall take effect on the date that the final regulations 
required under section 9(a)(5) take effect.

SEC. 5. 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.--
                            ``(i) In general.--The Board of Directors 
                        shall designate, by regulation after notice and 
                        opportunity for comment, the reserve ratio 
                        applicable with respect to the Deposit 
                        Insurance Fund.
                            ``(ii) Not less than annual 
                        redetermination.--A determination under clause 
                        (i) shall be made by the Board of Directors at 
                        least before the beginning of each calendar 
                        year, for such calendar year, and at such other 
                        times as the Board of Directors may determine 
                        to be appropriate.
                    ``(B) Range.--The reserve ratio designated by the 
                Board of Directors for any year--
                            ``(i) may not exceed 1.4 percent of 
                        estimated insured deposits; and
                            ``(ii) may not be less than 1.15 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, including historic experience and 
                        potential and estimated losses from insured 
                        depository institutions;
                            ``(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, as determined to be 
                        appropriate by the Board of Directors;
                            ``(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 thorough analysis of the 
                data and projections on which the proposal is based.''.
    (b) Technical and Conforming Amendment.--Section 3(y) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813(y)) is amended--
            (1) by striking ``(y) The term'' and inserting(y) 
        Definitions Relating to Deposit Insurance Fund.--
            ``(1) Deposit insurance fund.--The term''; and
            (2) by inserting after paragraph (1) (as so designated by 
        paragraph (1) of this subsection) the following new paragraph:
            ``(2) Designated reserve ratio.--The term `designated 
        reserve ratio' means the reserve ratio designated by the Board 
        of Directors in accordance with section 7(b)(3).''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on the date that the final regulations 
required under section 9(a)(1) take effect.

SEC. 6. 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, as 
                        appropriate, from all sources the Board of 
                        Directors considers appropriate, such as 
                        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), the Secretary of the 
                        Treasury, the Commodity Futures Trading 
                        Commission, the Farm Credit Administration, the 
                        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 or 
                        business analysts.
                            ``(ii) Consultation with federal banking 
                        agencies.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), in 
                                assessing the risk of loss to the 
                                Deposit Insurance Fund with respect to 
                                any insured depository institution, the 
                                Corporation shall consult with the 
                                appropriate Federal banking agency of 
                                such institution.
                                    ``(II) Treatment on aggregate 
                                basis.--In the case of insured 
                                depository institutions that are well 
                                capitalized (as defined in section 38) 
                                and, in the most recent examination, 
                                were found to be well managed, the 
                                consultation under subclause (I) 
                                concerning the assessment of the risk 
                                of loss posed by such institutions may 
                                be made on an aggregate basis.
                            ``(iii) 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 2005, the Board 
                of Directors may implement such revisions or 
                modification in final form only after notice and 
                opportunity for comment.''.

SEC. 7. REFUNDS, DIVIDENDS, AND CREDITS FROM DEPOSIT INSURANCE FUND.

    (a) In General.--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, Dividends, 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 assessments until such credit is 
                exhausted.
            ``(2) Dividends from excess amounts in deposit insurance 
        fund.--
                    ``(A) Reserve ratio in excess of 1.4 percent of 
                estimated insured deposits.--Whenever the reserve ratio 
                of the Deposit Insurance Fund exceeds 1.4 percent of 
                estimated insured deposits, the Corporation shall 
                declare the amount in the Fund in excess of the amount 
                required to maintain the reserve ratio at 1.4 percent 
                of estimated insured deposits, as dividends to be paid 
                to insured depository institutions.
                    ``(B) Reserve ratio equal to or in excess of 1.35 
                percent of estimated insured deposits and not more than 
                1.4 percent.--Whenever the reserve ratio of the Deposit 
                Insurance Fund equals or exceeds 1.35 percent of 
                estimated insured deposits and is not more than 1.4 
                percent of such deposits, the Corporation shall declare 
                the amount in the Fund that is equal to 50 percent of 
                the amount in excess of the amount required to maintain 
                the reserve ratio at 1.35 percent of the estimated 
                insured deposits as dividends to be paid to insured 
                depository institutions.
                    ``(C) Basis for distribution of dividends.--
                            ``(i) In general.--Solely for the purposes 
                        of dividend distribution under this paragraph 
                        and credit distribution under paragraph (3)(B), 
                        the Corporation shall determine each insured 
                        depository institution's relative contribution 
                        to the Deposit Insurance Fund (or any 
                        predecessor deposit insurance fund) for 
                        calculating such institution's share of any 
                        dividend or credit declared under this 
                        paragraph or paragraph (3)(B), taking into 
                        account the factors described in clause (ii).
                            ``(ii) Factors for distribution.--In 
                        implementing this paragraph and paragraph 
                        (3)(B) in accordance with regulations, the 
                        Corporation shall take into account the 
                        following factors:
                                    ``(I) The ratio of the assessment 
                                base of an insured depository 
                                institution (including any predecessor) 
                                on December 31, 1996, to the assessment 
                                base of all eligible insured depository 
                                institutions on that date.
                                    ``(II) The total amount of 
                                assessments paid on or after January 1, 
                                1997, by an insured depository 
                                institution (including any predecessor) 
                                to the Deposit Insurance Fund (and any 
                                predecessor deposit insurance fund).
                                    ``(III) That portion of assessments 
                                paid by an insured depository 
                                institution (including any predecessor) 
                                that reflects higher levels of risk 
                                assumed by such institution.
                                    ``(IV) Such other factors as the 
                                Corporation may determine to be 
                                appropriate.
                    ``(D) Notice and opportunity for comment.--The 
                Corporation shall prescribe by regulation, after notice 
                and opportunity for comment, the method for the 
                calculation, declaration, and payment of dividends 
                under this paragraph.
            ``(3) Credit pool.--
                    ``(A) One-time credit based on total assessment 
                base at year-end 1996.--
                            ``(i) In general.--Before the end of the 
                        270-day period beginning on the date of the 
                        enactment of the Federal Deposit Insurance 
                        Reform Act of 2005, the Board of Directors 
                        shall, by regulation, provide for a credit to 
                        each eligible insured depository institution, 
                        based on the assessment base of the institution 
                        (including any predecessor institution) on 
                        December 31, 1996, as compared to the combined 
                        aggregate assessment base of all eligible 
                        insured depository institutions, taking into 
                        account such factors as the Board of Directors 
                        may determine to be appropriate.
                            ``(ii) Credit limit.--The aggregate amount 
                        of credits available under clause (i) to all 
                        eligible insured depository institutions shall 
                        equal the amount that the Corporation could 
                        collect if the Corporation imposed an 
                        assessment of 12 basis points on the combined 
                        assessment base of the Bank Insurance Fund and 
                        the Savings Association Insurance Fund as of 
                        December 31, 2001.
                            ``(iii) Eligible insured depository 
                        institution defined.--For purposes of this 
                        paragraph, the term `eligible insured 
                        depository institution' means any insured 
                        depository institution that--
                                    ``(I) was in existence on December 
                                31, 1996, and paid a deposit insurance 
                                assessment prior to that date; or
                                    ``(II) is a successor to any 
                                insured depository institution 
                                described in subclause (I).
                            ``(iv) Application of credits.--
                                    ``(I) In general.--The amount of a 
                                credit to any eligible insured 
                                depository institution under this 
                                paragraph shall be applied by the 
                                Corporation, subject to subsection 
                                (b)(3)(E), to the assessments imposed 
                                on such institution under subsection 
                                (b) that become due for assessment 
                                periods beginning after the effective 
                                date of regulations prescribed under 
                                clause (i).
                                    ``(II) Regulations.--The 
                                regulations prescribed under clause (i) 
                                shall establish the qualifications and 
                                procedures governing the application of 
                                assessment credits pursuant to 
                                subclause (I).
                            ``(v) Limitation on amount of credit for 
                        certain depository institutions.--In the case 
                        of an insured depository institution that 
                        exhibits financial, operational, or compliance 
                        weaknesses ranging from moderately severe to 
                        unsatisfactory, or is not adequately 
                        capitalized (as defined in section 38) at the 
                        beginning of an assessment period, the amount 
                        of any credit allowed under this paragraph 
                        against the assessment on that depository 
                        institution for such period may not exceed the 
                        amount calculated by applying to that 
                        depository institution the average assessment 
                        rate on all insured depository institutions for 
                        such assessment period.
                            ``(vi) 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.
                    ``(B) On-going credit pool.--
                            ``(i) In general.--In addition to the 
                        credit provided pursuant to subparagraph (A) 
                        and subject to the limitation contained in 
                        clause (v) of such subparagraph, the 
                        Corporation shall, by regulation, establish an 
                        on-going system of credits to be applied 
                        against future assessments under subsection 
                        (b)(1) on the same basis as the dividends 
                        provided under paragraph (2)(C).
                            ``(ii) Limitation on credits under certain 
                        circumstances.--No credits may be awarded by 
                        the Corporation under this subparagraph during 
                        any period in which--
                                    ``(I) the reserve ratio of the 
                                Deposit Insurance Fund is less than the 
                                designated reserve ratio of such Fund; 
                                or
                                    ``(II) the reserve ratio of the 
                                Fund is less than 1.25 percent of the 
                                amount of estimated insured deposits.
                            ``(iii) Criteria for determination.--In 
                        determining the amounts of any assessment 
                        credits under this subparagraph, the Board of 
                        Directors shall take into account the factors 
                        for designating the reserve ratio under 
                        subsection (b)(3) and the factors for setting 
                        assessments under subsection (b)(2)(B).
            ``(4) Administrative review.--
                    ``(A) In general.--The regulations prescribed under 
                paragraph (2)(D) and subparagraphs (A) and (B) of 
                paragraph (3) shall include provisions allowing an 
                insured depository institution a reasonable opportunity 
                to challenge administratively the amount of the credit 
                or dividend determined under paragraph (2) or (3) for 
                such institution.
                    ``(B) Administrative review.--Any review under 
                subparagraph (A) of any determination of the 
                Corporation under paragraph (2) or (3) shall be final 
                and not subject to judicial review.''.
    (b) Definition of Reserve Ratio.--Section 3(y) of the Federal 
Deposit Insurance Act (12 U.S.C. 1813(y)) (as amended by section 5(b) 
of this Act) is amended by adding at the end the following new 
paragraph:
            ``(3) Reserve ratio.--The term `reserve ratio', when used 
        with regard to the Deposit Insurance Fund other than in 
        connection with a reference to the designated reserve ratio, 
        means the ratio of the net worth of the Deposit Insurance Fund 
        to the value of the aggregate estimated insured deposits.''.

SEC. 8. DEPOSIT INSURANCE FUND RESTORATION PLANS.

    Section 7(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(b)(3)) (as amended by section 5(a) of this Act) is amended by 
adding at the end the following new subparagraph:
                    ``(E) Dif restoration plans.--
                            ``(i) In general.--Whenever--
                                    ``(I) the Corporation projects that 
                                the reserve ratio of the Deposit 
                                Insurance Fund will, within 6 months of 
                                such determination, fall below the 
                                minimum amount specified in 
                                subparagraph (B)(ii) for the designated 
                                reserve ratio; or
                                    ``(II) the reserve ratio of the 
                                Deposit Insurance Fund actually falls 
                                below the minimum amount specified in 
                                subparagraph (B)(ii) for the designated 
                                reserve ratio without any determination 
                                under subclause (I) having been made,
                        the Corporation shall establish and implement a 
                        Deposit Insurance Fund restoration plan within 
                        90 days that meets the requirements of clause 
                        (ii) and such other conditions as the 
                        Corporation determines to be appropriate.
                            ``(ii) Requirements of restoration plan.--A 
                        Deposit Insurance Fund restoration plan meets 
                        the requirements of this clause if the plan 
                        provides that the reserve ratio of the Fund 
                        will meet or exceed the minimum amount 
                        specified in subparagraph (B)(ii) for the 
                        designated reserve ratio before the end of the 
                        10-year period beginning upon the 
                        implementation of the plan.
                            ``(iii) Restriction on assessment 
                        credits.--As part of any restoration plan under 
                        this subparagraph, the Corporation may elect to 
                        restrict the application of assessment credits 
                        provided under subsection (e)(3) for any period 
                        that the plan is in effect.
                            ``(iv) Limitation on restriction.--
                        Notwithstanding clause (iii), while any 
                        restoration plan under this subparagraph is in 
                        effect, the Corporation shall apply credits 
                        provided to an insured depository institution 
                        under subsection (e)(3) against any assessment 
                        imposed on the institution for any assessment 
                        period in an amount equal to the lesser of--
                                    ``(I) the amount of the assessment; 
                                or
                                    ``(II) the amount equal to 3 basis 
                                points of the institution's assessment 
                                base.
                            ``(v) Transparency.--Not more than 30 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. 9. REGULATIONS REQUIRED.

    (a) In General.--Not later than 270 days after the date of the 
enactment of this Act, the Board of Directors of the Federal Deposit 
Insurance Corporation shall prescribe final regulations, after notice 
and opportunity for comment--
            (1) designating the reserve ratio for the Deposit Insurance 
        Fund in accordance with section 7(b)(3) of the Federal Deposit 
        Insurance Act (as amended by section 5 of this Act);
            (2) implementing increases in deposit insurance coverage in 
        accordance with the amendments made by section 3 of this Act;
            (3) implementing the dividend requirement under section 
        7(e)(2) of the Federal Deposit Insurance Act (as amended by 
        section 7 of this Act);
            (4) implementing the 1-time assessment credit to certain 
        insured depository institutions in accordance with section 
        7(e)(3) of the Federal Deposit Insurance Act, as amended by 
        section 7 of this Act, including the qualifications and 
        procedures under which the Corporation would apply assessment 
        credits; and
            (5) providing for assessments under section 7(b) of the 
        Federal Deposit Insurance Act, as amended by this Act.
    (b) Rule of Construction.--No provision of this Act or any 
amendment made by this Act shall be construed as affecting the 
authority of the Corporation to set or collect deposit insurance 
assessments before the effective date of the final regulations 
prescribed under subsection (a).

SEC. 10. STUDIES OF FDIC 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:
                    (A) The efficiency and effectiveness of the 
                administration of the prompt corrective action program 
                under section 38 of the Federal Deposit Insurance Act 
                by the Federal banking agencies (as defined in section 
                3 of such Act), including the degree of effectiveness 
                of such agencies in identifying troubled depository 
                institutions and taking effective action with respect 
                to such institutions, and the degree of accuracy of the 
                risk assessments made by the Corporation.
                    (B) The appropriateness of the organizational 
                structure of the Federal Deposit Insurance Corporation 
                for the mission of the Corporation taking into 
                account--
                            (i) 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);
                            (ii) the extent to which the organizational 
                        structure contributes to or reduces operational 
                        inefficiencies that increase operational costs; 
                        and
                            (iii) the effectiveness of internal 
                        controls.
            (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) 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.
    (c) Study Regarding Appropriate Deposit Base in Designating Reserve 
Ratio.--
            (1) Study required.--The Federal Deposit Insurance 
        Corporation shall conduct a study of the feasibility of using 
        actual domestic deposits rather than estimated insured deposits 
        in calculating the reserve ratio of the Deposit Insurance Fund 
        and designating a reserve ratio for such Fund.
            (2) Report.--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.
    (d) Study of Reserve Methodology and Accounting for Loss.--
            (1) Study required.--The Federal Deposit Insurance 
        Corporation shall conduct a study of the reserve methodology 
        and loss accounting used by the Corporation during the period 
        beginning on January 1, 1992, and ending December 31, 2004, 
        with respect to insured depository institutions in a troubled 
        condition (as defined in the regulations prescribed pursuant to 
        section 32(f) of the Federal Deposit Insurance Act). The 
        Corporation shall obtain comments on the design of the study 
        from the Comptroller General.
            (2) Factors to be included.--In conducting the study 
        pursuant to paragraph (1), the Federal Deposit Insurance 
        Corporation shall--
                    (A) consider the overall effectiveness and accuracy 
                of the methodology used by the Corporation for 
                establishing and maintaining reserves and estimating 
                and accounting for losses at insured depository 
                institutions, during the period described in such 
                paragraph;
                    (B) consider the appropriateness and reliability of 
                information and criteria used by the Corporation in 
                determining--
                            (i) whether an insured depository 
                        institution was in a troubled condition; and
                            (ii) the amount of any loss anticipated at 
                        such institution;
                    (C) analyze the actual historical loss experience 
                over the period described in paragraph (1) and the 
                causes of the exceptionally high rate of losses 
                experienced by the Corporation in the final 3 years of 
                that period; and
                    (D) rate the efforts of the Corporation to reduce 
                losses in such 3-year period to minimally acceptable 
                levels and to historical levels.
            (3) Report required.--The Board of Directors of the Federal 
        Deposit Insurance Corporation shall submit a report to the 
        Congress before the end of the 6-month 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 may determine to be appropriate. Before 
        submitting the report to Congress, the Board of Directors shall 
        provide a draft of the report to the Comptroller General for 
        comment.

SEC. 11. BI-ANNUAL FDIC SURVEY AND REPORT ON INCREASING THE DEPOSIT 
              BASE BY ENCOURAGING USE OF DEPOSITORY INSTITUTIONS BY THE 
              UNBANKED.

    The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is 
amended by adding at the end the following new section:

``SEC. 49. BI-ANNUAL FDIC SURVEY AND REPORT ON ENCOURAGING USE OF 
              DEPOSITORY INSTITUTIONS BY THE UNBANKED.

    ``(a) Survey Required.--
            ``(1) In general.--The Corporation shall conduct a bi-
        annual survey on efforts by insured depository institutions to 
        bring those individuals and families who have rarely, if ever, 
        held a checking account, a savings account or other type of 
        transaction or check cashing account at an insured depository 
        institution (hereafter in this section referred to as the 
        `unbanked') into the conventional finance system.
            ``(2) Factors and questions to consider.--In conducting the 
        survey, the Corporation shall take the following factors and 
        questions into account:
                    ``(A) To what extent do insured depository 
                institutions promote financial education and financial 
                literacy outreach?
                    ``(B) Which financial education efforts appear to 
                be the most effective in bringing `unbanked' 
                individuals and families into the conventional finance 
                system?
                    ``(C) What efforts are insured institutions making 
                at converting `unbanked' money order, wire transfer, 
                and international remittance customers into 
                conventional account holders?
                    ``(D) What cultural, language and identification 
                issues as well as transaction costs appear to most 
                prevent `unbanked' individuals from establishing 
                conventional accounts?
                    ``(E) What is a fair estimate of the size and worth 
                of the `unbanked' market in the United States?
    ``(b) Reports.--The Chairperson of the Board of Directors shall 
submit a bi-annual report to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate containing the Corporation's findings and 
conclusions with respect to the survey conducted pursuant to subsection 
(a), together with such recommendations for legislative or 
administrative action as the Chairperson 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.

    (a) In General.--The Federal Deposit Insurance Act (12 U.S.C. 1811 
et seq.) is amended--
            (1) in section 3 (12 U.S.C. 1813)--
                    (A) by striking subparagraph (B) of subsection 
                (a)(1) and inserting the following new subparagraph:
                    ``(B) includes any former savings association.''; 
                and
                    (B) by striking paragraph (1) of subsection (y) (as 
                so designated by section 5(b) of this Act) and 
                inserting the following new paragraph:
            ``(1) Deposit insurance fund.--The term `Deposit Insurance 
        Fund' means the Deposit Insurance Fund established under 
        section 11(a)(4).'';
            (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) (and any funds resulting from the 
        application of such paragraph (2) prior to its repeal shall be 
        deposited into the general fund of the Deposit Insurance Fund);
            (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''; and
                    (C) in paragraph (5) (as so redesignated by section 
                4(e)(4) of this Act)--
                            (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 so 
                        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)--
                    (A) by striking ``deposit insurance fund'' each 
                place that term appears and inserting ``Deposit 
                Insurance Fund'';
                    (B) by striking paragraph (4) of subsection (a) and 
                inserting the following new paragraph:
            ``(4) Deposit insurance fund.--
                    ``(A) Establishment.--There is established the 
                Deposit Insurance Fund, which the Corporation shall--
                            ``(i) maintain and administer;
                            ``(ii) use to carry out its insurance 
                        purposes, in the manner provided by this 
                        subsection; and
                            ``(iii) invest in accordance with section 
                        13(a).
                    ``(B) Uses.--The Deposit Insurance Fund shall be 
                available to the Corporation for use with respect to 
                insured depository institutions the deposits of which 
                are insured by the Deposit Insurance Fund.
                    ``(C) Limitation on use.--Notwithstanding any 
                provision of law other than section 13(c)(4)(G), the 
                Deposit Insurance Fund shall not be used in any manner 
                to benefit any shareholder or affiliate (other than an 
                insured depository institution that receives assistance 
                in accordance with the provisions of this Act) of--
                            ``(i) any insured depository institution 
                        for which the Corporation has been appointed 
                        conservator or receiver, in connection with any 
                        type of resolution by the Corporation;
                            ``(ii) any other insured depository 
                        institution in default or in danger of default, 
                        in connection with any type of resolution by 
                        the Corporation; or
                            ``(iii) any insured depository institution, 
                        in connection with the provision of assistance 
                        under this section or section 13 with respect 
                        to such institution, except that this clause 
                        shall not prohibit any assistance to any 
                        insured depository institution that is not in 
                        default, or that is not in danger of default, 
                        that is acquiring (as defined in section 
                        13(f)(8)(B)) another insured depository 
                        institution.
                    ``(D) Deposits.--All amounts assessed against 
                insured depository institutions by the Corporation 
                shall be deposited into the Deposit Insurance Fund.'';
                    (C) by striking paragraphs (5), (6), and (7) of 
                subsection (a); and
                    (D) by redesignating paragraph (8) of subsection 
                (a) as paragraph (5);
            (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 so 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 (or any 
        predecessor 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 member'' and 
                inserting ``savings association''; and
                    (H) in subsection (k)(5)(A), by striking ``Savings 
                Association Insurance Fund members'' and inserting 
                ``savings associations'';
            (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 term amended by subparagraph (A) or (B) 
                of this paragraph) 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 new subsection:
    ``(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 ``the 
                        Deposit Insurance 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'' in the 1st sentence of subparagraph (A) and 
                inserting ``Deposit Insurance Fund'';
                    (B) by striking ``Savings Association Insurance 
                Fund member'' in the last sentence of subparagraph (A) 
                and inserting ``savings association''; and
                    (C) by striking ``Savings Association Insurance 
                Fund or the Bank Insurance Fund'' in subparagraph (C) 
                and inserting ``Deposit 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.
    (b) Effective Date.--This section and the amendments made by 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. 13. OTHER TECHNICAL AND CONFORMING AMENDMENTS RELATING TO THE 
              MERGER OF THE BIF AND SAIF.

    (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 (51-4066-0-3-373);''.
    (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 such 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 
        inserting ``and after the merger of such funds, the Deposit 
        Insurance Fund,'' after ``the Savings Association 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''.
    (k) Effective Date.--This section and the amendments made by 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.




                                                  Union Calendar No. 33

109th CONGRESS

  1st Session

                               H. R. 1185

                          [Report No. 109-67]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             April 29, 2005

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed