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

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Repeal of outdated merger provision

Section 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.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.

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.

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.

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.

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.

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.

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.

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).

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.

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:

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.

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.

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