[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4636 Considered and Passed House (CPH)]
109th CONGRESS
1st Session
H. R. 4636
To enact the technical and conforming amendments necessary to implement
the Federal Deposit Insurance Reform Act of 2005, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 18, 2005
Mr. Oxley introduced the following bill; which was referred to the
Committee on Financial Services
December 18, 2005
The Committee on Financial Services discharged; considered and passed
_______________________________________________________________________
A BILL
To enact the technical and conforming amendments necessary to implement
the Federal Deposit Insurance Reform Act of 2005, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Deposit Insurance Reform
Conforming Amendments Act of 2005''.
SEC. 2. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Technical and Conforming Amendments Relating to Government
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) Government 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 government 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 (B); and
``(ii) except as provided in subparagraph
(C), the deposits of a government depositor
shall be insured in an amount equal to the
standard maximum deposit insurance amount (as
determined under paragraph (1)).
``(B) Government depositor.--In this paragraph, the
term `government depositor' means a depositor that is--
'';
(3) by striking ``(B) The'' and inserting the following:
``(C) 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
``government depositor''.
(b) 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))''.
(c) 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.''.
(d) 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) Government 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 government depositor
or member shall be insured in an amount equal to the
standard maximum share insurance amount (as determined
under paragraph (5)), subject to subparagraph (C).
``(B) Government depositor.--In this paragraph, the
term `government depositor' means a depositor that is--
'';
(iii) by striking ``(B) The'' and inserting
the following:
``(C) Authority to limit deposits.--The''; and
(iv) by striking ``depositor or member
referred to in subparagraph (A)'' and inserting
``government 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 based on the interest of each
participant, in accordance with regulations
issued by the Administration.
``(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 $100,000, adjusted as provided under
section 11(a)(1)(F) of the Federal Deposit Insurance Act.''.
(2) Increase in 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 ```$250,000 (which amount shall be subject to
inflation adjustments as provided under section 11(a)(1)(F) of
the Federal Deposit Insurance Act, except that $250,000 shall
be substituted for $100,000 wherever such term appears in such
section)'''.
(3) Other technical and conforming amendments.--Section
205(a) of the Federal Credit Union Act (12 U.S.C. 1785(a)) is
amended to read as follows:
``(a) Insurance Logo.--
``(1) Insured credit unions.--
``(A) In general.--Each insured credit union shall
display at each place of business maintained by that
credit union a sign or signs relating to the insurance
of the share accounts of the institution, in accordance
with regulations to be prescribed by the Board.
``(B) Statement to be included.--Each sign required
under subparagraph (A) shall include a statement that
insured share accounts are backed by the full faith and
credit of the United States Government.
``(2) Regulations.--The Board 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 credit union
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 Board may recover for its use.''.
(e) Effective Date.--This section and the amendments made by this
section shall take effect on the date on which the final regulations
required under section 2109(a)(2) of the Federal Deposit Insurance
Reform Act of 2005 take effect.
SEC. 3. CONFORMING AMENDMENTS RELATING TO ASSESSMENTS AND REPEAL OF
SPECIAL RULES RELATING TO MINIMUM ASSESSMENTS AND FREE
DEPOSIT INSURANCE.
(a) In General.--The Federal Deposit Insurance Act (12 U.S.C. 1811
et seq.) is amended as follows:
(1) Paragraph (3) of section 7(a) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(a)) 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''.
(b) Effective Date.--This section and the amendments made by this
section shall take effect on the date that the final regulations
required under section 2109(a)(5) of the Federal Deposit Insurance
Reform Act of 2005 take effect.
SEC. 4. TECHNICAL AND CONFORMING AMENDMENTS RELATING TO REPLACEMENT OF
FIXED DESIGNATED RESERVE RATIO WITH RESERVE RANGE.
(a) In General.--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).''.
(b) Effective Date.--This section and the amendments made by this
section shall take effect on the date that the final regulations
required under section 2109(a)(1) of the Federal Deposit Insurance
Reform Act of 2005 take effect.
SEC. 5. REPORT TO CONGRESS ON REFUNDS, DIVIDENDS, AND CREDITS FROM
DEPOSIT INSURANCE FUND.
(a) Submission.--Any determination under section 7(e)(2)(E) of the
Federal Deposit Insurance Act, as added by section 2107(a) of the
Federal Deposit Insurance Reform Act of 2005, shall be submitted to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives, not
later than 270 days after making such determination.
(b) Content.--The report submitted under subsection (a) shall
include--
(1) a detailed explanation for the determination; and
(2) a discussion of the factors required to be considered
under section 7(e)(2)(F) of the Federal Deposit Insurance Act,
as added by section 2107(a) of the Federal Deposit Insurance
Reform Act of 2005.
SEC. 6. 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 increasing the limit on
deposit insurance for deposits of municipalities and
other units of general local government, and the
potential benefits and the potential adverse
consequences that may result from any such increase.
(C) 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
alternatives to 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 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 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.
(e) Basel II Study.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General shall report to
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives on the potential impact on the financial system
of the United States of the implementation of the new Basel
Capital Accord (Basel II) and the proposed revisions to current
reserve requirement regulations for non-Basel II banks.
(2) Factors to be included.--The report required under
paragraph (1) shall address the following:
(A) The potential impact of Basel II on capital
requirements in the United States, including--
(i) whether there would be a reduction in
capital requirements;
(ii) whether Basel II could hinder
enforcement of prompt corrective action laws
and regulations; and
(iii) the potential implications any
changes in capital requirements may have on the
safety and soundness of the financial system in
the United States.
(B) By gathering available information, the ability
of United States banks and bank regulators to implement
and comply with the provisions of Basel II, including--
(i) the costs of Basel II for financial
institutions and regulators;
(ii) the feasibility and appropriateness of
Basel II's statistical models; and
(iii) the ability of regulators to oversee
capital requirement operations of financial
institutions.
(C) The ability of the United States financial
institution regulatory agencies--
(i) to attract and retain sufficient
expertise, both among specialists and
examiners; and
(ii) to conduct the necessary oversight of
capital and risk modeling by regulated
financial institutions subject to Basel II.
SEC. 7. 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. 8. 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 4(b) of this title) 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
3(d)(4))--
(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 day of the merger of the Bank
Insurance Fund and the Savings Association Insurance Fund pursuant to
the Federal Deposit Insurance Reform Act of 2005.
SEC. 9. 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 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.
(e) 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''.
(f) 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''.
(g) 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''.
(h) 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''.
(i) 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''.
(j) Effective Date.--This section and the amendments made by this
section shall take effect on the day of the merger of the Bank
Insurance Fund and the Savings Association Insurance Fund pursuant to
the Federal Deposit Insurance Reform Act of 2005.
<all>