[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4636 Enrolled Bill (ENR)]
H.R.4636
One Hundred Ninth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the third day of January, two thousand and six
An Act
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 the following:
``(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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.