[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 786 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 786

To make permanent the temporary increase in deposit insurance coverage, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 2009

  Mr. Frank of Massachusetts introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To make permanent the temporary increase in deposit insurance coverage, 
                        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. PERMANENT INCREASE IN DEPOSIT INSURANCE.

    (a) Amendments to Federal Deposit Insurance Act.--Effective upon 
the date of the enactment of this Act, section 11(a)(1) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821(a)) is amended--
            (1) in paragraph (1)(E), by striking ``$100,000'' and 
        inserting ``$250,000'';
            (2) in paragraph (1)(F)(i), by striking ``2010'' and 
        inserting ``2015'';
            (3) in subclause (I) of paragraph (1)(F)(i), by striking 
        ``$100,000'' and inserting ``$250,000'';
            (4) in subclause (II) of paragraph (1)(F)(i), by striking 
        ``the calendar year preceding the date this subparagraph takes 
        effect under the Federal Deposit Insurance Reform Act of 2005'' 
        and inserting ``calendar year 2008''; and
            (5) in paragraph (3)(A)(iii), by striking ``, except that 
        $250,000 shall be substituted for $100,000 wherever such term 
        appears in such paragraph''.
    (b) Amendment to Federal Credit Union Act.--Section 207(k) of the 
Federal Credit Union Act (12 U.S.C. 1787(k)) is amended--
            (1) in paragraph (3)--
                    (A) by striking the opening quotation mark before 
                ``$250,000'';
                    (B) by striking ``, except that $250,000 shall be 
                substituted for $100,000 wherever such term appears in 
                such section''; and
                    (C) by striking the closing quotation mark after 
                the closing parenthesis; and
            (2) in paragraph (5), by striking ``$100,000'' and 
        inserting ``$250,000''.
    (c) Rule of Construction.--No provision of law, other than a 
provision of the Federal Deposit Insurance Act (with respect to the 
Federal Deposit Insurance Corporation and insured depository 
institutions) or the Federal Credit Union Act (with respect to the 
National Credit Union Administration and insured credit unions), may be 
construed as limiting the authority of--
            (1) the Board of Directors of the Federal Deposit Insurance 
        Corporation to set assessments under section 7(b)(2) of the 
        Federal Deposit Insurance Act or to make any inflation 
        adjustment under section 11(a)(1)(F) of such Act; or
            (2) the National Credit Union Administration Board to 
        periodically adjust the amount of an insured credit union's 
        deposit under section 202(c)(1) of the Federal Credit Union 
        Act, set the insurance premium charge under section 202(c)(2) 
        of such Act, or to make any inflation adjustment pursuant to 
        section 207(k)(5) of such Act.

SEC. 2. EXTENSION OF RESTORATION PLAN PERIOD.

    Section 7(b)(3)(E)(ii) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(b)(3)(E)(ii)) is amended by striking ``5-year period'' and 
inserting ``8-year period''.

SEC. 3. FDIC BORROWING AUTHORITY.

    Section 14(a) of the Federal Deposit Insurance Act (12 U.S.C. 
1824(a)) is amended--
            (1) by striking ``$30,000,000,000'' and inserting 
        ``$100,000,000,000''; and
            (2) by inserting prior to the last sentence, the following 
        new sentence: ``The Corporation may request in writing to 
        borrow, and the Secretary may authorize and approve the 
        borrowing of, additional amounts above $100,000,000,000 to the 
        extent that the Board of Directors and the Secretary determine 
        such borrowing to be necessary.''.

SEC. 4. EXPANDING SYSTEMIC RISK SPECIAL ASSESSMENTS.

    Section 13(c)(4)(G)(ii) of the Federal Deposit Insurance Act (12 
U.S.C. 1823(c)(4)(G)(ii)) is amended to read as follows:
                            ``(ii) Repayment of loss.--
                                    ``(I) In general.--The Corporation 
                                shall recover the loss to the Deposit 
                                Insurance Fund arising from any action 
                                taken or assistance provided with 
                                respect to an insured depository 
                                institution under clause (i) from 1 or 
                                more special assessments on insured 
                                depository institutions, depository 
                                institution holding companies (with the 
                                concurrence of the Secretary of the 
                                Treasury with respect to holding 
                                companies), or both, as the Corporation 
                                determines to be appropriate.
                                    ``(II) Treatment of depository 
                                institution holding companies.--For 
                                purposes of this clause, sections 
                                7(c)(2) and 18(h) shall apply to 
                                depository institution holding 
                                companies as if they were insured 
                                depository institutions.
                                    ``(III) Regulations.--The 
                                Corporation shall prescribe such 
                                regulations as it deems necessary to 
                                implement this clause. In prescribing 
                                such regulations, defining terms, and 
                                setting the appropriate assessment rate 
                                or rates, the Corporation shall 
                                establish rates sufficient to cover the 
                                losses incurred as a result of the 
                                actions of the Corporation under clause 
                                (i) and shall consider: the types of 
                                entities that benefit from any action 
                                taken or assistance provided under this 
                                subparagraph; economic conditions, the 
                                effects on the industry, and such other 
                                factors as the Corporation deems 
                                appropriate and relevant to the action 
                                taken or the assistance provided. Any 
                                funds so collected that exceed actual 
                                losses shall be placed in the Deposit 
                                Insurance Fund.''.
                                 <all>