[Congressional Record Volume 146, Number 83 (Tuesday, June 27, 2000)]
[Senate]
[Page S5905]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ALLARD:
  S. 2798. A bill to amend the Federal Deposit Insurance Act to require 
periodic cost-of-living adjustments to the amount of deposit insurance 
coverage available under that Act; to the Committee on Banking, 
Housing, and Urban Affairs.


           deposit and share insurance adjustment act of 2000

  Mr. ALLARD. Mr. President, today I am introducing the Federal Deposit 
and Share Insurance Adjustment Act of 2000.
  This bill will insure that the value of Federal Deposit and Share 
Insurance is not eroded by inflation and remains at a steady value of 
$100,000. This legislation will help consumers to retain their 
confidence in financial institutions and will provide a constant level 
of security to depositors.
  I ask unanimous consent that the text of the bill be included in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2798

       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 ``Deposit and Share Insurance 
     Adjustment Act of 2000''.

     SEC. 2. PERIODIC ADJUSTMENTS TO MAXIMUM AMOUNT OF DEPOSIT 
                   INSURANCE COVERAGE.

       Section 11(a)(1) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(a)(1)) is amended, by striking subparagraph (B) 
     and inserting the following:
       ``(B) Net amount of insured deposit.--
       ``(i) In general.--Subject to the adjustments to be made 
     pursuant to clause (ii), the net amount due to any depositor 
     under this Act at an insured depository institution shall not 
     exceed $100,000, as determined in accordance with this 
     subparagraph and subparagraphs (C) and (D).
       ``(ii) Adjustments.--For the calendar year commencing 
     January 1, 2001, and for each subsequent 3-year period, the 
     maximum net amount due to any depositor at an insured 
     depository institution under clause (i) shall be increased by 
     an amount equal to--

       ``(I) $100,000; multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) of the Internal Revenue Code of 1986, for 
     such calendar year, determined by substituting `calendar year 
     2000' for `calendar year 1992' in subparagraph (B) thereof.

       ``(iii) Rounding.--If the amount determined under clause 
     (ii) is not a multiple of $1,000, such amount shall be 
     rounded to the nearest multiple of $1,000.
       ``(iv) Notice.--Not later than January 15 of the first year 
     of each 3-year period referred to in clause (ii), commencing 
     January 15, 2001, the Board of Directors shall cause to be 
     published in the Federal Register the maximum net amount due 
     to any depositor at an insured depository institution for the 
     ensuing 3-year period.''.

     SEC. 3. PERIODIC ADJUSTMENTS TO MAXIMUM AMOUNT OF SHARE 
                   INSURANCE COVERAGE.

       Section 207(k)(1) of the Federal Credit Union Act (12 
     U.S.C. 1787(k)(1)) is amended--
       (1) by striking ``(1) Subject'' and inserting the 
     following: ``Insured Amounts.--
       ``(1) Definition of `insured account'.--
       ``(A) In general.--Subject'';
       (2) by inserting ``, subject to the adjustments made 
     pursuant to subparagraph (B)'' after ``$100,000''; and
       (3) by adding at the end the following:
       ``(B) Adjustments.--
       ``(i) In general.--For the calendar year commencing January 
     1, 2001, and for each subsequent 3-year period, the $100,000 
     amount referred to in subparagraph (A) shall be increased by 
     an amount equal to--

       ``(I) $100,000; multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) of the Internal Revenue Code of 1986, for 
     such calendar year, determined by substituting `calendar year 
     2000' for `calendar year 1992' in subparagraph (B) thereof.

       ``(ii) Rounding.--If the amount determined under clause (i) 
     is not a multiple of $1,000, such amount shall be rounded to 
     the nearest multiple of $1,000.
       ``(iii) Notice.--Not later than January 15 of the first 
     year of each 3-year period referred to in clause (ii), 
     commencing January 15, 2001, the Board shall cause to be 
     published in the Federal Register the maximum net amount due 
     with respect to any member account at an insured credit union 
     for the ensuing 3-year period.''.

     SEC. 4. CONFORMING AMENDMENTS.

       (a) Federal Deposit Insurance Act.--Section 11(a) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1821(a)) is 
     amended--
       (1) in paragraph (2)(A), in the matter following clause 
     (v), by striking ``$100,000 per account in an amount not to 
     exceed $100,000 per account'' and inserting ``the amount 
     determined in accordance with paragraph (1)(B) per account''; 
     and
       (2) in paragraph (3)(A)(iii), by striking ``$100,000'' and 
     inserting ``the amount determined in accordance with 
     paragraph (1)(B)''.
       (b) Federal Credit Union Act.--Section 207(k) of the 
     Federal Credit Union Act (12 U.S.C. 1787(k)) is amended--
       (1) in paragraph (2)(A), in the matter following clause 
     (v), by striking ``in an amount not to exceed $100,000 per 
     account'' and inserting ``the amount determined in accordance 
     with paragraph (1)(B) per account''; and
       (2) in paragraph (3), by striking ``in the amount of 
     $100,000 per account'' and inserting ``in an amount not to 
     exceed the amount determined in accordance with paragraph 
     (1)(B) per account''.
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