[United States Statutes at Large, Volume 119, 109th Congress, 1st Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

119 STAT. 3601

Public Law 109-173
109th Congress

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

[[Page 3602]]
119 STAT. 3602

(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:

[[Page 3603]]
119 STAT. 3603

``(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:

[[Page 3604]]
119 STAT. 3604

``(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

[[Page 3605]]
119 STAT. 3605

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''.

[[Page 3606]]
119 STAT. 3606

(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.

[[Page 3607]]
119 STAT. 3607

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

[[Page 3608]]
119 STAT. 3608

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
deter- mining--
(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

[[Page 3609]]
119 STAT. 3609

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

[[Page 3610]]
119 STAT. 3610

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

[[Page 3611]]
119 STAT. 3611

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.--

[[Page 3612]]
119 STAT. 3612

``(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

[[Page 3613]]
119 STAT. 3613

(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 sen-
tence--
(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))--

[[Page 3614]]
119 STAT. 3614

(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'';

[[Page 3615]]
119 STAT. 3615

(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))--

[[Page 3616]]
119 STAT. 3616

(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'';

[[Page 3617]]
119 STAT. 3617

(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

[[Page 3618]]
119 STAT. 3618

(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


[[Page 3619]]
119 STAT. 3619

Bank Insurance Fund and the Savings Association Insurance Fund pursuant
to the Federal Deposit Insurance Reform Act of 2005.

Approved February 15, 2006.

LEGISLATIVE HISTORY--H.R. 4636:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 151 (2005):
Dec. 18, considered and passed House.
Dec. 21, considered and passed Senate.



[[Page 3620]]





[[Page 3621]]
CONCURRENT RESOLUTIONS
FIRST SESSION, ONE HUNDRED NINTH CONGRESS

[[Page 3622]]