Deposit Insurance Fairness and Economic Opportunity Act

Deposit Insurance Fairness and Economic Opportunity Act - Amends the Federal Deposit Insurance Act to set forth a schedule under which the Board of Directors of the Federal Deposit Insurance Corporation shall transfer annually to the Financing Corporation (FICO), for payment of FICO interest obligations, such amounts as exceed 1.40 percent of the total estimated deposits insured by the Bank Insurance Fund and the Savings Association Insurance Fund, respectively, when amounts in both Funds exceed that percentage.

[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2293 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2293

 To amend the Federal Deposit Insurance Act and the Federal Home Loan 
 Bank Act to provide for the payment of Financing Corporation interest 
 obligations from balances in the deposit insurance funds in excess of 
  an established ratio and, after such obligations are satisfied, to 
 provide for rebates to insured depository institutions of such excess 
                               reserves.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 27, 2000

 Mr. Santorum (for himself, Mr. Edwards, Mr. Helms, Mr. Murkowski, and 
Mrs. Hutchison) introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the Federal Deposit Insurance Act and the Federal Home Loan 
 Bank Act to provide for the payment of Financing Corporation interest 
 obligations from balances in the deposit insurance funds in excess of 
  an established ratio and, after such obligations are satisfied, to 
 provide for rebates to insured depository institutions of such excess 
                               reserves.

    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 Insurance Fairness and 
Economic Opportunity Act''.

SEC. 2. USE OF EXCESS DEPOSIT FUND RESERVES TO PAY FICO INTEREST 
              OBLIGATIONS AND MAKE REBATES.

    (a) In General.--Section 7(b)(2) of the Federal Deposit Insurance 
Act (12 U.S.C. 1817(b)(2)) is amended by inserting after subparagraph 
(C) the following:
                    ``(D) Use of excess deposit insurance funds 
                initially to pay fico interest obligations and then for 
                other purposes.--Notwithstanding subsection (e)(2), 
                beginning January 1, 2001, and annually thereafter, if 
                the funds in both the Bank Insurance Fund and the 
                Savings Association Insurance Fund, respectively, 
                exceed 1.40 percent of the total estimated deposits 
                insured by each of the respective Funds (or such higher 
                percentage as may have been established as the 
                designated reserve ratio for the respective Fund 
                pursuant to subparagraph (A)(iv)(II)), the Board of 
                Directors shall transfer such excess amounts as 
                follows:
                            ``(i) Years 2001 through 2017.--In years 
                        2001 through 2017, to the Financing Corporation 
                        in such amount as is necessary to pay, for such 
                        year, the interest payments, issuance costs, 
                        and custodial fees described in section 21(f) 
                        of the Federal Home Loan Bank Act with regard 
                        to obligations issued by the Financing 
                        Corporation.
                            ``(ii) Years after 2017.--In years 
                        beginning after December 31, 2017--
                                    ``(I) to the Financing Corporation 
                                for the purposes described in clause 
                                (i); and
                                    ``(II) if the amount required to be 
                                transferred under this subparagraph 
                                exceeds the amount required by the 
                                Financing Corporation for the purposes 
                                described in clause (i), to insured 
                                depository institutions, the allocation 
                                of which is to be made on such basis as 
                                the Board of Directors determines to be 
                                appropriate, taking into account the 
                                factors considered under the risk-based 
                                assessment system, except that no 
                                amount may be paid under this subclause 
                                to any insured depository institution 
                                described in subparagraph (A)(v).''.
    (b) Technical and Conforming Amendments.--
            (1) Federal home loan bank act.--Section 21(f) of the 
        Federal Home Loan Bank Act (12 U.S.C. 1441) is amended--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively;
                    (B) by inserting after paragraph (1) the following:
            ``(2) Excess deposit insurance fund balances.--In addition 
        to the amounts obtained pursuant to paragraph (1), the 
        Financing Corporation shall have available the amounts 
        transferred by the Board of Directors of the Federal Deposit 
        Insurance Corporation pursuant to section 7(b)(2)(D) of the 
        Federal Deposit Insurance Act.'';
                    (C) in paragraph (3) (as redesignated), by striking 
                ``In addition to the amounts obtained pursuant to 
                paragraph (1),'' and inserting ``To the extent that the 
                amounts available under paragraphs (1) and (2) are 
                insufficient to cover the amount of interest payments, 
                issuance costs, and custodial fees,''; and
                    (D) in paragraph (4) (as redesignated), by striking 
                ``(1) and (2)'' and inserting ``(1), (2), and (3)''.
            (2) Deposit insurance funds act of 1996.--Section 
        2703(c)(2) of the Deposit Insurance Funds Act of 1996 (12 
        U.S.C. 1441 note) is amended--
                    (A) by striking ``21(f)(2)'' and inserting 
                ``21(f)(3)''; and
                    (B) by inserting ``and redesignated by section 
                2(b)(1)(A) of the Deposit Insurance Fairness and 
                Economic Opportunity Act'' after ``as amended by 
                subsection (a)''.
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