Amends the Federal Deposit Insurance Act (FDIA) to establish the DIF. Requires deposit into the DIF of all assessments made by the Federal Deposit Insurance Corporation (FDIC) against insured depository institutions.
Authorizes the FDIC to borrow from the federal home loan banks the funds necessary for DIF use.
Deposit Insurance Reform Act of 2005 - Amends the FDIA to: (1) prohibit an undercapitalized insured depository institution from accepting employee benefit plan deposits; (2) increase federal insurance coverage (including an inflation adjustment); and (3) include retirement accounts and municipal deposits within such coverage.
Requires the FDIC Board of Directors to designate the reserve ratio applicable to the DIF.
Prohibits the Board from modifying its information collection requirements if such modification is done solely to change assessment risk classifications and results in placing greater regulatory or reporting burdens upon an insured depository institution.
Allows credits based upon past contributions to the DIF.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1562 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 1562
To provide for the merger of the bank and savings association deposit
insurance funds, to modernize and improve the safety and fairness of
the Federal deposit insurance system, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 29, 2005
Mr. Enzi (for himself, Mr. Johnson, Mr. Allard, and Mr. Hagel)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To provide for the merger of the bank and savings association deposit
insurance funds, to modernize and improve the safety and fairness of
the Federal deposit insurance system, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Safe and Fair
Deposit Insurance Act of 2005''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--MERGER OF THE DEPOSIT INSURANCE FUNDS
Sec. 101. Short title.
Sec. 102. Merger of BIF and SAIF.
Sec. 103. Establishment of the Deposit Insurance Fund.
Sec. 104. Technical and conforming amendments to the Federal Deposit
Insurance Act.
Sec. 105. Other technical and conforming amendments.
Sec. 106. Effective date.
TITLE II--DEPOSIT INSURANCE MODERNIZATION AND IMPROVEMENT
Sec. 201. Short title.
Sec. 202. Increase in Federal insurance coverage.
Sec. 203. Designated reserve ratio.
Sec. 204. Assessment credits and dividends.
Sec. 205. Regulations required.
Sec. 206. Studies of potential changes to the Federal deposit insurance
system.
Sec. 207. Effective date.
SEC. 2. DEFINITIONS.
In this Act--
(1) the term ``Administration'' means the National Credit
Union Administration;
(2) the term ``Board'' means the Board of Directors of the
Federal Deposit Insurance Corporation (other than in connection
with the National Credit Union Administration Board);
(3) the term ``Corporation'' means the Federal Deposit
Insurance Corporation;
(4) the term ``designated reserve ratio'' means the reserve
ratio designated by the Board under section 7(b)(3) of the
Federal Deposit Insurance Act, as amended by this Act;
(5) the terms ``Fund'' and ``Deposit Insurance Fund'' mean
the Deposit Insurance Fund established under section 11(a)(4)
of the Federal Deposit Insurance Act, as amended by this Act;
(6) the term ``insured depository institution'' has the
same meaning as in section 3 of the Federal Deposit Insurance
Act; and
(7) the term ``reserve ratio'' means the ratio of the fund
balance of the Deposit Insurance Fund to the aggregate
estimated amount of deposits insured by the Fund.
TITLE I--MERGER OF THE DEPOSIT INSURANCE FUNDS
SEC. 101. SHORT TITLE.
This title may be cited as the ``Insurance Funds Merger Act of
2005''.
SEC. 102. MERGER OF BIF AND SAIF.
(a) In General.--
(1) Merger.--The Bank Insurance Fund and the Savings
Association Insurance Fund shall be merged into the Deposit
Insurance Fund.
(2) Disposition of assets and liabilities.--All assets and
liabilities of the Bank Insurance Fund and the Savings
Association Insurance Fund shall be transferred to the Deposit
Insurance Fund.
(3) No separate existence.--The separate existence of the
Bank Insurance Fund and the Savings Association Insurance Fund
shall cease on the effective date of the merger thereof under
this section.
(b) Repeal of Outdated Merger Provision.--Section 2704 of the
Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.
SEC. 103. ESTABLISHMENT OF THE DEPOSIT INSURANCE FUND.
(a) In General.--Section 11(a)(4) of the Federal Deposit Insurance
Act (12 U.S.C. 1821(a)(4)) is amended--
(1) by redesignating subparagraph (B) as subparagraph (C);
(2) by striking subparagraph (A) and inserting the
following:
``(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
Deposit Insurance Fund members.'';
(3) by striking ``(4) General provisions relating to
funds.--'' and inserting the following:
``(4) Establishment of the deposit insurance fund.--'';
(4) in subparagraph (C), as redesignated by paragraph (1)
of this subsection, by striking ``Bank Insurance Fund and the
Savings Association Insurance Fund'' and inserting ``Deposit
Insurance Fund''; and
(5) by adding at the end the following:
``(D) Deposits.--All amounts assessed against
insured depository institutions by the Corporation
shall be deposited in the Deposit Insurance Fund.''.
(b) Merger-Related Amendments to the Federal Deposit Insurance
Act.--
(1) Definitions.--Section 3(y) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(y)) is amended to read as
follows:
``(y) Definitions Relating to the Deposit Insurance Fund.--
``(1) Deposit insurance fund.--The terms `Deposit Insurance
Fund' and `Fund' mean the fund established under section
11(a)(4).''.
(2) Assessments.--Section 7 of the Federal Deposit
Insurance Act (12 U.S.C. 1817) is amended--
(A) by striking subsection (l);
(B) by redesignating subsections (m) and (n) as
subsections (l) and (m), respectively; and
(C) in subsection (b), by striking paragraph (2)
and inserting the following:
``(2) Assessments.--
``(A) In general.--Each insured depository
institution shall pay assessments to the Corporation in
such amounts and at such time or times as the Board of
Directors may require.
``(B) Factors to be considered.--In setting
assessments for insured depository institutions, the
Board of Directors shall consider--
``(i) the estimated operating expenses of
the Deposit Insurance Fund;
``(ii) the estimated case resolution
expenditures and income of the Deposit
Insurance Fund;
``(iii) the projected effects of
assessments on the earnings and capital of
insured depository institutions;
``(iv) the need to maintain a risk-based
assessment system under paragraph (1); and
``(v) any other factors that the Board of
Directors may determine to be appropriate.
``(C) Notice of assessments.--The Corporation shall
notify each insured depository institution of
assessments charged to that institution.
``(D) Newly insured institutions.--To facilitate
the administration of this section, the Board of
Directors may waive the requirements of paragraphs (1)
and (2) for any assessment period in which a depository
institution becomes insured.''.
(3) Repeal of separate funds provisions.--Section 11(a) of
the Federal Deposit Insurance Act (12 U.S.C. 1821(a)) is
amended--
(A) by striking paragraphs (5), (6), and (7); and
(B) by redesignating paragraph (8) as paragraph
(5).
SEC. 104. TECHNICAL AND CONFORMING AMENDMENTS TO THE FEDERAL DEPOSIT
INSURANCE ACT.
The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is
amended--
(1) in section 3(a)(1) (12 U.S.C. 1813(a)(1)), by striking
subparagraph (B) and inserting the following:
``(B) includes any former savings association.'';
(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);
(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 ``institutions.--'' and all that
follows through ``general.--'' and inserting
``institutions.--''; and
(D) by redesignating subparagraph (C) as paragraph
(3) and moving the margin 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(a)(3) (12 U.S.C. 1817(a)(3))--
(A) by striking ``in July''; and
(B) by striking ``in January'';
(9) in section 7(b) (12 U.S.C. 1817(b))--
(A) in paragraph (1)--
(i) in subparagraph (B)(ii), by striking
``institution's semiannual assessment'' and
inserting ``assessments for that institution
under subsection (b)''; and
(ii) in subparagraph (C)--
(I) by striking ``a depository
institution's semiannual assessment''
and inserting ``assessments for a
depository institution under subsection
(b)''; and
(II) 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'';
(C) by striking paragraph (4) and redesignating
paragraphs (5) through (7) as paragraphs (4) through
(6), respectively;
(D) in paragraph (5), as so redesignated--
(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
redesignated)--
(I) by inserting ``that'' before
``the Corporation''; and
(II) by striking ``; and'' and
inserting a period; and
(E) in paragraph (6), as so redesignated, by
striking ``semiannual assessment'' and inserting
``assessment under subsection (b)'';
(10) in section 7(c) (12 U.S.C. 1817(c))--
(A) in paragraph (1), by striking ``institution's
semiannual assessment'' and inserting ``assessments for
that institution under subsection (b)'';
(B) by striking paragraphs (2) and (3); and
(C) by redesignating paragraph (4) as paragraph
(2); and
(11) 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'';
(12) in section 8 (12 U.S.C. 1818)--
(A) in subsection (p), by striking ``semiannual'';
(B) in subsection (q), by striking ``semiannual''
and inserting ``assessment''; and
(C) in subsection (t)(2)(C), by striking ``deposit
insurance fund'' and inserting ``Deposit Insurance
Fund'';
(13) in section 11 (12 U.S.C. 1821), by striking ``deposit
insurance fund'' each place that term appears and inserting
``Deposit Insurance Fund'';
(14) 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;
(15) 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 redesignated), by
striking ``subparagraphs (A) and (B)'' and inserting
``subparagraph (A)'';
(16) in section 11(p)(2)(B) (12 U.S.C. 1821(p)(2)(B)), by
striking ``institution, any'' and inserting ``institution,
the'';
(17) 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'';
(18) 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'';
(iv) by striking ``the member's'' each
place that term appears and inserting ``the
institution's''; and
(v) in subclause (II), by striking
``semiannual'' and inserting ``applicable
assessment'';
(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'';
(H) in subsection (k)(5)--
(i) in subparagraph (A), by striking
``Savings Association Insurance Fund members''
and inserting ``savings associations'';
(ii) by striking ``member's'' each place
that term appears and inserting ``savings
association's''; and
(iii) by striking ``member'' each place
that term appears and inserting ``savings
association'';
(19) 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'';
(20) 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'';
(21) in section 14(c) (12 U.S.C. 1824(c))--
(A) in paragraph (2)(A), by striking ``(7)'' and
inserting ``(6)''; and
(B) by striking paragraph (3);
(22) 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 Bank Insurance Fund member or members)
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'';
(23) in section 14 (12 U.S.C. 1824) by adding at the end
the following:
``(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; and
``(C) be a direct liability of the Deposit
Insurance Fund.'';
(24) 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'';
(25) 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
Fund'';
(26) 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'';
(27) in section 18(m) (12 U.S.C. 1828(m))--
(A) in paragraph (2), in the matter preceding
subparagraph (A), by striking the colon and inserting a
dash;
(B) in paragraph (3)(A)--
(i) by striking ``poses a serious threat to
the Savings Association Insurance Fund'' and
inserting ``of an insured savings association
poses a serious threat to the Deposit Insurance
Fund''; and
(ii) by striking ``Savings Association
Insurance Fund member'' and inserting ``insured
savings association''; and
(C) in paragraph (3)(C), by striking ``Savings
Association Insurance Fund or the Bank Insurance Fund''
and inserting ``Deposit Insurance Fund'';
(28) 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'';
(29) in section 18(p) (12 U.S.C. 1828(p)), by striking
``deposit insurance funds'' and inserting ``Deposit Insurance
Fund'';
(30) 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'';
(31) in section 28 (12 U.S.C. 1831e), by striking
``affected deposit insurance fund'' each place that term
appears and inserting ``Deposit Insurance Fund'';
(32) by striking section 31 (12 U.S.C. 1831h);
(33) in section 36(i)(3) (12 U.S.C. 1831m(i)(3)), by
striking ``affected deposit insurance fund'' and inserting
``Deposit Insurance Fund'';
(34) in section 37(a)(1)(C) (12 U.S.C. 1831n(a)(1)(C)), by
striking ``insurance funds'' and inserting ``Deposit Insurance
Fund'';
(35) 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'';
(36) in section 38(a) (12 U.S.C. 1831o(a)), in the
subsection heading, by striking ``Funds'' and inserting
``Fund'';
(37) 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
(38) in section 38(o) (12 U.S.C. 1831o(o))--
(A) by striking ``Associations.--'' and all that
follows through ``Subsections (e)(2)'' in paragraph (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.
SEC. 105. OTHER TECHNICAL AND CONFORMING AMENDMENTS.
(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 Balanced Budget and Emergency Deficit Control
Act of 1985.--Section 255(g)(1)(A) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(A)) is amended--
(1) by striking ``Bank Insurance Fund'' and inserting
``Deposit Insurance Fund''; and
(2) by striking ``Federal Deposit Insurance Corporation,
Savings Association Insurance Fund;''.
(e) 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 that 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''; and
(4) in section 21B(k) (12 U.S.C. 1441b(k)) by inserting
before the colon ``, the following definitions shall apply''.
(f) 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)(6), by striking ``As used in
this subsection--'' and inserting ``For purposes of
this subsection, the following definitions shall
apply:'';
(B) in subsection (o)(1), by striking ``that is a
Bank Insurance Fund member'';
(C) 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'';
(D) in subsection (t)(5)(D)(iii)(II), by striking
``affected deposit insurance fund'' and inserting
``Deposit Insurance Fund'';
(E) in subsection (t)(7)(C)(i)(I), by striking
``affected deposit insurance fund'' and inserting
``Deposit Insurance Fund''; and
(F) 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''.
(g) 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''.
(h) 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
striking ``Bank Insurance Fund, the Savings Association
Insurance Fund,'' and inserting ``Deposit Insurance Fund (or
any predecessor deposit 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''.
(i) 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''.
(j) 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''.
SEC. 106. EFFECTIVE DATE.
This title and the amendments made by this title shall become
effective on the first day of the first calendar quarter that begins
more than 90 days after the date of enactment of this Act.
TITLE II--DEPOSIT INSURANCE MODERNIZATION AND IMPROVEMENT
SEC. 201. SHORT TITLE.
This title may be cited as the ``Deposit Insurance Reform Act of
2005''.
SEC. 202. INCREASE IN FEDERAL INSURANCE COVERAGE.
(a) Insured Depository Institutions.--
(1) In general.--Section 11(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)(1)) is amended--
(A) by striking subparagraph (B) and inserting the
following:
``(B) Net amount of insured deposits.--The net
amount of deposit insurance payable to any depositor at
an insured depository institution shall not exceed the
standard maximum deposit insurance amount, as
determined in accordance with paragraph (3) and
subparagraphs (C), (D), (E), and (F) of this
paragraph.''; and
(B) by striking subparagraph (D) and inserting the
following:
``(D) Coverage for certain employee benefit plan
deposits.--
``(i) Pass-through insurance.--The
Corporation shall provide pass-through deposit
insurance for the deposits of any employee
benefit plan.
``(ii) Prohibition on acceptance of benefit
plan deposits.--An insured depository
institution that is not well capitalized or
adequately capitalized may not accept employee
benefit plan deposits.
``(iii) Definitions.--For purposes of this
subparagraph, the following definitions shall
apply:
``(I) Capital standards.--The terms
`well capitalized' and `adequately
capitalized' have the same meanings as
in section 38.
``(II) Employee benefit plan.--The
term `employee benefit plan' has the
same meaning as in paragraph
(5)(B)(ii), and includes any eligible
deferred compensation plan described in
section 457 of the Internal Revenue
Code of 1986.
``(III) Pass-through deposit
insurance.--The term `pass-through
deposit insurance' means, with respect
to an employee benefit plan, deposit
insurance coverage provided on a pro
rata basis to the participants in the
plan, in accordance with the interests
of each participant.
``(E) Standard maximum deposit insurance amount
defined.--For purposes of this paragraph, the term
`standard maximum deposit insurance amount' means,
until the end of the 5-year period beginning on the
date of enactment of the Deposit Insurance Reform Act
of 2005, $100,000.
``(F) Inflation adjustment.--
``(i) In general.--As of January 1, 2010,
and as of the 1st day of each 5-year period
thereafter, the standard maximum deposit
insurance amount payable to any depositor at an
insured depository institution shall be
increased by the product of--
``(I) $100,000; and
``(II) the ratio of the value of
the Personal Consumption Expenditures
Chain-Type Index (or any successor
index thereto), published by the
Department of Commerce, for December 31
of the year preceding the year in which
the adjustment is calculated under this
clause, to the value of such index for
December 31 of the year preceding the
effective date of the Insurance Funds
Merger Act of 2005.
``(ii) Limitation on adjustments.--If the
application of clause (i) would result in any
decrease in the standard maximum deposit
insurance amount in effect on the date of the
adjustment under clause (i), the standard
maximum deposit insurance amount shall remain
unchanged until the next scheduled 5-year
adjustment that does not result in any such
decrease.
``(iii) Rounding.--If the amount determined
under clause (ii) for any period is not a
multiple of $10,000, the amount so determined
shall be rounded to the nearest $10,000.
``(iv) Publication.--Not later than January
1, 2010, and not later than April 1 of the 1st
year of each subsequent 5-year period referred
to in clause (i), the Board of Directors shall
publish in the Federal Register the standard
maximum deposit insurance amount and the amount
of deposit insurance coverage under paragraph
(3)(A) that may be due to any depositor at an
insured depository institution during the
applicable 5-year period.''.
(2) Deposit insurance for retirement accounts.--Section
11(a)(3)(A) of the Federal Deposit Insurance Act (12 U.S.C.
1821(a)(3)(A)) is amended--
(A) by striking ``$100,000'' and inserting
``$250,000''; and
(B) by inserting before the period at the end the
following: ``which amount shall be subject to inflation
adjustments in the same manner as under paragraph
(1)(F) with respect to the standard maximum deposit
insurance amount, except that `$250,000' shall be
substituted for the amount specified in clause (i) of
paragraph (1)(F) for purposes of this subparagraph''.
(3) Deposit insurance for municipal deposits.--Section
11(a)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C.
1821(a)(2)(A)) is amended in the matter following clause (v)--
(A) by striking ``$100,000'' the first place that
term appears and inserting ``the standard maximum
deposit insurance amount'';
(B) by striking ``in an amount not to exceed
$100,000 per account'' the second place that term
appears; and
(C) by inserting before the period at the end the
following: ``, which amount shall be subject to
inflation adjustments in the same manner as under
paragraph (1)(F)''.
(4) Technical and conforming amendment relating to
insurance of trust funds.--Section 7(i) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(i)) is amended in each of
paragraphs (1) and (3), by striking ``$100,000'' each place it
appears and inserting ``the standard maximum deposit insurance
amount (as determined under section 11(a)(1))''.
(5) Other technical and conforming amendments.--The Federal
Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended--
(A) in section 11(m)(6) (12 U.S.C. 1821(m)(6)), by
striking ``$100,000'' and inserting ``an amount equal
to the standard maximum deposit insurance amount (as
determined under subsection (a)(1))'';
(B) in section 18 (12 U.S.C. 1828), by striking
subsection (a) and inserting the following:
``(a) Insurance Logo.--
``(1) Insured depository institutions.--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.
``(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.''; and
(C) in section 43(d) (12 U.S.C. 1831t(d)), by
striking ``$100,000'' and inserting ``an amount equal
to the standard maximum deposit insurance amount (as
determined under section 11(a)(1))''.
(b) Insured Credit Unions.--
(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 consistent 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.''; and
(B) by adding at the end the following:
``(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,
subject to subparagraph (B).
``(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), as
added by section 301 of the Credit Union
Membership Access Act (Public Law 105-219, 112
Stat. 931).
``(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 provided on a pro rata basis to the
participants in the plan, in accordance with
the interest of each participant.
``(5) Standard maximum share insurance amount defined.--For
purposes of this subsection, the term `standard maximum share
insurance amount' means, until the end of the 270-day period
beginning on the date of enactment of the Deposit Insurance
Reform Act of 2005, $100,000.
``(6) Inflation adjustment.--
``(A) In general.--As of January 1, 2010, and as of
the 1st day of each subsequent 5-year period, the
standard maximum share insurance amount payable to any
member of an insured credit union shall be increased by
the product of--
``(i) $100,000; and
``(ii) the ratio of the value of the
Personal Consumption Expenditures Chain-Type
Index (or any successor index thereto),
published by the Department of Commerce, as in
effect on the date of the adjustment under this
clause.
``(B) Limitation on adjustments.--If the
application of subparagraph (A) would result in any
decrease in the standard maximum share insurance amount
in effect on the date of the adjustment under clause
(i), the standard maximum share insurance amount shall
remain unchanged until the next scheduled 5-year
adjustment that does not result in any such decrease.
``(C) Rounding.--If the amount determined under
subparagraph (B) for any period is not a multiple of
$10,000, the amount so determined shall be rounded to
the nearest $10,000.
``(D) Publication.--Not later than January 31 of
the 1st year of each 5-year period referred to in
subparagraph (A), the Board shall publish in the
Federal Register the standard maximum share insurance
amount and the amount of share insurance coverage under
paragraph (3) that may be due to any member at an
insured credit union during that 5-year period.''; and
(C) in paragraph (3), by striking ``$100,000 per
account'' and inserting the following: ``$250,000 per
account, which amount shall be subject to inflation
adjustments in the same manner as under paragraph (6)
with respect to the standard maximum share insurance
amount (as determined under paragraph (5), except that
`$250,000' shall be substituted for the amount
specified in paragraph (5)(A)(i) for purposes of this
paragraph).''.
(2) Technical amendment.--Section 202(h) of the Federal
Credit Union Act (12 U.S.C. 1782(h)) is amended by striking
``207(c)(1)'' and inserting ``207(k)''.
(c) Effective Date.--Except as otherwise specifically provided in
this section or the amendments made by this section, this section and
such amendments shall become effective on the effective date of the
regulations required under section 205(a)(2), relating to the
implementation of deposit insurance increases under this section.
SEC. 203. DESIGNATED RESERVE RATIO.
(a) In General.--
(1) Amendment to section 7.--Section 7(b)(3) of the Federal
Deposit Insurance Act (12 U.S.C. 1817(b)(3)) is amended to read
as follows:
``(3) Designated reserve ratio.--
``(A) Action by the board.--
``(i) In general.--Before the beginning of
each calendar year, the Board of Directors
shall, subject to clause (ii)--
``(I) designate the reserve ratio
applicable to the Deposit Insurance
Fund for that year; and
``(II) publish the reserve ratio so
designated.
``(ii) Rulemaking.--Any change to the
designated reserve ratio for any calendar year
shall be made pursuant to section 553 of title
5, United States Code.
``(B) Range.--The reserve ratio designated by the
Board of Directors for any year--
``(i) may not exceed 1.50 percent of
aggregate estimated insured deposits; and
``(ii) may not be less than 1.0 percent of
aggregate estimated insured deposits.
``(C) Factors.--In designating a reserve ratio for
any year, the Board of Directors shall--
``(i) take into account the risk of losses
to the Deposit Insurance Fund in that year and
in future years;
``(ii) take into account economic
conditions generally affecting insured
depository institutions, to provide for an
increase in the designated reserve ratio during
more favorable economic conditions and to
provide for a decrease in the designated
reserve ratio during less favorable economic
conditions, notwithstanding the increased risks
of loss that may exist during such less
favorable conditions, as determined to be
appropriate by the Board;
``(iii) seek to prevent sharp swings in the
assessment rates for insured depository
institutions; and
``(iv) take into account such other factors
as the Board of Directors may determine to be
appropriate, consistent with the requirements
of this subparagraph.''.
(2) Technical and conforming amendments.--Section 3(y) of
the Federal Deposit Insurance Act (12 U.S.C. 1813), as added by
this Act, is amended by adding at the end the following:
``(2) Reserve ratio.--The term `reserve ratio' means the
ratio of the fund balance of the Deposit Insurance Fund to
aggregate estimated insured deposits held in all insured
depository institutions.
``(3) Designated reserve ratio.--The term `designated
reserve ratio' means the reserve ratio designated by the Board
of Directors under section 7(b)(3).''.
(3) Effective date.--Subject to paragraph (4), this
subsection and the amendments made by this subsection shall
become effective on the effective date of the regulations
required under section 205(a)(1), relating to designation of
the reserve ratio by the Board.
(4) Designation of initial reserve ratio for deposit
insurance fund.--During the period beginning on the effective
date of the merger of the deposit insurance funds under section
102, and ending on the effective date of final regulations
designating the reserve ratio, as required by section
205(a)(1), the designated reserve ratio of the Deposit
Insurance Fund shall continue to be determined pursuant to
section 7(b)(2)(A)(iv), as in effect on the day before the
effective date of the merger under section 102.
(b) Requirements Applicable to Any Modification of the Risk-Based
Assessment System.--Section 7(b)(1) of the Federal Deposit Insurance
Act (12 U.S.C. 1817(b)(1)) is amended by adding at the end the
following:
``(E) Requirements applicable to any modification
of the risk-based assessment system.--
``(i) In general.--In revising or modifying
the risk-based assessment system at any time
after the date of enactment of the Deposit
Insurance Reform Act of 2005, the Board of
Directors--
``(I) may not make any change to
the information collected from or
required to be retained by insured
depository institutions solely for
purposes of the assessment risk
classification, as defined by
regulations of the Board, if the change
would result in the imposition of an
overall greater regulatory or reporting
burden on insured depository
institutions than was the case before
that date of enactment; and
``(II) may implement any such
revision or modification in final form
only after notice and opportunity for
comment.
``(ii) Rule of construction.--An increase
in an assessment rate or a revision of the
assessment base shall not be considered to be a
revision or modification resulting in greater
regulatory or reporting burden for purposes of
this subparagraph.''.
SEC. 204. ASSESSMENT CREDITS AND DIVIDENDS.
(a) In General.--Section 7(e) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(e)) is amended to read as follows:
``(e) Credits and Dividends.--
``(1) One-time credit based on total assessment base at
year-end 1996.--
``(A) In general.--The Board of Directors shall, by
regulation, provide for a credit to each insured
depository institution that was in existence on
December 31, 1996, and that had paid a deposit
insurance assessment prior to that date (or a successor
insured depository institution), based on the
assessment base of the institution on that date, as
compared to the combined aggregate assessment base of
all such institutions, taking into account such factors
as the Board may determine to be appropriate.
``(B) Credit limit.--The aggregate amount of
credits available under subparagraph (A) to all insured
depository institutions that are eligible for the
credit shall not exceed the amount that the Corporation
could collect if it imposed an assessment of 9 basis
points on the combined assessment base of the Bank
Insurance Fund and the Savings Association Insurance
Fund as of December 31, 2001.
``(C) Application of credits.--The amount of a
credit to any insured depository institution under this
paragraph may be applied by the Corporation to those
portions of the assessments under subsection (b)
applicable to that institution which become due for
assessment periods beginning after the effective date
of regulations required by subparagraph (A).
``(D) Challenges to credit amounts.--The
regulations required by subparagraph (A) shall include
provisions allowing an insured depository institution a
reasonable opportunity to challenge administratively
the amount of its credit under this paragraph. The
determination of the Corporation of the amount of the
credit following such challenge shall be final, and not
subject to judicial review.
``(2) Assessment credits.--
``(A) Authority.--The Board of Directors shall, by
regulation, establish the qualifications and procedures
under which the Corporation would apply assessment
credits for the assessment periods beginning on or
after the first assessment period to which a credit
under paragraph (1) applies.
``(B) Criteria for determination.--In determining
whether to provide assessment credits under this
paragraph and in what amounts, the Board of Directors
shall take into account the factors for setting
assessments under subsection (b)(2) and the factors for
designating the reserve ratio under subsection (b)(3).
``(3) Dividends.--
``(A) Reserve ratio in excess of 1.50 percent of
estimated insured deposits.--The Corporation shall
provide cash dividends to insured depository
institutions in accordance with this paragraph if the
reserve ratio of the Deposit Insurance Fund exceeds the
maximum amount established under subsection
(b)(3)(B)(i), to the extent of that excess amount.
``(B) Amount equal to or in excess of 1.40 percent
of estimated insured deposits and not more than 1.50
percent.--The Corporation shall provide cash dividends
to insured depository institutions in accordance with
this paragraph if the reserve ratio of the Deposit
Insurance Fund equals or exceeds 1.40 and is not more
than 1.50 percent, and that amount shall equal 50
percent of the amount in excess of the amount required
to maintain the reserve ratio at 1.40 percent of the
estimated insured deposits.
``(C) Limitation.--The Board of Directors may
suspend or limit dividends paid under this paragraph if
the Board determines in writing that--
``(i) a significant risk of losses to the
Deposit Insurance Fund exists over the next
one-year period; and
``(ii) it is likely that such losses will
be sufficiently high as to justify a finding by
the Board that the reserve ratio should
temporarily exceed the maximum amount
established under subsection (b)(3)(B)(i).
``(D) Considerations.--In making a determination
under subparagraph (B), the Board shall consider--
``(i) national and regional conditions and
their impact on insured depository
institutions;
``(ii) potential problems affecting insured
depository institutions or a specific group or
type of depository institution;
``(iii) the degree to which the contingent
liability of the Corporation for anticipated
failures of insured institutions adequately
addresses concerns over funding levels in the
Deposit Insurance Fund; and
``(iv) any other factors that the Board
determines is appropriate.
``(E) Report to congress.--
``(i) Submission.--Any determination under
subparagraph (B) 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.
``(ii) Content.--The report submitted under
clause (i) shall include--
``(I) a complete explanation for
the determination; and
``(II) a discussion of the factors
required to be considered under
subparagraph (C).
``(F) Review of determination.--
``(i) Annual review.--A determination to
suspend or limit dividends under subparagraph
(B) shall be reviewed by the Board of Directors
annually.
``(ii) Action by board.--Based on each
annual review under clause (i), the Board of
Directors shall either renew or remove a
determination to suspend or limit dividends
under subparagraph (B), or shall make a new
determination in accordance with this
paragraph. Unless justified under the terms of
the renewal or new determination, any amount as
is in the Fund in excess of the amount required
to maintain the reserve ratio at the maximum
amount established under subsection
(b)(3)(B)(i) shall be paid as dividends to
insured depository institutions in accordance
with this paragraph.''.
(b) Effective Date.--The amendments made by this section shall
become effective on the effective date of the regulations required to
be issued under section 205(a)(2), relating to implementation of the
one-time assessment credit.
SEC. 205. REGULATIONS REQUIRED.
(a) In General.--Not later than 270 days after the date of
enactment of this Act, the Board shall issue final regulations, in
accordance with section 553 of chapter 5 of title 5, United States
Code--
(1) designating the reserve ratio for the Deposit Insurance
Fund in accordance with section 7(b)(3) of the Federal Deposit
Insurance Act, as amended by section 203 of this Act, which
regulations shall become effective not later than 90 days after
the date of their publication in final form;
(2) implementing increases in deposit insurance coverage in
accordance with the amendments made by section 202, which
regulations shall become effective not later than 90 days after
the date of their publication in final form;
(3) implementing the one-time assessment credit to certain
insured depository institutions in accordance with section
7(e)(2) of the Federal Deposit Insurance Act, as amended by
section 204 of this Act;
(4) establishing the qualifications and procedures under
which the Corporation may provide ongoing assessment credits,
under section 7(e)(3) of the Federal Deposit Insurance Act, as
amended by section 204 of this Act; and
(5) providing for assessments under section 7 of the
Federal Deposit Insurance Act, as amended by this Act, which
regulations shall become effective on the effective date of the
regulations required by paragraph (3).
(b) Savings Clause.--
(1) In general.--Nothing in this Act or the amendments made
by this Act shall be construed to affect the authority of the
Corporation with regard to the setting or collection of deposit
insurance assessments prior to the effective date of any
regulations required under subsection (a).
(2) Preservation of minimum assessment provision.--
Subparagraph (E) of section 7(b)(2) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(b)(2)), as in effect on the day
before the effective date of title I of this Act, shall
continue to apply with respect to deposit insurance assessments
imposed prior to the effective date of the regulations required
under subsection (a)(5) of this section.
SEC. 206. STUDIES OF POTENTIAL CHANGES TO THE FEDERAL DEPOSIT INSURANCE
SYSTEM.
(a) Study and Report by FDIC and NCUA.--
(1) Study.--The Board of Directors of the Federal Deposit
Insurance Corporation and the National Credit Union
Administration Board shall each conduct a study of--
(A) 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;
and
(B) 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.
(2) Report.--Not later than 1 year after the date of
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.
(b) Study and Report Regarding Appropriate Reserve Ratio.--
(1) Study.--The Corporation shall conduct a study on the
feasibility of using actual deposits rather than estimated
insured deposits in calculating the reserve ratio of the
Deposit Insurance Fund.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Board shall submit a report to
Congress on the results of the study required under paragraph
(1), together with such recommendations for legislative or
administrative actions as may be determined to be appropriate.
SEC. 207. EFFECTIVE DATE.
Except as otherwise specifically provided in this title, this title
and the amendments made by this title shall become effective on the
date of enactment of this Act.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S9477)
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
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