DEPOSIT AND PASS-THROUGH INSURANCE.

SEC. 311. DEPOSIT AND PASS-THROUGH INSURANCE. (a) Exclusion of Certain Obligations From Deposit Insurance Coverage.— (1) In general.— Section 11(a) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)) is amended by adding at the end the following new paragraph: “(8) Certain investment contracts not treated as insured deposits.— “(A) In general.— A liability of an insured depository institution shall not be treated as an insured deposit if the liability arises under any insured depository institution investment contract between any insured depository institution and any employee benefit plan which expressly permits benefit-responsive withdrawals or transfers. “(B) Definitions.— For purposes of subparagraph (A)— “(i) Benefit-responsive withdrawals or transfers.— The term ‘benefit-responsive withdrawals or transfers’ means any withdrawal or transfer of funds (consisting of any portion of the principal and any interest credited at a rate guaranteed by the insured depository institution investment contract) during the period in which any guaranteed rate is in effect, without substantial penalty or adjustment, to pay benefits provided by the employee benefit plan or to permit a plan participant or beneficiary to redirect the investment of his or her account balance. “(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; and “(II) includes any plan described in section 401(d) of the Internal Revenue Code of 1986.”. (2) Exclusion of obligations from treatment as deposits for other purposes.— Section 7(b)(6) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(6)) is amended— (A) by striking “and” at the end of subparagraph (B); (B) by striking the period at the end of subparagraph (C) and inserting “; and”; and (C) by adding at the end the following new subparagraph: “(D) any liability of the insured depository institution which is not treated as an insured deposit pursuant to section 11(a)(8).”. (b) Insurance of Deposits.— (1) Insured amounts payable.— Section 11(a) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)) (as amended by subsection (a)(1) of this section) is amended by striking “(a)(1)” and all that follows through paragraph (1) and inserting the following: “(a) Deposit Insurance.— “(1) Insured amounts payable.— 105 STAT. 2364 “(A) In general.— The Corporation shall insure the deposits of all insured depository institutions as provided in this Act. “(B) Net amount of insured deposit.— The net amount due to any depositor at an insured depository institution shall not exceed $100,000 as determined in accordance with subparagraphs (C) and (D). “(C) Aggregation of deposits.— For the purpose of determining the net amount due to any depositor under subparagraph (B), the Corporation shall aggregate the amounts of all deposits in the insured depository institution which are maintained by a depositor in the same capacity and the same right for the benefit of the depositor either in the name of the depositor or in the name of any other person, other than any amount in a trust fund described in section 7(i)(1). “(D) Coverage on pro rata or ‘pass-through’ basis.— “(i) In general.— Except as provided in clause (ii), for the purpose of determining the amount of insurance due under subparagraph (B), the Corporation shall provide deposit insurance coverage with respect to deposits accepted by any insured depository institution on a pro rata or ‘pass-through’ basis to a participant in or beneficiary of an employee benefit plan (as defined in section 11(a)(8)(B)(ii)), including any eligible deferred compensation plan described in section 457 of the Internal Revenue Code of 1986. “(ii) Exception.— After the end of the 1-year period beginning on the date of the enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991, the Corporation shall not provide insurance coverage on a pro rata or ‘pass-through’ basis pursuant to clause (i) with respect to deposits accepted by any insured depository institution which, at the time such deposits are accepted, may not accept brokered deposits under section 29. “(iii) Coverage under certain circumstances.— Clause (ii) shall not apply with respect to any deposit accepted by an insured depository institution described in such clause if, at the time the deposit is accepted— “(I) the institution meets each applicable capital standard; and “(II) the depositor receives a written statement from the institution that such deposits at such institution are eligible for insurance coverage on a pro rata or ‘pass-through’ basis.”. (2) Certain retirement accounts.— Section 11(a)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(3)) is amended to read as follows: “(3) Certain retirement accounts.— “(A) In general.— Notwithstanding any limitation in this Act relating to the amount of deposit insurance available for the account of any 1 depositor, deposits in an insured depository institution made in connection with— “(i) any individual retirement account described in section 408(a) of the Internal Revenue Code of 1986; 105 STAT. 2365 “(ii) subject to the exception contained in paragraph (1)(D)(ii), any eligible deferred compensation plan described in section 457 of such Code; and “(iii) any individual account plan defined in section 3(34) of the Employee Retirement Income Security Act, and any plan described in section 401(d) of the Internal Revenue Code of 1986, to the extent that participants and beneficiaries under such plan have the right to direct the investment of assets held in individual accounts maintained on their behalf by the plan, shall be aggregated and insured in an amount not to exceed $100,000 per participant per insured depository institution. “(B) Amounts taken into account.— For purposes of subparagraph (A), the amount aggregated for insurance coverage under this paragraph shall consist of the present vested and ascertainable interest of each participant under the plan, excluding any remainder interest created by, or as a result of, the plan.”. (3) Certain trust funds.— Section 7(i) of the Federal Deposit Insurance Act (12 U.S.C. 1817(D) is amended to read as follows: “(i) Insurance of Trust Funds.— “(1) In general.— Trust funds held on deposit by an insured depository institution in a fiduciary capacity as trustee pursuant to any irrevocable trust established pursuant to any statute or written trust agreement shall be insured in an amount not to exceed $100,000 for each trust estate. “(2) Interbank deposits.— Trust funds described in paragraph (1) which are deposited by the fiduciary depository institution in another insured depository institution shall be similarly insured to the fiduciary depository institution according to the trust estates represented. “(3) Regulations.— The Board of Directors may prescribe such regulations as may be necessary to clarify the insurance coverage under this subsection and to prescribe the manner of reporting and depositing such trust funds.”. (4) Expanded coverage by regulation.— (A) Review of coverage.— For the purpose of prescribing regulations, during the 1-year period beginning on the date of the enactment of this Act, the Board of Directors shall review the capacities and rights in which deposit accounts are maintained and for which deposit insurance coverage is provided by the Corporation. (B) Regulations.— After the end of the 1-year period referred to in subparagraph (A), the Board of Directors may prescribe regulations that provide for separate insurance coverage for the different capacities and rights in which deposit accounts are maintained if a determination is made by the Board of Directors that such separate insurance coverage is consistent with— (i) the purpose of protecting small depositors and limiting the undue expansion of deposit insurance coverage; and (ii) the insurance provisions of the Federal Deposit Insurance Act. (C) Delayed effective date for regulations.— No regulation prescribed under subparagraph (B) may take effect 105 STAT. 2366before the 2-year period beginning on the date of the enactment of this Act. (5) Technical and conforming amendments.— (A) Section 3(m) of the Federal Deposit Insurance Act (12 U.S.C. 1813(m)) is amended by striking “(m)(1)” and all that follows through paragraph (1) and inserting the following: “(m) Insured Deposit.— “(1) In general.— Subject to paragraph (2), the term ‘insured deposit’ means the net amount due to any depositor for deposits in an insured depository institution as determined under sections 7(i) and 11(a).”. (B) Section 11(a)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(2)(A)) is amended by striking “his deposit shall be insured” and inserting “such depositor shall, for the purpose of determining the amount of insured deposits under this subsection, be deemed a depositor in such custodial capacity separate and distinct from any other officer, employee, or agent of the United States or any public unit referred to in clause (ii), (iii), (iv), or (v) and the deposit of any such depositor shall be insured in an amount not to exceed $100,000 per account”. (C) The 2d subparagraph of section 11(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(2)) is amended by striking “(b)” and inserting “(B)”. (c) Effective Date.— (1) In general.— Except as provided in paragraph (2), the amendments made by subsection (a) and paragraphs (2) and (3) of subsection (b) shall take effect at the end of the 2-year period beginning on the date of the enactment of this Act. (2) Application to time deposits.— (A) Certain deposits excluded.— Except with respect to the amendment referred to in paragraph (3), the amendments made by subsections (a) and (b) shall not apply to any time deposit which— (i) was made before the date of enactment of this Act; and (ii) matures after the end of the 2-year period referred to in paragraph (1). (B) Rollovers and renewals treated as new deposit.— Any renewal or rollover of a time deposit described in subparagraph (A) after the date of the enactment of this Act shall be treated as a new deposit which is not described in such subparagraph. (3) Effective date for amendment relating to certain employee plans.— (A) Section 11(a)(1)(B) of the Federal Deposit Insurance Act (as amended by subsection (b)(1) of this section) shall take effect on the earlier of— (i) the date of the enactment of this Act; or (ii) January 1, 1992. (B) Section 11(a)(3)(A) of the Federal Deposit Insurance Act (as amended by subsection (b)(2) of this section) shall take effect on the earlier of the dates described in clauses (i) and (ii) of subparagraph (A) with respect to plans described in clause (ii) of such section. (d) Informational Study.— 105 STAT. 2367 (1) In general.— The Federal Deposit Insurance Corporation, in conjunction with such consultants and technical experts as the Corporation determines to be appropriate, shall conduct a study of the cost and feasibility of tracking the insured and uninsured deposits of any individual and the exposure, under any Act of Congress or any regulation of any appropriate Federal banking agency, of the Federal Government with respect to all insured depository institutions. (2) Analysis of costs and benefits.— The study under paragraph (1) shall include detailed, technical analysis of the costs and benefits associated with the least expensive way to implement the system. (3) Specific factors to be studied.— As part of the study under paragraph (1), the Corporation shall investigate, review, and evaluate— (A) the data systems that would be required to track deposits in all insured depository institutions; (B) the reporting burdens of such tracking on individual depository institutions; (C) the systems which exist or which would be required to be developed to aggregate such data on an accurate basis; (D) the implications such tracking would have for individual privacy; and (E) the manner in which systems would be administered and enforced. (4) Federal reserve board survey.— As part of the informational study required under paragraph (1), the Board of Governors of the Federal Reserve System shall conduct, in conjunction with other Federal departments and agencies as necessary, a survey of the ownership of deposits held by individuals including the dollar amount of deposits held, the type of deposit accounts held, and the type of financial institutions in which the deposit accounts are held. (5) Analysis by fdic.— The results of the survey under paragraph (4) shall be provided to the Federal Deposit Insurance Corporation before the end of the 1-year period beginning on the date of the enactment of this Act for analysis and inclusion in the informational study. (6) Report to congress.— Before the end of the 18-month period beginning on the date of the enactment of this Act, the Federal Deposit Insurance Corporation shall submit to the Congress a report containing a detailed statement of findings made and conclusions drawn from the study conducted under this section, including such recommendations for administrative and legislative action as the Corporation determines to be appropriate.