RECAPITALIZING THE BANK INSURANCE FUND.

SEC. 104. RECAPITALIZING THE BANK INSURANCE FUND. (a) In General.— Section 7(b)(1)(C) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(1)(C)) is amended to read as follows: “(C) Assessment rates for bank insurance fund members.— “(i) In general.— If the reserve ratio of the Bank Insurance Fund equals or exceeds the fund’s designated reserve ratio under subparagraph (B), the Board of Directors shall set semiannual assessment rates for members of that fund as appropriate to maintain the reserve ratio at the designated reserve ratio. “(ii) Special rules for recapitalizing undercapitalized fund.— If the reserve ratio of the Bank Insurance Fund is less than the designated reserve ratio under subparagraph (B), the Board of Directors shall set semiannual assessment rates for members of that fund— “(I) that are sufficient to increase the reserve ratio for that fund to the designated reserve ratio not later than 1 year after such rates are set; or “(II) in accordance with a schedule promulgated by the Corporation under clause (iii). 105 STAT. 2239 “(iii) Recapitalization schedules.— For purposes of clause (ii)(II), the Corporation shall, by regulation, promulgate a schedule that specifies, at semiannual intervals, target reserve ratios for the Bank Insurance Fund, culminating in a reserve ratio that is equal to the designated reserve ratio no later than 15 years after the date on which the schedule becomes effective. “(iv) Amending schedule.— The Corporation may, by regulation, amend a schedule promulgated under clause (iii), but such an amendment may not extend the date for achieving the designated reserve ratio.”. (b) Assessment Rate Changes.— Section 7(b)(1)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(1)(A)) is amended by striking clause (iii) and inserting the following: “(iii) Rate changes.— The Corporation shall notify each insured depository institution of that institution’s semiannual assessment. The Corporation may establish and, from time to time, adjust the assessment rates for such institutions.”.