MERGER OF BIF AND SAIF.

SEC. 2704. 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 established by section 11(a)(4) of the Federal Deposit Insurance Act, as amended by this section. (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. (b) Special Reserve of the Deposit Insurance Fund.— (1) In general.— Immediately before the merger of the Bank Insurance Fund and the Savings Association Insurance Fund, if the reserve ratio of the Savings Association Insurance Fund exceeds the designated reserve ratio, the amount by which 110 STAT. 3009–487that reserve ratio exceeds the designated reserve ratio shall be placed in the Special Reserve of the Deposit Insurance Fund, established under section 11(a)(5) of the Federal Deposit Insurance Act, as amended by this section. (2) Definition.— For purposes of this subsection, the term “reserve ratio” means the ratio of the net worth of the Savings Association Insurance Fund to the aggregate estimated amount of deposits insured by the Savings Association Insurance Fund. (c) Effective Date.— This section and the amendments made by this section shall become effective on January 1, 1999, if no insured depository institution is a savings association on that date. (d) Technical and Conforming Amendments.— (1) Deposit insurance fund.— Section 11(a)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended— (A) by redesignating subparagraph (B) as subparagraph (C); (B) 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.”; and (C) by striking “(4) General provisions relating to funds.—” and inserting the following: “(4) Establishment of the deposit insurance fund.— (2) Other references.— Section 11(a)(4)(C) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(4)(C), as redesignated by paragraph (1) of this subsection) is amended by striking “Bank Insurance Fund and the Savings Association Insurance Fund” and inserting “Deposit Insurance Fund”. (3) Deposits into fund.— Section 11(a)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended by adding at the end the following new subparagraph: “(D) Deposits.— All amounts assessed against insured depository institutions by the Corporation shall be deposited in the Deposit Insurance Fund.”. (4) Special reserve of deposits.— Section 11(a)(5) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(5)) is amended to read as follows: “(5) Special reserve of deposit insurance fund.— “(A) Establishment.— “(i) In general.— There is established a Special Reserve of the Deposit Insurance Fund, which shall be administered by the Corporation and shall be invested in accordance with section 13(a). “(ii) Limitation.— The Corporation shall not provide any assessment credit, refund, or other payment from any amount in the Special Reserve. “(B) Emergency use of special reserve.— Notwithstanding subparagraph (A)(ii), the Corporation may, in its sole discretion, transfer amounts from the Special Reserve 110 STAT. 3009–488to the Deposit Insurance Fund, for the purposes set forth in paragraph (4), only if— “(i) the reserve ratio of the Deposit Insurance Fund is less than 50 percent of the designated reserve ratio; and “(ii) the Corporation expects the reserve ratio of the Deposit Insurance Fund to remain at less than 50 percent of the designated reserve ratio for each of the next 4 calendar quarters. “(C) Exclusion of special reserve in calculating reserve ratio.— Notwithstanding any other provision of law, any amounts in the Special Reserve shall be excluded in calculating the reserve ratio of the Deposit Insurance Fund under section 7.”. (5) Federal home loan bank act.— Section 21B(f)(2)(C)(ii) of the Federal Home Loan Bank Act (12 U.S.C. 1441b(f)(2)(C)(ii)) is amended— (A) in subclause (I), by striking “to Savings Associations Insurance Fund members” and inserting “to insured depository institutions, and their successors, which were Savings Association Insurance Fund members on September 1, 1995”; and (B) in subclause (II), by striking “to Savings Associations Insurance Fund members” and inserting “to insured depository institutions, and their successors, which were Savings Association Insurance Fund members on September 1, 1995”. (6) Repeals.— (A) Section 3.— 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 term ‘Deposit Insurance Fund’ means the fund established under section 11(a)(4). “(2) Reserve ratio.— The term ‘reserve ratio’ means the ratio of the net worth of the Deposit Insurance Fund to aggregate estimated insured deposits held in all insured depository institutions. “(3) Designated reserve ratio.— The designated reserve ratio of the Deposit Insurance Fund for each year shall be— “(A) 1.25 percent of estimated insured deposits; or “(B) a higher percentage of estimated insured deposits that the Board of Directors determines to be justified for that year by circumstances raising a significant risk of substantial future losses to the fund.” (B) Section 7.— Section 7 of the Federal Deposit Insurance Act (12 U.S.C. 1817) is amended— (i) by striking subsection (Z); (ii) by redesignating subsections (m) and (n) as subsections (Z) and (m), respectively; (iii) in subsection (b)(2), by striking subparagraphs (B) and (F), and by redesignating subparagraphs (C), (E), (G), and (H) as subparagraphs (B) through (E), respectively. (C) Section 11.— Section 11(a) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)) is amended— (i) by striking paragraphs (6) and (7); and 110 STAT. 3009–489 (ii) by redesignating paragraph (8) as paragraph (6). (7) 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”. (8) 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”. (9) 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”. (10) 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— (A) by striking “Bank Insurance Fund” and inserting “Deposit Insurance Fund”; and (B) by striking “Federal Deposit Insurance Corporation, Savings Association Insurance Fund;”. (11) Further amendments to the federal home loan bank act.— The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amended— (A) in section 11(k) (12 U.S.C. 1431(k))— (i) in the subsection heading, by striking “SAIF” and inserting “the Deposit Insurance Fund”; and (ii) by striking “Savings Association Insurance Fund” each place such term appears and inserting “Deposit Insurance Fund”; (B) 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”; (C) in section 21A(b)(6)(B) (12 U.S.C. 1441a(b)(6)(B))— (i) in the subparagraph heading, by striking “SAIF-insured banks” and inserting “Charter conversions”; and (ii) by striking “Savings Association Insurance Fund member” and inserting “savings association”; (D) 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”; (E) in section 21B(e) (12 U.S.C. 1441b(e))— (i) in paragraph (5), by inserting “as of the date of funding” after “Savings Association Insurance Fund members” each place such term appears; (ii) by striking paragraph (7); and (iii) by redesignating paragraph (8) as paragraph (7); and (F) in section 21B(k) (12 U.S.C. 1441b(k))— (i) by striking paragraph (8); and (ii) by redesignating paragraphs (9) and (10) as paragraphs (8) and (9), respectively. 110 STAT. 3009–490 (12) Amendments to the home owners’ loan act.— The Home Owners’ Loan Act (12 U.S.C. 1461 et seq.) is amended— (A) in section 5— (i) in subsection (c)(5)(A), by striking “that is a member of the Bank Insurance Fund”; (ii) in subsection (c)(6), by striking “As used in this subsection—” and inserting “For purposes of this subsection, the following definitions shall apply:”; (iii) in subsection (o)(1), by striking “that is a Bank Insurance Fund member”; (iv) 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”; (v) in subsection (t)(5)(D)(iii)(II), by striking “affected deposit insurance fund” and inserting “Deposit Insurance Fund”; (vi) in subsection (t)(7)(C)(i)(I), by striking “affected deposit insurance fund” and inserting “Deposit Insurance Fund”; and (vii) in subsection (v)(2)(A)(i), by striking “, the Savings Association Insurance Fund” and inserting “or the Deposit Insurance Fund”; and (B) in section 10— (i) in subsection (e)(1)(A)(iii)(VII), by adding “or” at the end; (ii) in subsection (e)(1)(A)(iv), by adding “and” at the end; (iii) in subsection (e)(1)(B), by striking “Savings Association Insurance Fund or Bank Insurance Fund” and inserting “Deposit Insurance Fund”; (iv) in subsection (e)(2), by striking “Savings Association Insurance Fund or the Bank Insurance Fund” and inserting “Deposit Insurance Fund”; and (v) in subsection (m)(3), by striking subparagraph (E), and by redesignating subparagraphs (F), (G), and (H) as subparagraphs (E), (F), and (G), respectively. (13) Amendments to the national housing act.— The National Housing Act (12 U.S.C. 1701 et seq.) is amended— (A) 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 (B) in section 526(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”. (14) Further amendments to the federal deposit insurance act.— The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended— (A) 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.”; 110 STAT. 3009–491 (B) 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 “Deposit Insurance Fund,”; (C) in section 5(d) (12 U.S.C. 1815(d)), by striking paragraphs (2) and (3); (D) in section 5(d)(1) (12 U.S.C. 1815(d)(1))— (i) in subparagraph (A), by striking “reserve ratios in the Bank Insurance Fund and the Savings Association Insurance Fund” and inserting “the reserve ratio of the Deposit Insurance Fund”; (ii) 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.”; (iii) by striking “(1) Uninsured institutions.—”; and (iv) by redesignating subparagraphs (A) and (C) as paragraphs (1) and (3), respectively, and moving the margins 2 ems to the left; (E) in section 5(e) (12 U.S.C. 1815(e))— (i) in paragraph (5)(A), by striking “Bank Insurance Fund or the Savings Association Insurance Fund” and inserting “Deposit Insurance Fund”; (ii) by striking paragraph (6); and (iii) by redesignating paragraphs (7), (8), and (9) as paragraphs (6), (7), and (8), respectively; (F) 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”; (G) in section 7(b) (12 U.S.C. 1817(b))— (i) in paragraph (1)(D), by striking “each deposit insurance fund” and inserting “the Deposit Insurance Fund”; (ii) in clauses (i)(I) and (iv) of paragraph (2)(A), by striking “each deposit insurance fund” each place such term appears and inserting “the Deposit Insurance Fund”; (iii) in paragraph (2)(A)(iii), by striking “a deposit insurance fund” and inserting “the Deposit Insurance Fund”; (iv) by striking clause (iv) of paragraph (2)(A); (v) in paragraph (2)(C) (as redesignated by paragraph (6)(B) of this subsection)— (I) by striking “any deposit insurance fund” and inserting “the Deposit Insurance Fund”; and (II) by striking “that fund” each place such term appears and inserting “the Deposit Insurance Fund”; (vi) in paragraph (2)(D) (as redesignated by paragraph (6)(B) of this subsection)— (I) in the subparagraph heading, by striking “funds achieve” and inserting “fund achieves”; and (II) by striking “a deposit insurance fund” and inserting “the Deposit Insurance Fund”; (vii) in paragraph (3)— 110 STAT. 3009–492 (I) in the paragraph heading, by striking “funds” and inserting “fund”; (II) by striking “members of that fund” where such term appears in the portion of subparagraph (A) which precedes clause (i) of such subparagraph and inserting “insured depository institutions”; (III) by striking “that fund” each place such term appears (other than in connection with term amended in subclause (II) of this clause) and inserting “the Deposit Insurance Fund”; (IV) in subparagraph (A), by striking “Except as provided in paragraph (2)(F), if” and inserting “If”; (V) in subparagraph (A), by striking “any deposit insurance fund” and inserting “the Deposit Insurance Fund”; and (VI) by striking subparagraphs (C) and (D) and inserting the following: “(C) Amending schedule.— The Corporation may, by regulation, amend a schedule prescribed under subparagraph (B).”; and (viii) in paragraph (6)— (I) by striking “any such assessment” and inserting “any such assessment is necessary”; (II) by striking “(A) is necessary—”; (III) by striking subparagraph (B); (IV) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively, and moving the margins 2 ems to the left; and (V) in subparagraph (C) (as redesignated), by striking “; and” and inserting a period; (H) 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; (I) in section U(i)(3) (12 U.S.C. 1821(i)(3))— (i) by striking subparagraph (B); (ii) by redesignating subparagraph (C) as subparagraph (B); and (iii) in subparagraph (B) (as redesignated), by striking “subparagraphs (A) and (B)” and inserting “subparagraph (A)”; (J) in section 11A(a) (12 U.S.C. 1821a(a))— (i) in paragraph (2), by striking “liabilities.—” and all that follows through “Except” and inserting “liabilities.—Except”; (ii) by striking paragraph (2)(B); and (iii) in paragraph (3), by striking “the Bank Insurance Fund, the Savings Association Insurance Fund,” and inserting “the Deposit Insurance Fund”; (K) in section UA(b) (12 U.S.C. 1821a(b)), by striking paragraph (4); (L) in section 11A(f) (12 U.S.C. 1821a(f)), by striking “Savings Association Insurance Fund” and inserting “Deposit Insurance Fund”; (M) in section 13 (12 U.S.C. 1823)— (i) in subsection (a)(1), by striking “Bank Insurance Fund, the Savings Association Insurance Fund,” and 110 STAT. 3009–493inserting “Deposit Insurance Fund, the Special Reserve of the Deposit Insurance Fund,”; (ii) 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”; (iii) 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 such term appears and inserting “the institution’s”; (iv) in subsection (c), by striking paragraph (11); (v) in subsection (h), by striking “Bank Insurance Fund” and inserting “Deposit Insurance Fund”; (vi) in subsection (k)(4)(B)(i), by striking “Savings Association Insurance Fund” and inserting “Deposit Insurance Fund”; and (vii) in subsection (k)(5)(A), by striking “Savings Association Insurance Fund” and inserting “Deposit Insurance Fund”; (N) in section 14(a) (12 U.S.C. 1824(a)) in the 5th sentence— (i) by striking “Bank Insurance Fund or the Savings Association Insurance Fund” and inserting “Deposit Insurance Fund”; and (ii) by striking “each such fund” and inserting “the Deposit Insurance Fund”; (O) 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”; (P) in section 14(c) (12 U.S.C. 1824(c)), by striking paragraph (3); (Q) in section 14(d) (12 U.S.C. 1824(d))— (i) by striking “BIF” each place such term appears and inserting “DIF”; and (ii) by striking “Bank Insurance Fund” each place such term appears and inserting “Deposit Insurance Fund”; (R) in section 15(c)(5) (12 U.S.C. 1825(c)(5))— (i) by striking “the Bank Insurance Fund or Savings Association Insurance Fund, respectively” each place such term appears and inserting “the Deposit Insurance Fund”; and (ii) in subparagraph (B), by striking “the Bank Insurance Fund or the Savings Association Insurance Fund, respectively” and inserting “the Deposit Insurance Fund”; (S) in section 17(a) (12 U.S.C. 1827(a))— (i) in the subsection heading, by striking “BIF, SAIF,” and inserting “the Deposit Insurance Fund”; and 110 STAT. 3009–494 (ii) in paragraph (1), by striking “the Bank Insurance Fund, the Savings Association Insurance Fund,” each place such term appears and inserting “the Deposit Insurance Fund”; (T) in section 17(d) (12 U.S.C. 1827(d)), by striking “the Bank Insurance Fund, the Savings Association Insurance Fund,” each place such term appears and inserting “the Deposit Insurance Fund”; (U) in section 18(m)(3) (12 U.S.C. 1828(m)(3))— (i) by striking “Savings Association Insurance Fund” each place such term appears and inserting “Deposit Insurance Fund”; and (ii) in subparagraph (C), by striking “or the Bank Insurance Fund”; (V) in section 18(p) (12 U.S.C. 1828(p)), by striking “deposit insurance funds” and inserting “Deposit Insurance Fund”; (W) in section 24 (12 U.S.C. 1831a) in subsections (a)(1) and (d)(1)(A), by striking “appropriate deposit insurance fund” each place such term appears and inserting “Deposit Insurance Fund”; (X) in section 28 (12 U.S.C. 183le), by striking “affected deposit insurance fund” each place such term appears and inserting “Deposit Insurance Fund”; (Y) by striking section 31 (12 U.S.C. 1831h); (Z) in section 36(i)(3) (12 U.S.C. 1831m(i)(3)) by striking “affected deposit insurance fund” and inserting “Deposit Insurance Fund”; (AA) in section 38(a) (12 U.S.C. 1831o(a)) in the subsection heading, by striking “Funds” and inserting “Fund”; (BB) in section 38(k) (12 U.S.C. 1831o(k))— (i) in paragraph (1), by striking “a deposit insurance fund” and inserting “the Deposit Insurance Fund”; and (ii) in paragraph (2)(A)— (I) by striking “A deposit insurance fund” and inserting “The Deposit Insurance Fund”; and (II) by striking “the deposit insurance fund’s outlays” and inserting “the outlays of the Deposit Insurance Fund”; and (CC) in section 38(o) (12 U.S.C. 1831o(o))— (i) by striking “Associations.—” and all that follows through “Subsections (e)(2)” and inserting “Associations.—Subsections (e)(2)”; (ii) by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively, and moving the margins 2 ems to the left; and (iii) in paragraph (1) (as redesignated), by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively, and moving the margins 2 ems to the left. (15) Amendments to the financial institutions reform, recovery, and enforcement act of 1989.— The Financial Institutions Reform, Recovery, and Enforcement Act is amended— (A) in section 951(b)(3)(B) (12 U.S.C. 1833a(b)(3)(B)), by striking “Bank Insurance Fund, the Savings Association 110 STAT. 3009–495Insurance Fund,” and inserting “Deposit Insurance Fund”; and (B) 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”. (16) Amendment to the bank enterprise act of 1991.— Section 232(a)(1) of the Bank Enterprise Act of 1991 (12 U.S.C. 1834(a)(1)) is amended by striking “section 7(b)(2)(H)” and inserting “section 7(b)(2)(G)”. (17) Amendment to the bank holding company act of 1956.— Section 2(j)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(j)(2)) is amended by striking “Savings Association Insurance Fund” and inserting “Deposit Insurance Fund”.