Text: H.R.1171 — 102nd Congress (1991-1992)All Information (Except Text)

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HR 1171 IH
102d CONGRESS
1st Session
 H. R. 1171
To amend the Federal Deposit Insurance Act to require States in which the
failure of State savings associations has involved a disproportionately
large share of the thrift resolution costs, including costs incurred by
the Resolution Trust Corporation, to pay a State thrift deposit insurance
premium as a condition of future Federal deposit insurance.
IN THE HOUSE OF REPRESENTATIVES
February 27, 1991
Mr. WOLPE (for himself, Mr. HORTON, Ms. KAPTUR, Mr. KLECZKA, Mr. KANJORSKI,
Mr. GEJDENSON, Mr. OBEY, Mr. MCCLOSKEY, Mr. GUNDERSON, Mr. MILLER of Ohio,
Mr. HYDE, Ms. LONG, Mr. SHAYS, Mr. RUSSO, Mr. HOCHBRUECKNER, Mrs. JOHNSON of
Connecticut, Mr. BOEHLERT, Mr. MCDADE, Mr. SHARP, Mr. HOUGHTON, Mr. BRUCE,
Mr. HUGHES, Mr. BONIOR, Mr. DELLUMS, Mr. GREEN of New York, Mr. SENSENBRENNER,
Mr. PAXON, Mr. ANNUNZIO, Mr. HENRY, Mr. NEAL of Massachusetts, Mrs. ROUKEMA,
Mr. VISCLOSKY, Mr. ECKART, Mr. ROTH, Mr. MOODY, Mr. SANDERS, Mr. FORD of
Michigan, Mr. SAWYER, Mr. HAYES of Illinois, Mr. RANGEL, Mr. POSHARD,
Mr. SOLOMON, Mr. HAMILTON, Mr. TRAXLER, Mr. VANDER JAGT, Mr. MILLER
of Washington, Mr. HEFNER, Mr. JOHNSON of South Dakota, Mr. OBERSTAR,
Mr. ROWLAND, Mr. SOLARZ, Mr. NUSSLE, Mr. HUBBARD, Mr. GUARINI, Mr. KLUG,
and Mr. UPTON) introduced the following bill; which was referred to the
Committee on Banking, Finance and Urban Affairs
A BILL
To amend the Federal Deposit Insurance Act to require States in which the
failure of State savings associations has involved a disproportionately
large share of the thrift resolution costs, including costs incurred by
the Resolution Trust Corporation, to pay a State thrift deposit insurance
premium as a condition of future Federal deposit insurance.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `State Thrift Deposit Insurance Premium Act
  of 1991'.
SEC. 2. FUNDING THRIFT RESOLUTION COSTS WITH STATE PREMIUMS FOR FEDERAL
DEPOSIT INSURANCE.
  Section 8(a) of the Federal Deposit Insurance Act (12 U.S.C. 1818(a))
  is amended by adding at the end the following new paragraph:
  `(11) DETERMINATION OF STATE PREMIUMS FOR FEDERAL DEPOSIT INSURANCE-
  `(A) CUMULATIVE DETERMINATIONS OF STATE RESOLUTION COSTS-
  `(i) IN GENERAL- Except as provided in clause (ii), not later than 90 days
  after the end of each calendar year beginning with calendar year 1991,
  the Corporation shall determine the aggregate of the amounts expended
  during the period beginning on January 1, 1988, and ending at the end
  of such calendar year, in providing assistance for case resolutions and
  other assistance with respect to all institutions that were State savings
  associations on or after January 1, 1988, and--
  `(I) were then insured by the Federal Savings and Loan Insurance
  Corporation; or
  `(II) are members of the Savings Association Insurance Fund.
  `(ii) CALENDAR YEAR 1991- The Corporation shall make the determination
  described in clause (i) with respect to amounts expended during calendar
  year 1991, on the later of the date which is 90 days after the end of such
  calendar year, or the date of the enactment of this paragraph.
  `(iii) EXPENDITURES BY ANY RTC, FSLIC RESOLUTION FUND, AND OTHER APPLICABLE
  AGENCIES TAKEN INTO ACCOUNT- In making the determination under clause (i)
  of the amount of assistance for case resolutions and other assistance with
  respect to institutions described in such clause, assistance provided by
  the Federal Savings and Loan Insurance Corporation, the FSLIC Resolution
  Fund, the Resolution Trust Corporation, the Federal Home Loan Bank Board,
  any Federal home loan bank, and any other appropriate Federal agency shall
  be taken into account by the Corporation.
  `(B) CUMULATIVE APPORTIONMENTS OF STATE RESOLUTION COSTS AMONG THE STATES-
  After making the determination required by subparagraph (A) for any period,
  the Corporation shall apportion among the States the amount so determined,
  according to the amounts expended during such period in providing assistance
  for case resolutions and other assistance with respect to all institutions
  described in subparagraph (A) located in each respective State.
  `(C) PREMIUMS REQUIRED FROM HIGH RISK STATES- Each high risk State shall
  pay the Savings Association Insurance Fund an amount equal to--
  `(i) the product of--
  `(I) the current State percentage share of State resolution costs, minus
  2 times the State percentage share of 1980 State deposits; and
  `(II) 25 percent of the aggregate amount currently determined by the
  Corporation under subparagraph (A); minus
  `(ii) the aggregate of the amounts previously paid by the State under
  this subparagraph, minus the aggregate of the rebates (if any) paid to
  the State under subparagraph (H).
  `(D) HIGH RISK STATES- A State is a high risk State for purposes of this
  paragraph if--
  `(i) the current State percentage share of State resolution costs; exceeds
  `(ii) 2 times the State percentage share of 1980 State deposits.
  `(E) CURRENT STATE PERCENTAGE SHARE OF STATE RESOLUTION COSTS- For
  purposes of this paragraph, the term `current State percentage share of
  State resolution costs' means--
  `(i) the amount currently apportioned to the State under subparagraph (B);
  divided by
  `(ii) the amount currently determined under subparagraph (A).
  `(F) STATE PERCENTAGE SHARE OF 1980 STATE DEPOSITS- For purposes of this
  paragraph, the term `State percentage share of 1980 State deposits' means--
  `(i) the amount of deposits in 1980 in institutions described in subparagraph
  (A) located in the State; divided by
  `(ii) the total deposits in 1980 in all institutions described in
  subparagraph (A).
  `(G) PREMIUM PAYMENT TERMS-
  `(i) IN GENERAL- Except as provided in clause (ii), the premium currently
  required of any State under subparagraph (C) shall be due at the end of
  the 6-month period beginning on the date the Corporation makes its current
  apportionment to the State under subparagraph (B).
  `(ii) MULTIYEAR AGREEMENTS- If the premium currently required of any
  State under subparagraph (C) exceeds $1,000,000,000, such State may enter
  into an agreement with the Secretary of the Treasury to pay such amount,
  with interest accruing in accordance with section 3717(a) of title 31,
  United States Code, over the 4-year period beginning on the date on which
  such premium would otherwise be due under clause (i), and such State shall
  be treated as meeting the requirements of this paragraph so long as such
  State is in compliance with the terms of such agreement.
  `(H) PREMIUM REBATES- If, with respect to a State, the result of the
  calculation described in subparagraph (C)(ii) exceeds the result of the
  calculation described in subparagraph (C)(i), the Secretary of the Treasury
  shall rebate such excess amount to the State, with interest accruing in
  accordance with section 3717(a) of title 31, United States Code.
  `(I) TERMINATION OF INSURANCE IF STATE FAILS TO PAY REQUIRED PREMIUMS-
  `(i) IN GENERAL- If any State fails to pay the premium required of such State
  under subparagraph (C), the Corporation shall terminate deposit insurance
  for State chartered financial institutions located in such State at the
  end of the 6-month period beginning on the date the premium was due under
  subparagraph (G).
  `(ii) TRANSITION- Notwithstanding clause (i), after termination of the
  insured status of any financial institution under this paragraph, the
  insured deposits of each depositor in such institution on the date of such
  termination, minus all subsequent withdrawals from any deposits of such
  depositor, shall continue to be insured for a period of 2 years and the
  financial institution shall continue to pay assessments to the Corporation as
  if the institution were an insured financial institution during such period.
  `(J) NOTICE TO DEPOSITORS- The Corporation shall require the financial
  institutions chartered by any State which fails to pay the premium required
  of such State under subparagraph (C) to notify the depositors in such
  institutions that--
  `(i) the deposits made in such institution before the end of the 6-month
  period described in subparagraph (I)(i) will continue to be Federally insured
  during the 2-year period beginning at the end of such 6-month period; and
  `(ii) the deposits made in such institution after the end of such 6-month
  period will not be Federally insured.
  `(K) RESTORATION OF INSURANCE- If the Corporation terminates deposit
  insurance for State chartered financial institutions in any State, such
  insurance may be restored by the Corporation only if such State has paid all
  of the premiums required of the State under this paragraph, with interest
  accruing in accordance with section 3717(a) of title 31, United States Code.
  `(L) USE OF PREMIUM FOR THRIFT RESOLUTION COSTS- The amount of any premium
  paid into the Savings Association Insurance Fund under subparagraph (C)
  by any high risk State shall be available to pay thrift resolution costs
  incurred by--
  `(i) the FSLIC Resolution Fund, in the case of savings associations--
  `(I) the accounts of which were insured by the Federal Savings and Loan
  Insurance Corporation; and
  `(II) for which a conservator or receiver was appointed after December 31,
  1987, and before January 1, 1989; and
  `(ii) the Resolution Trust Corporation, in the case of savings associations
  described in section 21A(b)(3)(A) of the Federal Home Loan Bank Act.'.