< Back to H.R. 4674 (106th Congress, 1999–2000)

Text of the Federal Deposit Insurance Adjustment and Protection Act

This bill was introduced on June 15, 2000, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jun 15, 2000 (Introduced).

Source: GPO

HR 4674 IH

106th CONGRESS

2d Session

H. R. 4674

To amend the Federal Deposit Insurance Act to require periodic cost of living adjustments to the maximum amount of deposit insurance available under such Act to the extent such increase does not cause the reserve ratios of the deposit insurance funds to decline, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

June 15, 2000

Mr. CAMPBELL introduced the following bill; which was referred to the Committee on Banking and Financial Services


A BILL

To amend the Federal Deposit Insurance Act to require periodic cost of living adjustments to the maximum amount of deposit insurance available under such Act to the extent such increase does not cause the reserve ratios of the deposit insurance funds to decline, 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.

    This Act may be cited as the ‘Federal Deposit Insurance Adjustment and Protection Act’.

SEC. 2. PERIODIC ADJUSTMENT TO MAXIMUM AMOUNT OF DEPOSIT INSURANCE COVERAGE.

    (a) IN GENERAL- Section 11(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amended by striking subparagraph (B) and inserting the following new subparagraph:

        ‘(B) NET AMOUNT OF INSURED DEPOSIT-

          ‘(i) IN GENERAL- Subject to clauses (ii) and (iii), 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).

          ‘(ii) INFLATION ADJUSTMENT- As of the 1st day of the 3-year period beginning on January 1, 2001, and the 1st day of each subsequent 3-year period, the maximum net amount due to any depositor at an insured depository institution under clause (i) shall be increased by the product of--

            ‘(I) the amount described in clause (i); and

            ‘(II) the cost of living adjustment determined under section 1(f)(3) of the Internal Revenue Code of 1986 at the beginning of each such 3-year period, in accordance with clause (iv).

          ‘(iii) SUFFICIENCY OF RESERVES- Notwithstanding clause (ii), if any increase pursuant to clause (ii) in the maximum net amount due to any depositor at an insured depository institution under clause (i) would cause the reserve ratio of any deposit insurance fund to decrease below the reserve ratio of that fund as of the date of the enactment of the Federal Deposit Insurance Adjustment and Protection Act, that portion of the increase under clause (ii), with respect to deposits insured by that fund, which would cause a decrease below such reserve ratio shall not take effect until such time as the Corporation determines that the reserve ratio of such deposit insurance fund is sufficient to allow such increase to be effective without causing such result.

          ‘(iv) RULE OF APPLICATION- Section 1(f)(3)(B) of the Internal Revenue Code of 1986 shall be applied, for purposes of clause (ii) of this subsection, by substituting ‘calendar year 1980’ for ‘calendar year 1992’.

          ‘(v) ROUNDING- If the amount determined under clause (ii) for any period is not a multiple of $1,000, the amount so determined shall be rounded to the nearest $1,000.

          ‘(vi) PUBLICATION- Not later than January 15 of the 1st year of each 3-year period referred to in clause (ii), the Board of Directors shall publish in the Federal Register the maximum net amount which may be due to any depositor at an insured depository institution during such 3-year period.’.

    (b) TECHNICAL AND CONFORMING AMENDMENTS-

      (1) Paragraphs (2)(A) and (3)(A) of section 11(a) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)) are each amended by striking ‘$100,000’ and inserting ‘the amount determined under paragraph (1)(B)’.

      (2) Paragraph (6) of section 11(m) of the Federal Deposit Insurance Act (12 U.S.C. 1821(m)) is amended by striking ‘$100,000’ and inserting ‘the amount determined under subsection (a)(1)(B)’.

      (3) The following provisions of the Federal Deposit Insurance Act are each amended by striking ‘$100,000’ and inserting ‘the amount determined under section 11(a)(1)(B)’.

        (A) Paragraphs (1) and (3) of section 7(i) (12 U.S.C. 1817(i)).

        (B) Subsection (d) of section 43 (12 U.S.C. 1831t).