PUBLIC LAW 104-208—SEPT. 30, 1996 110 STAT. 3009 -488
to 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 fiiture losses to the fund."
(B) SECTION?. —Section 7 of the Federal Deposit Insurance Act (12 U.S.C. 1817) is amended—
(i) by striking subsection (l);
(ii) by redesignating subsections (m) and (n) as
subsections (/) 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 ii.— 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
�
