Pursuant to clause 1, rule I, the Journal was approved. 1148.3 MESSAGE FROM THE SENATE A message from the Senate by Mr. Hallen, one of its clerks, announced that the Senate had passed without amendment bills of the House of the following titles: H.R. 2270. An Act amending certain provisions of title 5, United States Code, relating to the Senior Executive Service; and H.R. 3624. An Act to amend the Tariff Act of 1930 to provide appropriate proedures for the appointment of the Chairman of the U.S. International Trade Commission. The message also announced that the Senate had passed with amendments in which the concurrence of the House is requested, bills of the House of the following titles: H.R. 2280. An Act to amend title 38, United States Code, to extend and improve veterans' health care programs; and H.R. 2629. An Act to amend the Small Business Act to assist the development of small business concerns owned and controlled by women, and for other purposes. The message also announced that the Senate disagreed to the amendment of the House to the amendment of the Senate to the bill (H.R. 1724) "An Act to provide for the termination of the application of title IV of the Trade Act of 1974 to Czechoslovakia and Hungary," requested a conference with the House on the disagreeing votes of the two Houses thereon, and appointed Mr. BENTSEN, Mr. MOYNIHAN, and Mr. PACKWOOD, to be the conferees on the part of the Senate. The message also announced that the Senate agreed to the report of the committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 2038) "An Act to authorize appropriations for fiscal year 1992 for intelligence and intelligence-related activities of the United States Government, the Intelligence Community Staff, and the Central Intelligence Agency Retirement and Disability System, and for other purposes." The message also announced that the Senate had passed a bill of the following title, in which the concurrence of the House is requested: S. 775. An Act to improve the compensation of certain veterans for exposure to ionizing radiation, to improve the administration of veterans benefits programs, and for other purposes. The message also announced that, the Chair, on behalf of the Republican leader, announced the appointment of Mr. MCCAIN, Vice Chairman; Mr. HATFIELD; Mr. GRAMM, Mr. GORTON, and Mr. GARN, as members of the official Senate delegation to attend the 50th Anniversary Commemoration of the Attack on Pearl Harbor. 1148.4 ORDER OF BUSINESSCONSIDERATION OF H.R. 3839 On motion of Mr. unanimous consent, NATCHER, by Ordered, That it may be in order on Friday, November 22, 1991, or any day thereafter, for the House to consider in the House the bill (H.R. 3839) making appropriations for the Departments of Labor, Health and Human Services, and Education and Related Agencies, for the fiscal year ending September 30, 1992, and for other purposes; that the bill be debatable for not to exceed two hours, to be equally divided and controlled by Mr. Natcher and Mr. Pursell; that all points of order against the bill and against its consideration be waived; and that the previous question shall be considered as ordered on the bill to final passage without intervening motion, except one motion to commit. 1148.5 APPOINTMENT OF CONFEREES— H.R. 355 The SPEAKER announced the appointment of the following Members as managers on the part of the House to the conference with the Senate on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R 355) to amend the Reclamation States Drought Assistance Act of 1988 to extend the period of time during which drought assistance may be provided by the Secretary of the Interior, and for other purposes: From the Committee on Interior and Insular Affairs, for consideration of the House bill, and the Senate amendment, and modifications committed to conference: Messrs. MILLER of California, MARKEY, RAHALL, VENTO, DE LUGO, GEJDENSON, KOSTMAYER, LEHMAN of California, YOUNG of Alaska, and HANSEN, Mrs. VUCANOVICH, Mr. RHODES, and Mr. THOMAS of Wyoming. As additional conferees from the Committee on Merchant Marine and Fisheries, for consideration of sections 102(d), 104(a), 203(a)(4), and 303(6) of the House bill, and sections 102(d), 203(a)(4), 203(c), and 302 of the Senate amendment, and modifications committed to conference: Messrs. JONES of North Carolina, STUDDS, and DAVIS. By unanimous consent, the Speaker reserved the authority to make additional appointments of conferees. Ordered, That the Clerk notify the Senate of the foregoing appointments. 1148.6 CZECHOSLOVAKIA AND HUNGARY MOST-FAVORED-NATION STATUS On motion of Mr. ROSTENKOWSKI, by unanimous consent, the bill (H.R. 1724) to provide for the termination of the application of title IV of the Trade Act of 1974 to Czechoslovakia and Hungary; together with the amendment of the House to the amendment of the Senate thereto, was taken from the Speaker's table. When on motion of Mr. ROSTENKOWSKI, it was, Resolved, That the House insist upon its amendment to the amendment of the Senate and agree to the conference asked by the Senate on the disagreeing votes of the two Houses thereon. 1148.7 MOTION TO INSTRUCT CONFEREES-H.R. 1724 Mr. CRANE moved that the managers on the part of the House at the conference on the disagreeing votes of the two Houses on the bill (H.R. 1724) to provide for the termination of the application of title IV of the Trade Act of 1974 to Czechoslovakia and Hungary, be instructed to insist upon the position of the House in regard to that portion of the House amendment designed to combat illegal drug imports by providing trade incentives to stimulate alternatives to drug exports for certain countries under the Andean Initiative contained in H.R. 661. After debate, By unanimous consent, the previous question was ordered on the motion to instruct the managers on the part of the House. The question being put, viva voce, Will the House agree to said motion? The SPEAKER pro tempore, Mr. MAZZOLI, announced that the yeas had it. Mr. CRANE objected to the vote on the ground that a quorum was not present and not voting. A quorum not being present, The roll was called under clause 4, rule XV, and the call was taken by electronic device. was, by unanimous consent, laid on the table. 1148.9 APPOINTMENT OF CONFEREES— H.R. 1724 Thereupon, the SPEAKER pro tempore, Mr. MAZZOLI, by unanimous consent, announced the appointment of Messrs. ROSTENKOWSKI, GIBBONS, and ARCHER as managers on the part of the House at said conference. By unanimous consent, the Speaker reserved the authority to make additional appointments of conferees. Ordered, That the Clerk notify the Senate thereof. 1148.10 FURTHER MESSAGE FROM THE SENATE A further message from the Senate by Mr. Hallen, one of its clerks, announced that the Senate had passed with amendments in which the concurrence of the House is requested, a bill of the House of the following title: H.R. 3371. An Act to control and prevent crime. The message also announced that the Senate insisted upon its amendment to the bill (H.R. 3371) "An Act to control and prevent crime," requested a conference with the House on the disagreeing votes of the two Houses thereon, and appointed Mr. BIDEN, Mr. KENNEDY, Mr. METZENBAUM, Mr. Mr. LEAHY, Mr. DECONCINI, Mr. THURMOND, Mr. HATCH, and Mr. SIMPSON, to be the conferees on the part of the Senate. 1148.11 CRIME CONTROL On motion of Mr. EDWARDS of California, pursuant to clause 1 of rule XX, the bill (H.R. 3371) to control and prevent crime; together with the amendment of the Senate thereto, was taken from the Speaker's table. When on motion of Mr. EDWARDS of California, it was, Resolved, That the House disagree to the amendment of the Senate and agree to the conference asked by the Senate on the disagreeing votes of the two Houses thereon. 1148.12 MESSAGE FROM THE PRESIDENT Mr. A message in writing from the President of the United States was communicated to the House by McCathran, one of his secretaries. 1148.13 MOTION TO INSTRUCT CONFEREES-H.R. 3371 Mr. SENSENBRENNER moved that the managers on the part of the House at the conference on the disagreeing votes of the two Houses on the bill (H.R. 3371) to control and prevent crime, be instructed to accept the Senate position on certain firearms provisions in the Senate passed crime bill, S. 1241, namely sections 207 and 1213 of that bill. After debate, On motion of Mr. SENSENBRENNER, the previous question was ordered on the motion to instruct the managers on the part of the House. The question being put, viva voce, Will the House agree to said motion? Derrick Dickinson Dingell Dixon Dooley Annunzio Cardin Anthony Carper Dorgan (ND) Aspin Carr Downey Atkins Clay Duncan AuCoin Clement Durbin Bacchus Coleman (MO) Dwyer Coleman (TX) Dymally 1148.15 APPOINTMENT OF CONFEREESH.R. 3371 Thereupon, the SPEAKER announced the appointment of the following Members as managers on the part of the House at said conference: From the Committee on the Judiciary, for consideration of the entire House bill, and the entire Senate amendment (except sections 812(f), 1227, 1230, 1231, and 4917), and modifications committed to conference: Messrs. BROOKS, EDWARDS of California, CONYERS, SCHUMER, HUGHES, STAGGERS, HYDE, SENSENBRENNER, MCCOLLUM, and GEKAS. Provided that Mr. KOPETSKI and Mr. SCHIFF are appointed as additional conferees for consideration of sections 701 through 709 of the Senate amendment, and that Mr. FEIGHAN and Mr. SCHIFF are appointed as additional conferees for consideration of title XXIV of the House bill. From the Committee on Ways and Means, for consideration of section 1719 of the House bill, and sections 812(f), 1227, 1230, 1231, 2801, 2802, 4401, 4402, 4406, 4407, 4653, 4654, and 4917 of the Senate amendment, and modifications committed to conference: Messrs. ROSTENKOWSKI, GIBBONS, RANGEL, ARCHER, and VANDER JAGT. Mr. ROSTENKOWSKI and Mr. ARCHER are appointed as additional conferees for consideration of section 702 of the Senate amendment. As additional conferees from the Committee on Banking, Finance and Urban Affairs, for consideration of sections 1502 and 1831 of the House bill, and sections 3310 and 3701 through 3704 of the Senate amendment, and modifications committed to conference: Messrs. GONZALEZ, ANNUNZIO, NEAL of North Carolina, WYLIE, and LEACH. 401 As additional conferees from the Committee on Education and Labor, for consideration of sections through 403, 1231 through 1233, 1271, 1714, 1727, 1807, and 1831 of the House bill, and title VIII (except section 812(f)) and sections 1511, 1512, 3601 through 3606 and 4301 of the Senate amendment, and modifications committed to conference: Messrs. FORD of Michigan, KILDEE, MARTINEZ, GOODLING and PETRI. As additional conferees from the Committee on Energy and Commerce, for consideration of sections 1501, 1502(a), 1505 through 1507, 1509 through 1512, 1705, 1824, 2205, and 2321 of the House bill, and sections 1501, 1611, 1612, 1621, 1622, 1641, 2101, 2402, 2506, 2508, 2509, 3101 through 3114, 4656, 4658, 4661 through 4663, 4902, 4903, 4904, and 4906 of the Senate amendment, and modifications committed to conference: Messrs. DINGELL, WAXMAN, ROWLAND, LENT and BLILEY. As additional conferees from the Committee on Energy and Commerce, for consideration of sections 3301 through 3309 and 3311 through 3314 of the Senate amendment, and modifications committed to conference: Messrs. DINGELL, SWIFT, ECKART, LENT and RITTER. As additional conferees from the Committee on Government Operations, for consideration of sections 801, 802, 1509, and 1751 through 1758 of the House bill, and sections 1701 and 1702 of the Senate amendment, and modifications committed to conference: Messrs. CONYERS, WISE, TOWNS, HORTON, and MCCANDLESS. As additional conferees from the Committee on Merchant Marine and Fisheries, for consideration of sections 1716, 1719, and 1722(b) of the House bill, and sections 517, 4401, 4402, 4404, 4405 and 4411 through 4414 of the Senate amendment, and modifications committed to conference: Messrs. JONES of North Carolina, STUDDS, TAUZIN, DAVIS, and LENT. Provided that Mr. TAYLOR of Mississippi is appointed in place of Mr. TAUZIN for consideration of section 1722(b) of the House bill. As additional conferees from the Committee on Public Works and Transportation, for consideration of sections 1508, 1719, 1731, 1732, 2320 and 2328 of the House bill, and sections 502, 2901 and 4401 through 4403 of the Senate amendment, and modifications committed to conference: Messrs. BROWN, VALENTINE, GLICKMAN, WALKER, and LEWIS, of Florida. By unanimous consent, the Speaker reserved the authority to make additional appointments of conferees. Ordered, That the Clerk notify the Senate thereof. 1148.16 PROVIDING FOR THE CONSIDERATION OF H.R. 3768 Mr. FROST, by direction of the Committee on Rules, called up the following resolution (H. Res. 289): Resolved, That at any time after the adoption of this resolution the Speaker may, pursuant to clause 1(b) of rule XXIII, declare the House resolved into the Committee of the Whole House on the State of the Union for the consideration of the bill (H.R. 3768) to require the least-cost resolution of insured depository institutions, to improve supervision and examinations, to provide additional resources to the Bank Insurance Fund, and for other purposes, and the first reading of the bill shall be dispensed with. All points of order against consideration of the bill are hereby waived. After general debate, which shall be confined to the bill and which shall not exceed one hour, to be equally divided and controlled by the chairman and ranking minority member of the Committee on Banking, Finance and Urban Affairs, the bill shall be considered for amendment under the five-minute rule. It shall be in order to consider the amendment in the nature of a substitute recommended by the Committee on Banking, Finance and Urban Affairs now printed in the bill as an original bill for the purpose of amendment under the five-minute rule, said substitute shall be considered as having been read, and all points of order against said substitute are hereby waived. No amendment to said substitute shall be in order. At the conclusion of the consideration of the bill for amendment, the Committee shall rise and report the bill to the House, and any Member may demand a separate vote in the House on any amendment adopted in the Committee of the Whole to the bill or to the committee amendment in the nature of a substitute. The previous question shall be considered as ordered on the bill and amendments thereto to final passage without intervening motion except one motion to recommit, which may contain instructions only if offered by Representative Michel of Illinois, or his designee, or without instructions. When said resolution was considered. After debate, On motion of Mr. FROST, the previous question was ordered on the resolution and under the operation thereof, the resolution was agreed to. A motion to reconsider the vote. whereby said resolution was agreed to was, by unanimous consent, laid on the table. 1148.17 FDIC RECAPITALIZATION The SPEAKER pro tempore, Mr. MCDERMOTT, pursuant to House Resolution 289 and rule XXIII, declared the House resolved into the Committee of the Whole House on the state of the Union for the consideration of the bill (H.R. 3768) to require the least-cost resolution of insured depository institutions, to improve supervision and examinations, to provide additional resources to the Bank Insurance Fund, and for other purposes. The SPEAKER pro tempore, Mr. MCDERMOTT, by unanimous consent, designated Mr. CARR as Chairman of the Committee of the Whole. The Acting Chairman, Mr. PEASE, assumed the Chair; and after some time spent therein, The SPEAKER pro tempore, Mr. GEPHARDT, assumed the Chair. When Mr. CARR, Chairman, pursuant to House Resolution 289, reported the bill back to the House with an amendment adopted by the Committee. The previous question having been ordered by said resolution. The following amendment, reported from the Committee of the Whole House on the state of the Union, was agreed to: Strike out all after the enacting clause and insert: (a) SHORT TITLE.-This Act may be cited as the "Federal Deposit Insurance Corporation Improvement Act of 1991". (b) TABLE OF CONTENTS. Sec. 1. Short title; table of contents. TITLE I-SAFETY AND SOUNDNESS Subtitle A-Deposit Insurance Funds Sec. 101. Funding for the federal deposit insurance funds. Sec. 102. Limitation on outstanding borrowing. Sec. 103. Repayment schedule. Sec. 104. Borrowing for BIF from BIF mem bers. Subtitle B-Supervisory Reforms Sec. 111. Improved examinations. Sec. 112. Independent annual audits of insured depository institutions. Sec. 113. Assessments required to cover costs of examinations. Sec. 114. Application to FDIC required for insurance. Sec. 115. Regulatory requirements study. Sec. 122. Small business loan data required in reports of condition. Sec. 123. Reports of financial condition by large institutions engaged in interstate banking. Subtitle D-Prompt Regulatory Action Sec. 131. Prompt regulatory action. Sec. 132. Appointment of conservator or receiver for insured state depository institutions. Subtitle E-Least-Cost Resolution Sec. 141. Least-cost resolution. Sec. 142. Limitation on use of liquidity lending for deposit insurance fund purposes. Sec. 143. No assistance to troubled institution without removing management and repudiating shareholders claims. Subtitle F-Federal Insurance for State Chartered Depository Institutions Sec. 151. Short title. Sec. 152. Federal deposit insurance required for state chartered banks, savings associations, and credit unions. Subtitle G-Technical Corrections Sec. 161. Technical corrections and clarifications. TITLE II-REGULATORY IMPROVEMENT Subtitle A-Regulation of Foreign Banks Sec. 201. Short title. Sec. 202. Regulation of foreign bank operations. Sec. 203. Conduct and coordination of examinations. Sec. 204. Supervision of the representative offices of foreign banks. Sec. 205. Reporting of stock loans. Sec. 206. Cooperation with foreign supervisors. Sec. 207. Approval required for acquisition by foreign banks of shares of United States banks. Sec. 208. Penalties. Sec. 209. Powers of agencies respecting applications, examinations, and other proceedings. Sec. 210. Clarification of managerial standards in bank holding company act of 1956. Subtitle B-Customer and Consumer Sec. 221. Paperwork reduction and improvements in administration of Community Reinvestment Act of 1977. Sec. 222. Additional factor in assessing majority-owned institution's record of meeting community credit needs. Sec. 223. Enforcement of Equal Credit Opportunity Act. Sec. 224. Fair housing reporting. Sec. 225. Regulatory burden study. Sec. 226. Notice of safeguard exception. Sec. 227. Prohibition on deceptive practices relating to electronic fund transfers from accounts. Sec. 228. Deposits at nonproprietary automated teller machines. Sec. 229. Notice of branch closure. Subtitle C-Bank Enterprise Act Sec. 231. Short title. Sec. 232. Reduced assessment rate for deposits attributable to lifeline accounts. Sec. 233. Assessment credits for qualifying activities relating to distressed communities. Sec. 234. Community development organizations. TITLE III-FEDERAL DEPOSIT Sec. 301. Limitations on brokered deposits and deposit solicitations. Sec. 302. Risk-based assessments. activities. Sec. 304. Restrictions on real estate lending. Sec. 305. Capital standards and interest rate risk. Sec. 306. Transition rule. Sec. 307. FDIC back-up enforcement authority. Subtitle B-Coverage Sec. 311. Deposit and pass-through insur ance. Sec. 312. Foreign deposits. Sec. 313. Penalty for false assessment reports. Subtitle C-Demonstration Project and Studies Sec. 321. Feasibility study on authorizing insured and uninsured deposit accounts. Sec. 322. Private reinsurance study. Subtitle E-FDIC Property Disposition Sec. 341. FDIC affordable housing program. TITLE IV-MISCELLANEOUS PROVISIONS Subtitle A-Payment System Risk Reduction Sec. 401. Findings and purpose. Sec. 402. Definitions. Sec. 403. Bilateral netting. Sec. 404. Clearing organization netting. Sec. 406. Relationship to other payments systems. Subtitle B-Right to Financial Privacy Act of 1978 Sec. 411. Amendments to the Right to Financial Privacy Act of 1978. Subtitle C-Final Settlement Payment Procedure Sec. 421. Final settlement payment procedure. Subtitle D-Miscellaneous Committees, Sec. 431. Commission on the Thrift Industry. Sec. 433. Amendments relating to Federal Reserve Board reserve requirements. Sec. 434. Depository Institutions Reform Advisory Committee. Sec. 435. Report on government check cashing. Sec. 436. Permanent authorization of Credit Standards Board. Subtitle E-Utilization of Private Sector Sec. 441. Utilization of private sector. Sec. 442. Reporting. Sec. 443. Requirement to minimize payments for legal services. Subtitle F-Emergency Assistance for Rhode Island Sec. 451. Emergency loan guarantee. Subtitle G-Qualified Thrift Lender Test Improvements Sec. 461. Short title. Sec. 462. Adjustment of compliance periods for purposes of qualified thrift lender test. Sec. 463. Increase in amount of liquid assets excludable from portfolio assets. Sec. 464. Additional investments included in definition of qualified thrift assets. Sec. 465. Prudent diversification of assets. Subtitle I-Establishment of Capital Sec. 481. Capital standards. Subtitle J-Bank and Thrift Employee Provisions Sec. 491. Continuation of health plan coverage in cases of failed financial institutions. Subtitle K-Severability Sec. 496. Severability. Subtitle L-Sense of the House of Sec. 498. Credit crunch. TITLE V-DEPOSITORY INSTITUTION CONVERSIONS Sec. 501. Mergers and acquisitions of insured depository institutions during conversion moratorium. Sec. 502. Mergers, consolidations, and other acquisitions authorized. not Sec. 503. Acquisition of thrift institutions by certain companies which control banks and are treated as holding companies. TITLE I—SAFETY AND SOUNDNESS Subtitle A-Deposit Insurance Funds SEC. 101. FUNDING FOR THE FEDERAL DEPOSIT INSURANCE FUNDS. Section 14(a) of the Federal Deposit Insurance Act (12 U.S.C. 1824(a)) is amended by striking "$5,000,000,000" and inserting "$30,000,000,000". SEC. 102. LIMITATION ON OUTSTANDING BORROWING. (a) IN GENERAL.-Section 15(c) of the Federal Deposit Insurance Act (12 U.S.C. 1825(c)) is amended by striking paragraphs (5) and (6) and inserting the following new paragraphs: "(5) MAXIMUM AMOUNT LIMITATION ON OUTSTANDING OBLIGATIONS.-Notwithstanding any other provisions of this Act, the aggregate amount of obligations of the Bank Insurance Fund or Savings Association Insurance Fund, respectively, outstanding at any time may not exceed the sum of— "(A) the amount of cash or the equivalent of cash held by the Bank Insurance Fund or Savings Association Insurance Fund, respectively; "(B) the amount which is equal to 90 percent of the Corporation's estimate of the fair market value of assets held by the Bank Insurance Fund or the Savings Association Insurance Fund, respectively, other than assets described in subparagraph (A); and "(C) the total of the amounts authorized to be borrowed from the Secretary of the Treasury pursuant to section 14(a). "(6) OBLIGATION DEFINED.-For purposes of paragraph (5), the term 'obligation' includes "(A) any guarantee issued by the Corporation; "(B) any amount borrowed pursuant to section 14; and "(C) any other obligation for which the Corporation has a direct or contingent liability to pay any amount.". (b) GAO REPORTS. (1) QUARTERLY REPORTING.-The Comptroller General of the United States shall submit a report each calendar quarter on the Federal Deposit Insurance Corporation's compliance with section 15(c)(5) of the Federal Deposit Insurance Act for the preceding quarter to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate. (2) ANALYSES TO BE INCLUDED.—Each report submitted under paragraph (1) shall include (A) an analysis of the performance of the Federal Deposit Insurance Corporation in meeting any repayment schedule under section 14(c) of the Federal Deposit Insurance Act (as added by section 103 of this Act); and (B) an analysis of the actual recovery on asset sales compared to the estimated fair market value of the assets as determined for the purposes of section 15(c)(5)(B) of such Act. (c) TECHNICAL AND CONFORMING AMENDMENT.-Section 15(c) of the Federal Deposit Insurance Act (12 U.S.C. 1825(c)) is amended by striking paragraph (7). SEC. 103. REPAYMENT SCHEDULE. (a) IN GENERAL.-Section 14 of the Federal Deposit Insurance Act (12 U.S.C. 1824) is amended by adding at the end the following new subsection: "(c) REPAYMENT SCHEDULES REQUIRED FOR ANY BORROWING. "(1) IN GENERAL.-No amount may be provided by the Secretary of the Treasury to the Corporation under subsection (a) unless an agreement is in effect between the Secretary and the Corporation which "(A) provides a schedule for the repayment of the outstanding amount of any borrowing under such subsection; and "(B) demonstrates that income to the Corporation from assessments under this Act will be sufficient to amortize the outstanding balance within the period established in the repayment schedule and pay the interest accruing on such balance. "(2) CONSULTATION WITH AND REPORT TO CONGRESS.-The Secretary of the Treasury and the Corporation shall "(A) consult with the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the terms of any repayment schedule agreement described in paragraph (1) relating to repayment, including terms relating to any emergency special assessment under section 7(b)(7); and "(B) submit a copy of each repayment schedule agreement entered into under paragraph (1) to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate before the end of the 30-day period beginning on the date any amount is provided by the Secretary of the Treasury to the Corporation under subsection (a).". (b) EMERGENCY SPECIAL ASSESSMENTS.Section 7(b) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)) is amended by redesignating paragraphs (7), (8), and (9) as paragraphs (8), (9), and (10), respectively, and by inserting after paragraph (6) the following new paragraph: "(7) EMERGENCY SPECIAL ASSESSMENTS.-In addition to the assessments imposed on insured depository institutions under other provisions of this subsection, the Corporation may impose 1 or more special assessments on insured depository institutions in an amount determined by the Corporation if the amount of any such assessment "(A) is necessary "(i) to provide sufficient assessment income to repay amounts borrowed from the Secretary of the Treasury under section 14(a) in accordance with the repayment schedule in effect under section 14(c) during the period with respect to which such assessment is imposed; "(ii) to provide sufficient assessment income to repay obligations issued to and other amounts borrowed from Bank Insurance Fund members under section 14(d); or "(iii) for any other purpose the Corporation may deem necessary; and "(B) is allocated between Bank Insurance Fund members and Savings Association Insurance Fund members in amounts which reflect the degree to which the proceeds of the amounts borrowed are to be used for the benefit of the respective insurance funds.". SEC. 104. BORROWING FOR BIF FROM BIF MEMBERS. Section 14 of the Federal Deposit Insurance Act (12 U.S.C. 1824) is amended by inserting after subsection (c) (as added by section 103 of this subtitle) the following new subsection: "(d) BORROWING FOR BIF FROM BIF MEMBERS. "(1) BORROWING AUTHORITY.-The Corporation may issue obligations to Bank Insurance Fund members, and may borrow from Bank Insurance Fund members and give security for any amount borrowed, and may pay interest on (and any redemption pre mium with respect to) any such obligation or amount to the extent "(A) the proceeds of any such obligation or amount are used by the Corporation solely for purposes of carrying out the Corporation's functions with respect to the Bank Insurance Fund; and "(B) the terms of the obligation or instrument limit the liability of the Corporation or the Bank Insurance Fund for the payment of interest and the repayment of principal to the amount which is equal to the amount of assessment income received by the Fund from assessments under section 7. “(2) LIMITATIONS ON BORROWING.— “(A) APPLICABILITY OF PUBLIC DEBT LIMIT.— For purposes of the public debt limit established in section 3101(b) of title 31, United States Code, any any obligation issued, or amount borrowed, by the Corporation under paragraph (1) shall be considered to be an obligation to which such limit applies. "(B) APPLICABILITY OF FDIC BORROWING LIMIT. For purposes of the dollar amount limitation established in section 14(a) of the Federal Deposit Insurance Act (12 U.S.C. 1824(a)), any obligation issued, or amount borrowed, by the Corporation under paragraph (1) shall be considered to be an amount borrowed from the Treasury under such section. "(C) INTEREST RATE LIMIT.-The rate of interest payable in connection with any obligation issued, or amount borrowed, by the Corporation under paragraph (1) shall not exceed an amount determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities. "(D) OBLIGATIONS TO BE HELD ONLY BY BIF MEMBERS.-The terms of any obligation issued by the Corporation under paragraph (1) shall provide that the obligation will be valid only if held by a Bank Insurance Fund Member. "(3) LIABILITY OF BIF.-Any obligation issued or amount borrowed under paragraph (1) shall be a liability of the Bank Insurance Fund. "(4) TERMS AND CONDITIONS.-Subject to paragraphs (1) and (2), the Corporation shall establish the terms and conditions for obligations issued or amounts borrowed under paragraph (1), including interest rates and • terms to maturity. "(4) INVESTMENT BY BIF MEMBERS.— "(A) AUTHORITY TO INVEST.-Subject to subparagraph (B) and notwithstanding any other provision of Federal law or the law of any State, any Bank Insurance Fund member may purchase and hold for investment any obligation issued by the Corporation under paragraph (1) without limitation, other than any limitation the appropriate Federal banking agency may impose specifically with respect to such obligations. "(B) INVESTMENT ONLY FROM CAPITAL AND RETAINED EARNINGS.-Any Bank Insurance Fund member may purchase obligations or make loans to the Corporation under paragraph (1) only to the extent the purchase money or the money loaned is derived from the member's capital or retained earnings. "(5) ACCOUNTING TREATMENT.-In accounting for any investment in an obligation purchased from, or any loan made to, the Corporation for purposes of determining compliance with any capital standard and preparing any report required pursuant to section 7(a), the amount of such investment or loan shall be treated as an asset.". Subtitle B-Supervisory Reforms SEC. 111. IMPROVED EXAMINATIONS. (a) ANNUAL EXAMINATIONS.— (1) IN GENERAL.-Section 10 of the Federal Deposit Insurance Act (12 U.S.C. 1820) is |