Financial Institutions Regulatory Relief Act of 1996

TABLE OF CONTENTS:

Title I: Reductions in Government Overregulation

Subtitle A: The Home Mortgage Process

Subtitle B: Consumer Banking Reforms

Subtitle C: Equal Credit Opportunity Act Amendments

Subtitle D: Consumer Leasing Act Amendments

Title II: Streamlining Government Regulations

Subtitle A: Regulatory Approval Issues

Subtitle B: Streamlining of Government Regulations;

Miscellaneous Provisions

Title III: Lender Liability

Title IV: Annual Study and Report on Impact on Lending to

Small Business

Title V: Financial Service Reform

Subtitle A: Reform of Holding Company Procedures

Subtitle B: Interagency Banking and Financial Services

Task Force

Title VI: Drought Relief

Title VII: Financial Activities

Title VIII: Deposit Insurance Funds

Financial Institutions Regulatory Relief Act of 1996 - Title I: Reductions in Government Overregulation - Subtitle A: The Home Mortgage Process - Amends the Real Estate Settlement Procedures Act of 1974 (RESPA) regarding the proscription against kickbacks and unearned fees to permit an employer's payment to the employer's own bona fide employees for any referral activities.

(Sec. 101) Restricts criminal sanctions to willful violation of law (current law penalizes unwillful and unintentional violations as well). Redesignates "a controlled business arrangement" as "an affiliated business arrangement".

Revises the disclosure prescriptions governing affiliated business arrangements where referrals are made by: (1) electronic media; and (2) by a lender.

Permits an affiliated business arrangement if a written disclosure of its existence and estimated attendant charges is made within three business days after a referral by telephone or electronic media.

Modifies the statute of limitations for bringing actions arising from violations of requirements for servicing mortgages and administering escrow accounts.

(Sec. 102) Directs the Secretary of Housing and Urban Development (HUD) to take action under RESPA and the Truth in Lending Act (TILA) to simplify and provide a single format for credit transaction disclosures.

(Sec. 103) Exempts from TILA disclosure requirements any transactions that the Board determines: (1) are not necessary to effectuate the Act's purposes; or (2) do not provide a measurable benefit in the form of useful information or consumer protection.

(Sec. 104) Amends RESPA to repeal requirements that for certain federally related mortgage loans the lender disclose: (1) that it has previously assigned, sold, or transferred the servicing of such loans, or, during the most recent three-year period, a specified percentage of them; and (2), in the case of a lender who does not service federally related loans, a present intent to assign, sell or transfer them. Repeals the mandate for model disclosure statements.

Excises from the definition of "federally related mortgage loan" any loan secured by a subordinate lien on residential real property (thereby removing second mortgages from RESPA requirements).

Directs the Board to ensure that regulations pertaining to the business credit exemption from RESPA jurisdiction include all business credit exempted from TILA.

(Sec. 105) Revises TILA disclosure requirements to permit alternative disclosures for adjustable rate home mortgages which state that a monthly payment may increase or decrease significantly due to annual percentage rate increases. (Current law requires illustrations how a rate increase or decrease affects monthly payments).

Revises disclosure requirements for any consumer credit transaction (other than under an open end credit plan) to require Board regulations to allow a creditor the option of providing certain substitute information in lieu of an historical example that illustrates the effects of interest rate changes implemented in accordance with the terms of the transaction.

Mandates: (1) additional disclosures pertaining to note rates and points for residential mortgage transactions; (2) a statement that the terms are subject to change; and (3) that any charges or premiums for voluntary insurance or noninsurance product providing protection against the debtor's liability for amounts in excess of the value of the collateral securing the obligation must be included in the finance charges, unless a specified statement in writing is furnished to the consumer.

(Sec. 108) Revises certain TILA provisions for recovery of fees.

(Sec. 109) Amends the Housing and Urban Development Act of 1968 to repeal the mandate for homeownership debt counseling availability notification.

(Sec. 110) Amends the Home Mortgage Disclosure Act of 1975 to increase the maximum asset-size of institutions exempt from its purview from $10 million to $50 million.

Declares that a depository institution shall be deemed to have satisfied the public availability notification requirements for its mortgage loan transactions if its branch offices provide notice of the availability of the information from the home office upon request.

Subtitle B: Consumer Banking Reforms - Amends the Truth In Savings Act (TISA) to repeal: (1) civil liability for depository institution non-compliance with disclosure requirements; and (2) the requirement that on-premises displays in depository institutions be designed for viewing only from the interior of the premises.

(Sec. 141) Redefines depository institution to exclude certain nonautomated credit unions that were not required to comply with TISA requirements.

Limits account schedule distribution requirements for certain time deposits renewable at maturity without notice from the depositor to deposits with maturities of more than 30 days.

(Sec. 142) Amends the Federal Deposit Insurance Act (FDIA) to allow depository institutions (including affiliates and subsidiaries) to exchange information without limitation if such information sharing is disclosed and the consumer has opportunity beforehand to direct that the information not be communicated.

(Sec. 143) Amends TILA to permit full creditor restitution payments of adjusted finance charges to a person over an extended period if the enforcing agency determines that this is necessary to avoid causing the creditor to become undercapitalized.

(Sec. 144) Instructs the Board to study and report to the Congress on the applicability of the Electronic Fund Transfer Act to payment transactions using value-added electronic devices.

Subtitle C: Equal Credit Opportunity Act Amendments - Equal Credit Opportunity Act Amendments of 1996 - States that the purpose of this Act is to combine the adverse action notification requirements of the Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA) with respect to consumer credit applications, and to make the information which must be furnished more understandable.

(Sec. 153) Revises ECOA notification requirements regarding adverse actions against credit applicants. Shields from liability for non-compliance persons who show by a preponderance of the evidence that they maintained reasonable procedures to ensure compliance at the time of the alleged violation.

(Sec. 154) Revises specified FCRA disclosure requirements for users of consumer reports to repeal such requirements for credit denials and adverse actions based on reports of persons other than consumer reporting agencies.

(Sec. 155) Amends ECOA and the Fair Housing Act (the Acts) to add incentives for creditor self-testing and voluntary corrective action by prohibiting review, examination, or acquisition by an applicant in any legal proceeding of a creditor or other person's self-procured test or review of its lending activities, including residential real estate lending, if the self-test has identified discriminatory practices and the creditor or other person has taken or is taking appropriate corrective action to address the discrimination. Specifies circumstances in which an applicant or Government department or agency may obtain and use the results of a self-test in a proceeding or civil action.

(Sec. 156) Requires the Attorney General to consult with the appropriate agency before bringing a civil action in connection with creditor self-testing under the Acts.

Subtitle D: Consumer Leasing Act Amendments - Consumer Leasing Act Amendments of 1996 - Amends the Consumer Credit Protection Act (CCPA) to direct the Board to: (1) write regulations or staff commentary to update and clarify requirements and definitions for lease disclosures, contracts, and other issues related to consumer leasing which would carry out the purposes of the Consumer Leasing Act; and (2) publish model disclosure forms and clauses to facilitate compliance with such requirements and aid the consumer in understanding the transaction.

(Sec. 164) Revises CCPA provisions relating to consumer lease advertising, repealing special requirements for radio advertisements.

(Sec. 165) Limits creditor liability for statutory penalties for failure to provide specified consumer lease disclosures.

Title II: Streamlining Government Regulations - Subtitle A: Regulatory Approval Issues - Amends the Bank Holding Company Act (BHCA) to cite the statutory criteria for: (1) approval of a well-capitalized and well-managed financial services holding company proposal to engage in any (non-banking) activity or acquire or retain the shares or assets of any company (including acquisition of savings associations); and (2) deemed approval of the acquisition of shares by a registered bank holding company, or a merger or consolidation between registered bank holding companies. (Current law requires prior Board approval).

(Sec. 203) Amends the FDIA and the National Bank Consolidation and Merger Act to cite conditions under which prior approval is not required for any merger, consolidation, asset acquisition, or liabilities assumption involving only insured depository institution subsidiaries of the same depository institution holding company.

(Sec. 204) Permits any insured depository institution to participate in optional conversion transactions between members of the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF) (Oakar transactions) without the prior written approval of the responsible agency. Repeals guidelines for agency approval of such transactions (but retains the proscription against transactions which result in the transfer of any insured depository institution's Federal deposit insurance from one Federal deposit insurance fund to the other).

(Sec. 205) Amends the Home Owners' Loan Act (HOLA) to remove from its regulatory purview a bank holding company subject to the BHCA, and exclude it from the definition of "savings and loan holding company."

Amends the BHCA of 1956 to mandate cooperation between the Board and the Director of the Office of Thrift Supervision regarding supervision and enforcement over bank holding companies that control savings associations.

Amends HOLA to provide that any savings association which meets specified Internal Revenue Code requirements shall be deemed to be a qualified thrift lender.

(Sec. 206) Amends the BHCA to repeal the provision that shares transferred by a bank holding company to a transferee under its control are deemed to be under such holding company's control unless the Board determines otherwise and approves the divestiture.

(Sec. 207) Amends the Revised Statutes, the Federal Reserve Act (FRA), and the FDIA to delineate conditions under which prior approval is not required for well-capitalized and well-managed banks to establish and operate a branch or seasonal agency.

(Sec. 208) Amends the Revised Statutes and the FDIA to exclude from the definition of "branch" an automated teller machine or remote service unit (thus exempting those entities from approval requirements of such Acts).

(Sec. 209) Amends the FRA to exempt well-capitalized and well-managed banks from the approval requirement for investments in bank premises.

(Sec. 210) Amends the FDIA to authorize the appropriate Federal banking agency to waive, on a case-by-case basis, prior notice requirements pertaining to new officer or director appointments of certain undercapitalized or troubled institutions.

(Sec. 211) Repeals the requirement for a hearing in the determination of new nonbanking activities.

(Sec. 212) Authorizes the Board to extend from five years to ten years the period during which a bank holding company may retain shares acquired in a loan foreclosure.

(Sec. 213) Amends the Federal Credit Union Act to increase from $10,000 to $50,000 the aggregate amount of loans to Credit Union officials that may be made without approval of the board of directors.

Subtitle B: Streamlining of Government Regulations; Miscellaneous Provisions - Amends the Revised Statutes to repeal the aggregate minimum per-branch capital requirements imposed upon a national banking association and its branches.

(Sec. 222) Amends the FDIA to exclude automated teller machines and bank branches in specified merger or relocation situations from the definition of "bank branch" (thus exempting them from Federal bank closure notification requirements). Makes such exemption retroactive to the enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991.

(Sec. 223) Amends the Depository Institutions Management Interlocks Act to exempt management officials of depository institutions or holding companies with small (under 20 percent) market shares from prohibitions against dual service with unaffiliated institutions or companies in the same geographic banking market.

Raises from $1 billion to $2.5 billion the asset-size ceiling beneath which a depository institution or depository holding company may retain directors and management officials performing dual service for nonaffiliated institutions whose total assets do not exceed $1.5 billion (currently $500 million). Authorizes Federal regulatory agencies to adjust such ceiling annually for cost-of-living increases.

Extends a specified grandfather exemption which allows certain management officials to continue dual service despite interlocks prohibitions (thus permitting them to continue their dual service permanently).

(Sec. 224) Directs the Appraisal Subcommittee of the Financial Institutions Examination Council to accelerate repayment of specified funds to the Treasury.

(Sec. 225) Amends the FRA to permit loans to executive officers, directors, or principal shareholders (insider lending) made pursuant to a benefit or compensation program widely available to employees of the member bank, and that does not give preference to any officer, director or principal shareholder of the member bank over other bank employees.

Expands the Board's authority to exempt specified executive officers and directors from the proscription against preferential lending terms.

Repeals the requirement that an executive officer indebted to a bank over a certain lawful amount submit a written report of such debt to the board of directors.

Amends the FRA to permit a member bank to make available to its executive officers: (1) home equity lines of credit of up to $100,000; and (2) loans secured by readily marketable assets.

(Sec. 226) Amends the FDIA to allow the appropriate Federal banking agency to increase from $175 million to $250 million the asset-size ceiling on certain small depository institutions whose mandatory periodic on-site examinations make take place every 18 months instead of annually.

Requires the Federal banking agencies to report semiannually to the Congress regarding implementation of a coordinated Federal bank examination system until it is in place and provides full coordination of examinations of State depository institutions with State bank supervisors.

(Sec. 227) Amends the Right to Financial Privacy Act to require a Government authority to reimburse a financial institution for assembling or providing the financial records of corporate customers.

(Sec. 228) Amends specified Federal monetary law to repeal the requirement that depository institutions identify domestic nonbank financial institution customers (retaining the requirement for foreign nonbank financial institution customers).

(Sec. 229) Requires each appropriate Federal banking agency and the National Credit Union Administration to conduct a paperwork reduction review, and eliminate any requirements for unnecessary internal written policies.

(Sec. 230) Instructs the Secretary of the Treasury to revise the daily confirmation requirement under the Securities Exchange Act of 1934 concerning hold-in custody repurchase agreements to permit the counterparty to the agreement to waive such confirmation upon receipt of certain disclosures.

(Sec. 231) Requires the Financial Institutions Examination Council and each Federal banking agency represented on it to review and identify unnecessary regulations every ten years and report thereon to the Congress.

(Sec. 232) Amends the International Lending Supervision Act to change from mandatory to discretionary the duty of each appropriate Federal banking agency to: (1) require a banking institution to maintain a special reserve whenever the quality of its assets has been impaired by protracted inability of debtors in a foreign country to make payments; (2) analyze the results of foreign loan rescheduling negotiations and attendant loan risks; and (3) ensure that bank capital and reserve positions are adequate to accommodate potential losses on foreign loans.

(Sec. 233) Amends FDIA financial management accountability guidelines to: (1) repeal the mandate that an independent public accountant detect and report non-compliance with laws and regulations; (2) permit Federal agencies to designate certain required reports of financial condition as privileged and confidential and not available to the public; (3) exempt well-capitalized and well-managed insured depository institutions from mandatory financial management status reports (although not from the requirement of independent financial audits); (4) restructure audit committee membership from one entirely made up of outside directors independent of management, to one at least one-half of whose membership is composed of outside directors independent of management; and (5) exclude outside directors from the primary definition of an "institution-affiliated party" but include them in such definition as independent contractors if an appropriate Federal banking agency determines for purposes of insurance termination that it is appropriate under the circumstances, after taking into consideration that an outside director may have a different level of knowledge of the management and operation of an insured depository institution than one who is not an outside director.

(Sec. 235) Amends the International Banking Act of 1978 to: (1) prescribe guidelines under which the Board may approve a foreign bank application to establish a U.S. presence even though it is not subject to comprehensive supervision on a consolidated basis in its home country; and (2) authorize termination of a foreign bank office if the appropriate authorities in its home country are not making progress in establishing arrangements for such supervision.

(Sec. 236) Directs the Board to avoid unnecessary duplication of foreign bank examinations. Subjects foreign banks to the same on-site examination schedule and examination fee collections as apply to domestic banks.

(Sec. 237) Instructs the Board of Governors of the Federal Reserve System (Federal Reserve Board) to ascertain and report to the Congress whether the national market for certain mortgages secured by a consumer's principal dwelling has been impacted by the Home Ownership and Equity Protection Act of 1994 (including its impact upon lenders, consumers, and the secondary mortgage market for refinanced loans and home equity loans).

Amends TILA disclosure guidelines to waive: (1) new disclosure requirements for any change in regular payment amounts of two percent or less from the initially disclosed regular payment amount, and in specified third party fees or disbursements; and (2) the three business days disclosure requirement in the case of certain consumer credit transactions secured by a consumer's principal dwelling.

Includes certain consumer credit transactions secured by a consumer's principal dwelling within the purview of TILA disclosure regulations.

(Sec. 238) Revises FDIA guidelines to approve new activities of a State bank and its subsidiaries if the FDIC has not disapproved the bank's prior 60-day written notice of intent to engage in such activities.

(Sec. 239) Amends the Revised Statutes to repeal the requirement that three bank directors, in addition to the officer making the declaration, attest in writing the correctness of reports of condition.

(Sec. 240) Retitles the Bank Service Corporation Act the "Bank Service Company Act" and amends it to authorize banks under the Act to own limited liability companies).

(Sec. 241) Amends the FRA to increase from ten percent to 25 percent the amount of capital and surplus that a national bank may invest in the stock of Edge Act subsidiaries and certain financial service corporations held by a member bank's non-U.S. branches.

(Sec. 242) Requires each appropriate Federal banking agency to report to certain congressional committees on its actions to reconcile Regulatory Accounting Principles and Generally Accepted Accounting Principles, thereby eliminating inconsistent or duplicative accounting and reporting requirements applicable to mandatory reports filed by insured depository institutions.

(Sec. 243) Permits the Comptroller of the Currency to waive the residency requirement for national bank directors.

(Sec. 244) Amends FDIA to: (1) direct each Federal banking agency to ensure that its banking examiners consult on examination activities and resolve any inconsistent recommendations given to a depository institution; and (2) revise the mandate for establishment of a joint banking agency system to include State bank examiners as well as Federal agencies among the options for determining which shall be the lead agency responsible for managing a unified examination of each insured depository institution.

(Sec. 245) Amends HOLA to authorize the Director of the Office of Thrift Supervision to grant exceptions to the statutory prohibition against tying arrangements by a savings association.

Title III: Lender Liability - Expresses the sense of the Congress that: (1) a person holding indicia of ownership primarily to protect a security interest in a vessel or facility should not, except in certain circumstances, be considered to have "participated in management" as that term is used in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA); (2) the term "security interest" as used in CERCLA should include rights accruing to a person to secure repayment of specified obligations, including those under various security instruments; and (3) the Congress should address the potential liability of lenders and fiduciaries under Superfund (CERCLA) and the Resource Conservation and Recovery Act.

Title IV: Annual Study and Report on Impact on Lending to Small Business - Directs the following agencies to submit a joint annual report to the Congress on the extent to which the regulatory reductions under this Act have resulted in increased lending to small businesses: (1) the Federal Reserve Board; (2) the Director of the Office of Thrift Supervision; (3) the Comptroller of the Currency; and (4) the FDIC Board of Directors.

Title V: Financial Service Reform - Subtitle A: Reform of Holding Company Procedures - Amends BHCA to revise examination and reporting requirements for Financial Services Holding Companies (FSHC).

(Sec. 502) Sets forth a statutory scheme for reduced supervision of FSHCs controlling principally nondepository institutions.

(Sec. 503) Sets forth a procedure for the conversion of unitary savings and loan holding companies to FSHC status, during the 18 months after the enactment of this Act, without prior Board approval.

Sets forth a statutory scheme under which a FSHC may retain ownership or control of specified nonconforming financial companies.

(Sec. 505) Renames the BHCA of 1956 as the Financial Services Holding Company Act of 1996.

(Sec. 507) Specifies that "bank" does not include an institution: (1) which engages only in the provision of credit card accounts for business purposes; or (2) which does not engage in the business of making commercial loans (other than the provision of credit card accounts for business purposes in connection with such credit card operations).

(Sec. 508) Amends the Federal Credit Union Act to prohibit an insured credit union from being sponsored by, or accepting financial support from, any Government-sponsored enterprise (GSE) whose customers are in the field of the credit union's membership. Excepts from this prohibition the forms of financial assistance generally provided by a GSE in its ordinary course of business.

Amends FDIA to prohibit a depository institution from being an affiliate of, sponsored by, or accepting financial support from any GSE. Exempts from such proscription: (1) members of a depository institution in a Federal Home Loan Bank; and (2) financial assistance authorized by statute.

(Sec. 509) Identifies circumstances under which qualified limited purpose banks are exempt from: (1) asset growth restrictions; (2) new activities' restrictions; (3) cross-marketing restrictions; and (4) divestiture requirements. Prescribes guidelines for the conversion of certain nonbank holding companies to FSHC status.

(Sec. 510) Amends the BHCA of 1956 to authorize the Federal Reserve Board to waive, or adjust at its discretion, the procedural requirements governing applications to acquire bank shares or assets (including the attendant filing and information requirements).

Amends the Federal Reserve Act regarding loans by member banks on stock or bond collateral, to: (1) abolish the minimum six-member affirmative vote required for the Board to adjust the percentage of individual bank capital and surplus which may be represented by loans secured by stock or bond collateral; and (2) repeal the 15 percent of unimpaired capital and surplus ceiling on the amount of loans a bank may make to any person.

(Sec. 511) Amends the BHCA of 1956 to define a qualified family partnership and to exclude it from the definition of "company".

Subtitle B: Interagency Banking and Financial Services Task Force - Establishes the Banking and Financial Services Task Force to make recommendations: (1) to the Board and the Comptroller of the Currency; and (2) for legislative or administrative action regarding the supervision, efficiency, and competitiveness of the financial services industry.

(Sec. 522) Establishes the Financial Services Advisory Committee to advise the Task Force and submit an annual status report to certain congressional committees.

Title VI: Drought Relief - Expresses the sense of the Congress that financial institutions and Federal bank regulators should work cooperatively with farmers and ranchers in drought-affected communities to allow financial obligations to be met without imposing undue burdens.

Title VII: Financial Activities - Amends the BHCA of 1956 to exempt from its prohibition against interests in nonbanking organizations any activity the Federal Reserve Board determines is either financial in nature, or incidental to financial activities.

Declares that, for purposes of interpreting "financial activity," transactions in which an FSHC acting as principal, agent, or broker provides either insurance, or an annuity contract whose income is tax- deferred, shall not be deemed to be: (1) closely related to banking, or managing or controlling banks; (2) financial in nature; or (3) incidental to a financial activity (thereby retaining those transactions within the ambit of proscribed activities).

Repeals the mandate that the Board consider, when determining whether a particular activity is a proper incident to banking, if its performance by a bank holding company affiliate is such that the public interest benefit outweighs any possible adverse effects (such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices).

States that for purposes of determining insurance activities exempt from the proscription against interests in nonbanking organizations, the term "insurance agency activity" includes providing any annuity contract as agent or broker.

(Sec. 702) Amends FDIA to include within the definition of deposit any liability of an insured depository institution arising under an annuity contract whose income is tax-deferred (retirement certificates of deposit).

(Sec. 703) Requires the Comptroller General to study and report to the Congress on whether State insurance regulation of the insurance activities of national banks is adequate or comparable to that of nonbank activities.

(Sec. 704) Amends the Revised Statutes to require national banks to comply with non-discriminatory State licensing requirements governing individuals selling insurance as agents.

Title VIII: Deposit Insurance Funds - Deposit Insurance Funds Act of 1996 - Directs the Board of Directors of the Federal Deposit Insurance Corporation (FDIC) to impose a special assessment on the Savings Association Insurance Fund (SAIF)-assessable deposits of each insured depository institution at a rate that the Board, in its sole discretion, determines will cause the SAIF to achieve the designated reserve ratio on the first business day of the first month beginning after the date of enactment of this Act. Allows the Board to exempt weak institutions from such assessment, but requires exemption for certain newly chartered and other defined institutions, which shall pay semiannual assessments at certain former rates during calendar years 1996 through 1998.

(Sec. 801) Authorizes certain institutions facing hardship as a result of the special assessment to elect to pay it in two assessments, plus a third supplemental special assessment, determined according to specified formulae.

Prescribes adjustments of the special assessment for Bank Insurance Fund (BIF) member banks and certain savings associations.

Amends FDIA to require the deposit into the SAIF of exit fees resulting from a conversion transaction.

Authorizes the FDIC Board of Directors to exempt insured depository institutions that have paid the exit and entrance fees from paying the special assessment intended to capitalize the SAIF.

(Sec. 803) Amends the Federal Home Loan Bank Act (FHLBA) and FDIA to revise the assessment authority of the Financing Corporation (FICO), extending FICO assessments to all FDIC-insured depository institutions (rather than SAIF members only). Repeals specified limits on the amount that may be assessed.

Declares that assessments imposed upon insured depository institutions with respect to any BIF-assessable deposit shall be assessed at 1\5 of the rate of the assessments imposed on insured depository institutions with respect to any SAIF-assessable deposit.

(Sec. 804) Declares that the SAIF and the BIF shall be merged into the Deposit Insurance Fund, which shall have a Special Reserve for any excess of the SAIF reserve ratio over the designated reserve ratio.

(Sec. 805) Amends FDIA to establish a SAIF Special Reserve if the SAIF reserve exceeds the designated reserve ratio on January 1, 1999.

(Sec. 806) Prescribes procedural guidelines for the refund of assessed payments in a deposit insurance fund in excess of the designated reserve amount.

(Sec. 807) States that the assessment rate for a SAIF member may not be less than the assessment rate for a BIF member posing a comparable risk to the deposit insurance fund.

(Sec. 808) Prohibits the FDIC Board of Directors from setting semi-annual assessments in excess of the amount needed to maintain or achieve the designated reserve ratio of a deposit insurance fund.

(Sec. 809) Instructs the Secretary of the Treasury to study and report to the Congress on all issues relevant to the development of a common charter for all insured depository institutions and the abolition of separate and distinct charters between banks and savings associations.