105 STAT. 2240 PUBLIC LAW 102-242 —DEC. 19, 1991 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. "(5) 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 EARN- INGS.—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. "(6) 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) IN GENERAL.— Section 10 of the Federal Deposit Insurance Act (12 U.S.C. 1820) is amended by inserting after subsection (c) the following new subsection: "(d) ANNUAL ON-SITE EXAMINATIONS OF ALL INSURED DEPOSITORY INSTITUTIONS REQUIRED.— "(1) IN GENERAL. —The appropriate Federal banking agency shall, not less than once during each 12-month period, conduct a full-scope, on-site examination of each insured depository institution. "(2) EXAMINATIONS BY CORPORATION.— Paragraph (1) shall not apply during any 12-month period in which the Corporation has conducted a full-scope, on-site examination of the insured depository institution. "(3) STATE EXAMINATIONS ACCEPTABLE.— The examinations required by paragraph (1) may be conducted in alternate 12- month periods, as appropriate, if the appropriate Federal banking agency determines that an examination of the insured
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