PUBLIC LAW 109–171—FEB. 8, 2006
120 STAT. 11
and section 207(k)(3) of the Federal Credit Union Act, as so calculated; and ‘‘(II) jointly submit a report to the Congress containing the amounts described in subclause (I). ‘‘(iv) 6-MONTH IMPLEMENTATION PERIOD.—Unless an Act of Congress enacted before July 1 of the calendar year in which an adjustment is required to be calculated under clause (i) provides otherwise, the increase in the standard maximum deposit insurance amount and the standard maximum share insurance amount shall take effect on January 1 of the year immediately succeeding such calendar year. ‘‘(v) INFLATION ADJUSTMENT CONSIDERATION.—In making any determination under clause (i) to increase the standard maximum deposit insurance amount and the standard maximum share insurance amount, the Board of Directors and the National Credit Union Administration Board shall jointly consider— ‘‘(I) the overall state of the Deposit Insurance Fund and the economic conditions affecting insured depository institutions; ‘‘(II) potential problems affecting insured depository institutions; or ‘‘(III) whether the increase will cause the reserve ratio of the fund to fall below 1.15 percent of estimated insured deposits.’’. (b) COVERAGE FOR CERTAIN EMPLOYEE BENEFIT PLAN DEPOSITS.—Section 11(a)(1)(D) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)(D)) is amended to read as follows: ‘‘(D) COVERAGE FOR CERTAIN EMPLOYEE BENEFIT PLAN DEPOSITS.— ‘‘(i) PASS-THROUGH INSURANCE.—The Corporation shall provide pass-through deposit insurance for the deposits of any employee benefit plan. ‘‘(ii) PROHIBITION ON ACCEPTANCE OF BENEFIT PLAN DEPOSITS.—An insured depository institution that is not well capitalized or adequately capitalized may not accept employee benefit plan deposits. ‘‘(iii) DEFINITIONS.—For purposes of this subparagraph, the following definitions shall apply: ‘‘(I) CAPITAL STANDARDS.—The terms ‘well capitalized’ and ‘adequately capitalized’ have the same meanings as in section 38. ‘‘(II) EMPLOYEE BENEFIT PLAN.—The term ‘employee benefit plan’ has the same meaning as in paragraph (5)(B)(ii), and includes any eligible deferred compensation plan described in section 457 of the Internal Revenue Code of 1986. ‘‘(III) PASS-THROUGH DEPOSIT INSURANCE.— The term ‘pass-through deposit insurance’ means, with respect to an employee benefit plan, deposit insurance coverage based on the interest of each participant, in accordance with regulations issued by the Corporation.’’. (c) INCREASED AMOUNT OF DEPOSIT INSURANCE FOR CERTAIN RETIREMENT ACCOUNTS.—Section 11(a)(3)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(3)(A)) is amended by striking
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