PUBLIC LAW 102-242—DEC. 19, 1991 105 STAT. 2371 institutions, or economics, shall conduct a study of the feasibility of establishing a private reinsurance system. (2) PROJECT.—The study conducted under this subsection shall include a demonstration project consisting of a simulation, by a sample of private reinsurers and insured depository institutions, of the activities required for a private reinsurance system, including— (A) establishment of a pricing structure for risk-based premiums; (B) formulation of insurance or reinsurance contracts; and (C) identification and collection of information necessary to evaluate and monitor the risks in insured depository institutions. (3) ACTUAL REINSURANCE TRANSACTIONS.— The Federal Deposit Insurance Corporation may engage in actual reinsurance transactions as part of a demonstration project conducted under paragraph (2). (b) REPORT. — (1) IN GENERAL. — Before the end of the 18-month period beginning on the date of the enactment of this Act, the Federal Deposit Insurance Corporation shall submit to the Congress a report on the study conducted under this section. (2) CONTENTS.—The report under this subsection shall include— (A) an analysis and review of the project conducted under subsection (a)(2); (B) conclusions regarding the feasibility of a private reinsurance system; (C) recommendations regarding whether— (i) such a system should be restricted to depository institutions over a certain asset size; (ii) similar systems are feasible for depository institutions or groups of depository institutions of a lesser asset size; and (iii) public policy goals can be satisfied by such systems; and (D) recommendations for administrative and legislative action that may be necessary to establish such systems. TITLE IV—MISCELLANEOUS PROVISIONS Subtitle A—Payment System Risk Reduction SEC. 401. FINDINGS AND PURPOSE. 12 USC 4401. The Congress finds that— (1) many financial institutions engage daily in thousands of transactions with other financial institutions directly and through clearing organizations; (2) the efficient processing of such transactions is essential to a smoothly functioning economy; (3) such transactions can be processed most efficiently if, consistent with applicable contractual terms, obligations among financial institutions are netted;
�
