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have a high probability of remaining with the acquiring
or resulting depository institution for a reasonable
period of time following the acquisition, in excess of
those deposits that would have remained in the
insurance fund of the depository institution in default
or in danger of default had such institution been
resolved by means of an insured deposit transfer. The
estimated dollar amount of the entrance fee deposit
base shall be determined on a case-by-case basis by the
Federal Deposit Insurance Corporation at the time
offers to acquire an insured depository institution (or
any part thereof) are solicited by the Federal Deposit
Insurance Corporation or the Resolution Trust
Corporation.
The term “Bank Insurance Fund reserve ratio” is defined in
12 C.F.R. section 312.1(c) (1991) as follows:
The term "Bank Insurance Fund reserve ratio" shall
mean the ratio of the net worth of the Bank Insurance
Fund to the value of the aggregate total domestic
deposits held in all Bank Insurance Fund members. * *
*
Like the exit fee, the origin of the entrance fee
requirement is in section 206(a)(7) of FIRREA. H. Rept. 101-
54(I) (1989), is the report of the Committee on Banking, Finance
and Urban Affairs that accompanied H.R. 1278, 101st Cong., 1st
Sess. (1989), which, as enacted, became FIRREA. That report
states that the entrance fee “must be enough to prevent the
dilution of the reserves of the Fund to be joined by the
institution.” H. Rept. 101-54(I) at 325.
2. Petitioner’s Claim, and Majority’s Understanding,
as to Purpose of Entrance Fee
On brief, petitioner argues: “Petitioner paid the entrance
fee simply to insure the deposits transferred into the BIF until
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