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losses, a higher percentage, up to 1.50 percent. 12 U.S.C. sec.
1817(b)(1)(B)(i) (Supp. I, 1989). Assessment rates were fixed
for an initial period that might extend to 1995 (0.12 percent of
insured deposits for the year in question). 12 U.S.C. sec.
1817(b)(1)(C) (Supp. I, 1989). However, with restrictions, the
FDIC could increase rates if necessary to restore the Fund’s
ratio of reserves to insured deposits to its target level. 12
U.S.C. sec. 1817(b)(1)(C)(iv) (Supp. I, 1989). Any assets of the
Fund in excess of 1.25 percent of insured deposits are treated as
a supplemental reserve, which assets, if the supplemental reserve
is no longer needed, are to be distributed to Fund members (but
earnings on those assets are to be distributed annually). See 12
U.S.C. sec. 1817(b)(1)(B)(iii) (Supp. I, 1989). Finally,
assessment income in excess of amounts necessary to maintain the
designated reserve ratio is to be credited against the Fund
member’s assessment for the following year. See 12 U.S.C. sec.
1817(d) (Supp. I, 1989). Clearly, the annual assessment system
for the Fund designed by Congress contemplates continued
participation by insured depository institutions. There are
multiperiod aspects to the system that raise questions as to the
extent of the deductibility of even the annual assessments.
The assessment system established by Congress is detailed
and complex. The majority has made little reference to it. The
entrance fee required of Metrobank was assessed at a rate
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