(a) PDIC shall establish a "PDIC Fund" (hereinafter in this act referred to as the "fund"). All amounts received by PDIC, other than amounts paid directly to any lender pursuant to any pledge securing a borrowing by PDIC, shall be deposited in the fund, and all expenditures made by PDIC shall be made out of the fund. The balance of the fund at any time shall consist of the aggregate at such time of:
(1) cash on hand or on deposit in an institution where the deposits are insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation;(2) amounts invested in United States Government or agency securities, or securities issued by the Commonwealth or any political subdivision thereof; and(3) confirmed lines of credit, as defined herein. For purposes of this section, the amount of confirmed lines of credit as of any time is the aggregate amount which PDIC at such time has the right to borrow from banks and other financial institutions under confirmed lines of credit or other written agreements which provide that moneys so borrowed are to be repayable by PDIC not less than one year from the time of such borrowings including, for purposes of determining when such moneys are repayable, all rights of extension, refunding, or renewal at the election of PDIC.
(b) Within nine months from the date of enactment of this act, the balance of the fund shall aggregate not less than one quarter of one per cent of deposits, less any amounts expended from the fund within that period.(c) PDIC shall, by bylaw, impose upon its members such assessments as may be necessary and appropriate to establish and maintain the fund and to repay any borrowings by PDIC. Any assessments so made shall be such as will enable PDIC to meet its contractual obligations in connection with any borrowing incurred by PDIC. Subject to limitations in this subsection and to subsection (d), any assessment upon the members shall be uniform and be based upon or measured by the amount of their deposits not secured by a pledge of assets under Pennsylvania law or insured by the Securities Investor Protection Corporation or any other Federal agency authorized to insure deposits (hereinafter "deposits"). Notwithstanding any other provision of this act, other than subsection (f), no assessment shall be made upon a member otherwise than pursuant to this subsection and an assessment may be made under this subsection during any 12-month period if PDIC determines that such rate of assessment during such period will not have a material adverse effect on the financial condition of its members or their customers. No assessments shall be made pursuant to such paragraph which require payments during any such period which exceed in the aggregate one quarter of one per cent of deposits for such period.
(d) Subject to subsection (c), PDIC shall impose upon each of its members an assessment at a rate of not less than one tenth of one per cent per annum of the deposits of such member until the balance of the fund aggregates not less than $2,000,000, or such greater amount as PDIC may determine in the public interest, and during any period when there is outstanding borrowing by PDIC pursuant to subsection (f) or subsection (g).(e) To the extent that any payment by a member exceeds the maximum rate permitted by subsection (c), the excess shall not be recoverable except against future payments by such member in accordance with a bylaw of PDIC. If a member fails to pay when due all or any part of an assessment made upon such member, the unpaid portion thereof shall bear interest at such rate as may be determined by PDIC by bylaw.(f) PDIC shall have the power to borrow moneys and to evidence such borrowed moneys by the issuance of bonds, notes or other evidences of indebtedness, all upon such terms and conditions as the board of directors may determine in the case of a borrowing other than pursuant to subsection (g), and as may be prescribed by the treasurer in a borrowing pursuant to subsection (g). To secure the payment of the principal of, and interest and premium, if any, on, all bonds, notes or other evidences of indebtedness so issued, PDIC may make agreements with respect to the amount of future assessments to be made upon members and may pledge all or any part of the assets of PDIC and of the assessments made or to be made upon members. Any such pledge of future assessments shall be valid and binding from the time that it is made, and the assessments so pledged and thereafter received by PDIC, or any examining authority as collection agent for PDIC, shall immediately be subject to the lien, subject to any prior pledge, of such pledge without any physical delivery thereof or further act, and the lien of such pledge shall be valid and binding against all parties having claims of any kind against PDIC or such collection agent whether pursuant to this act, in tort, contract or otherwise, irrespective of whether such parties have notice thereof. The department shall by rule or regulation provide for the filing of any instrument by which a pledge or borrowing is authorized or created, but the failure to make, or any defect in, any such filing shall not affect the validity of such pledge or borrowing.(g) In the event that the fund is, or may reasonably appear to be, insufficient for the purposes of this act, the treasurer is authorized to make loans to PDIC. At the time of application for, and as a condition to, any such loan, PDIC shall file with the treasurer a statement with respect to the anticipated use of the proceeds of the loan. If the treasurer determines that such loan is necessary for the protection of depositors and the maintenance of confidence in depositories and that PDIC has submitted a plan which provides as reasonable an assurance of prompt repayment as may be feasible under the circumstances, then PDIC is authorized to issue to the treasurer notes or other obligations in an aggregate amount of not to exceed $10,000,000, in such forms and denominations, bearing such maturities, and subject to such terms and conditions, as may be prescribed by the treasurer. Such notes or other obligations shall bear interest at a rate determined by the treasurer, taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. The treasurer may reduce the interest rate if he determines such reduction to be in the interest of the Commonwealth. The treasurer is authorized and directed to purchase any notes and other obligations issued hereunder. The treasurer may at any time sell any of the notes or other obligations acquired by him under this subsection. All redemptions, purchases and sales by the treasurer of such notes or other obligations shall be treated as public debt transactions of the Commonwealth.(h) PDIC may by bylaw define all terms used in this subsection insofar as such definitions are not inconsistent with the provisions of this subsection.1978, Oct. 5, P.L. 1088, No. 255, § 3, effective in 60 days.