WASHINGTON - The government is preparing a $12 billion plan to shore up the Savings Association Insurance Fund - and commercial banks would pay more than half the tab.

The plan, circulating Friday, calls for three steps that officials have been mulling for months: Banks would pay most of the annual interest on bonds sold in 1987 to start the thrift cleanup; savings institutions would pay a one-time fee to rebuild the thrift fund; and the life of the Resolution Trust Corp. would be extended to cover future thrift losses.

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