[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2403 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 2403
To amend the Federal Deposit Insurance Act to provide for the insurance
of transaction accounts, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 20, 2023
Mr. Vance introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Federal Deposit Insurance Act to provide for the insurance
of transaction accounts, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Payroll Account Guarantee Act of
2023''.
SEC. 2. INSURANCE OF TRANSACTION ACCOUNTS.
(a) Banks and Savings Associations.--Section 11(a)(1) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amended--
(1) in subparagraph (B)--
(A) by striking ``The net amount'' and inserting
the following:
``(i) In general.--Subject to clause (ii),
the net amount''; and
(B) by adding at the end the following new clauses:
``(ii) Insurance for noninterest-bearing
transaction accounts.--
``(I) Definition.--For purposes of
this subparagraph, the term
`noninterest-bearing transaction
account' means a deposit or account
maintained at an insured depository
institution--
``(aa) with respect to
which interest is neither
accrued nor paid;
``(bb) on which the
depositor or account holder is
permitted to make withdrawals
by negotiable or transferable
instrument, payment orders of
withdrawal, telephone or other
electronic media transfers, or
other similar items for the
purpose of making payments or
transfers to third parties or
others; and
``(cc) on which the insured
depository institution does not
reserve the right to require
advance notice of an intended
withdrawal.
``(II) Insurance.--Notwithstanding
clause (i), the Corporation shall fully
insure the net amount that any
depositor at an insured depository
institution with less than
$225,000,000,000 in assets maintains in
a noninterest-bearing transaction
account. Such amount shall not be taken
into account when computing the net
amount due to such depositor under
clause (i).
``(III) No fees.--No fee may be
levied on an insured depository
institution for the insurance under
this clause.''.
(2) in subparagraph (C), by striking ``subparagraph (B)''
and inserting ``subparagraph (B)(i)''.
(b) Credit Unions.--Section 207(k)(1) of the Federal Credit Union
Act (12 U.S.C. 1787(k)(1)) is amended--
(1) in subparagraph (A)--
(A) by striking ``Subject to the provisions of
paragraph (2), the net amount'' and inserting the
following:
``(i) Net amount of insurance payable.--
Subject to clause (ii) and the provisions of
paragraph (2), the net amount''; and
(B) by adding at the end the following new clauses:
``(ii) Insurance for noninterest-bearing
transaction accounts.--
``(I) Definition.--For purposes of
this subparagraph, the term
`noninterest-bearing transaction
account' means an account or deposit
maintained at an insured credit union--
``(aa) with respect to
which interest is neither
accrued nor paid;
``(bb) on which the account
holder or depositor is
permitted to make withdrawals
by negotiable or transferable
instrument, payment orders of
withdrawal, telephone or other
electronic media transfers, or
other similar items for the
purpose of making payments or
transfers to third parties or
others; and
``(cc) on which the insured
credit union does not reserve
the right to require advance
notice of an intended
withdrawal.
``(II) Insurance.--Notwithstanding
clause (i), the Board shall fully
insure the net amount that any member
or depositor at an insured credit union
maintains in a noninterest-bearing
transaction account. Such amount shall
not be taken into account when
computing the net amount due to such
member or depositor under clause (i).
``(III) No fees.--No fee may be
levied on an insured credit union for
the insurance under this clause.''.
(2) in subparagraph (B), by striking ``subparagraph (A)''
and inserting ``subparagraph (A)(i)''.
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