[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3012 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 3012
To amend the Federal Deposit Insurance Act to provide for insurance for
noninterest-bearing transaction accounts, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 4, 2023
Mr. Manchin (for himself, Mr. Braun, and Mr. Hickenlooper) 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 insurance for
noninterest-bearing 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 ``Deposit Security Act''.
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.--Notwithstanding clause
(i), the Corporation shall insure the net
amount that any depositor at an insured
depository institution maintains in a
noninterest-bearing transaction account in an
amount not more than $10,000,000. Such amount
shall not be taken into account when computing
the net amount due to such depositor under
clause (i).
``(iii) Opt-out and opt-in.--
``(I) Opt-out.--An insured
depository institution may opt out of
the insurance described in clause (ii)
during the 30-day period beginning on
the date on which the program is
established.
``(II) Opt-in.--An insured
depository institution that opts out
under subclause (I) may opt into the
program every 5 years.
``(iv) Noninterest-bearing transaction
account defined.--For purposes of this
subparagraph, the term `noninterest-bearing
transaction account' means a deposit or account
maintained at an insured depository
institution--
``(I) with respect to which
interest is neither accrued nor paid;
``(II) 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
``(III) on which the insured
depository institution does not reserve
the right to require advance notice of
an intended withdrawal.''; and
(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.--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 in an
amount not more than $10,000,000. Such amount
shall not be taken into account when computing
the net amount due to such member or depositor
under clause (i).
``(iii) Opt-out and opt-in.--
``(I) Opt-out.--An insured credit
union may opt out of the insurance
described in clause (ii) during the 30-
day period beginning on the date on
which the program is established.
``(II) Opt-in.--An insured credit
union that opts out under subclause (I)
may opt into the program every 5 years.
``(iv) Noninterest-bearing transaction
account defined.--For purposes of this
subparagraph, the term `noninterest-bearing
transaction account' means an account or
deposit maintained at an insured credit union--
``(I) with respect to which
interest is neither accrued nor paid;
``(II) 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
``(III) on which the insured credit
union does not reserve the right to
require advance notice of an intended
withdrawal.''; and
(2) in subparagraph (B), by striking ``subparagraph (A)''
and inserting ``subparagraph (A)(i)''.
SEC. 3. INFLATION ADJUSTMENT OF DEPOSIT INSURANCE LIMIT.
Section 11(a)(1) of the Federal Deposit Insurance Act (12 U.S.C.
1821(a)(1)) is amended by striking subparagraph (F) and inserting the
following:
``(F) Inflation adjustment.--The Board of Directors
and the National Credit Union Administration Board
shall jointly prescribe the amount by which the
standard maximum deposit insurance amount and the
standard maximum share insurance amount (as defined in
section 207(k) of the Federal Credit Union Act)
applicable to any depositor at an insured depository
institution shall be adjusted on January 1 once during
every 2-year period to reflect the percentage increase,
if any, from the preceding fiscal year in the Consumer
Price Index For All Urban Consumers, published by the
Bureau of Labor Statistics of the Department of
Labor).''.
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