Text: H.R.3389 — 103rd Congress (1993-1994)All Information (Except Text)

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Introduced in House (10/27/1993)

 
[Congressional Bills 103th Congress]
[From the U.S. Government Printing Office]
[H.R. 3389 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3389

     To amend the Federal Deposit Insurance Act to require insured 
depository institutions to provide notify customers who purchase mutual 
funds on the premise of the institution that such mutual funds are not 
               insured deposits, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 27, 1993

  Mr. Neal of Massachusetts introduced the following bill; which was 
    referred to the Committee on Banking, Finance and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
     To amend the Federal Deposit Insurance Act to require insured 
depository institutions to provide notify customers who purchase mutual 
funds on the premise of the institution that such mutual funds are not 
               insured deposits, 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 ``Depository Institution Mutual Fund 
Sales Act''.

SEC. 2. DEPOSITORY INSTITUTION MUTUAL FUND SALE DISCLOSURE 
              REQUIREMENTS.

    Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is 
amended by adding at the end the following new subsection:
    ``(q) Depository Institution Mutual Fund Sales.--
            ``(1) Disclosure required.--An insured depository 
        institution shall require any person who sells or offers for 
        sale, at any office of the institution, any shares issued by a 
        registered investment company to disclose, in writing, to any 
        person who purchases, seeks to purchase, or seeks an opinion or 
        investment advice about, any such shares that such shares are 
        not deposits and are not insured by the Corporation or the 
        Federal Government.
            ``(2) Advertising and promotional material.--An insured 
        depository institution shall--
                    ``(A) include in any advertisement, solicitation, 
                or promotional or sales material issued by the 
                institution which relates to any shares issued by a 
                registered investment company which are sold, or 
                offered for sale, at any office of the institution 
                (including any solicitation contained in any periodic 
                statement issued by the institution), and any sale 
                confirmation notice issued in connection with any such 
                shares, the disclosures required under paragraph (1); 
                and
                    ``(B) require any person who sells or offers to 
                sell any such shares at any office of the institution 
                to comply with the requirements of subparagraph (A) 
                with respect to any advertisement, solicitation, or 
                promotional or sales material issued by such person in 
                connection with such sales.''.
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