Sec. 12. Custodial deposit program for covered minority depository institutions and impact banks
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Not later than one year after the date of the enactment of this Act, the Secretary of the Treasury shall issue rules establishing a custodial deposit program under which a covered bank may receive deposits from a qualifying account. In issuing rules under subsection (a), the Secretary of the Treasury shall— consult with the Federal banking agencies; ensure each covered bank participating in the program established under this section— has appropriate policies relating to management of assets, including measures to ensure the safety and soundness of each such covered bank; and is compliant with applicable law; and ensure, to the extent practicable that the rules do not conflict with goals described in section 308(a) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ( 12 U.S.C. 1463 note).
With respect to the funds of an individual qualifying account, an entity may not deposit an amount greater than the insured amount in a single covered bank. The total amount of funds deposited in a covered bank under the custodial deposit program described under this section may not exceed the lesser of— 10 percent of the average amount of deposits held by such covered bank in the previous quarter; or $100,000,000 (as adjusted for inflation). Each quarter, the Secretary of the Treasury shall submit to Congress a report on the implementation of the program established under this section including information identifying participating covered banks and the total amount of deposits received by covered banks under the program.
In this section: The term covered bank means— a minority depository institution that is well capitalized, as defined by the appropriate Federal banking agency; or a depository institution designated pursuant to section 5 of the Ensuring Diversity in Community Banking Act that is well capitalized, as defined by the appropriate Federal banking agency. The term insured amount means the amount that is the greater of— the standard maximum deposit insurance amount (as defined in section 11(a)(1)(E) of the Federal Deposit Insurance Act ( 12 U.S.C. 1821(a)(1)(E) )); or such higher amount negotiated between the Secretary of the Treasury and the Federal Deposit Insurance Corporation under which the Corporation will insure all deposits of such higher amount.
The terms appropriate Federal banking agency and Federal banking agencies have the meaning given those terms, respectively, under section 3 of the Federal Deposit Insurance Act. The term qualifying account means any account established in the Department of the Treasury that— is controlled by the Secretary; and is expected to maintain a balance greater than $200,000,000 for the following 24-month period.
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Sec. 12
Custodial deposit program for covered minority depository institutions and impact banks
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