Sec. 502. Keeping Deposits Local
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Section 29(i) of the Federal Deposit Insurance Act ( 12 U.S.C. 1831f(i) ) is amended by striking paragraph
(1)and inserting the following: The sum of the following amounts of reciprocal deposits of an agent institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker: An amount equal to 50 percent of the portion of the total liabilities of the agent institution that is less than or equal to $1,000,000,000. An amount equal to 40 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $1,000,000,000, but less than or equal to $10,000,000,000. An amount equal to 30 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $10,000,000,000, but less than or equal to $250,000,000,000. . Section 29(i) of the Federal Deposit Insurance Act ( 12 U.S.C. 1831f(i) ) is amended— in paragraph (2)(A)— in clause (i), by striking subclause
(I)and inserting the following: when most recently examined under section 10(d) was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and ; by redesignating clauses
(ii)and
(iii)as clauses
(iii)and (iv), respectively; and by inserting after clause
(i)the following: has not yet been examined under section 10(d) and the deposits of which first became insured under this Act during the current calendar year or during the immediately preceding calendar year; ; and by adding at the end the following: If an insured depository institution ceases to be an agent institution because it no longer satisfies any of the criteria in paragraph (2)(A), the Corporation may, on a case-by-case basis and upon application, provide a waiver to permit the institution to continue to consider some or all of the deposits previously subject to the exception under paragraph
(1)as continuing to be subject to the exception under paragraph (1), for a specific or indefinite period of time, if the Corporation determines that failure to grant such a waiver would negatively impact the safety and soundness of the insured depository institution. . The Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, shall carry out a study on reciprocal deposits. The study required under paragraph
(1)shall include— an analysis of how reciprocal deposits have performed since 2018, which shall include— the use of quantitative and qualitative data; a breakdown of the usage of reciprocal deposits by size of insured depository institution; the usage of reciprocal deposits during periods of stress; and an analysis, to the extent practicable, of end-user depositors, such as municipalities, businesses, and non-profit organizations, that drive demand for reciprocal products; an analysis, to the extent practicable, of how reciprocal deposits compare to other deposit arrangements; and an analysis of the benefits and potential risks of reciprocal deposits. Not later than 6 months after the date of enactment of this Act, the Federal Deposit Insurance Corporation shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under paragraph (1).
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Sec. 502
Keeping Deposits Local
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