[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 890 Engrossed in House (EH)]

103d CONGRESS

  1st Session

                               H. R. 890

_______________________________________________________________________

                                 AN ACT

To amend the Federal Deposit Insurance Act and the Federal Credit Union 
Act to improve the procedures for treating unclaimed insured deposits, 
                        and for other purposes.






103d CONGRESS
  1st Session
                                H. R. 890

_______________________________________________________________________

                                 AN ACT


 
To amend the Federal Deposit Insurance Act and the Federal Credit Union 
Act to improve the procedures for treating unclaimed 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 ``Unclaimed Deposits Amendments Act of 
1993''.

SEC. 2. AMENDMENTS RELATING TO TREATMENT OF UNCLAIMED DEPOSITS AT 
              INSURED BANKS AND SAVINGS ASSOCIATIONS.

    (a) In General.--Subsection (e) of section 12 of the Federal 
Deposit Insurance Act (12 U.S.C. 1822(e)) is amended to read as 
follows:
    ``(e) Disposition of Unclaimed Accounts.--
            ``(1) Cash distributions.--
                    ``(A) In general.--If, in connection with any cash 
                distribution under section 11(f)(1) to insured 
                depositors at any insured depository institution, any 
                depositor fails to claim such payment for the 
                depositor's insured deposit from the Corporation before 
                the later of--
                            ``(i) the end of the 3-month period 
                        beginning on the date on which the Corporation 
                        mailed a notice of the distribution to the 
                        depositor at the last-known address for the 
                        depositor on the books of the institution; and
                            ``(ii) the end of the 18-month period 
                        beginning on the date of the appointment of a 
                        receiver for such institution,
                the Corporation shall notify the appropriate State and 
                offer to transfer to the custody of such State an 
                amount equal to the insured deposit of such depositor 
                at such institution for disposition by such State in 
                accordance with any State law which provides for the 
                disposition of abandoned or unclaimed property in the 
                State.
                    ``(B) Disposition of claims if state does not 
                accept custody.--
                            ``(i) Availability to depositor.--If the 
                        appropriate State does not accept the custody 
                        of the amount of any insured deposit which the 
                        Corporation offers to transfer under 
                        subparagraph (A), the Corporation shall permit 
                        the depositor (on whose behalf such transfer 
                        was offered) to make a claim against the 
                        Corporation for an amount equal to the insured 
                        deposit.
                            ``(ii) Termination of claim at end of 
                        receivership.--If a depositor described in 
                        clause (i) fails to make a claim under such 
                        clause for the amount of the insured deposit of 
                        such depositor at the insured depository 
                        institution before the termination of the 
                        receivership--
                                    ``(I) all rights of the depositor 
                                against the Corporation with respect to 
                                such insured deposit shall be barred; 
                                and
                                    ``(II) notwithstanding any 
                                provision of State law, the insured 
                                deposit shall become the property of 
                                the Corporation.
                    ``(C) Disposition of claims if state does accept 
                custody.--If the appropriate State does accept the 
                custody of the amount of any insured deposit which the 
                Corporation offers to transfer under subparagraph (A), 
                all rights of the depositor against the Corporation 
                with respect to such deposit shall be barred as of the 
                date of the transfer.
                    ``(D) Reversion to corporation after 10 years and 
                termination of all claims of depositor.--If an insured 
                deposit is transferred to the custody of the 
                appropriate State and is not claimed by the depositor 
                before the end of the 10-year period beginning on the 
                date of the transfer--
                            ``(i) the deposit shall be transferred back 
                        to the Corporation;
                            ``(ii) all rights of the depositor against 
                        the State with respect to such insured deposit 
                        shall be barred as of the date of the transfer 
                        to the Corporation; and
                            ``(iii) notwithstanding any provision of 
                        State law, the insured deposit shall become the 
                        property of the Corporation.
            ``(2) Transferred deposits.--
                    ``(A) In general.--If the Corporation satisfies the 
                Corporation's obligation under section 11(f)(1) by 
                making available to each depositor a transferred 
                deposit in an insured depository institution (including 
                a new bank or bridge bank), all rights of the depositor 
                against the Corporation with respect to the transferred 
                deposit shall be barred as of the date of the transfer 
                except to the extent otherwise provided under 
                subparagraph (B).
                    ``(B) Offer to transfer to states.--If any 
                depositor fails to claim a transferred deposit from the 
                insured depository institution to which such transfer 
                was made under section 11(f)(1) before the end of the 
                18-month period beginning on the date of the deposit 
                transfer to such institution--
                            ``(i) the institution shall transfer the 
                        insured deposit back to the Corporation;
                            ``(ii) the Corporation shall notify the 
                        appropriate State and offer to transfer to the 
                        custody of such State an amount equal to the 
                        insured deposit of such depositor at such 
                        institution for disposition by such State in 
                        accordance with any State law which provides 
                        for the disposition of abandoned or unclaimed 
                        property in the State; and
                            ``(iii) subparagraphs (B), (C), and (D) of 
                        paragraph (1) shall apply with respect to such 
                        deposit as of the date the Corporation notifies 
                        the appropriate State pursuant to clause (ii).
            ``(3) Appropriate state defined.--For purposes of this 
        subsection, the term `appropriate State' means, with respect to 
        any insured deposit for which a cash distribution or 
        transferred deposit is made available under section 11(f), the 
        State whose laws providing for the disposition of abandoned or 
        unclaimed property would have applied to such deposit if no 
        conservator or receiver had been appointed for the depository 
        institution (as of the date of the distribution or 
        transfer).''.
    (b) Retroactive Application to Unresolved Cases.--
            (1) In general.--Except as provided in paragraph (2), the 
        Federal Deposit Insurance Corporation and the Resolution Trust 
        Corporation shall make available to any qualifying depositor an 
        amount equal to the insured deposit or transferred deposit for 
        which the Corporation was liable under section 11(f) of the 
        Federal Deposit Insurance Act, as in effect on the day before 
        the date of the enactment of this Act.
            (2) Exception for closed receiverships.--The requirements 
        of this subsection shall not apply with respect to any insured 
        deposit or transferred deposit from an insured depository 
        institution for which the Corporation has been appointed 
        receiver before the date of this Act's enactment if--
                    (A) the Corporation was appointed receiver before 
                January 1, 1989; or
                    (B) all stages of winding up the affairs of the 
                institution, or the liquidation of the institution, has 
                been fully completed before the date of the enactment 
                of this Act, including the termination of any 
                receivership, bridge bank, or new bank or the 
                termination of any conservatorship established for any 
                successor or resulting depository institution in 
                connection with such resolution.
            (3) Disposition of claims.--
                    (A) Claim by qualified depositor.--The Corporation 
                shall permit a qualifying depositor to make a claim 
                against the Corporation for the amount referred to in 
                paragraph (1).
                    (B) Consequences of failure to claim.--If a 
                qualifying depositor fails to make a claim under 
                subparagraph (A) before the receivership for the 
                insured depository institution in default is 
                terminated--
                            (i) all rights of the qualifying depositor 
                        against the Corporation with respect to such 
                        claim shall be barred; and
                            (ii) notwithstanding any provision of State 
                        law, the amount shall become property of the 
                        Corporation.
                    (C) Qualifying depositors holding receivership 
                certificates or claims.--In the case of any qualifying 
                depositor who has filed a claim with the Corporation as 
                receiver for any amount which, by reason of this 
                subsection, is eligible for payment under this 
                subsection, the Corporation shall treat the claim as a 
                claim under subparagraph (A).
            (4) Subrogation rights of the corporation.--To the extent 
        the Corporation makes payments of amounts under this 
        subsection, the Corporation shall have the subrogation rights 
        provided in section 11(g) of the Federal Deposit Insurance Act 
        with respect to such payments.
            (5) Release of data to states.--The Corporation shall 
        provide, at the request of and for the sole use of the 
        appropriate State, the name and last-known address of any 
        depositor whose claim with respect to an insured deposit at any 
        insured depository institution was extinguished pursuant to 
        section 12(e) of the Federal Deposit Insurance Act after 
        December 31, 1988, and before the date of the enactment of this 
        Act.
            (6) Definitions.--For purposes of this subsection--
                    (A) Corporation.--The term ``Corporation'' means 
                the Federal Deposit Insurance Corporation or the 
                Resolution Trust Corporation, as the case may be.
                    (B) Qualifying depositor.--The term ``qualifying 
                depositor'' means a depositor who did not receive 
                payment of the depositor's insured deposit or 
                transferred deposit as a result of the depositor's 
                failure to claim the insured deposit or to arrange to 
                continue the transferred deposit, as the case may be, 
                within the 18-month period described in section 12(e) 
                of the Federal Deposit Insurance Act, as in effect on 
                the day before the date of the enactment of this Act.

SEC. 3. AMENDMENTS RELATING TO TREATMENT OF UNCLAIMED DEPOSITS AT 
              INSURED CREDIT UNIONS.

    (a) In General.--Section 207(o) of the Federal Credit Union Act (12 
U.S.C. 1787(o)) is amended to read as follows:
    ``(o) Disposition of Unclaimed Accounts.--
            ``(1) Cash distributions.--
                    ``(A) In general.--If, in connection with any cash 
                distribution under subsection (d)(1) to insured 
                accountholders at any insured credit union, any 
                accountholder fails to claim such payment for the 
                accountholder's insured deposit from the Board before 
                the later of--
                            ``(i) the end of the 4-month period 
                        beginning on the date on which the Board mailed 
                        a notice of the distribution to the 
                        accountholder at the last-known address for the 
                        accountholder on the books of the credit union; 
                        and
                            ``(ii) the end of the 18-month period 
                        beginning on the date of the appointment of a 
                        liquidating agent for such credit union,
                the Board shall notify the appropriate State and offer 
                to transfer to the custody of such State an amount 
                equal to the insured deposit of such accountholder at 
                such credit union for disposition by such State in 
                accordance with any State law which provides for the 
                disposition of abandoned or unclaimed property in the 
                State.
                    ``(B) Disposition of claims if state does not 
                accept custody.--
                            ``(i) Availability to accountholder.--If 
                        the appropriate State does not accept the 
                        custody of the amount of any insured deposit 
                        which the Board offers to transfer under 
                        subparagraph (A), the Board shall permit the 
                        accountholder (on whose behalf such transfer 
                        was offered) to make a claim against the Board 
                        for an amount equal to the insured deposit.
                            ``(ii) Termination of claim at end of 
                        liquidation.--If an accountholder described in 
                        clause (i) fails to make a claim under such 
                        clause for the amount of the insured deposit of 
                        such accountholder at the insured credit union 
                        before the liquidation of the credit union is 
                        completed--
                                    ``(I) all rights of the 
                                accountholder against the Board with 
                                respect to such insured deposit shall 
                                be barred; and
                                    ``(II) notwithstanding any 
                                provision of State law, the insured 
                                deposit shall become the property of 
                                the Board.
                    ``(C) Bar on claims against board while state 
                retains custody of insured deposit.--If the appropriate 
                State does accept the custody of the amount of any 
                insured deposit which the Board offers to transfer 
                under subparagraph (A), all rights of the accountholder 
                against the Board with respect to such deposit shall be 
                barred as of the date of the transfer.
                    ``(D) Reversion to board after 10 years and 
                termination of all claims of accountholder.--If an 
                insured deposit is transferred to the custody of the 
                appropriate State and is not claimed by the 
                accountholder before the end of the 10-year period 
                beginning on the date of the transfer--
                            ``(i) the deposit shall be transferred back 
                        to the Board;
                            ``(ii) all rights of the accountholder 
                        against the State with respect to such insured 
                        deposit shall be barred as of the date of the 
                        transfer to the Board; and
                            ``(iii) notwithstanding any provision of 
                        State law, the insured deposit shall become the 
                        property of the Board.
            ``(2) Transferred deposits.--
                    ``(A) In general.--If the Board satisfies the 
                Board's obligation under subsection (d)(1) by making 
                available to each accountholder a transferred deposit 
                in an insured credit union (including a new credit 
                union), all rights of the accountholder against the 
                Board with respect to the transferred deposit shall be 
                barred as of the date of the transfer except to the 
                extent otherwise provided under subparagraph (B).
                    ``(B) Offer to transfer to states.--If any 
                accountholder fails to claim a transferred deposit from 
                the insured credit union to which such transfer was 
                made under subsection (d)(1) before the end of the 18-
                month period beginning on the date of the deposit 
                transfer to such credit union--
                            ``(i) the credit union shall transfer the 
                        deposit back to the Board;
                            ``(ii) the Board shall notify the 
                        appropriate State and offer to transfer to the 
                        custody of such State an amount equal to the 
                        insured deposit of such accountholder at such 
                        credit union for disposition by such State in 
                        accordance with any State law which provides 
                        for the disposition of abandoned or unclaimed 
                        property in the State; and
                            ``(iii) subparagraphs (B), (C), and (D) of 
                        paragraph (1) shall apply with respect to such 
                        deposit as of the date the Board notifies the 
                        appropriate State pursuant to clause (ii).
            ``(3) Appropriate state defined.--For purposes of this 
        subsection, the term `appropriate State' means, with respect to 
        any insured deposit for which a cash distribution or 
        transferred deposit is made available under subsection (d)(1), 
        the State whose laws providing for the disposition of abandoned 
        or unclaimed property would have applied to such deposit if no 
        conservator or liquidating agent had been appointed for the 
        credit union (as of the date of the distribution or 
        transfer).''.
    (b) Retroactive Application to Unresolved Cases.--
            (1) In general.--Except as provided in paragraph (2), the 
        National Credit Union Administration Board shall make available 
        to any qualifying depositor an amount equal to the insured 
        deposit or transferred deposit for which the Board was liable 
        under section 207(d)(1) of the Federal Credit Union Act, as in 
        effect on the day before the date of the enactment of this Act.
            (2) Exception for credit unions fully liquidated before 
        date of enactment.--The requirements of this subsection shall 
        not apply with respect to any insured deposit or transferred 
        deposit from an insured credit union for which the Board has 
        been appointed liquidating agent before the date of this Act's 
        enactment if--
                    (A) the Board was appointed liquidating agent 
                before January 1, 1989; or
                    (B) the liquidation of the institution has been 
                fully completed before the date of the enactment of 
                this Act.
            (3) Disposition of claims.--
                    (A) Claim by qualified depositor.--The Board shall 
                permit a qualifying depositor to make a claim against 
                the Board for the amount referred to in paragraph (1).
                    (B) Consequences of failure to claim.--If a 
                qualifying depositor fails to make a claim under 
                subparagraph (A) before the Board completes the 
                liquidation of the insured credit union--
                            ``(i) all rights of the qualifying 
                        depositor against the Board with respect to 
                        such claim shall be barred; and
                            ``(ii) notwithstanding any provision of 
                        State law, the amount shall become property of 
                        the Board.
                    (C) Qualifying depositors holding certificates or 
                claims against an insured credit union in 
                liquidation.--In the case of any qualifying depositor 
                who has filed a claim with the Board as liquidating 
                agent for any amount which, by reason of this 
                subsection, is eligible for payment under this 
                subsection, the Board shall treat the claim as a claim 
                under subparagraph (A).
            (4) Subrogation rights of the board.--To the extent the 
        Board makes payments of amounts under this subsection, the 
        Board shall have the subrogation rights provided in section 
        207(e) of the Federal Credit Union Act with respect to such 
        payments.
            (5) Release of data to states.--The Board shall provide, at 
        the request of and for the sole use of the appropriate State, 
        the name and last-known address of any accountholder whose 
        claim with respect to an insured deposit at any insured credit 
        union was extinguished pursuant to section 12(e) of the Federal 
        Deposit Insurance Act after December 31, 1988, and before the 
        date of the enactment of this Act.
            (6) Definitions.--For purposes of this subsection--
                    (A) Board.--The term ``Board'' means the National 
                Credit Union Administration Board.
                    (B) Qualifying depositor.--The term ``qualifying 
                depositor'' means an insured accountholder who did not 
                receive payment of the accountholder's insured deposit 
                or transferred deposit as a result of the 
                accountholder's failure to claim the insured deposit or 
                to arrange to continue the transferred deposit, as the 
                case may be, within the 18-month period described in 
                section 207(o) of the Federal Credit Union Act, as in 
                effect on the day before the date of the enactment of 
                this Act.

            Passed the House of Representatives March 2, 1993.

            Attest:






                                                                 Clerk.

HR 890 EH----2