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

103d CONGRESS
  1st Session
                                H. R. 890

  To amend the Federal Deposit Insurance Act to provide for extended 
            periods of time for claims on insured deposits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 16, 1993

  Mr. Frank 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 provide for extended 
            periods of time for claims on insured deposits.

    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.

    (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 has failed to file a claim with the 
                Corporation with respect to an insured deposit at such 
                institution 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 State in which the 
                principal place of business of the depository 
                institution is located and offer to transfer to the 
                custody of such State an amount equal to the insured 
                deposits of such depositor at such institution for 
                disposition by such State in accordance with any State 
                law which provides for the disposition of abandoned 
                property in the State.
                    ``(B) Disposition of claims if state does not 
                accept custody.--
                            ``(i) Availability to depositor.--If a 
                        State referred to in subparagraph (A) does not 
                        accept the custody of the amount of any insured 
                        deposit which the Corporation offers to 
                        transfer under such subparagraph, 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 such deposit.
                            ``(ii) Termination of claim at end of 
                        receivership.--If a depositor described in 
                        clause (i) fails to make a claim under 
                        subparagraph (i) for the amount of the insured 
                        deposit of such depositor at the insured 
                        depository institution before the termination 
                        of the receivership appointed for such 
                        institution--
                                    ``(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 a State referred to in subparagraph (A) 
                does accept the custody of the amount of any insured 
                deposit which the Corporation offers to transfer under 
                such subparagraph, all rights of the depositor against 
                the Corporation with respect to such deposit shall be 
                barred as of the date on which the amount of the 
                deposit is transferred by the Corporation to the State.
            ``(2) Transferred deposits.--In the case of any transfer by 
        the Corporation of an insured deposit under section 11(f)(1) to 
        an insured depository institution (including a new bank or 
        bridge bank) which assumes the liability for such deposit--
                    ``(A) the liability of such institution for the 
                transferred deposit shall be subject to any State law 
                which provides for the disposition of abandoned 
                property in the State in which the principal place of 
                business of the depository institution is located; and
                    ``(B) all rights of the depositor against the 
                Corporation with respect to the deposit shall be barred 
                as of the date of the transfer.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect at the end of the 60-day period beginning on the date of 
the enactment of this Act.
    (c) Retroactive Application to Unresolved Cases.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall apply with respect to 
        any insured deposit for which the Federal Deposit Insurance 
        Corporation or the Resolution Trust Corporation is or has 
        become liable under section 11(f) of the Federal Deposit 
        Insurance Act regardless of the date on which a receiver is or 
        has been appointed for the insured depository institution which 
        held the deposit when the Corporation became liable for the 
        deposit.
            (2) Exception for closed receiverships.--The amendment made 
        by subsection (a) shall not apply with respect to any insured 
        deposit at an insured depository institution for which a 
        receiver has been appointed before the date of the enactment of 
        this Act if--
                    (A) the receiver was appointed before January 1, 
                1989; or
                    (B) the resolution of the institution has been 
                fully completed before such date of enactment 
                (including the termination of any conservatorship 
                established for any successor or resulting depository 
                institution in connection with such resolution).
            (3) Refiling of claims for insured deposits.--
                    (A) In general.--The Federal Deposit Insurance 
                Corporation and the Resolution Trust Corporation shall 
                each establish a procedure for filing claims under 
                section 11(f) of the Federal Deposit Insurance Act for 
                insured deposits for which the Corporation is liable 
                solely by reason of the amendment made by subsection 
                (a).
                    (B) Conversion of claim as general creditor to 
                claim for insured depositor.--In the case of any person 
                who has filed a claim with the Federal Deposit 
                Insurance Corporation or the Resolution Trust 
                Corporation as a general creditor for any amount which, 
                by reason of the amendment made by subsection (a), is 
                eligible for treatment as an insured deposit, the 
                Corporation shall treat such claim as a claim for an 
                insured deposit.
                    (C) Prompt offers to states.--In the case of any 
                claim for an insured deposit--
                            (i) for which the Federal Deposit Insurance 
                        Corporation or the Resolution Trust Corporation 
                        is liable by reason of the amendment made by 
                        subsection (a); and
                            (ii) which the Corporation has determined 
                        to pay in cash,
                the Corporation shall offer such payment to the 
                appropriate State in accordance with section 
                12(e)(1)(A) (as amended by such subsection) as soon as 
                possible after the date of the enactment of this Act 
                and not later than 60 days.

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