[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3993 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3993

     To allow depository institutions to offer negotiable order of 
withdrawal accounts to all businesses, to repeal the prohibition on the 
    payment of interest on demand deposits, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 1996

  Mr. Metcalf (for himself, Mr. McCollum, Mr. Gonzalez, Mr. Baker of 
    Louisiana, Mr. Lazio of New York, and Mr. Orton) introduced the 
  following bill; which was referred to the Committee on Banking and 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
     To allow depository institutions to offer negotiable order of 
withdrawal accounts to all businesses, to repeal the prohibition on the 
    payment of interest on demand 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 ``Small Business Banking Act of 
1996.''.

SEC. 2. AMENDMENTS RELATING TO SAVINGS AND DEMAND DEPOSIT ACCOUNTS AT 
              DEPOSITORY INSTITUTIONS.

    (a) Now Accounts Authorized for All Businesses.--Section 2 of 
Public Law 93-100 (12 U.S.C. 1832(a)(2)) is amended to read as follows:

``SEC. 2. WITHDRAWALS BY NEGOTIABLE OR TRANSFERABLE INSTRUMENTS FOR 
              TRANSFERS TO THIRD PARTIES.

    ``Notwithstanding any other provision of law, any depository 
institution (as defined in section 3 of the Federal Deposit Insurance 
Act) may permit the owner of any deposit or account on which interest 
or dividends are paid to make withdrawals from such deposit or account 
by negotiable or transferable instruments for the purpose of making 
payments to third parties.''.
    (b) Repeal of Prohibition on Payment of Interest on Demand 
Deposits.--
            (1) Section 19 of the Federal Reserve Act (12 U.S.C. 371a) 
        is amended by striking subsection (i).
            (2) The first sentence of section 5(b)(1)(B) of the Home 
        Owners' Loan Act (12 U.S.C. 1464(b)(1)(B)) is amended by 
        striking ``savings association may not--'' and all that follows 
        through ``(ii) permit any'' and inserting ``savings association 
        may not permit any''.
            (3) Section 18 of the Federal Deposit Insurance Act (12 
        U.S.C. 1828) is amended by striking subsection (g).
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