[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 349 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 349

     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 SENATE OF THE UNITED STATES

                            February 3, 1999

  Mr. Hagel (for himself and Mr. Reed) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 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 
1999''.

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) 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 at that institution 
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 Prohibitions on Payment of Interest on Demand 
Deposits.--
            (1) Federal reserve act.--Section 19(i) of the Federal 
        Reserve Act (12 U.S.C. 371a) is amended to read as follows:
    ``(i) [Reserved].''.
            (2) Home owners' loan act.--Section 5(b)(1)(B) of the Home 
        Owners' Loan Act (12 U.S.C. 1464(b)(1)(B)) is amended--
                    (A) in the first sentence, by striking ``savings 
                association may not--'' and all that follows through 
                ``(ii) permit any'' and inserting ``savings association 
                may not permit any'';
                    (B) by inserting ``(i)'' after ``(B)''; and
                    (C) by striking ``All savings'' and inserting the 
                following:
                    ``(ii) All savings''.
            (3) Federal deposit insurance act.--Section 18(g) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1828(g)) is amended to 
        read as follows:
    ``(g) [Reserved].''.
                                 <all>