[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5511 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5511

 To amend the Federal Deposit Insurance Act to codify the Transaction 
Account Guarantee Program of the Federal Deposit Insurance Corporation.


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                    IN THE HOUSE OF REPRESENTATIVES

                             June 10, 2010

 Mr. Marshall introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend the Federal Deposit Insurance Act to codify the Transaction 
Account Guarantee Program of the Federal Deposit Insurance Corporation.

    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 ``Transaction Account Guarantee 
Program Act of 2010''.

SEC. 2. TRANSACTION ACCOUNT GUARANTEE PROGRAM.

    The Federal Deposit Insurance Act is amended by adding at the end 
the following new section:

``SEC. 51. TRANSACTION ACCOUNT GUARANTEE PROGRAM.

    ``(a) Establishment.--There is hereby established the Transaction 
Account Guarantee Program to provide a full guarantee for funds held in 
noninterest-bearing transaction accounts of insured depository 
institutions participating in the TAG Program.
    ``(b) Guarantee in Addition to Deposit Insurance.--The guarantee 
provided for under the TAG Program is separate, and in addition to, any 
deposit insurance provided with respect to such funds under this Act.
    ``(c) Opting-In to the TAG Program.--
            ``(1) In general.--An insured depository institution that 
        wishes to participate in the TAG Program shall submit an 
        application to the Corporation in such form and manner and 
        containing such information as the Corporation may require. The 
        Corporation shall accept all such applications that do not 
        otherwise conflict with the provisions of this section.
            ``(2) Minimum 6-month participation period.--An insured 
        depository institution that opts-in to the TAG Program may not 
        opt-out of the program during the 6-month period beginning on 
        the date on which the such institution opts-in to the TAG 
        Program.
            ``(3) Waiting period after opting-out.--An insured 
        depository institution may not apply to participate in the TAG 
        Program if such institution has opted-out of the TAG Program 
        during the previous 6-month period.
    ``(d) Opt-Out Requirements.--
            ``(1) In general.--An insured depository institution may 
        opt-out of the TAG Program by providing notice to the 
        Corporation in such form and manner and containing such 
        information as the Corporation may require.
            ``(2) Customer notice requirement.--An insured depository 
        institution that chooses to opt-out of the TAG Program shall 
        notify each person with a noninterest-bearing transaction 
        account with the institution that the institution is opting-out 
        of the TAG Program.
    ``(e) Assessments.--
            ``(1) In general.--The Corporation shall levy assessments 
        on those insured depository institutions participating in the 
        TAG Program.
            ``(2) Risk-based assessment system.--In levying assessments 
        under paragraph (1), the Corporation shall levy higher 
        assessments on those insured depository institutions that the 
        Corporation determines present a higher risk that the 
        Corporation will incur a loss under the TAG Program with 
        respect to such institutions.
            ``(3) Amount of assessment.--The Corporation shall set the 
        amount of assessments made under paragraph (1) at a level such 
        that the aggregate amount of all assessments is sufficient to 
        cover the estimated amount of payments made by the Corporation 
        by reason of guarantees made under the TAG Program.
    ``(f) Rulemaking.--The Corporation shall issue such regulations as 
are necessary to carry out the provisions of this section.
    ``(g) Definitions.--For purposes of this section:
            ``(1) Noninterest-bearing transaction account.--The term 
        `noninterest-bearing transaction account' means--
                    ``(A) a transaction account with respect to which 
                interest is neither accrued nor paid and on which the 
                insured depository institution does not reserve the 
                right to require advance notice of an intended 
                withdrawal;
                    ``(B) accounts commonly known as Interest on 
                Lawyers Trust Accounts, or functionally equivalent 
                accounts; and
                    ``(C) negotiable order of withdrawal accounts with 
                interest rates no higher than 0.50 percent, if the 
                insured depository institution at which the account is 
                held has committed to maintain the interest rate at or 
                below 0.50 percent.
            ``(2) TAG program.--The term `TAG Program' means the 
        Transaction Account Guarantee Program established under 
        subsection (a).''.
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