[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4116 Introduced in House (IH)]

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114th CONGRESS
  1st Session
                                H. R. 4116

     To amend the Federal Deposit Insurance Act to ensure that the 
   reciprocal deposits of an insured depository institution are not 
considered to be funds obtained by or through a deposit broker, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 19, 2015

   Ms. Moore (for herself and Mr. Emmer of Minnesota) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
     To amend the Federal Deposit Insurance Act to ensure that the 
   reciprocal deposits of an insured depository institution are not 
considered to be funds obtained by or through a deposit broker, 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. LIMITED EXCEPTION FOR RECIPROCAL DEPOSITS.

    (a) In General.--Section 29 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831f) is amended by adding at the end the following new 
subsection:
    ``(i) Limited Exception for Reciprocal Deposits.--
            ``(1) In general.--Reciprocal deposits of an insured 
        depository institution shall not be considered to be funds 
        obtained, directly or indirectly, by or through a deposit 
        broker if--
                    ``(A) when the institution was most recently 
                examined, its composite condition was found to be 
                outstanding or good; or
                    ``(B) the total amount of such reciprocal deposits 
                does not exceed the lesser of--
                            ``(i) $10,000,000,000; or
                            ``(ii) an amount equal to 20 percent of the 
                        total liabilities of the insured depository 
                        institution.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to limit the authority of the Corporation to 
        require, on a case-by-case basis, that an agent institution 
        that is less than adequately capitalized (as defined in section 
        38(b)(1)(B)) not accept particular types of deposits upon 
        finding that the acceptance of such deposits constitutes an 
        unsafe or unsound practice with respect to such institution.
            ``(3) Definitions.--In this subsection:
                    ``(A) Agent institution.--The term `agent 
                institution' means an insured depository institution 
                that places a covered deposit through a deposit 
                placement network at other insured depository 
                institutions in amounts that are less than or equal to 
                the standard maximum deposit insurance amount, 
                specifying the interest rate to be paid for such 
                amounts, where the agent institution--
                            ``(i) is well capitalized (as defined in 
                        section 38(b)(1)(A)) or has obtained a waiver 
                        pursuant to subsection (c) of this section; or
                            ``(ii) does not receive an amount of 
                        reciprocal deposits that causes the total 
                        amount of reciprocal deposits held by the agent 
                        institution to be greater than the average of 
                        the total amount of reciprocal deposits held by 
                        the agent institution on the last day of each 
                        of the 4 calendar quarters preceding the 
                        calendar quarter in which the agent institution 
                        was determined to be not well capitalized.
                    ``(B) Covered deposit.--The term `covered deposit' 
                means a deposit that--
                            ``(i) is submitted for placement through a 
                        deposit placement network by an agent 
                        institution; and
                            ``(ii) does not consist of funds that were 
                        obtained for the agent institution, directly or 
                        indirectly, by or through a deposit broker 
                        before submission for placement through a 
                        deposit placement network.
                    ``(C) Deposit placement network.--The term `deposit 
                placement network' means a network in which an insured 
                depository institution participates, together with 
                other insured depository institutions, for the 
                processing and receipt of reciprocal deposits.
                    ``(D) Network member bank.--The term `network 
                member bank' means an insured depository institution 
                that is a member of a deposit placement network.
                    ``(E) Reciprocal deposits.--The term `reciprocal 
                deposits' means deposits received by an agent 
                institution through a deposit placement network with 
                the same maturity (if any) and in the same aggregate 
                amount as covered deposits placed by the agent 
                institution in other network member banks.''.
    (b) Applicability.--Nothing in this Act shall be construed to limit 
the application of any provision of the Federal Deposit Insurance Act, 
other than section 29 of such Act (12 U.S.C. 1831f), to an insured 
depository institution (as defined in section 3(c) of such Act (12 
U.S.C. 1813(c))).
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