[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3373 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 3373

     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.


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                   IN THE SENATE OF THE UNITED STATES

                           September 21, 2016

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

_______________________________________________________________________

                                 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:
    ``(i) Limited Exception for Reciprocal Deposits.--
            ``(1) 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, if the agent institution--
                            ``(i)(I) when most recently examined under 
                        section 10(d) was found to have a composite 
                        condition of outstanding or good; and
                            ``(II) is well capitalized (as defined in 
                        section 38(b));
                            ``(ii) has obtained a waiver pursuant to 
                        subsection (c); or
                            ``(iii) 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 found not to have a composite condition of 
                        outstanding or good or 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.
            ``(2) Consideration of reciprocal deposits.--Reciprocal 
        deposits of an insured depository institution shall not be 
        considered to be funds obtained, directly or indirectly, by or 
        through a deposit broker to the extent that the total amount of 
        such reciprocal deposits does not exceed the lesser of--
                    ``(A) $10,000,000,000; or
                    ``(B) an amount equal to 20 percent of the total 
                liabilities of the insured depository institution.
            ``(3) 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)) 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.''.
    (b) Applicability.--Nothing in the amendments made by this Act 
shall be construed to limit the application of any provision of the 
Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.), other than 
section 29 of that Act (12 U.S.C. 1831f), to an insured depository 
institution (as defined in section 3 of that Act (12 U.S.C. 1813)).
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