[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2403 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 2403

To amend the Federal Deposit Insurance Act to provide for the insurance 
            of transaction accounts, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 20, 2023

   Mr. Vance 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 provide for the insurance 
            of transaction accounts, 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 ``Payroll Account Guarantee Act of 
2023''.

SEC. 2. INSURANCE OF TRANSACTION ACCOUNTS.

    (a) Banks and Savings Associations.--Section 11(a)(1) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amended--
            (1) in subparagraph (B)--
                    (A) by striking ``The net amount'' and inserting 
                the following:
                            ``(i) In general.--Subject to clause (ii), 
                        the net amount''; and
                    (B) by adding at the end the following new clauses:
                            ``(ii) Insurance for noninterest-bearing 
                        transaction accounts.--
                                    ``(I) Definition.--For purposes of 
                                this subparagraph, the term 
                                `noninterest-bearing transaction 
                                account' means a deposit or account 
                                maintained at an insured depository 
                                institution--
                                            ``(aa) with respect to 
                                        which interest is neither 
                                        accrued nor paid;
                                            ``(bb) on which the 
                                        depositor or account holder is 
                                        permitted to make withdrawals 
                                        by negotiable or transferable 
                                        instrument, payment orders of 
                                        withdrawal, telephone or other 
                                        electronic media transfers, or 
                                        other similar items for the 
                                        purpose of making payments or 
                                        transfers to third parties or 
                                        others; and
                                            ``(cc) on which the insured 
                                        depository institution does not 
                                        reserve the right to require 
                                        advance notice of an intended 
                                        withdrawal.
                                    ``(II) Insurance.--Notwithstanding 
                                clause (i), the Corporation shall fully 
                                insure the net amount that any 
                                depositor at an insured depository 
                                institution with less than 
                                $225,000,000,000 in assets maintains in 
                                a noninterest-bearing transaction 
                                account. Such amount shall not be taken 
                                into account when computing the net 
                                amount due to such depositor under 
                                clause (i).
                                    ``(III) No fees.--No fee may be 
                                levied on an insured depository 
                                institution for the insurance under 
                                this clause.''.
            (2) in subparagraph (C), by striking ``subparagraph (B)'' 
        and inserting ``subparagraph (B)(i)''.
    (b) Credit Unions.--Section 207(k)(1) of the Federal Credit Union 
Act (12 U.S.C. 1787(k)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``Subject to the provisions of 
                paragraph (2), the net amount'' and inserting the 
                following:
                            ``(i) Net amount of insurance payable.--
                        Subject to clause (ii) and the provisions of 
                        paragraph (2), the net amount''; and
                    (B) by adding at the end the following new clauses:
                            ``(ii) Insurance for noninterest-bearing 
                        transaction accounts.--
                                    ``(I) Definition.--For purposes of 
                                this subparagraph, the term 
                                `noninterest-bearing transaction 
                                account' means an account or deposit 
                                maintained at an insured credit union--
                                            ``(aa) with respect to 
                                        which interest is neither 
                                        accrued nor paid;
                                            ``(bb) on which the account 
                                        holder or depositor is 
                                        permitted to make withdrawals 
                                        by negotiable or transferable 
                                        instrument, payment orders of 
                                        withdrawal, telephone or other 
                                        electronic media transfers, or 
                                        other similar items for the 
                                        purpose of making payments or 
                                        transfers to third parties or 
                                        others; and
                                            ``(cc) on which the insured 
                                        credit union does not reserve 
                                        the right to require advance 
                                        notice of an intended 
                                        withdrawal.
                                    ``(II) Insurance.--Notwithstanding 
                                clause (i), the Board shall fully 
                                insure the net amount that any member 
                                or depositor at an insured credit union 
                                maintains in a noninterest-bearing 
                                transaction account. Such amount shall 
                                not be taken into account when 
                                computing the net amount due to such 
                                member or depositor under clause (i).
                                    ``(III) No fees.--No fee may be 
                                levied on an insured credit union for 
                                the insurance under this clause.''.
            (2) in subparagraph (B), by striking ``subparagraph (A)'' 
        and inserting ``subparagraph (A)(i)''.
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