[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3012 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 3012

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 4, 2023

 Mr. Manchin (for himself, Mr. Braun, and Mr. Hickenlooper) 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 insurance for 
   noninterest-bearing 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 ``Deposit Security Act''.

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.--Notwithstanding clause 
                        (i), the Corporation shall insure the net 
                        amount that any depositor at an insured 
                        depository institution maintains in a 
                        noninterest-bearing transaction account in an 
                        amount not more than $10,000,000. Such amount 
                        shall not be taken into account when computing 
                        the net amount due to such depositor under 
                        clause (i).
                            ``(iii) Opt-out and opt-in.--
                                    ``(I) Opt-out.--An insured 
                                depository institution may opt out of 
                                the insurance described in clause (ii) 
                                during the 30-day period beginning on 
                                the date on which the program is 
                                established.
                                    ``(II) Opt-in.--An insured 
                                depository institution that opts out 
                                under subclause (I) may opt into the 
                                program every 5 years.
                            ``(iv) Noninterest-bearing transaction 
                        account defined.--For purposes of this 
                        subparagraph, the term `noninterest-bearing 
                        transaction account' means a deposit or account 
                        maintained at an insured depository 
                        institution--
                                    ``(I) with respect to which 
                                interest is neither accrued nor paid;
                                    ``(II) 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
                                    ``(III) on which the insured 
                                depository institution does not reserve 
                                the right to require advance notice of 
                                an intended withdrawal.''; and
            (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.--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 in an 
                        amount not more than $10,000,000. Such amount 
                        shall not be taken into account when computing 
                        the net amount due to such member or depositor 
                        under clause (i).
                            ``(iii) Opt-out and opt-in.--
                                    ``(I) Opt-out.--An insured credit 
                                union may opt out of the insurance 
                                described in clause (ii) during the 30-
                                day period beginning on the date on 
                                which the program is established.
                                    ``(II) Opt-in.--An insured credit 
                                union that opts out under subclause (I) 
                                may opt into the program every 5 years.
                            ``(iv) Noninterest-bearing transaction 
                        account defined.--For purposes of this 
                        subparagraph, the term `noninterest-bearing 
                        transaction account' means an account or 
                        deposit maintained at an insured credit union--
                                    ``(I) with respect to which 
                                interest is neither accrued nor paid;
                                    ``(II) 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
                                    ``(III) on which the insured credit 
                                union does not reserve the right to 
                                require advance notice of an intended 
                                withdrawal.''; and
            (2) in subparagraph (B), by striking ``subparagraph (A)'' 
        and inserting ``subparagraph (A)(i)''.

SEC. 3. INFLATION ADJUSTMENT OF DEPOSIT INSURANCE LIMIT.

    Section 11(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(a)(1)) is amended by striking subparagraph (F) and inserting the 
following:
                    ``(F) Inflation adjustment.--The Board of Directors 
                and the National Credit Union Administration Board 
                shall jointly prescribe the amount by which the 
                standard maximum deposit insurance amount and the 
                standard maximum share insurance amount (as defined in 
                section 207(k) of the Federal Credit Union Act) 
                applicable to any depositor at an insured depository 
                institution shall be adjusted on January 1 once during 
                every 2-year period to reflect the percentage increase, 
                if any, from the preceding fiscal year in the Consumer 
                Price Index For All Urban Consumers, published by the 
                Bureau of Labor Statistics of the Department of 
                Labor).''.
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