Consumer Transaction Account Protection Act of 2019

II 116TH CONGRESS 1ST SESSION S. 3108 To amend the Federal Deposit Insurance Act to provide that the consumer transaction account 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 SENATE OF THE UNITED STATES DECEMBER 19, 2019 Mr. JONES (for himself, Mr. MORAN, and Mr. PERDUE) introduced the fol- lowing bill; which was read twice and referred to the Committee on Bank- ing, Housing, and Urban Affairs A BILL To amend the Federal Deposit Insurance Act to provide that the consumer transaction account 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Consumer Transaction 4 Account Protection Act of 2019’’. 5 VerDate Sep 11 2014 15:52 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3108.IS S3108 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 3108 IS SEC. 2. LIMITED EXCEPTION FOR CONSUMER TRANS- 1 ACTION ACCOUNT DEPOSITS. 2 Section 29 of the Federal Deposit Insurance Act (12 3 U.S.C. 1831f) is amended by adding at the end the fol- 4 lowing new subsection: 5 ‘‘(j) LIMITED EXCEPTION FOR CONSUMER TRANS- 6 ACTION ACCOUNT DEPOSITS.— 7 ‘‘(1) IN GENERAL.—Consumer transaction ac- 8 count deposits of an insured depository institution 9 shall not be considered to be funds obtained, directly 10 or indirectly, by or through a deposit broker. 11 ‘‘(2) DEFINITIONS.—In this subsection: 12 ‘‘(A) CONSUMER TRANSACTION ACCOUNT 13 DEPOSIT.—The term ‘consumer transaction ac- 14 count deposit’ means a deposit in a transaction 15 account with an insured depository institu- 16 tion— 17 ‘‘(i) that is entirely covered by deposit 18 insurance; 19 ‘‘(ii) that is opened by an individual; 20 ‘‘(iii) that is held in the name of the 21 individual; 22 ‘‘(iv) that is used monthly by the indi- 23 vidual to make payments to, and to receive 24 deposits from, third parties; and 25 VerDate Sep 11 2014 15:52 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3108.IS S3108 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 3108 IS ‘‘(v) with respect to which only the in- 1 dividual is recognized by the insured de- 2 pository institution as being authorized to 3 designate that withdrawals or payments be 4 made from the account. 5 ‘‘(B) TRANSACTION ACCOUNT.—The term 6 ‘transaction account’ has the meaning given the 7 term in section 19(b)(1) of the Federal Reserve 8 Act (12 U.S.C. 461(b)(1)).’’. 9 Æ VerDate Sep 11 2014 15:52 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S3108.IS S3108 pamtmann on DSKBC07HB2PROD with BILLS