FDIC Act

II 116TH CONGRESS 2D SESSION S. 3298 To amend the Federal Deposit Insurance Act to permit the Federal Deposit Insurance Corporation to terminate the insured status of a depository institution that refuses to provide services to certain Federal contractors, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY 13, 2020 Mr. RUBIO (for himself, Mr. CRAMER, Mr. COTTON, and Mrs. BLACKBURN) 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 permit the Federal Deposit Insurance Corporation to terminate the insured status of a depository institution that refuses to provide services to certain Federal contractors, 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 ‘‘Financial Defense for 4 Industrial Contractors Act’’ or the ‘‘FDIC Act’’. 5 VerDate Sep 11 2014 02:27 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3298.IS S3298 kjohnson on DSK79L0C42PROD with BILLS 2 •S 3298 IS SEC. 2. TERMINATION OF INSURANCE. 1 Section 8 of the Federal Deposit Insurance Act (12 2 U.S.C. 1818) is amended— 3 (1) in subsection (a)(3), by inserting ‘‘or (x)’’ 4 after ‘‘subsection (w)’’; and 5 (2) by adding at the end the following: 6 ‘‘(x) TERMINATION OF INSURANCE RELATING TO 7 DENIAL OF SERVICES TO FEDERAL CONTRACTORS.— 8 ‘‘(1) DEFINITIONS.—In this subsection— 9 ‘‘(A) the term ‘contractor’ means an entity 10 that— 11 ‘‘(i) is a party to a contract with the 12 Federal Government; 13 ‘‘(ii) has complied with all applicable 14 laws and regulations in fulfilling the re- 15 sponsibilities of the entity with respect to 16 the contract described in clause (i); and 17 ‘‘(iii) satisfies traditional underwriting 18 and credit standards with respect to the 19 banking service sought by the entity under 20 paragraph (2); and 21 ‘‘(B) the term ‘covered institution’ means 22 an insured depository institution that has more 23 than $50,000,000,000 in total consolidated as- 24 sets. 25 VerDate Sep 11 2014 02:27 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3298.IS S3298 kjohnson on DSK79L0C42PROD with BILLS 3 •S 3298 IS ‘‘(2) NOTICE OF TERMINATION; 1 PRETERMINATION HEARING.— If a covered institu- 2 tion refuses to provide a banking service sought by 3 a contractor, the Board of Directors shall— 4 ‘‘(A) issue to the insured depository insti- 5 tution a notice of its intention to terminate the 6 insured status of the insured depository institu- 7 tion; and 8 ‘‘(B) schedule a hearing on the matter, 9 which shall be conducted in all respects as a 10 termination hearing pursuant to paragraphs (3) 11 through (5) of subsection (a). 12 ‘‘(3) TEMPORARY INSURANCE OF PREVIOUSLY 13 INSURED DEPOSITS.—Upon termination of the in- 14 sured status of any depository institution pursuant 15 to paragraph (2), the deposits of such depository in- 16 stitution shall be treated in accordance with sub- 17 section (a)(7).’’. 18 Æ VerDate Sep 11 2014 02:27 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S3298.IS S3298 kjohnson on DSK79L0C42PROD with BILLS