To temporarily provide for Federal insurance of transaction accounts during the COVID-19 emergency.

I 116TH CONGRESS 2D SESSION H. R. 6380 To temporarily provide for Federal insurance of transaction accounts during the COVID–19 emergency. IN THE HOUSE OF REPRESENTATIVES MARCH 24, 2020 Mr. GREEN of Texas (for himself, Ms. GARCIA of Texas, Mr. MEEKS, Mr. CLEAVER, and Mrs. BEATTY) introduced the following bill; which was re- ferred to the Committee on Financial Services A BILL To temporarily provide for Federal insurance of transaction accounts during the COVID–19 emergency. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. INSURANCE OF TRANSACTION ACCOUNTS. 3 (a) BANKS AND SAVINGS ASSOCIATIONS.— 4 (1) AMENDMENTS.—Section 11(a)(1) of the 5 Federal Deposit Insurance Act (12 U.S.C. 6 1821(a)(1)) is amended— 7 (A) in subparagraph (B)— 8 (i) by striking ‘‘The net amount’’ and 9 inserting the following: 10 VerDate Sep 11 2014 18:25 Apr 09, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6380.IH H6380 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 6380 IH ‘‘(i) IN GENERAL.—Subject to clause 1 (ii), the net amount’’; and 2 (ii) by adding at the end the following 3 new clauses: 4 ‘‘(ii) AUTHORIZATION FOR INSURANCE 5 FOR TRANSACTION ACCOUNTS.—Notwith- 6 standing clause (i), the Corporation may 7 fully insure the net amount that any de- 8 positor at an insured depository institution 9 maintains in a transaction account. Such 10 amount shall not be taken into account 11 when computing the net amount due to 12 such depositor under clause (i). 13 ‘‘(iii) TRANSACTION ACCOUNT DE- 14 FINED.—For purposes of this subpara- 15 graph, the term ‘transaction account’ has 16 the meaning given that term under section 17 19 of the Federal Reserve Act (12 U.S.C. 18 461).’’; and 19 (B) in subparagraph (C), by striking ‘‘sub- 20 paragraph (B)’’ and inserting ‘‘subparagraph 21 (B)(i)’’. 22 (2) PROSPECTIVE REPEAL.—Effective January 23 1, 2022, section 11(a)(1) of the Federal Deposit In- 24 VerDate Sep 11 2014 18:25 Apr 09, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6380.IH H6380 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 6380 IH surance Act (12 U.S.C. 1821(a)(1)), as amended by 1 paragraph (1), is amended— 2 (A) in subparagraph (B)— 3 (i) by striking ‘‘DEPOSIT.—’’ and all 4 that follows through ‘‘clause (ii), the net 5 amount’’ and insert ‘‘DEPOSIT.—The net 6 amount’’; and 7 (ii) by striking clauses (ii) and (iii); 8 and 9 (B) in subparagraph (C), by striking ‘‘sub- 10 paragraph (B)(i)’’ and inserting ‘‘subparagraph 11 (B)’’. 12 (b) CREDIT UNIONS.— 13 (1) AMENDMENTS.—Section 207(k)(1) of the 14 Federal Credit Union Act (12 U.S.C. 1787(k)(1)) is 15 amended— 16 (A) in subparagraph (A)— 17 (i) by striking ‘‘Subject to the provi- 18 sions of paragraph (2), the net amount’’ 19 and inserting the following: 20 ‘‘(i) NET AMOUNT OF INSURANCE 21 PAYABLE.—Subject to clause (ii) and the 22 provisions of paragraph (2), the net 23 amount’’; and 24 VerDate Sep 11 2014 18:25 Apr 09, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6380.IH H6380 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 6380 IH (ii) by adding at the end the following 1 new clauses: 2 ‘‘(ii) AUTHORIZATION FOR INSURANCE 3 FOR TRANSACTION ACCOUNTS.—Notwith- 4 standing clause (i), the Board may fully in- 5 sure the net amount that any member or 6 depositor at an insured credit union main- 7 tains in a transaction account. Such 8 amount shall not be taken into account 9 when computing the net amount due to 10 such member or depositor under clause (i). 11 ‘‘(iii) TRANSACTION ACCOUNT DE- 12 FINED.—For purposes of this subpara- 13 graph, the term ‘transaction account’ has 14 the meaning given that term under section 15 19 of the Federal Reserve Act (12 U.S.C. 16 461).’’; and 17 (B) in subparagraph (B), by striking ‘‘sub- 18 paragraph (A)’’ and inserting ‘‘subparagraph 19 (A)(i)’’. 20 (2) PROSPECTIVE REPEAL.—Effective January 21 1, 2022, section 207(k)(1) of the Federal Credit 22 Union Act (12 U.S.C. 1787(k)(1)), as amended by 23 paragraph (1), is amended— 24 (A) in subparagraph (A)— 25 VerDate Sep 11 2014 18:25 Apr 09, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6380.IH H6380 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 6380 IH (i) by striking ‘‘(i) NET AMOUNT OF 1 INSURANCE PAYABLE.—’’ and all that fol- 2 lows through ‘‘paragraph (2), the net 3 amount’’ and inserting ‘‘Subject to the 4 provisions of paragraph (2), the net 5 amount’’; and 6 (ii) by striking clauses (ii) and (iii); 7 and 8 (B) in subparagraph (B), by striking ‘‘sub- 9 paragraph (A)(i)’’ and inserting ‘‘subparagraph 10 (A)’’. 11 (c) COVID–19 EMERGENCY DEFINED.—In this sec- 12 tion, the term ‘‘COVID–19 emergency’’ means the period 13 that begins upon the date of the enactment of this Act 14 and ends upon the date of the termination by the Federal 15 Emergency Management Agency of the emergency de- 16 clared on March 13, 2020, by the President under the 17 Robert T. Stafford Disaster Relief and Emergency Assist- 18 ance Act (42 U.S.C. 4121 et seq.) relating to the 19 Coronavirus Disease 2019 (COVID-19) pandemic. 20 Æ VerDate Sep 11 2014 18:25 Apr 09, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H6380.IH H6380 pamtmann on DSKBC07HB2PROD with BILLS