I 

114TH CONGRESS 

1ST SESSION H. R. 4116 

To amend the Federal Deposit Insurance Act to ensure that the reciprocal 

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 HOUSE OF REPRESENTATIVES 

NOVEMBER 19, 2015 

Ms. MOORE (for herself and Mr. EMMER of Minnesota) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Federal Deposit Insurance Act to ensure that 

the reciprocal deposits of an insured depository institution are not considered to be funds obtained by or 

through a deposit broker, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. LIMITED EXCEPTION FOR RECIPROCAL DEPOS4 ITS. 

5 (a) IN GENERAL.—Section 29 of the Federal Deposit 

6 Insurance Act (12 U.S.C. 1831f) is amended by adding 

7 at the end the following new subsection: 


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1 ‘‘(i) LIMITED EXCEPTION FOR RECIPROCAL DEPOS2 ITS.— 

3 ‘‘(1) IN GENERAL.—Reciprocal deposits of an 

4 insured depository institution shall not be considered 

5 to be funds obtained, directly or indirectly, by or 

6 through a deposit broker if— 

7 ‘‘(A) when the institution was most re8 cently examined, its composite condition was 

9 found to be outstanding or good; or 

10 ‘‘(B) the total amount of such reciprocal 

11 deposits does not exceed the lesser of— 

12 ‘‘(i) $10,000,000,000; or 

13 ‘‘(ii) an amount equal to 20 percent of 

14 the total liabilities of the insured deposi15 tory institution. 

16 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

17 this subsection shall be construed to limit the au18 thority of the Corporation to require, on a case-by19 case basis, that an agent institution that is less than 

20 adequately capitalized (as defined in section 

21 38(b)(1)(B)) not accept particular types of deposits 

22 upon finding that the acceptance of such deposits 

23 constitutes an unsafe or unsound practice with re24 spect to such institution. 

25 ‘‘(3) DEFINITIONS.—In this subsection: 


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1 ‘‘(A) AGENT INSTITUTION.—The term 

2 ‘agent institution’ means an insured depository 

3 institution that places a covered deposit 

4 through a deposit placement network at other 

5 insured depository institutions in amounts that 

6 are less than or equal to the standard max7 imum deposit insurance amount, specifying the 

8 interest rate to be paid for such amounts, 

9 where the agent institution— 

10 ‘‘(i) is well capitalized (as defined in 

11 section 38(b)(1)(A)) or has obtained a 

12 waiver pursuant to subsection (c) of this 

13 section; or 

14 ‘‘(ii) does not receive an amount of re15 ciprocal deposits that causes the total 

16 amount of reciprocal deposits held by the 

17 agent institution to be greater than the av18 erage of the total amount of reciprocal de19 posits held by the agent institution on the 

20 last day of each of the 4 calendar quarters 

21 preceding the calendar quarter in which 

22 the agent institution was determined to be 

23 not well capitalized. 

24 ‘‘(B) COVERED DEPOSIT.—The term ‘cov25 ered deposit’ means a deposit that— 


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1 ‘‘(i) is submitted for placement 

2 through a deposit placement network by an 

3 agent institution; and 

4 ‘‘(ii) does not consist of funds that 

5 were obtained for the agent institution, di6 rectly or indirectly, by or through a deposit 

7 broker before submission for placement 

8 through a deposit placement network. 

9 ‘‘(C) DEPOSIT PLACEMENT NETWORK.— 

10 The term ‘deposit placement network’ means a 

11 network in which an insured depository institu12 tion participates, together with other insured 

13 depository institutions, for the processing and 

14 receipt of reciprocal deposits. 

15 ‘‘(D) NETWORK MEMBER BANK.—The 

16 term ‘network member bank’ means an insured 

17 depository institution that is a member of a de18 posit placement network. 

19 ‘‘(E) RECIPROCAL DEPOSITS.—The term 

20 ‘reciprocal deposits’ means deposits received by 

21 an agent institution through a deposit place22 ment network with the same maturity (if any) 

23 and in the same aggregate amount as covered 

24 deposits placed by the agent institution in other 

25 network member banks.’’. 


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1 (b) APPLICABILITY.—Nothing in this Act shall be 

2 construed to limit the application of any provision of the 

3 Federal Deposit Insurance Act, other than section 29 of 

4 such Act (12 U.S.C. 1831f), to an insured depository in5 stitution (as defined in section 3(c) of such Act (12 U.S.C. 

6 1813(c))). 

Æ 


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