I 

110TH CONGRESS 

1ST SESSION H. R. 2547 

To amend the Federal Deposit Insurance Act to prevent misrepresentation 

about deposit insurance coverage, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 24, 2007 

Mr. SIRES (for himself and Mrs. BIGGERT) introduced the following bill; which 

was referred to the Committee on Financial Services 

A BILL 

To amend the Federal Deposit Insurance Act to prevent 

misrepresentation about deposit insurance coverage, 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘FDIC Enforcement 

5 Enhancement Act’’. 


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1 SEC. 2. ENFORCEMENT AGAINST MISREPRESENTATIONS 

2 REGARDING FDIC DEPOSIT INSURANCE COV3 ERAGE. 

4 (a) IN GENERAL.—Section 18(a) of the Federal De5 posit Insurance Act (12 U.S.C. 1828(a)) is amended by 

6 adding at the end the following new paragraph: 

7 ‘‘(4) FALSE ADVERTISING, MISUSE OF FDIC

8 NAMES, AND MISREPRESENTATION TO INDICATE IN9 SURED STATUS.— 

10 ‘‘(A) PROHIBITION ON FALSE ADVER11 TISING AND MISUSE OF FDIC NAMES.—No per12 son may— 

13 ‘‘(i) use the terms ‘Federal Deposit’, 

14 ‘Federal Deposit Insurance’, ‘Federal De15 posit Insurance Corporation’, any combina16 tion of such terms, or the abbreviation 

17 ‘FDIC’ as part of the business name or 

18 firm name of any person, including any 

19 corporation, partnership, business trust, 

20 association, or other business entity; or 

21 ‘‘(ii) use such terms or any other sign 

22 or symbol as part of an advertisement, so23 licitation, or other document, 

24 to represent, suggest or imply that any deposit 

25 liability, obligation, certificate or share is in26 sured or guaranteed by the Federal Deposit InVerDate Aug 31 2005 23:51 May 30, 2007 Jkt 059196 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2547.IH H2547

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1 surance Corporation, if such deposit liability, 

2 obligation, certificate, or share is not insured or 

3 guaranteed by the Corporation. 

4 ‘‘(B) PROHIBITION ON MISREPRESENTA5 TIONS OF INSURED STATUS.—No person may 

6 knowingly misrepresent— 

7 ‘‘(i) that any deposit liability, obliga8 tion, certificate, or share is federally in9 sured, if such deposit liability, obligation, 

10 certificate, or share is not insured by the 

11 Corporation; or 

12 ‘‘(ii) the extent to which or the man13 ner in which any deposit liability, obliga14 tion, certificate, or share is insured by the 

15 Federal Deposit Insurance Corporation, if 

16 such deposit liability, obligation, certificate, 

17 or share is not insured by the Corporation 

18 to the extent or in the manner represented. 

19 ‘‘(C) AUTHORITY OF FDIC.—The Corpora20 tion shall have— 

21 ‘‘(i) jurisdiction over any person that 

22 violates this paragraph, or aids or abets 

23 the violation of this paragraph; and 


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1 ‘‘(ii) for purposes of enforcing the re2 quirements of this paragraph with regard 

3 to any person— 

4 ‘‘(I) the authority of the Cor5 poration under section 10(c) to con6 duct investigations; and 

7 ‘‘(II) the enforcement authority 

8 of the Corporation under subsections 

9 (b), (c), (d) and (i) of section 8, 

10 as if such person were a state nonmember in11 sured bank. 

12 ‘‘(D) OTHER ACTIONS PRESERVED.—No 

13 provision of this paragraph shall be construed 

14 as barring any action otherwise available, under 

15 the laws of the United States or any State, to 

16 any Federal or State law enforcement agency or 

17 individual.’’. 

18 (b) ENFORCEMENT ORDERS.—Section 8(c) of the 

19 Federal Deposit Insurance Act (12 U.S.C. 1818(c)) is 

20 amended by adding at the end the following new para21 graph: 

22 ‘‘(4) FALSE ADVERTISING OR MISUSE OF

23 NAMES TO INDICATE INSURED STATUS.— 

24 ‘‘(A) TEMPORARY ORDER.— 


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1 ‘‘(i) IN GENERAL.—If a notice of 

2 charges served under subsection (b)(1) of 

3 this section specifies on the basis of par4 ticular facts that any person is engaged in 

5 conduct described in section 18(a)(4), the 

6 Corporation may issue a temporary order 

7 requiring— 

8 ‘‘(I) the immediate cessation of 

9 any activity or practice described, 

10 which gave rise to the notice of 

11 charges; and 

12 ‘‘(II) affirmative action to pre13 vent any further, or to remedy any ex14 isting, violation. 

15 ‘‘(ii) EFFECT OF ORDER.—Any tem16 porary order issued under this subpara17 graph shall take effect upon service. 

18 ‘‘(B) EFFECTIVE PERIOD OF TEMPORARY

19 ORDER.—A temporary order issued under sub20 paragraph (A) shall remain effective and en21 forceable, pending the completion of an admin22 istrative proceeding pursuant to subsection 

23 (b)(1) in connection with the notice of 

24 charges— 


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1 ‘‘(i) until such time as the Corpora2 tion shall dismiss the charges specified in 

3 such notice; or 

4 ‘‘(ii) if a cease-and-desist order is 

5 issued against such person, until the effec6 tive date of such order. 

7 ‘‘(C) CIVIL MONEY PENALTIES.—Violations 

8 of section 18(a)(4) shall be subject to civil 

9 money penalties as set forth in subsection (i) in 

10 an amount not to exceed $1,000,000 for each 

11 day during which the violation occurs or con12 tinues.’’. 

13 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

14 (1) Section 18(a)(3) of the Federal Deposit In15 surance Act (12 U.S.C. 1828(a)) is amended by 

16 striking ‘‘of this subsection’’ and inserting ‘‘of para17 graphs (1) and (2)’’. 

18 (2) The heading for subsection (a) of section 18 

19 of the Federal Deposit Insurance Act (12 U.S.C. 

20 1828(a)) is amended by striking ‘‘INSURANCE

21 LOGO.—’’ and inserting ‘‘REPRESENTATIONS OF

22 DEPOSIT INSURANCE.—’’. 

Æ 


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