IIB 

110TH CONGRESS 

1ST SESSION H. R. 2547 

IN THE SENATE OF THE UNITED STATES 

JULY 17, 2007 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

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, 


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1 SECTION 1. SHORT TITLE. 

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

3 Enhancement Act’’. 

4 SEC. 2. ENFORCEMENT AGAINST MISREPRESENTATIONS 

5 REGARDING FDIC DEPOSIT INSURANCE COV6 ERAGE. 

7 (a) IN GENERAL.—Section 18(a) of the Federal De8 posit Insurance Act (12 U.S.C. 1828(a)) is amended by 

9 adding at the end the following new paragraph: 

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

11 NAMES, AND MISREPRESENTATION TO INDICATE IN12 SURED STATUS.— 

13 ‘‘(A) PROHIBITION ON FALSE ADVER14 TISING AND MISUSE OF FDIC NAMES.—No per15 son may— 

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

17 ‘Federal Deposit Insurance’, ‘Federal De18 posit Insurance Corporation’, any combina19 tion of such terms, or the abbreviation 

20 ‘FDIC’ as part of the business name or 

21 firm name of any person, including any 

22 corporation, partnership, business trust, 

23 association, or other business entity; or 

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

25 or symbol as part of an advertisement, so26 licitation, or other document, 


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1 to represent, suggest or imply that any deposit 

2 liability, obligation, certificate or share is in3 sured or guaranteed by the Federal Deposit In4 surance Corporation, if such deposit liability, 

5 obligation, certificate, or share is not insured or 

6 guaranteed by the Corporation. 

7 ‘‘(B) PROHIBITION ON MISREPRESENTA8 TIONS OF INSURED STATUS.—No person may 

9 knowingly misrepresent— 

10 ‘‘(i) that any deposit liability, obliga11 tion, certificate, or share is federally in12 sured, if such deposit liability, obligation, 

13 certificate, or share is not insured by the 

14 Corporation; or 

15 ‘‘(ii) the extent to which or the man16 ner in which any deposit liability, obliga17 tion, certificate, or share is insured by the 

18 Federal Deposit Insurance Corporation, if 

19 such deposit liability, obligation, certificate, 

20 or share is not insured by the Corporation 

21 to the extent or in the manner represented. 

22 ‘‘(C) AUTHORITY OF FDIC.—The Corpora23 tion shall have— 


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1 ‘‘(i) jurisdiction over any person that 

2 violates this paragraph, or aids or abets 

3 the violation of this paragraph; and 

4 ‘‘(ii) for purposes of enforcing the re5 quirements of this paragraph with regard 

6 to any person— 

7 ‘‘(I) the authority of the Cor8 poration under section 10(c) to con9 duct investigations; and 

10 ‘‘(II) the enforcement authority 

11 of the Corporation under subsections 

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

13 as if such person were a state nonmember in14 sured bank. 

15 ‘‘(D) OTHER ACTIONS PRESERVED.—No 

16 provision of this paragraph shall be construed 

17 as barring any action otherwise available, under 

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

19 any Federal or State law enforcement agency or 

20 individual.’’. 

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

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

23 amended by adding at the end the following new para24 graph: 


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1 ‘‘(4) FALSE ADVERTISING OR MISUSE OF

2 NAMES TO INDICATE INSURED STATUS.— 

3 ‘‘(A) TEMPORARY ORDER.— 

4 ‘‘(i) IN GENERAL.—If a notice of 

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

6 this section specifies on the basis of par7 ticular facts that any person is engaged in 

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

9 Corporation may issue a temporary order 

10 requiring— 

11 ‘‘(I) the immediate cessation of 

12 any activity or practice described, 

13 which gave rise to the notice of 

14 charges; and 

15 ‘‘(II) affirmative action to pre16 vent any further, or to remedy any ex17 isting, violation. 

18 ‘‘(ii) EFFECT OF ORDER.—Any tem19 porary order issued under this subpara20 graph shall take effect upon service. 

21 ‘‘(B) EFFECTIVE PERIOD OF TEMPORARY

22 ORDER.—A temporary order issued under sub23 paragraph (A) shall remain effective and en24 forceable, pending the completion of an admin25 istrative proceeding pursuant to subsection 


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

2 charges— 

3 ‘‘(i) until such time as the Corpora4 tion shall dismiss the charges specified in 

5 such notice; or 

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

7 issued against such person, until the effec8 tive date of such order. 

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

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

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

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

13 day during which the violation occurs or con14 tinues.’’. 

15 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

16 (1) Section 18(a)(3) of the Federal Deposit In17 surance Act (12 U.S.C. 1828(a)) is amended— 

18 (A) by striking ‘‘this subsection’’ the first 

19 place such term appears and inserting ‘‘para20 graph (1)’’; and 

21 (B) by striking ‘‘this subsection’’ the sec22 ond place such term appears and inserting 

23 ‘‘paragraph (2)’’. 

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

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


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1 1828(a)) is amended by striking ‘‘INSURANCE

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

3 DEPOSIT INSURANCE.—’’. 

Passed the House of Representatives July 16, 2007. 

Attest: LORRAINE C. MILLER, 

Clerk. 


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