II 

116TH CONGRESS 

2D SESSION S. 4644 

To amend the Federal Deposit Insurance Act to ensure that certain custodial 

deposits of well capitalized insured depository institutions are not considered to be funds obtained by or through deposit brokers, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 22, 2020 

Mr. JONES 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 ensure that 

certain custodial deposits of well capitalized insured depository institutions are not considered to be funds obtained by or through deposit brokers, 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 ‘‘Minority Depository 

5 Institution and Community Bank Deposit Access Act of 

6 2020’’. 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•S 4644 IS

1 SEC. 2. LIMITED EXCEPTION FOR CUSTODIAL DEPOSITS. 

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

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

4 at the end the following: 

5 ‘‘(j) LIMITED EXCEPTION FOR CUSTODIAL DEPOS6 ITS.— 

7 ‘‘(1) IN GENERAL.—Custodial deposits of an el8 igible institution shall not be considered to be funds 

9 obtained, directly or indirectly, by or through a de10 posit broker to the extent that the total amount of 

11 such custodial deposits does not exceed an amount 

12 equal to 20 percent of the total liabilities of the eligi13 ble institution. 

14 ‘‘(2) DEFINITIONS.—In this subsection: 

15 ‘‘(A) CUSTODIAL DEPOSIT.—The term 

16 ‘custodial deposit’ means a deposit that would 

17 otherwise be considered to be obtained, directly 

18 or indirectly, by or through a deposit broker, if 

19 the deposit is deposited at 1 or more insured 

20 depository institutions, for the purpose of pro21 viding or maintaining deposit insurance for the 

22 benefit of a third party, by or through any of 

23 the following, each acting in a formal custodial 

24 or fiduciary capacity for the benefit of a third 

25 party: 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•S 4644 IS

1 ‘‘(i) An insured depository institution 

2 serving as agent, trustee, or custodian. 

3 ‘‘(ii) A trust entity controlled by an 

4 insured depository institution serving as 

5 agent, trustee, or custodian. 

6 ‘‘(iii) A State-chartered trust company 

7 serving as agent, trustee, or custodian. 

8 ‘‘(iv) A plan administrator or invest9 ment advisor, acting in a formal custodial 

10 or fiduciary capacity for the benefit of a 

11 plan, as defined in section 3 of the Em12 ployee Retirement Income Security Act of 

13 1974 (29 U.S.C. 1002). 

14 ‘‘(B) ELIGIBLE INSTITUTION.—The term 

15 ‘eligible institution’ means an insured deposi16 tory institution that accepts custodial deposits, 

17 that were not deposited at the insured deposi18 tory institution in return for fees paid by the 

19 insured depository institution pursuant to an 

20 agreement with a third party, if the insured de21 pository institution— 

22 ‘‘(i)(I) has less than $1,000,000,000 

23 in total assets as reported on the consoli24 dated report of condition and income as reVerDate Sep 11 2014 19:34 Oct 05, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4644.IS S4644

pamtmann on DSKBC07HB2PROD with BILLS
4 

•S 4644 IS

1 ported quarterly to the appropriate Federal 

2 banking agency; or 

3 ‘‘(II)(aa) is a community development 

4 financial institution, as defined in section 

5 103 of the Community Development Bank6 ing and Financial Institutions Act of 1994 

7 (12 U.S.C. 4702); or 

8 ‘‘(bb) is a minority depository institu9 tion, as defined in section 308 of the Fi10 nancial Institutions Reform, Recovery, and 

11 Enforcement Act of 1989 (12 U.S.C. 1463 

12 note); 

13 ‘‘(ii)(I) when most recently examined 

14 under section 10(d) was found to have a 

15 composite condition of outstanding or 

16 good; and 

17 ‘‘(II) is well capitalized; or 

18 ‘‘(iii) has obtained a waiver pursuant 

19 to subsection (c). 

20 ‘‘(C) PLAN ADMINISTRATOR.—The term 

21 ‘plan administrator’ has the meaning given the 

22 term ‘administrator’ in section 3 of the Em23 ployee Retirement Income Security Act of 1974 

24 (29 U.S.C. 1002). 


pamtmann on DSKBC07HB2PROD with BILLS
5 

•S 4644 IS

1 ‘‘(D) WELL CAPITALIZED.—The term ‘well 

2 capitalized’ has the meaning given the term in 

3 section 38(b).’’. 

4 (b) INTEREST RATE RESTRICTION.—Section 29 of 

5 the Federal Deposit Insurance Act (12 U.S.C. 1831f) is 

6 amended by striking subsection (e) and inserting the fol7 lowing: 

8 ‘‘(e) RESTRICTION ON INTEREST RATE PAID.— 

9 ‘‘(1) DEFINITIONS.—In this subsection— 

10 ‘‘(A) the terms ‘custodial deposit’, ‘eligible 

11 institution’, and ‘well capitalized’ have the 

12 meanings given those terms in subsection (j); 

13 and 

14 ‘‘(B) the term ‘covered insured depository 

15 institution’ means an insured depository institu16 tion that— 

17 ‘‘(i) under subsection (c) or (d), ac18 cepts funds obtained, directly or indirectly, 

19 by or through a deposit broker, or 

20 ‘‘(ii) while acting as an eligible insti21 tution under subsection (j), accepts custo22 dial deposits while not well capitalized. 

23 ‘‘(2) PROHIBITION.—A covered insured deposi24 tory institution may not pay a rate of interest on 

25 funds that, under subsection (c) or (d), are obtained, 


pamtmann on DSKBC07HB2PROD with BILLS
6 

•S 4644 IS

1 directly or indirectly, by or through a deposit broker 

2 or on custodial deposits that are accepted while not 

3 well capitalized that, at the time the funds or custo4 dial deposits are accepted, significantly exceeds the 

5 limit set forth in paragraph (3). 

6 ‘‘(3) LIMIT ON INTEREST RATES.—The limit on 

7 the rate of interest referred to in paragraph (2) shall 

8 be not greater than— 

9 ‘‘(A) the rate paid on deposits of similar 

10 maturity in the normal market area of the cov11 ered insured depository institution for deposits 

12 accepted in the normal market area of the cov13 ered insured depository institution; or 

14 ‘‘(B) the national rate paid on deposits of 

15 comparable maturity, as established by the Cor16 poration, for deposits accepted outside the nor17 mal market area of the covered insured deposi18 tory institution.’’. 

19 SEC. 3. COMMUNITY DEVELOPMENT REVOLVING LOAN 

20 FUND FOR CREDIT UNIONS. 

21 Section 130 of the Federal Credit Union Act (12 

22 U.S.C. 1772c–1) is amended by striking subsection (c) 

23 and inserting the following: 

24 ‘‘(c) LOANS.— 


pamtmann on DSKBC07HB2PROD with BILLS
7 

•S 4644 IS

1 ‘‘(1) IN GENERAL.—The Board may require 

2 that any loans made from the Fund be matched by 

3 increased shares in the borrower credit union. 

4 ‘‘(2) ELIGIBILITY.—Only low-income credit 

5 unions and minority depository institutions that are 

6 federally insured credit unions are eligible for loans 

7 made from the Fund.’’. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS