I

103D CONGRESS

1ST SESSION H. R. 890

To amend the Federal Deposit Insurance Act to provide for extended periods

of time for claims on insured deposits.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 16, 1993

Mr. FRANK of Massachusetts introduced the following bill; which was referred

to the Committee on Banking, Finance and Urban Affairs

A BILL

To amend the Federal Deposit Insurance Act to provide

for extended periods of time for claims on insured deposits.

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 ‘‘Unclaimed Deposits

5 Amendments Act of 1993’’.

6 SEC. 2. AMENDMENTS RELATING TO TREATMENT OF UN7 CLAIMED DEPOSITS.

8 (a) IN GENERAL.—Subsection (e) of section 12 of the

9 Federal Deposit Insurance Act (12 U.S.C. 1822(e)) is

10 amended to read as follows:
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1 ‘‘(e) DISPOSITION OF UNCLAIMED ACCOUNTS.—

2 ‘‘(1) CASH DISTRIBUTIONS.—

3 ‘‘(A) IN GENERAL.—If, in connection with

4 any cash distribution under section 11(f)(1) to

5 insured depositors at any insured depository in6 stitution, any depositor has failed to file a claim

7 with the Corporation with respect to an insured

8 deposit at such institution before the later of—

9 ‘‘(i) the end of the 3-month period be10 ginning on the date on which the Corpora11 tion mailed a notice of the distribution to

12 the depositor at the last-known address for

13 the depositor on the books of the institu14 tion; and

15 ‘‘(ii) the end of the 18-month period

16 beginning on the date of the appointment

17 of a receiver for such institution,

18 the Corporation shall notify the State in which

19 the principal place of business of the depository

20 institution is located and offer to transfer to

21 the custody of such State an amount equal to

22 the insured deposits of such depositor at such

23 institution for disposition by such State in ac24 cordance with any State law which provides for
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1 the disposition of abandoned property in the

2 State.

3 ‘‘(B) DISPOSITION OF CLAIMS IF STATE

4 DOES NOT ACCEPT CUSTODY.—

5 ‘‘(i) AVAILABILITY TO DEPOSITOR.—If

6 a State referred to in subparagraph (A)

7 does not accept the custody of the amount

8 of any insured deposit which the Corpora9 tion offers to transfer under such subpara10 graph, the Corporation shall permit the de11 positor (on whose behalf such transfer was

12 offered) to make a claim against the Cor13 poration for an amount equal to such de14 posit.

15 ‘‘(ii) TERMINATION OF CLAIM AT END

16 OF RECEIVERSHIP.—If a depositor de17 scribed in clause (i) fails to make a claim

18 under subparagraph (i) for the amount of

19 the insured deposit of such depositor at the

20 insured depository institution before the

21 termination of the receivership appointed

22 for such institution—

23 ‘‘(I) all rights of the depositor

24 against the Corporation with respect
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1 to such insured deposit shall be

2 barred; and

3 ‘‘(II) notwithstanding any provi4 sion of State law, the insured deposit

5 shall become the property of the Cor6 poration.

7 ‘‘(C) DISPOSITION OF CLAIMS IF STATE

8 DOES ACCEPT CUSTODY.—If a State referred to

9 in subparagraph (A) does accept the custody of

10 the amount of any insured deposit which the

11 Corporation offers to transfer under such sub12 paragraph, all rights of the depositor against

13 the Corporation with respect to such deposit

14 shall be barred as of the date on which the

15 amount of the deposit is transferred by the Cor16 poration to the State.

17 ‘‘(2) TRANSFERRED DEPOSITS.—In the case of

18 any transfer by the Corporation of an insured de19 posit under section 11(f)(1) to an insured depository

20 institution (including a new bank or bridge bank)

21 which assumes the liability for such deposit—

22 ‘‘(A) the liability of such institution for the

23 transferred deposit shall be subject to any State

24 law which provides for the disposition of aban25 doned property in the State in which the prin-
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1 cipal place of business of the depository institu2 tion is located; and

3 ‘‘(B) all rights of the depositor against the

4 Corporation with respect to the deposit shall be

5 barred as of the date of the transfer.’’.

6 (b) EFFECTIVE DATE.—The amendment made by

7 subsection (a) shall take effect at the end of the 60-day

8 period beginning on the date of the enactment of this Act.

9 (c) RETROACTIVE APPLICATION TO UNRESOLVED

10 CASES.—

11 (1) IN GENERAL.—Except as provided in para12 graph (2), the amendment made by subsection (a)

13 shall apply with respect to any insured deposit for

14 which the Federal Deposit Insurance Corporation or

15 the Resolution Trust Corporation is or has become

16 liable under section 11(f) of the Federal Deposit In17 surance Act regardless of the date on which a re18 ceiver is or has been appointed for the insured de19 pository institution which held the deposit when the

20 Corporation became liable for the deposit.

21 (2) EXCEPTION FOR CLOSED RECEIVER22 SHIPS.—The amendment made by subsection (a)

23 shall not apply with respect to any insured deposit

24 at an insured depository institution for which a re-
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1 ceiver has been appointed before the date of the en2 actment of this Act if—

3 (A) the receiver was appointed before Jan4 uary 1, 1989; or

5 (B) the resolution of the institution has

6 been fully completed before such date of enact7 ment (including the termination of any

8 conservatorship established for any successor or

9 resulting depository institution in connection

10 with such resolution).

11 (3) REFILING OF CLAIMS FOR INSURED DEPOS12 ITS.—

13 (A) IN GENERAL.—The Federal Deposit

14 Insurance Corporation and the Resolution

15 Trust Corporation shall each establish a proce16 dure for filing claims under section 11(f) of the

17 Federal Deposit Insurance Act for insured de18 posits for which the Corporation is liable solely

19 by reason of the amendment made by sub20 section (a).

21 (B) CONVERSION OF CLAIM AS GENERAL

22 CREDITOR TO CLAIM FOR INSURED DEPOSI23 TOR.—In the case of any person who has filed

24 a claim with the Federal Deposit Insurance

25 Corporation or the Resolution Trust Corpora-
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1 tion as a general creditor for any amount

2 which, by reason of the amendment made by

3 subsection (a), is eligible for treatment as an

4 insured deposit, the Corporation shall treat

5 such claim as a claim for an insured deposit.

6 (C) PROMPT OFFERS TO STATES.—In the

7 case of any claim for an insured deposit—

8 (i) for which the Federal Deposit In9 surance Corporation or the Resolution

10 Trust Corporation is liable by reason of

11 the amendment made by subsection (a);

12 and

13 (ii) which the Corporation has deter14 mined to pay in cash,

15 the Corporation shall offer such payment to the

16 appropriate State in accordance with section

17 12(e)(1)(A) (as amended by such subsection) as

18 soon as possible after the date of the enactment

19 of this Act and not later than 60 days.

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