103D CONGRESS

1ST SESSION H. R. 890

AN ACT

To amend the Federal Deposit Insurance Act and

and for other purposes.cedures for treating unclaimed insured deposits,the Federal Credit Union Act to improve the pro-
103D CONGRESS

1ST SESSION H. R. 890

AN ACT

To amend the Federal Deposit Insurance Act and the Federal Credit Union Act to improve the procedures for

treating unclaimed insured deposits, 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 ‘‘Unclaimed Deposits

5 Amendments Act of 1993’’.

6 SEC. 2. AMENDMENTS RELATING TO TREATMENT OF UN7 CLAIMED DEPOSITS AT INSURED BANKS AND

8 SAVINGS ASSOCIATIONS.

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

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

11 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 fails to claim such pay7 ment for the depositor’s insured deposit from

8 the Corporation 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 appropriate

19 State and offer to transfer to the custody of

20 such State an amount equal to the insured de21 posit of such depositor at such institution for

22 disposition by such State in accordance with

23 any State law which provides for the disposition

24 of abandoned or unclaimed property in the

25 State.
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1 ‘‘(B) DISPOSITION OF CLAIMS IF STATE

2 DOES NOT ACCEPT CUSTODY.—

3 ‘‘(i) AVAILABILITY TO DEPOSITOR.—If

4 the appropriate State does not accept the

5 custody of the amount of any insured de6 posit which the Corporation offers to

7 transfer under subparagraph (A), the Cor8 poration shall permit the depositor (on

9 whose behalf such transfer was offered) to

10 make a claim against the Corporation for

11 an amount equal to the insured deposit.

12 ‘‘(ii) TERMINATION OF CLAIM AT END

13 OF RECEIVERSHIP.—If a depositor de14 scribed in clause (i) fails to make a claim

15 under such clause for the amount of the

16 insured deposit of such depositor at the in17 sured depository institution before the ter18 mination of the receivership—

19 ‘‘(I) all rights of the depositor

20 against the Corporation with respect

21 to such insured deposit shall be

22 barred; and

23 ‘‘(II) notwithstanding any provi24 sion of State law, the insured deposit
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1 shall become the property of the Cor2 poration.

3 ‘‘(C) DISPOSITION OF CLAIMS IF STATE

4 DOES ACCEPT CUSTODY.—If the appropriate

5 State does accept the custody of the amount of

6 any insured deposit which the Corporation of7 fers to transfer under subparagraph (A), all

8 rights of the depositor against the Corporation

9 with respect to such deposit shall be barred as

10 of the date of the transfer.

11 ‘‘(D) REVERSION TO CORPORATION AFTER

12 10 YEARS AND TERMINATION OF ALL CLAIMS OF

13 DEPOSITOR.—If an insured deposit is trans14 ferred to the custody of the appropriate State

15 and is not claimed by the depositor before the

16 end of the 10-year period beginning on the date

17 of the transfer—

18 ‘‘(i) the deposit shall be transferred

19 back to the Corporation;

20 ‘‘(ii) all rights of the depositor against

21 the State with respect to such insured de22 posit shall be barred as of the date of the

23 transfer to the Corporation; and
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1 ‘‘(iii) notwithstanding any provision of

2 State law, the insured deposit shall become

3 the property of the Corporation.

4 ‘‘(2) TRANSFERRED DEPOSITS.—

5 ‘‘(A) IN GENERAL.—If the Corporation

6 satisfies the Corporation’s obligation under sec7 tion 11(f)(1) by making available to each de8 positor a transferred deposit in an insured de9 pository institution (including a new bank or

10 bridge bank), all rights of the depositor against

11 the Corporation with respect to the transferred

12 deposit shall be barred as of the date of the

13 transfer except to the extent otherwise provided

14 under subparagraph (B).

15 ‘‘(B) OFFER TO TRANSFER TO STATES.—

16 If any depositor fails to claim a transferred de17 posit from the insured depository institution to

18 which such transfer was made under section

19 11(f)(1) before the end of the 18-month period

20 beginning on the date of the deposit transfer to

21 such institution—

22 ‘‘(i) the institution shall transfer the

23 insured deposit back to the Corporation;

24 ‘‘(ii) the Corporation shall notify the

25 appropriate State and offer to transfer to
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1 the custody of such State an amount equal

2 to the insured deposit of such depositor at

3 such institution for disposition by such

4 State in accordance with any State law

5 which provides for the disposition of aban6 doned or unclaimed property in the State;

7 and

8 ‘‘(iii) subparagraphs (B), (C), and (D)

9 of paragraph (1) shall apply with respect

10 to such deposit as of the date the Corpora11 tion notifies the appropriate State pursu12 ant to clause (ii).

13 ‘‘(3) APPROPRIATE STATE DEFINED.—For pur14 poses of this subsection, the term ‘appropriate State’

15 means, with respect to any insured deposit for which

16 a cash distribution or transferred deposit is made

17 available under section 11(f), the State whose laws

18 providing for the disposition of abandoned or un19 claimed property would have applied to such deposit

20 if no conservator or receiver had been appointed for

21 the depository institution (as of the date of the dis22 tribution or transfer).’’.

23 (b) RETROACTIVE APPLICATION TO UNRESOLVED

24 CASES.—
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1 (1) IN GENERAL.—Except as provided in para2 graph (2), the Federal Deposit Insurance Corpora3 tion and the Resolution Trust Corporation shall

4 make available to any qualifying depositor an

5 amount equal to the insured deposit or transferred

6 deposit for which the Corporation was liable under

7 section 11(f) of the Federal Deposit Insurance Act,

8 as in effect on the day before the date of the enact9 ment of this Act.

10 (2) EXCEPTION FOR CLOSED RECEIVER11 SHIPS.—The requirements of this subsection shall

12 not apply with respect to any insured deposit or

13 transferred deposit from an insured depository insti14 tution for which the Corporation has been appointed

15 receiver before the date of this Act’s enactment if—

16 (A) the Corporation was appointed receiver

17 before January 1, 1989; or

18 (B) all stages of winding up the affairs of

19 the institution, or the liquidation of the institu20 tion, has been fully completed before the date of

21 the enactment of this Act, including the termi22 nation of any receivership, bridge bank, or new

23 bank or the termination of any conservatorship

24 established for any successor or resulting depos-
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1 itory institution in connection with such resolu2 tion.

3 (3) DISPOSITION OF CLAIMS.—

4 (A) CLAIM BY QUALIFIED DEPOSITOR.—

5 The Corporation shall permit a qualifying de6 positor to make a claim against the Corporation

7 for the amount referred to in paragraph (1).

8 (B) CONSEQUENCES OF FAILURE TO

9 CLAIM.—If a qualifying depositor fails to make

10 a claim under subparagraph (A) before the re11 ceivership for the insured depository institution

12 in default is terminated—

13 (i) all rights of the qualifying deposi14 tor against the Corporation with respect to

15 such claim shall be barred; and

16 (ii) notwithstanding any provision of

17 State law, the amount shall become prop18 erty of the Corporation.

19 (C) QUALIFYING DEPOSITORS HOLDING

20 RECEIVERSHIP CERTIFICATES OR CLAIMS.—In

21 the case of any qualifying depositor who has

22 filed a claim with the Corporation as receiver

23 for any amount which, by reason of this sub24 section, is eligible for payment under this sub-
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1 section, the Corporation shall treat the claim as

2 a claim under subparagraph (A).

3 (4) SUBROGATION RIGHTS OF THE CORPORA4 TION.—To the extent the Corporation makes pay5 ments of amounts under this subsection, the Cor6 poration shall have the subrogation rights provided

7 in section 11(g) of the Federal Deposit Insurance

8 Act with respect to such payments.

9 (5) RELEASE OF DATA TO STATES.—The Cor10 poration shall provide, at the request of and for the

11 sole use of the appropriate State, the name and last12 known address of any depositor whose claim with re13 spect to an insured deposit at any insured depository

14 institution was extinguished pursuant to section

15 12(e) of the Federal Deposit Insurance Act after

16 December 31, 1988, and before the date of the en17 actment of this Act.

18 (6) DEFINITIONS.—For purposes of this sub19 section—

20 (A) CORPORATION.—The term ‘‘Corpora21 tion’’ means the Federal Deposit Insurance

22 Corporation or the Resolution Trust Corpora23 tion, as the case may be.

24 (B) QUALIFYING DEPOSITOR.—The term

25 ‘‘qualifying depositor’’ means a depositor who
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1 did not receive payment of the depositor’s in2 sured deposit or transferred deposit as a result

3 of the depositor’s failure to claim the insured

4 deposit or to arrange to continue the trans5 ferred deposit, as the case may be, within the

6 18-month period described in section 12(e) of

7 the Federal Deposit Insurance Act, as in effect

8 on the day before the date of the enactment of

9 this Act.

10 SEC. 3. AMENDMENTS RELATING TO TREATMENT OF UN11 CLAIMED DEPOSITS AT INSURED CREDIT

12 UNIONS.

13 (a) IN GENERAL.—Section 207(o) of the Federal

14 Credit Union Act (12 U.S.C. 1787(o)) is amended to read

15 as follows:

16 ‘‘(o) DISPOSITION OF UNCLAIMED ACCOUNTS.—

17 ‘‘(1) CASH DISTRIBUTIONS.—

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

19 any cash distribution under subsection (d)(1) to

20 insured accountholders at any insured credit

21 union, any accountholder fails to claim such

22 payment for the accountholder’s insured deposit

23 from the Board before the later of—

24 ‘‘(i) the end of the 4-month period be25 ginning on the date on which the Board
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1 mailed a notice of the distribution to the

2 accountholder at the last-known address

3 for the accountholder on the books of the

4 credit union; and

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

6 beginning on the date of the appointment

7 of a liquidating agent for such credit

8 union,

9 the Board shall notify the appropriate State

10 and offer to transfer to the custody of such

11 State an amount equal to the insured deposit of

12 such accountholder at such credit union for dis13 position by such State in accordance with any

14 State law which provides for the disposition of

15 abandoned or unclaimed property in the State.

16 ‘‘(B) DISPOSITION OF CLAIMS IF STATE

17 DOES NOT ACCEPT CUSTODY.—

18 ‘‘(i) AVAILABILITY TO ACCOUNT19 HOLDER.—If the appropriate State does

20 not accept the custody of the amount of

21 any insured deposit which the Board offers

22 to transfer under subparagraph (A), the

23 Board shall permit the accountholder (on

24 whose behalf such transfer was offered) to
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1 make a claim against the Board for an

2 amount equal to the insured deposit.

3 ‘‘(ii) TERMINATION OF CLAIM AT END

4 OF LIQUIDATION.—If an accountholder de5 scribed in clause (i) fails to make a claim

6 under such clause for the amount of the

7 insured deposit of such accountholder at

8 the insured credit union before the liquida9 tion of the credit union is completed—

10 ‘‘(I) all rights of the

11 accountholder against the Board with

12 respect to such insured deposit shall

13 be barred; and

14 ‘‘(II) notwithstanding any provi15 sion of State law, the insured deposit

16 shall become the property of the

17 Board.

18 ‘‘(C) BAR ON CLAIMS AGAINST BOARD

19 WHILE STATE RETAINS CUSTODY OF INSURED

20 DEPOSIT.—If the appropriate State does accept

21 the custody of the amount of any insured de22 posit which the Board offers to transfer under

23 subparagraph (A), all rights of the

24 accountholder against the Board with respect to
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1 such deposit shall be barred as of the date of

2 the transfer.

3 ‘‘(D) REVERSION TO BOARD AFTER 10

4 YEARS AND TERMINATION OF ALL CLAIMS OF

5 ACCOUNTHOLDER.—If an insured deposit is

6 transferred to the custody of the appropriate

7 State and is not claimed by the accountholder

8 before the end of the 10-year period beginning

9 on the date of the transfer—

10 ‘‘(i) the deposit shall be transferred

11 back to the Board;

12 ‘‘(ii) all rights of the accountholder

13 against the State with respect to such in14 sured deposit shall be barred as of the date

15 of the transfer to the Board; and

16 ‘‘(iii) notwithstanding any provision of

17 State law, the insured deposit shall become

18 the property of the Board.

19 ‘‘(2) TRANSFERRED DEPOSITS.—

20 ‘‘(A) IN GENERAL.—If the Board satisfies

21 the Board’s obligation under subsection (d)(1)

22 by making available to each accountholder a

23 transferred deposit in an insured credit union

24 (including a new credit union), all rights of the

25 accountholder against the Board with respect to
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1 the transferred deposit shall be barred as of the

2 date of the transfer except to the extent other3 wise provided under subparagraph (B).

4 ‘‘(B) OFFER TO TRANSFER TO STATES.—

5 If any accountholder fails to claim a transferred

6 deposit from the insured credit union to which

7 such transfer was made under subsection (d)(1)

8 before the end of the 18-month period begin9 ning on the date of the deposit transfer to such

10 credit union—

11 ‘‘(i) the credit union shall transfer the

12 deposit back to the Board;

13 ‘‘(ii) the Board shall notify the appro14 priate State and offer to transfer to the

15 custody of such State an amount equal to

16 the insured deposit of such accountholder

17 at such credit union for disposition by such

18 State in accordance with any State law

19 which provides for the disposition of aban20 doned or unclaimed property in the State;

21 and

22 ‘‘(iii) subparagraphs (B), (C), and (D)

23 of paragraph (1) shall apply with respect

24 to such deposit as of the date the Board
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1 notifies the appropriate State pursuant to

2 clause (ii).

3 ‘‘(3) APPROPRIATE STATE DEFINED.—For pur4 poses of this subsection, the term ‘appropriate State’

5 means, with respect to any insured deposit for which

6 a cash distribution or transferred deposit is made

7 available under subsection (d)(1), the State whose

8 laws providing for the disposition of abandoned or

9 unclaimed property would have applied to such de10 posit if no conservator or liquidating agent had been

11 appointed for the credit union (as of the date of the

12 distribution or transfer).’’.

13 (b) RETROACTIVE APPLICATION TO UNRESOLVED

14 CASES.—

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the National Credit Union Administration

17 Board shall make available to any qualifying deposi18 tor an amount equal to the insured deposit or trans19 ferred deposit for which the Board was liable under

20 section 207(d)(1) of the Federal Credit Union Act,

21 as in effect on the day before the date of the enact22 ment of this Act.

23 (2) EXCEPTION FOR CREDIT UNIONS FULLY

24 LIQUIDATED BEFORE DATE OF ENACTMENT.—The

25 requirements of this subsection shall not apply with
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1 respect to any insured deposit or transferred deposit

2 from an insured credit union for which the Board

3 has been appointed liquidating agent before the date

4 of this Act’s enactment if—

5 (A) the Board was appointed liquidating

6 agent before January 1, 1989; or

7 (B) the liquidation of the institution has

8 been fully completed before the date of the en9 actment of this Act.

10 (3) DISPOSITION OF CLAIMS.—

11 (A) CLAIM BY QUALIFIED DEPOSITOR.—

12 The Board shall permit a qualifying depositor

13 to make a claim against the Board for the

14 amount referred to in paragraph (1).

15 (B) CONSEQUENCES OF FAILURE TO

16 CLAIM.—If a qualifying depositor fails to make

17 a claim under subparagraph (A) before the

18 Board completes the liquidation of the insured

19 credit union—

20 ‘‘(i) all rights of the qualifying deposi21 tor against the Board with respect to such

22 claim shall be barred; and

23 ‘‘(ii) notwithstanding any provision of

24 State law, the amount shall become prop25 erty of the Board.
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1 (C) QUALIFYING DEPOSITORS HOLDING

2 CERTIFICATES OR CLAIMS AGAINST AN INSURED

3 CREDIT UNION IN LIQUIDATION.—In the case of

4 any qualifying depositor who has filed a claim

5 with the Board as liquidating agent for any

6 amount which, by reason of this subsection, is

7 eligible for payment under this subsection, the

8 Board shall treat the claim as a claim under

9 subparagraph (A).

10 (4) SUBROGATION RIGHTS OF THE BOARD.—To

11 the extent the Board makes payments of amounts

12 under this subsection, the Board shall have the sub13 rogation rights provided in section 207(e) of the

14 Federal Credit Union Act with respect to such pay15 ments.

16 (5) RELEASE OF DATA TO STATES.—The Board

17 shall provide, at the request of and for the sole use

18 of the appropriate State, the name and last-known

19 address of any accountholder whose claim with re20 spect to an insured deposit at any insured credit

21 union was extinguished pursuant to section 12(e) of

22 the Federal Deposit Insurance Act after December

23 31, 1988, and before the date of the enactment of

24 this Act.
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1 (6) DEFINITIONS.—For purposes of this sub2 section—

3 (A) BOARD.—The term ‘‘Board’’ means

4 the National Credit Union Administration

5 Board.

6 (B) QUALIFYING DEPOSITOR.—The term

7 ‘‘qualifying depositor’’ means an insured

8 accountholder who did not receive payment of

9 the accountholder’s insured deposit or trans10 ferred deposit as a result of the accountholder’s

11 failure to claim the insured deposit or to ar12 range to continue the transferred deposit, as

13 the case may be, within the 18-month period

14 described in section 207(o) of the Federal Cred15 it Union Act, as in effect on the day before the

16 date of the enactment of this Act.

Passed the House of Representatives March 2,

1993.

Attest:

Clerk.

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