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103D CONGRESS

1ST SESSION H. R. 3473

To amend the Federal Deposit Insurance Act to provide an alternative disclosure procedure for depository institutions that are not federally insured

with respect to customers who are already depositors on the effective

date of section 43(b)(3) of such Act, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 9, 1993

Ms. PRYCE of Ohio (for herself and Mr. FINGERHUT) 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

an alternative disclosure procedure for depository institutions that are not federally insured with respect to customers who are already depositors on the effective date

of section 43(b)(3) of such Act, 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 ‘‘Depositor Protection

5 Amendments Act of 1993’’.
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1 SEC. 2. SIMPLIFIED DISCLOSURE FOR EXISTING CUS2 TOMERS.

3 (a) IN GENERAL.—Section 43(b)(3) of the Federal

4 Deposit Insurance Act (12 U.S.C. 1831t(b)(3)) is amend5 ed to read as follows:

6 ‘‘(3) ACKNOWLEDGEMENT OF DISCLOSURE.—

7 ‘‘(A) NEW DEPOSITORS.—With respect to

8 any depositor who was not a depositor at the

9 depository institution before June 19, 1994, re10 ceive any deposit for the account of such de11 positor only if the depositor has signed a writ12 ten acknowledgement that—

13 ‘‘(i) the institution is not federally in14 sured; and

15 ‘‘(ii) if the institution fails, the Fed16 eral Government does not guarantee that

17 the depositor will get back the depositor’s

18 money.

19 ‘‘(B) CURRENT DEPOSITORS.—Receive any

20 deposit after the effective date of this para21 graph for the account of any depositor who was

22 a depositor before June 19, 1994, only if—

23 ‘‘(i) the depositor has signed a written

24 acknowledgement described in subpara25 graph (A); or
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1 ‘‘(ii) the institution has complied with

2 the provisions of subparagraph (C) which

3 are applicable as of the date of the deposit.

4 ‘‘(C) ALTERNATIVE PROVISION OF NOTICE

5 TO CURRENT DEPOSITORS.—

6 ‘‘(i) IN GENERAL.—Transmit to each

7 depositor who was a depositor before June

8 19, 1994, and has not signed a written ac9 knowledgement described in subparagraph

10 (A)—

11 ‘‘(I) a card containing a notice

12 that the institution is not federally in13 sured, and a line for the signature of

14 the depositor; and

15 ‘‘(II) accompanying materials re16 questing the depositor to sign the

17 card, and return the signed card to

18 the institution.

19 ‘‘(ii) MANNER AND TIMING OF NO20 TICE.—

21 ‘‘(I) FIRST NOTICE.—Make the

22 transmission described in clause (i)

23 via first class mail within 90 days

24 after June 19, 1994.
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1 ‘‘(II) SECOND NOTICE.—Make a

2 2d transmission described in clause (i)

3 via first class mail not less than 30

4 days and not more than 45 days after

5 a transmission to the depositor in ac6 cordance with subclause (I), if the in7 stitution has not, by the date of such

8 mailing, received from the depositor a

9 card referred to in clause (i)(I) which

10 has been signed by the depositor.

11 ‘‘(III) THIRD NOTICE.—Make a

12 3d transmission described in clause (i)

13 via first class mail not less than 30

14 days and not more than 45 days after

15 a transmission to the depositor in ac16 cordance with subclause (II), if the in17 stitution has not, by the date of such

18 mailing, received from the depositor a

19 card referred to in clause (i)(I) which

20 has been signed by the depositor.’’.

21 (b) EFFECTIVE DATE.—Section 43(b)(3) of the Fed22 eral Deposit Insurance Act, as amended by subsection (a),

23 shall take effect in accordance with section 151(a)(2)(D)

24 of the Federal Deposit Insurance Corporation Improve25 ment Act of 1991.
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