I 

111TH CONGRESS 

1ST SESSION H. R. 3599 

To amend the Federal Deposit Insurance Act to provide for deposit restricted 

qualified tuition programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 17, 2009 

Mr. CLEAVER (for himself and Mr. FRANK of Massachusetts) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Federal Deposit Insurance Act to provide 

for deposit restricted qualified tuition programs, 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 ‘‘Deposit Restricted 

5 Qualified Tuition Programs Act of 2009’’. 

6 SEC. 2. DEPOSIT RESTRICTED QUALIFIED TUITION PRO7 GRAMS. 

8 Section 18 of the Federal Deposit Insurance Act (12 

9 U.S.C. 1828) is amended by adding at the end the fol10 lowing new subsection: 


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1 ‘‘(y) DEPOSIT RESTRICTED QUALIFIED TUITION

2 PROGRAMS.— 

3 ‘‘(1) DEFINITIONS.—For purposes of this sub4 section, the following definitions shall apply: 

5 ‘‘(A) DEPOSIT RESTRICTED QUALIFIED

6 TUITION PROGRAM.—The term ‘deposit re7 stricted qualified tuition program’ means a 

8 qualified tuition program in which— 

9 ‘‘(i) the cash provided by a contrib10 utor to such a qualified tuition program 

11 may be invested only in deposits insured by 

12 the Corporation; 

13 ‘‘(ii) the contributor may become a 

14 participant in the program by depositing 

15 funds into an account at a depository insti16 tution participating in the program; and 

17 ‘‘(iii) the program may include mul18 tiple depository institutions, subject to the 

19 requirements of section 529 of the Internal 

20 Revenue Code of 1986. 

21 ‘‘(B) QUALIFIED TUITION PROGRAM.—The 

22 term ‘qualified tuition program’ has the same 

23 meaning as in section 529 of the Internal Rev24 enue Code of 1986. 


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1 ‘‘(2) TREATMENT.—Notwithstanding any other 

2 provision of the law, the following provisions shall 

3 apply with respect to any deposit restricted qualified 

4 tuition program: 

5 ‘‘(A) A deposit restricted qualified tuition 

6 program shall be deemed to be an ‘identified 

7 banking product’ (as defined in Section 206 of 

8 the Gramm-Leach-Bliley Act of 1999) for pur9 poses of the Securities Exchange Act of 1934. 

10 ‘‘(B) None of the following shall be treated 

11 as a security, as defined in section 2(a)(1) the 

12 Securities Act of 1933, section 3(a)(10) of the 

13 Securities Exchange Act of 1934, or section 

14 2(a)(36) of the Investment Company Act of 

15 1940: 

16 ‘‘(i) The investment of cash in depos17 its at an insured depository institution 

18 through a deposit restricted qualified tui19 tion program. 

20 ‘‘(ii) Any certificate of deposit or 

21 other instrument evidencing any such de22 posit. 

23 ‘‘(iii) Any participation by a contrib24 utor to a deposit restricted qualified tuition 

25 program. 


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1 ‘‘(C) In no event shall a deposit restricted 

2 qualified tuition program be deemed to be an 

3 issuer of a security or to be an investment com4 pany (as defined in section 3(a) of the Invest5 ment Company Act of 1940).’’. 

Æ 


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