I 

111TH CONGRESS 

1ST SESSION H. R. 4178 

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

qualified tuition programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 2, 2009 

Mr. CLEAVER (for himself, Mr. FRANK of Massachusetts, Mr. MOORE of Kansas, Mr. PAUL, Mr. WATT, Mr. MARCHANT, Mr. MCCOTTER, Mrs. 

CAPITO, and Mr. BACHUS) 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’’. 


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1 SEC. 2. DEPOSIT RESTRICTED QUALIFIED TUITION PRO2 GRAMS. 

3 Section 18 of the Federal Deposit Insurance Act (12 

4 U.S.C. 1828) is amended by adding at the end the fol5 lowing new subsection: 

6 ‘‘(y) DEPOSIT RESTRICTED QUALIFIED TUITION

7 PROGRAMS.— 

8 ‘‘(1) DEFINITIONS.—For purposes of this sub9 section, the following definitions shall apply: 

10 ‘‘(A) DEPOSIT RESTRICTED QUALIFIED

11 TUITION PROGRAM.—The term ‘deposit re12 stricted qualified tuition program’ means a 

13 qualified tuition program in which— 

14 ‘‘(i) the cash provided by a contrib15 utor to such a qualified tuition program 

16 may be invested only in deposits insured by 

17 the Corporation; 

18 ‘‘(ii) the contributor may become a 

19 participant in the program by depositing 

20 funds through the program into an account 

21 at a depository institution participating in 

22 the program; and 

23 ‘‘(iii) the program may include mul24 tiple depository institutions, subject to the 

25 requirements of section 529 of the Internal 

26 Revenue Code of 1986, as amended. 


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

2 term ‘qualified tuition program’ has the same 

3 meaning as in section 529 of the Internal Rev4 enue Code of 1986, as amended. 

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

6 provision of the law, the following provisions shall 

7 apply with respect to any deposit restricted qualified 

8 tuition program: 

9 ‘‘(A) A deposit restricted qualified tuition 

10 program shall be deemed to be an ‘identified 

11 banking product’ (as defined in Section 206 of 

12 the Gramm-Leach-Bliley Act of 1999) for pur13 poses of the Securities Exchange Act of 1934. 

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

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

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

17 Securities Exchange Act of 1934, or section 

18 2(a)(36) of the Investment Company Act of 

19 1940: 

20 ‘‘(i) The deposits of cash at an in21 sured depository institution relating to a 

22 deposit restricted tuition program. 

23 ‘‘(ii) Any certificate of deposit or 

24 other instrument of an insured depository 

25 institution evidencing any such deposit. 


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1 ‘‘(iii) The rights and obligations of 

2 participants in a deposit restricted quali3 fied tuition program arising from section 

4 529 of the Internal Revenue Code, as 

5 amended. 

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

7 qualified tuition program, the State entity des8 ignated by statute to oversee such program, the 

9 administrator appointed to operate the program 

10 on behalf of the State or a participating deposi11 tory institution, be deemed to be an issuer of a 

12 security or to be an investment company (as de13 fined in section 3(a) of the Investment Com14 pany Act of 1940).’’. 

Æ 


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