I 

114TH CONGRESS 

2D SESSION H. R. 6162 

To amend the Federal Deposit Insurance Act to ensure that prepaid funds 

deposited in an insured depository institution satisfy the requirements 

of the primary purpose exclusion to the definition of deposit broker, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 22, 2016 

Mr. TIPTON introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To amend the Federal Deposit Insurance Act to ensure that 

prepaid funds deposited in an insured depository institution satisfy the requirements of the primary purpose 

exclusion to the definition of deposit broker, 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 ‘‘Protect Prepaid Ac5 counts Act of 2016’’. 


smartinez on DSK3GLQ082PROD with BILLS
2 

•HR 6162 IH

1 SEC. 2. LIMITED EXCLUSION FOR PREPAID CARD DEPOS2 ITS. 

3 (a) IN GENERAL.—Section 29 of the Federal Deposit 

4 Insurance Act (12 U.S.C. 1831f) is amended by adding 

5 at the end the following new subsection: 

6 ‘‘(i) LIMITED EXCLUSION FOR PREPAID CARD DE7 POSITS.— 

8 ‘‘(1) IN GENERAL.—Prepaid funds deposited by 

9 an agent or nominee in an insured depository insti10 tution shall satisfy the requirements of the primary 

11 purpose exclusion to the definition of deposit broker 

12 set forth in subsection (g)(2)(I) of this section, un13 less such agent or nominee controls the deposits and 

14 has the contractual right to cause the transfer of 

15 such deposits from the insured depository institution 

16 then holding the deposits to another insured deposi17 tory institution selected by such agent or nominee. 

18 ‘‘(2) DEFINITIONS.—In this subsection, the fol19 lowing definitions shall apply: 

20 ‘‘(A) PREPAID FUNDS.—The term ‘prepaid 

21 funds’ means— 

22 ‘‘(i) funds deposited through a pre23 paid program (as defined in 

24 1010.100(ff)(4)(iii) of title 31, Code of 

25 Federal Regulations); or 


smartinez on DSK3GLQ082PROD with BILLS
3 

•HR 6162 IH

1 ‘‘(ii) funds available from a card, 

2 code, or other device that is not otherwise 

3 an account (as defined in 1005.2(b)(1) of 

4 title 31, Code of Federal Regulations) that 

5 is established primarily for personal, 

6 household, or family purposes, where such 

7 card, code, or other device is— 

8 ‘‘(I) issued on a prepaid basis to 

9 a consumer in a specified amount, or 

10 is not issued on a prepaid basis but 

11 capable of being loaded with funds 

12 thereafter; and 

13 ‘‘(II) redeemable at multiple un14 affiliated merchants for goods or serv15 ices, usable at automated teller ma16 chines, or usable for person-to-person 

17 transfers.’’. 

18 (b) APPLICABILITY.—Nothing in this Act or the 

19 amendment made by this Act shall be construed to limit 

20 the application of any provision of the Federal Deposit In21 surance Act, other than section 29 of such Act (12 U.S.C. 

22 1831f), to an insured depository institution (as defined in 

23 section 3(c) of such Act (12 U.S.C. 1813(c))). 

Æ 


smartinez on DSK3GLQ082PROD with BILLS