I 

109TH CONGRESS 

1ST SESSION H. R. 544 

To amend the Federal Deposit Insurance Act with respect to municipal 

deposits. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 2, 2005 

Mr. GILLMOR introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To amend the Federal Deposit Insurance Act with respect 

to municipal deposits. 

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 ‘‘Municipal Deposit In5 surance Protection Act of 2005’’. 

6 SEC. 2. INCREASED INSURANCE COVERAGE FOR MUNIC7 IPAL DEPOSITS. 

8 Section 11(a)(2) of the Federal Deposit Insurance 

9 Act (12 U.S.C. 1821(a)(2)) is amended— 

10 (1) in subparagraph (A)— 
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1 (A) by moving the margins of clauses (i) 

2 through (v) 4 ems to the right; 

3 (B) by striking, in the matter following 

4 clause (v), ‘‘such depositor shall’’ and all that 

5 follows through the period; and 

6 (C) by striking the semicolon at the end of 

7 clause (v) and inserting a period; 

8 (2) by striking ‘‘(2)(A) Notwithstanding’’ and 

9 all that follows through ‘‘a depositor who is—’’ and 

10 inserting the following new paragraph: 

11 ‘‘(2) MUNICIPAL DEPOSITORS.— 

12 ‘‘(A) IN GENERAL.—Notwithstanding any 

13 limitation in this Act or in any other provision 

14 of law relating to the amount of deposit insur15 ance available to any 1 depositor— 

16 ‘‘(i) a municipal depositor shall, for 

17 the purpose of determining the amount of 

18 insured deposits under this subsection, be 

19 deemed to be a depositor separate and dis20 tinct from any other officer, employee, or 

21 agent of the United States or any public 

22 unit referred to in subparagraph (E); and 

23 ‘‘(ii) except as provided in subpara24 graph (B), the deposits of a municipal de25 positor shall be insured in an amount not 
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1 to exceed the amount referred to in para2 graph (1)(B). 

3 ‘‘(B) IN-STATE MUNICIPAL DEPOSITORS.— 

4 In the case of the deposits of an in-State mu5 nicipal depositor described in clause (ii), (iii), 

6 (iv), or (v) of subparagraph (E) at an insured 

7 depository institution, such deposits shall be in8 sured in an amount not to exceed the lesser 

9 of— 

10 ‘‘(i) $2,000,000; or 

11 ‘‘(ii) the sum of— 

12 ‘‘(I) the amount referred to in 

13 paragraph (1)(B); and 

14 ‘‘(II) 80 percent of the amount of 

15 any deposits in excess of such 

16 amount. 

17 ‘‘(C) MUNICIPAL DEPOSIT PARITY.—No 

18 State may deny to insured depository institu19 tions within its jurisdiction the authority to ac20 cept deposits insured under this paragraph, or 

21 prohibit the making of such deposits in such in22 stitutions by any in-State municipal depositor. 

23 ‘‘(D) IN-STATE MUNICIPAL DEPOSITOR DE24 FINED.—For purposes of this paragraph, the 

25 term ‘in-State municipal depositor’ means a 
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1 municipal depositor that is located in the same 

2 State as the office or branch of the insured de3 pository institution at which the deposits of 

4 that depositor are held. 

5 ‘‘(E) MUNICIPAL DEPOSITOR.—For pur6 poses of this paragraph, the term ‘municipal de7 positor’ means a depositor that is—’’; 

8 (3) by striking ‘‘(B) The’’ and inserting the fol9 lowing: 

10 ‘‘(F) AUTHORITY TO LIMIT DEPOSITS.— 

11 The’’; and 

12 (4) by striking ‘‘depositor referred to in sub13 paragraph (A) of this paragraph’’ each place such 

14 term appears and inserting ‘‘municipal depositor’’. 

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