I 

116TH CONGRESS 

1ST SESSION H. R. 4384 

To amend the Federal Deposit Insurance Act to ensure that certain custodial 

deposits of a well capitalized insured depository institution are not considered to be funds obtained by or through a deposit broker, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 18, 2019 

Mr. CRIST (for himself and Mr. HILL of Arkansas) 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 

certain custodial deposits of a well capitalized insured 

depository institution are not considered to be funds 

obtained by or through a 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 ‘‘Community Bank De5 posit Access Act of 2019’’. 


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1 SEC. 2. LIMITED EXCEPTION FOR CUSTODIAL DEPOSITS. 

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

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

4 at the end the following: 

5 ‘‘(j) LIMITED EXCEPTION FOR CUSTODIAL DEPOS6 ITS.— 

7 ‘‘(1) IN GENERAL.—Custodial deposits of an el8 igible institution shall not be considered to be funds 

9 obtained, directly or indirectly, by or through a de10 posit broker to the extent that the total amount of 

11 such custodial deposits does not exceed the lesser 

12 of— 

13 ‘‘(A) $5,000,000,000; or 

14 ‘‘(B) an amount equal to 10 percent of the 

15 total liabilities of the eligible institution. 

16 ‘‘(2) DEFINITIONS.—In this subsection: 

17 ‘‘(A) CUSTODIAL DEPOSIT.—The term 

18 ‘custodial deposit’ means a deposit that would 

19 otherwise be considered to be obtained, directly 

20 or indirectly, by or through a deposit broker, if 

21 it is deposited at 1 or more insured depository 

22 institutions, for the purpose of providing or 

23 maintaining deposit insurance for the benefit of 

24 a third party, by or through any of the fol25 lowing, each acting in a formal custodial or fi26 duciary capacity for the benefit of a third party: 


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1 ‘‘(i) An insured depository institution 

2 serving as agent, trustee, or custodian. 

3 ‘‘(ii) A trust entity controlled by an 

4 insured depository institution serving as 

5 agent, trustee, or custodian. 

6 ‘‘(iii) A State-chartered trust company 

7 serving as agent, trustee, or custodian. 

8 ‘‘(iv) A plan administrator or invest9 ment advisor, acting in a formal custodial 

10 or fiduciary capacity for the benefit of a 

11 plan defined in section 3(3) of the Em12 ployee Retirement Income Security Act of 

13 1974 (29 U.S.C. 1002(3)). 

14 ‘‘(B) ELIGIBLE INSTITUTION.—The term 

15 ‘eligible institution’ means an insured deposi16 tory institution that accepts custodial deposits, 

17 that were not placed there in return for fees 

18 paid by the insured depository institution pur19 suant to an agreement with a third party, if the 

20 insured depository institution— 

21 ‘‘(i)(I) when most recently examined 

22 under section 10(d) was found to have a 

23 composite condition of outstanding or 

24 good; and 

25 ‘‘(II) is well capitalized; or 


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1 ‘‘(ii) has obtained a waiver pursuant 

2 to subsection (c). 

3 ‘‘(C) PLAN ADMINISTRATOR.—The term 

4 ‘plan administrator’ has the meaning given the 

5 term ‘administrator’ in section 3(16) of the 

6 Employee Retirement Income Security Act of 

7 1974 (29 U.S.C. 1002(16)). 

8 ‘‘(D) WELL CAPITALIZED.—The term ‘well 

9 capitalized’ has the meaning given the term in 

10 section 38(b)(1)(A).’’. 

11 (b) INTEREST RATE RESTRICTION.—Section 29 of 

12 the Federal Deposit Insurance Act (12 U.S.C. 1831f) is 

13 amended by striking subsection (e) and inserting the fol14 lowing: 

15 ‘‘(e) RESTRICTION ON INTEREST RATE PAID.— 

16 ‘‘(1) DEFINITIONS.—In this subsection— 

17 ‘‘(A) the terms ‘custodial deposit’, ‘eligible 

18 institution’, and ‘well capitalized’ have the 

19 meanings given those terms, respectively, in 

20 subsection (j); and 

21 ‘‘(B) the term ‘covered insured depository 

22 institution’ means an insured depository institu23 tion that— 


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1 ‘‘(i) under subsection (c) or (d), ac2 cepts funds obtained, directly or indirectly, 

3 by or through a deposit broker, or 

4 ‘‘(ii) while acting as an eligible insti5 tution under subsection (j), accepts custo6 dial deposits while not well capitalized. 

7 ‘‘(2) PROHIBITION.—A covered insured deposi8 tory institution may not pay a rate of interest on 

9 funds that, under subsection (c) or (d), are obtained, 

10 directly or indirectly, by or through a deposit broker 

11 or on custodial deposits that are accepted while not 

12 well capitalized that, at the time the funds or custo13 dial deposits are accepted, significantly exceeds the 

14 limit set forth in paragraph (3). 

15 ‘‘(3) LIMIT ON INTEREST RATES.—The limit on 

16 the rate of interest referred to in paragraph (2) shall 

17 be— 

18 ‘‘(A) the rate paid on deposits of similar 

19 maturity in the normal market area of the cov20 ered insured depository institution for deposits 

21 accepted in the normal market area of the cov22 ered insured depository institution; or 

23 ‘‘(B) the national rate paid on deposits of 

24 comparable maturity, as established by the Cor25 poration, for deposits accepted outside the norVerDate Sep 11 2014 21:44 Sep 20, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4384.IH H4384

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1 mal market area of the covered insured deposi2 tory institution.’’. 

Æ 


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