I 

111TH CONGRESS 

2D SESSION H. R. 5511 

To amend the Federal Deposit Insurance Act to codify the Transaction 

Account Guarantee Program of the Federal Deposit Insurance Corporation. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 10, 2010 

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

Committee on Financial Services 

A BILL 

To amend the Federal Deposit Insurance Act to codify the 

Transaction Account Guarantee Program of the Federal 

Deposit Insurance Corporation. 

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 ‘‘Transaction Account 

5 Guarantee Program Act of 2010’’. 

6 SEC. 2. TRANSACTION ACCOUNT GUARANTEE PROGRAM. 

7 The Federal Deposit Insurance Act is amended by 

8 adding at the end the following new section: 


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1 ‘‘SEC. 51. TRANSACTION ACCOUNT GUARANTEE PROGRAM. 

2 ‘‘(a) ESTABLISHMENT.—There is hereby established 

3 the Transaction Account Guarantee Program to provide 

4 a full guarantee for funds held in noninterest-bearing 

5 transaction accounts of insured depository institutions 

6 participating in the TAG Program. 

7 ‘‘(b) GUARANTEE IN ADDITION TO DEPOSIT INSUR8 ANCE.—The guarantee provided for under the TAG Pro9 gram is separate, and in addition to, any deposit insurance 

10 provided with respect to such funds under this Act. 

11 ‘‘(c) OPTING-IN TO THE TAG PROGRAM.— 

12 ‘‘(1) IN GENERAL.—An insured depository in13 stitution that wishes to participate in the TAG Pro14 gram shall submit an application to the Corporation 

15 in such form and manner and containing such infor16 mation as the Corporation may require. The Cor17 poration shall accept all such applications that do 

18 not otherwise conflict with the provisions of this sec19 tion. 

20 ‘‘(2) MINIMUM 6-MONTH PARTICIPATION PE21 RIOD.—An insured depository institution that opts22 in to the TAG Program may not opt-out of the pro23 gram during the 6-month period beginning on the 

24 date on which the such institution opts-in to the 

25 TAG Program. 


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1 ‘‘(3) WAITING PERIOD AFTER OPTING-OUT.— 

2 An insured depository institution may not apply to 

3 participate in the TAG Program if such institution 

4 has opted-out of the TAG Program during the pre5 vious 6-month period. 

6 ‘‘(d) OPT-OUT REQUIREMENTS.— 

7 ‘‘(1) IN GENERAL.—An insured depository in8 stitution may opt-out of the TAG Program by pro9 viding notice to the Corporation in such form and 

10 manner and containing such information as the Cor11 poration may require. 

12 ‘‘(2) CUSTOMER NOTICE REQUIREMENT.—An 

13 insured depository institution that chooses to opt-out 

14 of the TAG Program shall notify each person with 

15 a noninterest-bearing transaction account with the 

16 institution that the institution is opting-out of the 

17 TAG Program. 

18 ‘‘(e) ASSESSMENTS.— 

19 ‘‘(1) IN GENERAL.—The Corporation shall levy 

20 assessments on those insured depository institutions 

21 participating in the TAG Program. 

22 ‘‘(2) RISK-BASED ASSESSMENT SYSTEM.—In 

23 levying assessments under paragraph (1), the Cor24 poration shall levy higher assessments on those in25 sured depository institutions that the Corporation 


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1 determines present a higher risk that the Corpora2 tion will incur a loss under the TAG Program with 

3 respect to such institutions. 

4 ‘‘(3) AMOUNT OF ASSESSMENT.—The Corpora5 tion shall set the amount of assessments made under 

6 paragraph (1) at a level such that the aggregate 

7 amount of all assessments is sufficient to cover the 

8 estimated amount of payments made by the Cor9 poration by reason of guarantees made under the 

10 TAG Program. 

11 ‘‘(f) RULEMAKING.—The Corporation shall issue 

12 such regulations as are necessary to carry out the provi13 sions of this section. 

14 ‘‘(g) DEFINITIONS.—For purposes of this section: 

15 ‘‘(1) NONINTEREST-BEARING TRANSACTION AC16 COUNT.—The term ‘noninterest-bearing transaction 

17 account’ means— 

18 ‘‘(A) a transaction account with respect to 

19 which interest is neither accrued nor paid and 

20 on which the insured depository institution does 

21 not reserve the right to require advance notice 

22 of an intended withdrawal; 

23 ‘‘(B) accounts commonly known as Interest 

24 on Lawyers Trust Accounts, or functionally 

25 equivalent accounts; and 


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1 ‘‘(C) negotiable order of withdrawal ac2 counts with interest rates no higher than 0.50 

3 percent, if the insured depository institution at 

4 which the account is held has committed to 

5 maintain the interest rate at or below 0.50 per6 cent. 

7 ‘‘(2) TAG PROGRAM.—The term ‘TAG Pro8 gram’ means the Transaction Account Guarantee 

9 Program established under subsection (a).’’. 

Æ 


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