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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 453 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 453

 To amend the Federal Deposit Insurance Act with respect to municipal 
                               deposits.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 29, 2003

  Mr. Gillmor (for himself, Mr. Ney, Mr. Bereuter, and Mrs. Jones of 
    Ohio) 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Municipal Deposit Insurance 
Protection Act of 2003''.

SEC. 2. INCREASED INSURANCE COVERAGE FOR MUNICIPAL DEPOSITS.

    Section 11(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(a)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) by moving the margins of clauses (i) through 
                (v) 4 ems to the right;
                    (B) by striking, in the matter following clause 
                (v), `such depositor shall' and all that follows 
                through the period; and
                    (C) by striking the semicolon at the end of clause 
                (v) and inserting a period;
            (2) by striking ``(2)(A) Notwithstanding'' and all that 
        follows through ``a depositor who is--'' and inserting the 
        following new paragraph:
            ``(2) Municipal Depositors.--
                    ``(A) In general.--Notwithstanding any limitation 
                in this Act or in any other provision of law relating 
                to the amount of deposit insurance available to any 1 
                depositor--
                            ``(i) a municipal depositor shall, for the 
                        purpose of determining the amount of insured 
                        deposits under this subsection, be deemed to be 
                        a depositor separate and distinct from any 
                        other officer, employee, or agent of the United 
                        States or any public unit referred to in 
                        subparagraph (E); and
                            ``(ii) except as provided in subparagraph 
                        (B), the deposits of a municipal depositor 
                        shall be insured in an amount not to exceed the 
                        amount referred to in paragraph (1)(B).
                    ``(B) In-state municipal depositors.--In the case 
                of the deposits of an in-State municipal depositor 
                described in clause (ii), (iii), (iv), or (v) of 
                subparagraph (E) at an insured depository institution, 
                such deposits shall be insured in an amount not to 
                exceed the lesser of--
                            ``(i) $2,000,000; or
                            ``(ii) the sum of--
                                    ``(I) the amount referred to in 
                                paragraph (1)(B); and
                                    ``(II) 80 percent of the amount of 
                                any deposits in excess of such amount.
                    ``(C) Municipal deposit parity.--No State may deny 
                to insured depository institutions within its 
                jurisdiction the authority to accept deposits insured 
                under this paragraph, or prohibit the making of such 
                deposits in such institutions by any in-State municipal 
                depositor.
                    ``(D) In-state municipal depositor defined.--For 
                purposes of this paragraph, the term `in-State 
                municipal depositor' means a municipal depositor that 
                is located in the same State as the office or branch of 
                the insured depository institution at which the 
                deposits of that depositor are held.
                    ``(E) Municipal depositor.--For purposes of this 
                paragraph, the term `municipal depositor' means a 
                depositor that is--'';
            (3) by striking ``(B) The'' and inserting the following:
                    ``(F) Authority to limit deposits.--The''; and
            (4) by striking ``depositor referred to in subparagraph (A) 
        of this paragraph'' each place such term appears and inserting 
        ``municipal depositor''.
                                 <all>
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