II 

116TH CONGRESS 

1ST SESSION S. 1297 

To amend the Federal Deposit Insurance Act to provide shareholders of 

certain depository institutions a cause of action for assets seized by 

an appropriate Federal banking agency. 

IN THE SENATE OF THE UNITED STATES 

MAY 2, 2019 

Mr. MORAN (for himself and Mr. ROBERTS) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Federal Deposit Insurance Act to provide 

shareholders of certain depository institutions a cause 

of action for assets seized by an appropriate Federal 

banking agency. 

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 ‘‘Independent and Com5 munity Bank Shareholders Protection Act’’. 


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1 SEC. 2. SHAREHOLDER CLAIMS. 

2 (a) IN GENERAL.—Section 11(d) of the Federal De3 posit Insurance Act (12 U.S.C. 1821(d)) is amended by 

4 adding at the end the following: 

5 ‘‘(21) SHAREHOLDER CLAIMS FOR JUST COM6 PENSATION.— 

7 ‘‘(A) DEFINITION.—In this paragraph, the 

8 term ‘covered institution’ means a depository 

9 institution— 

10 ‘‘(i) for which the Corporation has ap11 pointed a conservator or receiver; and 

12 ‘‘(ii) that has total assets of less than 

13 $15,000,000 as of the date on which the 

14 institution enters conservatorship or receiv15 ership. 

16 ‘‘(B) CLAIMS AUTHORIZED.— 

17 ‘‘(i) IN GENERAL.—A shareholder of a 

18 covered institution may file a claim with 

19 the Corporation for just compensation to 

20 be paid by the Corporation to the share21 holder. 

22 ‘‘(ii) HOLDING COMPANIES.—A share23 holder of a depository institution holding 

24 company may file a claim authorized by 

25 this subparagraph on behalf of such com26 pany with respect to a covered institution. 


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1 ‘‘(C) AMOUNT TO BE PAID.—Just com2 pensation shall be paid to a shareholder for a 

3 claim under this paragraph in an amount equal 

4 to the pro-rata share of the shareholder of the 

5 net worth of the covered institution according 

6 to generally accepted accounting principles de7 termined as of the date on which the covered 

8 institution enters conservatorship or receiver9 ship, whichever occurs first. 

10 ‘‘(D) LIMITATION ON PAYMENT OF

11 CLAIMS.—The Corporation shall not pay a 

12 claim under subparagraph (B) if— 

13 ‘‘(i) the covered institution is deter14 mined by the final judgment of a court of 

15 competent jurisdiction to have been insol16 vent as of the date on which the Corpora17 tion was appointed conservator or receiver; 

18 or 

19 ‘‘(ii) the administrative expenses of 

20 the Corporation arising from the appoint21 ment of a conservator or receiver for the 

22 covered institution exceed available funds 

23 from the covered institution, any deposit li24 ability of the institution, any other general 

25 or senior liability of the institution and any 


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1 obligation subordinated to depositors or 

2 general credits exceed the available funds 

3 from the covered institution. 

4 ‘‘(E) STATUTE OF LIMITATIONS.— 

5 ‘‘(i) IN GENERAL.—Except as pro6 vided in clause (ii), the applicable statute 

7 of limitations with regard to a claim 

8 brought by a shareholder under subpara9 graph (B) shall be 90 days beginning on 

10 the date that a conservator or receiver is 

11 appointed for the covered institution pur12 suant to this Act. 

13 ‘‘(ii) CLAIMS ARISING FROM PRIOR AC14 TIONS.—The applicable statute of limita15 tions with regard to a claim brought by a 

16 shareholder under subparagraph (B) for a 

17 covered institution for which a conservator 

18 or receiver was appointed before the date 

19 of enactment of this paragraph shall be 90 

20 days beginning on the date of enactment of 

21 this paragraph. 

22 ‘‘(F) SAVINGS ASSOCIATION SHARE23 HOLDERS.—The rights provided to a share24 holder under subparagraph (B), shall apply in 

25 the same manner and to the same extent to— 


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1 ‘‘(i) a shareholder of a savings asso2 ciation for which the Office of Thrift Su3 pervision or the Office of the Comptroller 

4 of the Currency appointed a conservator or 

5 receiver; and 

6 ‘‘(ii) a shareholder of a savings and 

7 loan holding company on behalf of such 

8 holding company with respect to a savings 

9 association for which the Office of Thrift 

10 Supervision or the Office of the Comp11 troller of the Currency appointed a conser12 vator or receiver. 

13 ‘‘(G) SPECIAL RULES.— 

14 ‘‘(i) PRIOR CLAIMS.—A shareholder 

15 shall not be precluded from filing a claim 

16 under this paragraph if a claim with re17 spect to the same conservatorship or re18 ceivership has been previously adjudicated 

19 before a court of competent jurisdiction. 

20 ‘‘(ii) UNITED STATES COURT OF FED21 ERAL CLAIMS.—A shareholder may seek 

22 review of a denial by the Corporation of a 

23 claim filed under this paragraph in the 

24 United States Court of Federal Claims.’’. 

Æ 


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