II 

114TH CONGRESS 

2D SESSION S. 3373 

To amend the Federal Deposit Insurance Act to ensure that the reciprocal 

deposits of an insured depository institution are not considered to be 

funds obtained by or through a deposit broker, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 21, 2016 

Mr. WARNER (for himself and Mr. MORAN) 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 ensure that 

the reciprocal deposits of an 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. LIMITED EXCEPTION FOR RECIPROCAL DEPOS4 ITS. 

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

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

7 at the end the following: 


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1 ‘‘(i) LIMITED EXCEPTION FOR RECIPROCAL DEPOS2 ITS.— 

3 ‘‘(1) DEFINITIONS.—In this subsection: 

4 ‘‘(A) AGENT INSTITUTION.—The term 

5 ‘agent institution’ means an insured depository 

6 institution that places a covered deposit 

7 through a deposit placement network at other 

8 insured depository institutions in amounts that 

9 are less than or equal to the standard max10 imum deposit insurance amount, specifying the 

11 interest rate to be paid for such amounts, if the 

12 agent institution— 

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

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

15 composite condition of outstanding or 

16 good; and 

17 ‘‘(II) is well capitalized (as defined in 

18 section 38(b)); 

19 ‘‘(ii) has obtained a waiver pursuant 

20 to subsection (c); or 

21 ‘‘(iii) does not receive an amount of 

22 reciprocal deposits that causes the total 

23 amount of reciprocal deposits held by the 

24 agent institution to be greater than the av25 erage of the total amount of reciprocal deVerDate Sep 11 2014 03:10 Sep 22, 2016 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3373.IS S3373

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1 posits held by the agent institution on the 

2 last day of each of the 4 calendar quarters 

3 preceding the calendar quarter in which 

4 the agent institution was found not to have 

5 a composite condition of outstanding or 

6 good or was determined to be not well cap7 italized. 

8 ‘‘(B) COVERED DEPOSIT.—The term ‘cov9 ered deposit’ means a deposit that— 

10 ‘‘(i) is submitted for placement 

11 through a deposit placement network by an 

12 agent institution; and 

13 ‘‘(ii) does not consist of funds that 

14 were obtained for the agent institution, di15 rectly or indirectly, by or through a deposit 

16 broker before submission for placement 

17 through a deposit placement network. 

18 ‘‘(C) DEPOSIT PLACEMENT NETWORK.— 

19 The term ‘deposit placement network’ means a 

20 network in which an insured depository institu21 tion participates, together with other insured 

22 depository institutions, for the processing and 

23 receipt of reciprocal deposits. 

24 ‘‘(D) NETWORK MEMBER BANK.—The 

25 term ‘network member bank’ means an insured 


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1 depository institution that is a member of a de2 posit placement network. 

3 ‘‘(E) RECIPROCAL DEPOSITS.—The term 

4 ‘reciprocal deposits’ means deposits received by 

5 an agent institution through a deposit place6 ment network with the same maturity (if any) 

7 and in the same aggregate amount as covered 

8 deposits placed by the agent institution in other 

9 network member banks. 

10 ‘‘(2) CONSIDERATION OF RECIPROCAL DEPOS11 ITS.—Reciprocal deposits of an insured depository 

12 institution shall not be considered to be funds ob13 tained, directly or indirectly, by or through a deposit 

14 broker to the extent that the total amount of such 

15 reciprocal deposits does not exceed the lesser of— 

16 ‘‘(A) $10,000,000,000; or 

17 ‘‘(B) an amount equal to 20 percent of the 

18 total liabilities of the insured depository institu19 tion. 

20 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

21 this subsection shall be construed to limit the au22 thority of the corporation to require, on a case-by23 case basis, that an agent institution that is less than 

24 adequately capitalized (as defined in section 38(b)) 

25 not accept particular types of deposits upon finding 


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1 that the acceptance of such deposits constitutes an 

2 unsafe or unsound practice with respect to such in3 stitution.’’. 

4 (b) APPLICABILITY.—Nothing in the amendments 

5 made by this Act shall be construed to limit the applica6 tion of any provision of the Federal Deposit Insurance Act 

7 (12 U.S.C. 1811 et seq.), other than section 29 of that 

8 Act (12 U.S.C. 1831f), to an insured depository institu9 tion (as defined in section 3 of that Act (12 U.S.C. 1813)). 

Æ 


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