I
103D CONGRESS
1ST SESSION
H. R. 890
To amend the Federal Deposit Insurance Act to provide for extended periods
of time for claims on insured deposits.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 16, 1993
Mr. FRANK of Massachusetts introduced the following bill; which was referred
to the Committee on Banking, Finance and Urban Affairs
A BILL
To amend the Federal Deposit Insurance Act to provide
for extended periods of time for claims on insured deposits.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Unclaimed Deposits
Amendments Act of 1993’’.
SEC. 2. AMENDMENTS RELATING TO TREATMENT OF UN-
CLAIMED DEPOSITS.
(a) IN GENERAL.—Subsection (e) of section 12 of the
Federal Deposit Insurance Act (12 U.S.C. 1822(e)) is
amended to read as follows:
‘‘(e) DISPOSITION OF UNCLAIMED ACCOUNTS.—
‘‘(1) CASH DISTRIBUTIONS.—
‘‘(A) IN GENERAL.—If, in connection with
any cash distribution under section 11(f)(1) to
insured depositors at any insured depository in-
stitution, any depositor has failed to file a claim
with the Corporation with respect to an insured
deposit at such institution before the later of—
‘‘(i) the end of the 3-month period be-
ginning on the date on which the Corpora-
tion mailed a notice of the distribution to
the depositor at the last-known address for
the depositor on the books of the institu-
tion; and
‘‘(ii) the end of the 18-month period
beginning on the date of the appointment
of a receiver for such institution,
the Corporation shall notify the State in which
the principal place of business of the depository
institution is located and offer to transfer to
the custody of such State an amount equal to
the insured deposits of such depositor at such
institution for disposition by such State in ac-
cordance with any State law which provides for
the disposition of abandoned property in the
State.
‘‘(B) DISPOSITION
OF
CLAIMS
IF
STATE
DOES NOT ACCEPT CUSTODY.—
‘‘(i) AVAILABILITY TO DEPOSITOR.—If
a State referred to in subparagraph (A)
does not accept the custody of the amount
of any insured deposit which the Corpora-
tion offers to transfer under such subpara-
graph, the Corporation shall permit the de-
positor (on whose behalf such transfer was
offered) to make a claim against the Cor-
poration for an amount equal to such de-
posit.
‘‘(ii) TERMINATION OF CLAIM AT END
OF
RECEIVERSHIP.—If a depositor de-
scribed in clause (i) fails to make a claim
under subparagraph (i) for the amount of
the insured deposit of such depositor at the
insured depository institution before the
termination of the receivership appointed
for such institution—
‘‘(I) all rights of the depositor
against the Corporation with respect
to such insured deposit shall be
barred; and
‘‘(II) notwithstanding any provi-
sion of State law, the insured deposit
shall become the property of the Cor-
poration.
‘‘(C) DISPOSITION
OF
CLAIMS
IF
STATE
DOES ACCEPT CUSTODY.—If a State referred to
in subparagraph (A) does accept the custody of
the amount of any insured deposit which the
Corporation offers to transfer under such sub-
paragraph, all rights of the depositor against
the Corporation with respect to such deposit
shall be barred as of the date on which the
amount of the deposit is transferred by the Cor-
poration to the State.
‘‘(2) TRANSFERRED DEPOSITS.—In the case of
any transfer by the Corporation of an insured de-
posit under section 11(f)(1) to an insured depository
institution (including a new bank or bridge bank)
which assumes the liability for such deposit—
‘‘(A) the liability of such institution for the
transferred deposit shall be subject to any State
law which provides for the disposition of aban-
doned property in the State in which the prin-
cipal place of business of the depository institu-
tion is located; and
‘‘(B) all rights of the depositor against the
Corporation with respect to the deposit shall be
barred as of the date of the transfer.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect at the end of the 60-day
period beginning on the date of the enactment of this Act.
(c) RETROACTIVE APPLICATION
TO UNRESOLVED
CASES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendment made by subsection (a)
shall apply with respect to any insured deposit for
which the Federal Deposit Insurance Corporation or
the Resolution Trust Corporation is or has become
liable under section 11(f) of the Federal Deposit In-
surance Act regardless of the date on which a re-
ceiver is or has been appointed for the insured de-
pository institution which held the deposit when the
Corporation became liable for the deposit.
(2) 
EXCEPTION
FOR
CLOSED
RECEIVER-
SHIPS.—The amendment made by subsection (a)
shall not apply with respect to any insured deposit
at an insured depository institution for which a re-
ceiver has been appointed before the date of the en-
actment of this Act if—
(A) the receiver was appointed before Jan-
uary 1, 1989; or
(B) the resolution of the institution has
been fully completed before such date of enact-
ment 
(including 
the 
termination 
of 
any
conservatorship established for any successor or
resulting depository institution in connection
with such resolution).
(3) REFILING OF CLAIMS FOR INSURED DEPOS-
ITS.—
(A) IN
GENERAL.—The Federal Deposit
Insurance Corporation and the Resolution
Trust Corporation shall each establish a proce-
dure for filing claims under section 11(f) of the
Federal Deposit Insurance Act for insured de-
posits for which the Corporation is liable solely
by reason of the amendment made by sub-
section (a).
(B) CONVERSION OF CLAIM AS GENERAL
CREDITOR
TO
CLAIM
FOR
INSURED
DEPOSI-
TOR.—In the case of any person who has filed
a claim with the Federal Deposit Insurance
Corporation or the Resolution Trust Corpora-
tion as a general creditor for any amount
which, by reason of the amendment made by
subsection (a), is eligible for treatment as an
insured deposit, the Corporation shall treat
such claim as a claim for an insured deposit.
(C) PROMPT OFFERS TO STATES.—In the
case of any claim for an insured deposit—
(i) for which the Federal Deposit In-
surance Corporation or the Resolution
Trust Corporation is liable by reason of
the amendment made by subsection (a);
and
(ii) which the Corporation has deter-
mined to pay in cash,
the Corporation shall offer such payment to the
appropriate State in accordance with section
12(e)(1)(A) (as amended by such subsection) as
soon as possible after the date of the enactment
of this Act and not later than 60 days.
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