I 
118TH CONGRESS 
1ST SESSION H. R. 5845 
To amend the Federal Deposit Insurance Act to address transaction account 
guarantees, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 29, 2023 
Mr. KUSTOFF introduced the following bill; which was referred to the Com-
mittee on Financial Services, and in addition to the Committee on the 
Judiciary, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend the Federal Deposit Insurance Act to address 
transaction account guarantees, and for other purposes. 
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 ‘‘Depositor Protection 
Act of 2023’’. 
SEC. 2. TRANSACTION ACCOUNT GUARANTEES. 
(a) IN GENERAL.—Section 11(a)(1) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amend-
ed— 
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(1) in subparagraph (B)— 
(A) by striking ‘‘The net amount’’ and in-
serting the following: 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the net amount’’; and 
(B) by adding at the end the following: 
‘‘(ii) INSURANCE FOR NONINTEREST- 
BEARING TRANSACTION ACCOUNTS.— 
‘‘(I) 
IN
GENERAL.—Notwith-
standing clause (i), and subject to 
subclause (II) of this clause, the Cor-
poration shall insure the net amount, 
in an amount that is not more than 
$100,000,000, that any depositor at 
an 
insured 
depository 
institution 
maintains in a noninterest-bearing 
transaction account. Such amount 
shall not be taken into account when 
computing the net amount due to 
such depositor under clause (i). 
‘‘(II) ABILITY
OF
CERTAIN
IN-
SURED DEPOSITORY INSTITUTIONS TO 
OPT-OUT.— 
‘‘(aa) IN GENERAL.—An in-
sured depository institution that 
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
has less than $250,000,000,000 
in total consolidated assets may 
elect not to participate with re-
spect to the increased amount of 
insurance made available under 
subclause (I). 
‘‘(bb) LIMITATION
ON
AS-
SESSMENT
OF
FEE.—The Cor-
poration may not assess a fee on 
any insured depository institution 
that elects not to participate with 
respect to the increased amount 
of 
insurance 
made 
available 
under subclause (I). 
‘‘(III) 
DEFINITION.—In 
this 
clause, the term ‘noninterest-bearing 
transaction account’ means a deposit 
or account maintained at an insured 
depository institution— 
‘‘(aa) with respect to which 
interest is neither accrued nor 
paid; 
‘‘(bb) on which the depositor 
or account holder is permitted to 
make withdrawals by negotiable 
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
or transferable instrument, pay-
ment orders of withdrawal, tele-
phone or other electronic media 
transfers, or other similar items 
for the purpose of making pay-
ments or transfers to third par-
ties or others; and 
‘‘(cc) on which the insured 
depository institution does not re-
serve the right to require advance 
notice of an intended with-
drawal.’’; and 
(2) in subparagraph (C), by striking ‘‘subpara-
graph (B)’’ and inserting ‘‘subparagraph (B)(i)’’. 
(b) REVERSION.—On the date that is 2 years after 
the date of enactment of this Act, section 11(a)(1) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is 
amended— 
(1) by amending subparagraph (B) to read as 
follows: 
‘‘(B) NET
AMOUNT
OF
INSURED
DE-
POSIT.—The net amount to any depositor at an 
insured depository institution shall not exceed 
the standard maximum deposit insurance 
amount as determined in accordance with sub-
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
paragraphs (C), (D), (E), and (F) and para-
graph (3).’’; and 
(2) in subparagraph (C), by striking ‘‘subpara-
graph (B)(i)’’ and inserting ‘‘subparagraph (B)’’. 
SEC. 3. RECIPROCAL DEPOSITS. 
Section 29(i)(1) of the Federal Deposit Insurance Act 
(12 U.S.C. 1831f(i)(1)) is amended— 
(1) 
in 
subparagraph 
(A), 
by 
striking 
‘‘$5,000,000,000’’ and inserting ‘‘$10,000,000,000’’; 
and 
(2) in subparagraph (B), by striking ‘‘20 per-
cent’’ and inserting ‘‘25 percent’’. 
SEC. 4. ADJUSTED LEAST COST RESOLUTION. 
Section 13(c)(4) of the Federal Deposit Insurance 
Act (12 U.S.C. 1823(c)(4)) is amended— 
(1) by redesignating subparagraph (H) as sub-
paragraph (I); and 
(2) by inserting after subparagraph (G) the fol-
lowing: 
‘‘(H) NON-SYSTEMIC SECONDARY COST TO 
THE DEPOSIT INSURANCE FUND.— 
‘‘(i) DEFINITIONS.—In this subpara-
graph: 
‘‘(I) LARGE
INSURED
DEPOSI-
TORY INSTITUTION.—The term ‘large 
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
insured depository institution’ means 
an insured depository institution with 
total consolidated assets of not less 
than $100,000,000,000. 
‘‘(II) NON-SYSTEMIC SECONDARY 
COST
TO
THE
DEPOSIT
INSURANCE 
FUND.—The term ‘non-systemic sec-
ondary cost to the Deposit Insurance 
Fund’ means a cost to the Deposit In-
surance Fund from— 
‘‘(aa) the appointment of the 
Corporation as a receiver for a 
second or additional insured de-
pository institution as a direct 
and contemporaneous result of 
the compliance by the Corpora-
tion with subparagraphs (A) and 
(E) with respect to a large in-
sured depository institution, in-
cluding the cost of liquidating 
any such second or additional in-
sured depository institution in 
compliance with subparagraphs 
(A) and (E); 
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(bb) a reduction in the 
price of an asset as a direct and 
contemporaneous result of the 
liquidation by the Corporation of 
a large insured depository insti-
tution in compliance with sub-
paragraphs (A) and (E); or 
‘‘(cc) any other direct and 
contemporaneous result of the 
compliance by the Corporation 
with subparagraphs (A) and (E) 
with respect to a large insured 
depository institution (other than 
any such loss that arises from se-
rious adverse effects on economic 
conditions or financial stability 
within the meaning of subpara-
graph (G)). 
‘‘(ii) ACTION
PERMITTED
UPON
DE-
TERMINATION BY THE BOARD OF DIREC-
TORS.— 
‘‘(I) 
IN
GENERAL.—Notwith-
standing subparagraphs (A) and (E), 
if the Board of Directors (upon a vote 
of not less than two-thirds of the 
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
in this subclause is a determination 
that— 
‘‘(aa) the compliance by the 
Corporation with subparagraphs 
(A) and (E) with respect to a 
large insured depository institu-
tion for which the Corporation 
has 
been 
appointed 
receiver 
would result in a non-systemic 
secondary cost to the Deposit In-
surance Fund; and 
‘‘(bb) any action or assist-
ance under this subparagraph 
would avoid or mitigate the non- 
systemic secondary cost to the 
Deposit 
Insurance 
Fund 
de-
scribed in item (aa). 
‘‘(iii) ADJUSTED LEAST-COST RESOLU-
TION
REQUIREMENT.—The 
Corporation 
may not take any action or provide any as-
sistance under this subparagraph unless 
the total amount of the expenditures by 
the Corporation and obligations incurred 
by the Corporation (including any imme-
diate and long-term obligation of the Cor-
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
poration and any direct or contingent li-
ability for future payment by the Corpora-
tion) in connection with the taking of that 
action or provision of that assistance with 
respect to an insured depository institution 
is the least costly to the Deposit Insurance 
Fund, taking into account the non-sys-
temic secondary costs to the Deposit Insur-
ance Fund that would result without the 
taking of that action or the provision of 
that assistance, of all possible methods for 
meeting the obligations of the Corporation 
under this section. 
‘‘(iv) DOCUMENTATION
REQUIRED.— 
The Chairperson of the Board of Directors 
shall— 
‘‘(I) document any determination 
under clause (ii); and 
‘‘(II) retain the documentation 
for review under clause (v). 
‘‘(v) GAO REVIEW.—The Comptroller 
General of the United States shall review 
and report to Congress on any determina-
tion under clause (ii), including— 
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(I) the basis for the determina-
tion; 
‘‘(II) the purpose for which any 
action was taken pursuant to such 
clause; and 
‘‘(III) the likely effect of the de-
termination and such action on the in-
centives and conduct of insured depos-
itory institutions and uninsured de-
positors. 
‘‘(vi) NOTICE.— 
‘‘(I) IN
GENERAL.—Not later 
than 3 days after making a deter-
mination under clause (ii), the Sec-
retary of the Treasury shall provide 
written notice of any determination 
under clause (ii) to the Committee on 
Banking, Housing, and Urban Affairs 
of the Senate and the Committee on 
Financial Services of the House of 
Representatives. 
‘‘(II) DESCRIPTION OF BASIS OF 
DETERMINATION.—The notice under 
subclause (I) shall include a descrip-
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
tion of the basis for any determination 
under clause (ii).’’. 
SEC. 5. ACQUISITIONS OF DISTRESSED BANKS. 
(a) DEFINITIONS.—In this section: 
(1) APPROPRIATE FEDERAL BANKING AGENCY; 
INSURED BANK.—The terms ‘‘appropriate Federal 
banking agency’’ and ‘‘insured bank’’ have the 
meanings given the terms in section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813). 
(2) BOARD.—The term ‘‘Board’’ means the 
Board of Governors of the Federal Reserve System. 
(3) BANK HOLDING COMPANY; CONTROL; SUB-
SIDIARY.—The terms ‘‘bank holding company’’, 
‘‘control’’, and ‘‘subsidiary’’ have the meanings given 
the terms in section 2 of the Bank Holding Com-
pany Act of 1956 (12 U.S.C. 1841). 
(4) COVERED ENTITY.—The term ‘‘covered en-
tity’’ means— 
(A) after a transaction described in sub-
section (b)(1)(A), the bank holding company of 
which the applicable distressed insured bank 
has become a subsidiary; 
(B) after a transaction described in sub-
section (b)(1)(B), the bank holding company 
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
that has acquired the direct or indirect owner-
ship or control described in that provision; and 
(C) after a merger or consolidation de-
scribed in subsection (b)(1)(C), the bank hold-
ing company that results because of that merg-
er or consolidation. 
(5) DISTRESSED
INSURED
BANK.—The term 
‘‘distressed insured bank’’ means an insured bank 
that has a class of equity securities, or is controlled, 
directly or indirectly, by a company that has a class 
of equity securities— 
(A) registered pursuant to section 12(b) of 
the Securities Exchange Act of 1934 (15 
U.S.C. 78l(b)); and 
(B) the price of which on a national securi-
ties exchange has declined not less than 20 per-
cent at any time on or after March 1, 2023, as 
compared with the highest price of those securi-
ties on that exchange on or after March 1, 
2023. 
(6) EQUITY SECURITY; EXCHANGE.—The terms 
‘‘equity security’’ and ‘‘exchange’’ have the meanings 
given the terms in section 3(a) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78c(a)). 
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(7) NATIONAL
SECURITIES
EXCHANGE.—The 
term ‘‘national securities exchange’’ means an ex-
change that is registered in accordance with section 
6 of the Securities Exchange Act of 1934 (15 U.S.C. 
78f). 
(8) TOTAL CONSOLIDATED ASSETS.—The term 
‘‘total consolidated assets’’ means, with respect to an 
entity, the total consolidated assets of that entity, as 
determined pursuant to the instructions of Form FR 
Y–9C of the Board. 
(b) TEMPORARY WAIVER OF REGULATORY APPROV-
ALS FOR ACQUISITIONS OF DISTRESSED BANKS.— 
(1) IN GENERAL.—Subject to paragraphs (2) 
and (3), except as provided in paragraph (4), and 
notwithstanding any requirement or restriction relat-
ing to notification, approval, or other matter under 
section 3 or 4 of the Bank Holding Company Act of 
1956 (12 U.S.C. 1842, 1843), section 7(j) or 18(c) 
of the Federal Deposit Insurance Act (12 U.S.C. 
1817(j), 1828(c)), or any other Federal or State 
law, after written notice to the Board— 
(A) a distressed insured bank may become 
a subsidiary of a bank holding company; 
(B) a bank holding company may acquire 
direct or indirect ownership or control of any 
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
voting shares of any distressed insured bank or 
any company that controls a distressed insured 
bank; and 
(C) a bank holding company may merge or 
consolidate with a bank holding company that 
has a subsidiary that is a distressed insured 
bank. 
(2) CONDITIONS.—Paragraph (1) shall apply 
only if— 
(A) after the applicable transaction or 
other action under that paragraph— 
(i) the applicable covered entity would 
meet the required capital levels for well 
capitalized bank holding companies estab-
lished by the Board; or 
(ii) in the case of a transaction or 
other action described in subparagraph (A) 
or (B) of that paragraph, the total consoli-
dated assets of the applicable covered enti-
ty would be not more than 2 times the 
amount of the total consolidated assets (as 
measured immediately before the trans-
action or other action) of— 
(I) in the case of an action de-
scribed in subparagraph (A) of that 
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
paragraph, the bank holding company 
of which the distressed insured bank 
is becoming a subsidiary as a result of 
that action; or 
(II) in the case of an acquisition 
described in subparagraph (B) of that 
paragraph, the bank holding company 
that is acquiring direct or indirect 
ownership or control of any voting 
shares of the distressed insured bank 
or the company that controls a dis-
tressed insured bank; and 
(B) each insured bank controlled by the 
applicable covered entity— 
(i) has a composite rating, as deter-
mined by the appropriate Federal banking 
agency in the most recent report of exam-
ination of the applicable insured bank, of 
1 or 2 under the Uniform Financial Insti-
tution Rating System; and 
(ii) has been assigned by the appro-
priate Federal banking agency a rating of 
‘‘outstanding’’ or ‘‘satisfactory’’ in the 
most recent Community Reinvestment Act 
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
examination of the applicable insured 
bank. 
(3) EXPIRATION.—A transaction or other ac-
tion to which paragraph (1) applies shall be con-
summated not later than 90 days after the date of 
enactment of this Act. 
(4) EXCEPTIONS.—Paragraph (1) shall not 
apply to— 
(A) any action that would cause a dis-
tressed insured bank to become a subsidiary of 
an insured bank; 
(B) any acquisition of direct or indirect 
ownership or control by an insured bank of any 
voting shares of any distressed insured bank or 
any company that controls a distressed insured 
bank; or 
(C) any merger, consolidation, acquisition 
of assets, or other acquisition of control, of an-
other company that would be subject to section 
14 of the Bank Holding Company Act of 1956 
(12 U.S.C. 1852). 
(c) NO PREMERGER NOTIFICATION AND WAITING 
PERIOD.—A transaction under subsection (b) shall be ex-
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB
empt from the requirements of section 7A of the Clayton 
Act (15 U.S.C. 18a). 
Æ 
VerDate Sep 11 2014 
00:03 Oct 05, 2023
Jkt 049200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6301
E:\BILLS\H5845.IH
H5845
kjohnson on DSK7ZCZBW3PROD with $$_JOB