I 
109TH CONGRESS 
1ST SESSION 
H. R. 544 
To amend the Federal Deposit Insurance Act with respect to municipal 
deposits. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 2, 2005 
Mr. GILLMOR 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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Municipal Deposit In-
surance Protection Act of 2005’’. 
SEC. 2. INCREASED INSURANCE COVERAGE FOR MUNIC-
IPAL 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 insur-
ance 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 dis-
tinct 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 subpara-
graph (B), the deposits of a municipal de-
positor shall be insured in an amount not
to exceed the amount referred to in para-
graph (1)(B). 
‘‘(B) IN-STATE MUNICIPAL DEPOSITORS.— 
In the case of the deposits of an in-State mu-
nicipal depositor described in clause (ii), (iii), 
(iv), or (v) of subparagraph (E) at an insured 
depository institution, such deposits shall be in-
sured 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 institu-
tions within its jurisdiction the authority to ac-
cept deposits insured under this paragraph, or 
prohibit the making of such deposits in such in-
stitutions by any in-State municipal depositor. 
‘‘(D) IN-STATE MUNICIPAL DEPOSITOR DE-
FINED.—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 de-
pository institution at which the deposits of 
that depositor are held. 
‘‘(E) MUNICIPAL
DEPOSITOR.—For pur-
poses of this paragraph, the term ‘municipal de-
positor’ means a depositor that is—’’; 
(3) by striking ‘‘(B) The’’ and inserting the fol-
lowing: 
‘‘(F) AUTHORITY
TO
LIMIT
DEPOSITS.— 
The’’; and 
(4) by striking ‘‘depositor referred to in sub-
paragraph (A) of this paragraph’’ each place such 
term appears and inserting ‘‘municipal depositor’’. 
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