the crediting and distribution of earnings
attributable to balances maintained, in ac-
cordance with subsection (c)(1)(B), in a
Federal reserve bank by any such entity on
behalf of depository institutions.
‘‘(C) QUALIFIED DEPOSITORY INSTITUTION
DEFINED.—The term ‘qualified depository insti-
tution’ means—
‘‘(i) any depository institution that—
‘‘(I) is an insured depository in-
stitution (as defined in section 3(c) of
the Federal Deposit Insurance Act) or
an insured credit union (as defined in
section 101(7) of the Federal Credit
Union Act); and
‘‘(II) meets the requirements for
affordable transaction accounts in sec-
tion 4 of the Banking Equal Treat-
ment Act of 2000; and
‘‘(ii) any depository institution that is
neither an insured depository institution
(as so defined) or an insured credit union
(as so defined).’’.
(b) AUTHORIZATION FOR PASS THROUGH RESERVES
FOR MEMBER BANKS.—Section 19(c)(1)(B) of the Fed-
eral Reserve Act (12 U.S.C. 461(c)(1)(B)) is amended by
striking ‘‘which is not a member bank’’.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
Section 19 of the Federal Reserve Act (12 U.S.C. 461)
is amended—
(1) in subsection (b)(4) (12 U.S.C. 461(b)(4)),
by striking subparagraph (C) and redesignating sub-
paragraphs (D) and (E) as subparagraphs (C) and
(D), respectively; and
(2) 
in 
subsection 
(c)(1)(A) 
(12 
U.S.C.
461(c)(1)(A)), by striking ‘‘subsection (b)(4)(C)’’
and inserting ‘‘subsection (b)’’.
SEC. 3. TRANSFER OF FEDERAL RESERVE SURPLUSES.
Section 7(b) of the Federal Reserve Act (12 U.S.C.
290) is amended by adding at the end the following new
paragraph:
‘‘(4) ADDITIONAL
TRANSFERS
FOR
FISCAL
YEARS 2001 THROUGH 2005.—
‘‘(A) IN
GENERAL.—In addition to the
amounts required to be transferred from the
surplus funds of the Federal reserve banks pur-
suant to paragraph (1), the Federal reserve
banks shall transfer from such surplus funds to
the Board of Governors of the Federal Reserve
System for transfer to the Secretary of the
Treasury for deposit in the general fund of the
Treasury, such sums as are necessary to equal
the net cost of section 19(b)(12), as estimated
by the Office of Management and Budget in
each of the fiscal years 2001 through 2005.
‘‘(B) ALLOCATION BY FEDERAL RESERVE
BOARD.—Of the total amount required to be
paid by the Federal reserve banks under sub-
paragraph (A) for fiscal years 2001 through
2005, the Board of Governors of the Federal
Reserve System shall determine the amount
each such bank shall pay in such fiscal year.
‘‘(C) REPLENISHMENT OF SURPLUS FUND
PROHIBITED.—No Federal reserve bank may
replenish such bank’s surplus fund by the
amount of any transfer by such bank under
subparagraph (A) during the fiscal year for
which such transfer is made.’’.
SEC. 4. AFFORDABLE BANKING SERVICES.
(a) IN GENERAL.—Except as otherwise provided in
this section, each insured depository institution shall make
available to consumers a consumer transaction account,
to be known as an ‘‘affordable transaction account’’, with
the following features to be prescribed jointly by the Fed-
eral banking agencies, by regulation:
(1) INITIAL DEPOSIT.—The maximum amount
which an insured depository institution may require
as an initial deposit, if any.
(2) 
MINIMUM
BALANCE.—The 
maximum
amount an insured depository institution may re-
quire as a minimum balance, if any, to maintain
such account.
(3) 
MINIMUM
NUMBER
OF
FREE
WITH-
DRAWALS.—A minimum of 8 withdrawal trans-
actions, including withdrawals by negotiable or
transferable instruments for the purpose of making
payments to third parties and electronic fund trans-
fers, during any periodic cycle at no additional
charge to the account holder.
(4) MAXIMUM
MONTHLY
SERVICE
CHARGE.—
The maximum amount an insured depository institu-
tion may charge per periodic cycle for the use of
such account.
(b) FEES FOR WITHDRAWAL TRANSACTIONS IN EX-
CESS OF MINIMUM NUMBER OF FREE WITHDRAWALS.—
(1) IN GENERAL.—Subject to paragraph (2), in
the case of any affordable transaction account—
(A) an insured depository institution may
impose a reasonable per-transaction charge for
any withdrawal transaction described in sub-
section (a)(3) other than a transaction required
under such subsection to be provided free; or
(B) the depository institution may impose
the fees and charges normally applied to other
consumer transaction accounts available at that
depository institution.
(2) LIMITATIONS.—
(A) PERIODIC CYCLE FEE ADJUSTMENT.—
The amount of any charge per periodic cycle
imposed by an insured depository institution on
any affordable transaction account pursuant to
paragraph(1)(B) shall be reduced by the charge
imposed under subsection (a)(4).
(B) MAXIMUM AMOUNT.—At no time shall
the total amount of fees and charges imposed
by an insured depository institution on any af-
fordable transaction account exceed the total
amount of fees and charges that is normally ap-
plied to other consumer transaction accounts
available at the depository institution.
(c) CONDITIONS FOR OPENING ANY AFFORDABLE
TRANSACTION ACCOUNT.—An insured depository institu-
tion may require as a condition for opening or maintaining
any affordable transaction account that—
(1) the holder of the account be a resident of
the State in which the account is opened or main-
tained; and
(2) the deposits to the account of recurring
payments such as Social Security, wage, or pension
payments be made by direct deposit if that form of
deposit is available to both the consumer and the de-
pository institution.
(d) OTHER TERMS AND CONDITIONS.—
(1) IN GENERAL.—Except as provided in this
section and any regulations prescribed under this
section, any affordable transaction account may be
offered by an insured depository institution subject
to the same rules, conditions, and terms normally
applicable to other consumer transaction accounts
offered by the depository institution.
(2) PROHIBITION ON DISCRIMINATION AGAINST
AFFORDABLE TRANSACTION ACCOUNT HOLDERS IN
PROVIDING OTHER SERVICES.—The amount of any
fee or charge imposed on a holder of any affordable
transaction account by an insured depository institu-
tion for specific services provided to such account
holder which are not directly related to the mainte-
nance of such account may not exceed the fee or
charge imposed by the depository institution for pro-
viding the same services in connection with other
consumer transaction accounts offered by the deposi-
tory institution.
(e) AFFORDABLE TRANSACTION ACCOUNTS NOT RE-
QUIRED
FOR
INDIVIDUALS
WHO
MAINTAIN
OTHER
TRANSACTION ACCOUNTS.—An insured depository institu-
tion shall not be required to permit any person to open
or maintain an affordable transaction account pursuant
to this section if such person maintains another consumer
transaction account either at that depository institution
or any other insured depository institution.
(f) ALTERNATIVE ARRANGEMENTS.—In lieu of the
affordable transaction account required by this section, an
insured depository institution may make available an al-
ternative form of account or other banking services if the
appropriate Federal banking agency determines that such
alternative form of account or services are at least as ad-
vantageous to consumers as the affordable transaction ac-
count.
(g) DISCLOSURE REQUIREMENTS.—.
(1) POSTED NOTICES.—If an insured depository
institution posts in the public area of any office of
the institution a notice of the availability of other
consumer transaction accounts, the depository insti-
tution shall also post equally conspicuous notice in
such public area and in the same manner the avail-
ability of its affordable transaction accounts.
(2) PRINTED MATERIAL.—If an insured deposi-
tory institution makes available in the public area of
any office of the institution printed material describ-
ing the terms of its other consumer transaction ac-
counts, the depository institution shall also make
comparable descriptive printed material concerning
the affordable transaction accounts available in the
same such area and in the same manner.
(h) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) CONSUMER TRANSACTION ACCOUNT.—For
purposes of this section, the term ‘‘consumer trans-
action account’’ means a demand deposit account,
negotiable order of withdrawal account, share draft
account, or any similar transaction account used pri-
marily for personal, family or household purposes.
(2) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ has the same meaning as in
section 19(b)(1)(A) of the Federal Reserve Act.
(3) FEDERAL
BANKING
AGENCY.—The term
‘‘Federal banking agency’’—
(A) has the same meaning as in section
3(z) of the Federal Deposit Insurance Act; and
(B) includes the National Credit Union
Administration Board.
(4) INSURED DEPOSITORY INSTITUTION.—The
term ‘‘insured depository institution’’—
(A) has the same meaning as in section
3(c)(2) of the Federal Deposit Insurance Act;
and
(B) includes an insured credit union (as
defined in section 101(7) of the Federal Credit
Union Act.
(i) COMPLIANCE WITH MORE STRINGENT STATE
LAW.—If a depository institution operates in a State the
laws of which, including regulations, require a depository
institution operating in such State to meet requirements
for affordable transaction accounts which are more advan-
tageous to the consumer than the requirements of this sec-
tion or the regulations prescribed under this section, such
depository institution may not be treated as a qualified
depository institution for purposes of section 19(b)(12) of
the Federal Reserve Act, unless such depository institu-
tion meets the requirements of this section and the re-
quirements of such State law.
(j) RULE OF CONSTRUCTION.—No provision of this
section, title LXII of the Revised Statutes of the United
States, the Home Owners’ Loan Act, the Bank Enterprise
Act of 1991, or any other Federal law may be construed
as preempting, or providing any basis for the Comptroller
of the Currency or the Director of the Office of Thrift
Supervision to conclude that Federal law in any way pre-
empts, the law of any State which requires depository in-
stitution operating in that State to provide affordable
transaction accounts, including the Omnibus Consumer
Protection and Banking Deregulation Act of 1994 of the
State of New York and the New Jersey Consumer Check-
ing Account Act (as in effect on the the date of the enact-
ment of this Act).
Æ