I 
114TH CONGRESS 
2D SESSION 
H. R. 6162 
To amend the Federal Deposit Insurance Act to ensure that prepaid funds 
deposited in an insured depository institution satisfy the requirements 
of the primary purpose exclusion to the definition of deposit broker, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 22, 2016 
Mr. TIPTON introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To amend the Federal Deposit Insurance Act to ensure that 
prepaid funds deposited in an insured depository institu-
tion satisfy the requirements of the primary purpose 
exclusion to the definition of deposit broker, 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 ‘‘Protect Prepaid Ac-
counts Act of 2016’’. 
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SEC. 2. LIMITED EXCLUSION FOR PREPAID CARD DEPOS-
ITS. 
(a) IN GENERAL.—Section 29 of the Federal Deposit 
Insurance Act (12 U.S.C. 1831f) is amended by adding 
at the end the following new subsection: 
‘‘(i) LIMITED EXCLUSION FOR PREPAID CARD DE-
POSITS.— 
‘‘(1) IN GENERAL.—Prepaid funds deposited by 
an agent or nominee in an insured depository insti-
tution shall satisfy the requirements of the primary 
purpose exclusion to the definition of deposit broker 
set forth in subsection (g)(2)(I) of this section, un-
less such agent or nominee controls the deposits and 
has the contractual right to cause the transfer of 
such deposits from the insured depository institution 
then holding the deposits to another insured deposi-
tory institution selected by such agent or nominee. 
‘‘(2) DEFINITIONS.—In this subsection, the fol-
lowing definitions shall apply: 
‘‘(A) PREPAID FUNDS.—The term ‘prepaid 
funds’ means— 
‘‘(i) funds deposited through a pre-
paid 
program 
(as 
defined 
in 
1010.100(ff)(4)(iii) of title 31, Code of 
Federal Regulations); or 
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‘‘(ii) funds available from a card, 
code, or other device that is not otherwise 
an account (as defined in 1005.2(b)(1) of 
title 31, Code of Federal Regulations) that 
is established primarily for personal, 
household, or family purposes, where such 
card, code, or other device is— 
‘‘(I) issued on a prepaid basis to 
a consumer in a specified amount, or 
is not issued on a prepaid basis but 
capable of being loaded with funds 
thereafter; and 
‘‘(II) redeemable at multiple un-
affiliated merchants for goods or serv-
ices, usable at automated teller ma-
chines, or usable for person-to-person 
transfers.’’. 
(b) APPLICABILITY.—Nothing in this Act or the 
amendment made by this Act shall be construed to limit 
the application of any provision of the Federal Deposit In-
surance Act, other than section 29 of such Act (12 U.S.C. 
1831f), to an insured depository institution (as defined in 
section 3(c) of such Act (12 U.S.C. 1813(c))). 
Æ 
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