FDIC Act
Bill: S.229 | Sponsor: Sen. Rubio, Marco (R-FL)
Policy area: Finance and Financial Sector

Summary:
Financial Defense for Industrial Contractors Act or the FDIC Act
This bill requires the Federal Deposit Insurance Corporation to begin proceedings for terminating the insured status of large depository institutions that deny banking services to federal contractors that otherwise qualify for such services.

To amend the Federal Deposit Insurance Act to permit the Federal 
  Deposit Insurance Corporation to terminate the insured status of a 
  depository institution that refuses to provide services to certain 
              Federal contractors, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Defense for Industrial 
Contractors Act'' or the ``FDIC Act''.

SEC. 2. TERMINATION OF INSURANCE.

    Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is 
amended--
            (1) in subsection (a)(3), by inserting ``or (x)'' after 
        ``subsection (w)''; and
            (2) by adding at the end the following:
    ``(x) Termination of Insurance Relating to Denial of Services to 
Federal Contractors.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `contractor' means an entity that--
                            ``(i) is a party to a contract with the 
                        Federal Government;
                            ``(ii) has complied with all applicable 
                        laws and regulations in fulfilling the 
                        responsibilities of the entity with respect to 
                        the contract described in clause (i); and
                            ``(iii) satisfies traditional underwriting 
                        and credit standards with respect to the 
                        banking service sought by the entity under 
                        paragraph (2); and
                    ``(B) the term `covered institution' means an 
                insured depository institution that has more than 
                $50,000,000,000 in total consolidated assets.
            ``(2) Notice of termination; pretermination hearing.--If a 
        covered institution refuses to provide a banking service sought 
        by a contractor, the Board of Directors shall--
                    ``(A) issue to the insured depository institution a 
                notice of its intention to terminate the insured status 
                of the insured depository institution; and
                    ``(B) schedule a hearing on the matter, which shall 
                be conducted in all respects as a termination hearing 
                pursuant to paragraphs (3) through (5) of subsection 
                (a).
            ``(3) Temporary insurance of previously insured deposits.--
        Upon termination of the insured status of any depository 
        institution pursuant to paragraph (2), the deposits of such 
        depository institution shall be treated in accordance with 
        subsection (a)(7).''.
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