Title: Independent and Community Bank Shareholders Protection Act
Policy area: Finance and Financial Sector

Summary:
Independent and Community Bank Shareholders Protection Act
This bill provides that shareholders of certain small financial institutions that are under conservatorship or receivership may file claims with the Federal Deposit Insurance Corporation for just compensation.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7323 Introduced in House (IH)]

<DOC>






115th CONGRESS
  2d Session
                                H. R. 7323

To amend the Federal Deposit Insurance Act with respect to shareholder 
 claims arising from the appointment of a conservator or receiver for 
        certain depository institutions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 17, 2018

Ms. Jenkins of Kansas 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 shareholder 
 claims arising from the appointment of a conservator or receiver for 
        certain depository institutions, 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 ``Independent and Community Bank 
Shareholders Protection Act''.

SEC. 2. SHAREHOLDER CLAIMS.

    (a) In General.--Section 11(d) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821(d)) is amended by adding at the end the following:
            ``(21) Shareholder claims for just compensation.--
                    ``(A) Claims authorized.--
                            ``(i) In general.--A shareholder of a 
                        covered institution may file a claim with the 
                        Corporation for just compensation to be paid by 
                        the Corporation to the shareholder.
                            ``(ii) Holding companies.--A shareholder of 
                        a depository institution holding company may 
                        file a claim authorized by this subparagraph on 
                        behalf of such company with respect to a 
                        covered institution.
                    ``(B) Amount to be paid.--Just compensation shall 
                be paid to a shareholder in an amount equal to the pro-
                rata share of the shareholder of the net worth of the 
                covered institution according to generally accepted 
                accounting principles determined as of the date on 
                which the covered institution enters conservatorship or 
                receivership, whichever occurs first.
                    ``(C) Limitation on payment of claims.--The 
                Corporation shall not pay a claim under subparagraph 
                (A) if--
                            ``(i) the covered institution is determined 
                        by the final judgment of a court of competent 
                        jurisdiction to have been insolvent as of the 
                        date on which control of the covered 
                        institution passed from its shareholders to the 
                        Corporation; or
                            ``(ii) the administrative expenses of the 
                        Corporation arising from the appointment of a 
                        conservator or receiver for the covered 
                        institution exceed available funds from the 
                        covered institution.
                    ``(D) Statute of limitations.--The applicable 
                statute of limitations with regard to a claim brought 
                by a shareholder under subparagraph (A) shall be 90 
                days beginning on the date that a conservator or 
                receiver is appointed for the covered institution 
                pursuant to this Act.
                    ``(E) Covered institution defined.--In this 
                paragraph, the term `covered institution' means a 
                depository institution--
                            ``(i) for which the Corporation has 
                        appointed a conservator or receiver; and
                            ``(ii) that has total assets of less than 
                        $15,000,000,000 as of the date on which the 
                        institution enters conservatorship or 
                        receivership.''.
    (b) Savings Association Shareholders.--The rights provided to a 
shareholder under section 11(d)(21) of the Federal Deposit Insurance 
Act, as added by this Act, shall apply in the same manner and to the 
same extent to--
            (1) a shareholder of a savings association for which the 
        Office of Thrift Supervision appointed a conservator or 
        receiver; and
            (2) a shareholder of a savings and loan holding company on 
        behalf of such holding company with respect to a savings 
        association for which the Office appointed a conservator or 
        receiver.
    (c) Special Rules.--
            (1) Statute of limitations for claims arising from actions 
        prior to this act.--The statute of limitations for a claim 
        filed under this Act, or an amendment made by this Act, with 
        respect to the appointment of a conservator or receiver for a 
        covered institution or savings association occurring prior to 
        the date of enactment of this Act shall be 90 days beginning on 
        such date of enactment.
            (2) Prior claims.--A shareholder shall not be precluded 
        from filing a claim under this Act, or an amendment made by 
        this Act, if a claim with respect to the same conservatorship 
        or receivership has been previously adjudicated before a court 
        of competent jurisdiction.
            (3) United states court of federal claims.--A shareholder 
        may seek review of a denial by the Federal Deposit Insurance 
        Corporation of a claim filed under this Act in the United 
        States Court of Federal Claims.
    (d) Definitions.--In this section:
            (1) Covered institution.--The term ``covered institution'' 
        has the meaning given that term in section 11(d)(21) of the 
        Federal Deposit Insurance Act (as added by this Act).
            (2) Savings association.--The term ``savings association'' 
        has the meaning given that term in section 3 of the Federal 
        Deposit Insurance Act (12 U.S.C. 1813).
            (3) Savings and loan holding company.--The term ``savings 
        and loan holding company'' has the meaning given that term in 
        section 10 of the Home Owners' Loan Act (12 U.S.C. 1467a).
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