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 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1297 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 1297

 To amend the Federal Deposit Insurance Act to provide shareholders of 
certain depository institutions a cause of action for assets seized by 
                 an appropriate Federal banking agency.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 2, 2019

Mr. Moran (for himself and Mr. Roberts) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the Federal Deposit Insurance Act to provide shareholders of 
certain depository institutions a cause of action for assets seized by 
                 an appropriate Federal banking agency.

    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) Definition.--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 as of the date on which the 
                        institution enters conservatorship or 
                        receivership.
                    ``(B) 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.
                    ``(C) Amount to be paid.--Just compensation shall 
                be paid to a shareholder for a claim under this 
                paragraph 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.
                    ``(D) Limitation on payment of claims.--The 
                Corporation shall not pay a claim under subparagraph 
                (B) 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 the Corporation was appointed 
                        conservator or receiver; 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, any deposit liability of 
                        the institution, any other general or senior 
                        liability of the institution and any obligation 
                        subordinated to depositors or general credits 
                        exceed the available funds from the covered 
                        institution.
                    ``(E) Statute of limitations.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the applicable statute of 
                        limitations with regard to a claim brought by a 
                        shareholder under subparagraph (B) shall be 90 
                        days beginning on the date that a conservator 
                        or receiver is appointed for the covered 
                        institution pursuant to this Act.
                            ``(ii) Claims arising from prior actions.--
                        The applicable statute of limitations with 
                        regard to a claim brought by a shareholder 
                        under subparagraph (B) for a covered 
                        institution for which a conservator or receiver 
                        was appointed before the date of enactment of 
                        this paragraph shall be 90 days beginning on 
                        the date of enactment of this paragraph.
                    ``(F) Savings association shareholders.--The rights 
                provided to a shareholder under subparagraph (B), shall 
                apply in the same manner and to the same extent to--
                            ``(i) a shareholder of a savings 
                        association for which the Office of Thrift 
                        Supervision or the Office of the Comptroller of 
                        the Currency appointed a conservator or 
                        receiver; and
                            ``(ii) 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 of Thrift Supervision or 
                        the Office of the Comptroller of the Currency 
                        appointed a conservator or receiver.
                    ``(G) Special rules.--
                            ``(i) Prior claims.--A shareholder shall 
                        not be precluded from filing a claim under this 
                        paragraph if a claim with respect to the same 
                        conservatorship or receivership has been 
                        previously adjudicated before a court of 
                        competent jurisdiction.
                            ``(ii) United states court of federal 
                        claims.--A shareholder may seek review of a 
                        denial by the Corporation of a claim filed 
                        under this paragraph in the United States Court 
                        of Federal Claims.''.
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