Title: Consumer Transaction Account Protection Act of 2019
Policy area: Finance and Financial Sector

Summary:
Consumer Transaction Account Protection Act of 2019
This bill specifies that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker. In general, current law prohibits an insured depository institution that is not well capitalized from accepting funds obtained through a deposit broker for deposit.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4501 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 4501

To amend the Federal Deposit Insurance Act to provide that the consumer 
 transaction account deposits of an insured depository institution are 
not considered to be funds obtained by or through a deposit broker, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 26, 2019

Mr. Williams (for himself and Ms. Moore) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Deposit Insurance Act to provide that the consumer 
 transaction account deposits of an insured depository institution are 
not considered to be funds obtained by or through a deposit broker, 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 ``Consumer Transaction Account 
Protection Act of 2019''.

SEC. 2. LIMITED EXCEPTION FOR CONSUMER TRANSACTION ACCOUNT DEPOSITS.

    Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) 
is amended by adding at the end the following new subsection:
    ``(j) Limited Exception for Consumer Transaction Account 
Deposits.--
            ``(1) In general.--Consumer transaction account deposits of 
        an insured depository institution shall not be considered to be 
        funds obtained, directly or indirectly, by or through a deposit 
        broker.
            ``(2) Consumer transaction account deposit defined.--For 
        purposes of this subsection, the term `consumer transaction 
        account deposit' means a deposit in a transaction account, as 
        defined in section 19(b)(1) of the Federal Reserve Act, with an 
        insured depository institution--
                    ``(A) that is entirely covered by deposit 
                insurance;
                    ``(B) that is opened by a natural person;
                    ``(C) that is held in the name of such natural 
                person;
                    ``(D) that is used monthly by such natural person 
                to make payments to, and to receive deposits from, 
                third parties; and
                    ``(E) with respect to which only such natural 
                person is recognized by the insured depository 
                institution as being authorized to designate that 
                withdrawals or payments be made from the account.''.
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