Title: Consumer Transaction Account Protection Act of 2022
Policy area: Finance and Financial Sector

Summary:
Consumer Transaction Account Protection Act of 2022
This bill specifies that consumer transaction account deposits of an insured depository institution are not funds obtained through a deposit broker. In general, current law prohibits an insured depository institution that is not well capitalized from accepting for deposit funds obtained through a deposit broker.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5345 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 5345

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 SENATE OF THE UNITED STATES

                           December 21, 2022

   Mr. Moran 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 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 2022''.

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:
    ``(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) Definitions.--In this subsection:
                    ``(A) Consumer transaction account deposit.--The 
                term `consumer transaction account deposit' means a 
                deposit in a transaction account with an insured 
                depository institution--
                            ``(i) that is entirely covered by deposit 
                        insurance;
                            ``(ii) that is opened by an individual;
                            ``(iii) that is held in the name of the 
                        individual;
                            ``(iv) that is used monthly by the 
                        individual to make payments to, and to receive 
                        deposits from, third parties; and
                            ``(v) with respect to which only the 
                        individual is recognized by the insured 
                        depository institution as being authorized to 
                        designate that withdrawals or payments be made 
                        from the account.
                    ``(B) Transaction account.--The term `transaction 
                account' has the meaning given the term in section 
                19(b)(1) of the Federal Reserve Act (12 U.S.C. 
                461(b)(1)).''.
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