II 118th CONGRESS 1st Session S. 3012 IN THE SENATE OF THE UNITED STATES October 4, 2023 Mr. Manchin (for himself, Mr. Braun , and Mr. Hickenlooper ) 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 for insurance for noninterest-bearing transaction accounts, and for other purposes.

1. Short title This Act may be cited as the Deposit Security Act . 2. Insurance of transaction accounts (a) Banks and savings associations Section 11(a)(1) of the Federal Deposit Insurance Act ( 12 U.S.C. 1821(a)(1) ) is amended— (1) in subparagraph (B)— (A) by striking The net amount and inserting the following: (i) In general Subject to clause (ii), the net amount ; and (B) by adding at the end the following new clauses: (ii) Insurance for noninterest-bearing transaction accounts Notwithstanding clause (i), the Corporation shall insure the net amount that any depositor at an insured depository institution maintains in a noninterest-bearing transaction account in an amount not more than $10,000,000. Such amount shall not be taken into account when computing the net amount due to such depositor under clause (i). (iii) Opt-out and opt-in (I) Opt-out An insured depository institution may opt out of the insurance described in clause (ii) during the 30-day period beginning on the date on which the program is established. (II) Opt-in An insured depository institution that opts out under subclause (I) may opt into the program every 5 years. (iv) Noninterest-bearing transaction account defined For purposes of this subparagraph, the term noninterest-bearing transaction account means a deposit or account maintained at an insured depository institution— (I) with respect to which interest is neither accrued nor paid; (II) on which the depositor or account holder is permitted to make withdrawals by negotiable or transferable instrument, payment orders of withdrawal, telephone or other electronic media transfers, or other similar items for the purpose of making payments or transfers to third parties or others; and (III) on which the insured depository institution does not reserve the right to require advance notice of an intended withdrawal. ; and (2) in subparagraph (C), by striking subparagraph (B) and inserting subparagraph (B)(i) . (b) Credit unions Section 207(k)(1) of the Federal Credit Union Act ( 12 U.S.C. 1787(k)(1) ) is amended— (1) in subparagraph (A)— (A) by striking Subject to the provisions of paragraph (2), the net amount and inserting the following: (i) Net amount of insurance payable Subject to clause (ii) and the provisions of paragraph (2), the net amount ; and (B) by adding at the end the following new clauses: (ii) Insurance for noninterest-bearing transaction accounts Notwithstanding clause (i), the Board shall fully insure the net amount that any member or depositor at an insured credit union maintains in a noninterest-bearing transaction account in an amount not more than $10,000,000. Such amount shall not be taken into account when computing the net amount due to such member or depositor under clause (i). (iii) Opt-out and opt-in (I) Opt-out An insured credit union may opt out of the insurance described in clause (ii) during the 30-day period beginning on the date on which the program is established. (II) Opt-in An insured credit union that opts out under subclause (I) may opt into the program every 5 years. (iv) Noninterest-bearing transaction account defined For purposes of this subparagraph, the term noninterest-bearing transaction account means an account or deposit maintained at an insured credit union— (I) with respect to which interest is neither accrued nor paid; (II) on which the account holder or depositor is permitted to make withdrawals by negotiable or transferable instrument, payment orders of withdrawal, telephone or other electronic media transfers, or other similar items for the purpose of making payments or transfers to third parties or others; and (III) on which the insured credit union does not reserve the right to require advance notice of an intended withdrawal. ; and (2) in subparagraph (B), by striking subparagraph (A) and inserting subparagraph (A)(i) . 3. Inflation adjustment of deposit insurance limit Section 11(a)(1) of the Federal Deposit Insurance Act ( 12 U.S.C. 1821(a)(1) ) is amended by striking subparagraph (F) and inserting the following: (F) Inflation adjustment The Board of Directors and the National Credit Union Administration Board shall jointly prescribe the amount by which the standard maximum deposit insurance amount and the standard maximum share insurance amount (as defined in section 207(k) of the Federal Credit Union Act) applicable to any depositor at an insured depository institution shall be adjusted on January 1 once during every 2-year period to reflect the percentage increase, if any, from the preceding fiscal year in the Consumer Price Index For All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor). .