Depositor Protection and Abuse Prevention Act of 1990

Depositor Protection and Abuse Prevention Act of 1990 - Amends the Federal Deposit Insurance Act to prohibit an insured depository institution from marketing any interests in its affiliates in any office space which is commonly accessible to the general public for the purpose of accepting deposits.

Grants a Federal banking agency regulatory authority either to prohibit such sales or to impose conditions upon them if the agency determines that any stock or bond of the institution is likely to be confused by the general public with an insured deposit.

 
S 2058 IS
101st CONGRESS
2d Session
S. 2058
To amend the Federal Deposit Insurance Act to regulate certain marketing
activities engaged in on the premises of deposit-taking facilities of insured
depository institutions.
IN THE SENATE OF THE UNITED STATES
February 1 (legislative day, JANUARY 23), 1990
Mr. BRYAN (for himself, Mr. RIEGLE, Mr. GARN, Mr. DODD, Mr. HEINZ,
Mr. CRANSTON, Mr. SHELBY, Mrs. KASSEBAUM, Mr. KERRY, Mr. D'AMATO, Mr. WIRTH,
and Mr. BOND) 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 regulate certain marketing
activities engaged in on the premises of deposit-taking facilities of insured
depository institutions.
  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 `Depositor Protection and Abuse Prevention
  Act of 1990'.
SEC. 2. REGULATION OF CERTAIN NONDEPOSIT MARKETING ACTIVITIES IN PUBLIC
AREAS OF RETAIL BRANCHES OF INSURED DEPOSITORY INSTITUTIONS.
  Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended
  by adding at the end the following new subsection:
  `(o) REGULATION OF CERTAIN NONDEPOSIT MARKETING ACTIVITIES-
  `(1) CERTAIN ACTIVITIES ON BEHALF OF AFFILIATES PROHIBITED- No insured
  depository institution may permit any evidence of indebtedness of, or
  ownership interest in, any affiliate (of such depository institution) to
  be sold or offered for sale in any part of any office of such institution
  which is commonly accessible to the general public for the purpose of
  accepting deposits.
  `(2) DISCRETIONARY AUTHORITY IN CONNECTION WITH INSURED DEPOSITORY
  INSTITUTIONS- The appropriate Federal banking agency may, by regulation
  or order, prohibit or impose any condition with respect to any sale,
  or any offer to sell, by any insured depository institution of--
  `(A) any evidence of indebtedness of such institution;
  `(B) any ownership interest in the institution; or
  `(C) any type of indebtedness or ownership interest referred to in
  subparagraph (A) or (B),
in any part of any office of the institution which is commonly accessible to
the general public for the purpose of accepting deposits if the appropriate
Federal banking agency determines that such evidence of indebtedness of
or ownership interest in the institution is likely to be confused by the
general public with an insured deposit.
  `(3) EXCEPTION FOR DEPOSITS AND CERTAIN MEANS OF PAYMENT TO 3D PARTIES-
  Paragraphs (1) and (2) shall not apply with respect to any evidence of
  indebtedness which--
  `(A) is a deposit in an insured depository institution; or
  `(B) constitutes a means of payment to a third party, such as a traveler's
  check, cashier's check, teller's check, certified check, or money order.'.