A bill to allow depository institutions to offer negotiable order of withdrawal accounts to all businesses, to repeal the prohibition on the payment of interest on demand deposits, and for other purposes.
Small Business Banking Act of 1997 - Amends Federal banking law with respect to a depository institution's authority to permit the holder of any interest-earning or dividend-earning deposit or account (negotiable order of withdrawal or NOW account) to make withdrawals from such account by negotiable or transferable instrument for the purpose of making payments to third parties. Repeals the restriction of such withdrawals to individuals, non-profit organizations and Federal, State, and local governments (thus allowing such withdrawals by businesses and other for-profit entities).
Amends the Federal Reserve Act, the Home Owners' Loan Act, and the Federal Deposit Insurance Act to repeal the prohibition against the payment of interest on demand deposits by banks or Federal savings associations subject to their supervision.
Introduced in Senate
Sponsor introductory remarks on measure. (CR S10319-10320)
Read twice and referred to the Committee on Banking.
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