Transaction Account Guarantee Program Act of 2010 - Amends the Federal Deposit Insurance Act to establish the Transaction Account Guarantee (TAG) Program to provide a full guarantee for funds held in noninterest-bearing transaction accounts of insured depository institutions participating in the TAG Program.
Requires an insured depository institution that wishes to participate in the TAG Program to submit an application to the Federal Deposit Insurance Corporation (FDIC). Allows an insured depository institution to opt-out of the TAG Program.
Directs the FDIC to levy assessments on those insured depository institutions participating in the TAG Program.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5511 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5511
To amend the Federal Deposit Insurance Act to codify the Transaction
Account Guarantee Program of the Federal Deposit Insurance Corporation.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 10, 2010
Mr. Marshall introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Deposit Insurance Act to codify the Transaction
Account Guarantee Program of the Federal Deposit Insurance Corporation.
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 ``Transaction Account Guarantee
Program Act of 2010''.
SEC. 2. TRANSACTION ACCOUNT GUARANTEE PROGRAM.
The Federal Deposit Insurance Act is amended by adding at the end
the following new section:
``SEC. 51. TRANSACTION ACCOUNT GUARANTEE PROGRAM.
``(a) Establishment.--There is hereby established the Transaction
Account Guarantee Program to provide a full guarantee for funds held in
noninterest-bearing transaction accounts of insured depository
institutions participating in the TAG Program.
``(b) Guarantee in Addition to Deposit Insurance.--The guarantee
provided for under the TAG Program is separate, and in addition to, any
deposit insurance provided with respect to such funds under this Act.
``(c) Opting-In to the TAG Program.--
``(1) In general.--An insured depository institution that
wishes to participate in the TAG Program shall submit an
application to the Corporation in such form and manner and
containing such information as the Corporation may require. The
Corporation shall accept all such applications that do not
otherwise conflict with the provisions of this section.
``(2) Minimum 6-month participation period.--An insured
depository institution that opts-in to the TAG Program may not
opt-out of the program during the 6-month period beginning on
the date on which the such institution opts-in to the TAG
Program.
``(3) Waiting period after opting-out.--An insured
depository institution may not apply to participate in the TAG
Program if such institution has opted-out of the TAG Program
during the previous 6-month period.
``(d) Opt-Out Requirements.--
``(1) In general.--An insured depository institution may
opt-out of the TAG Program by providing notice to the
Corporation in such form and manner and containing such
information as the Corporation may require.
``(2) Customer notice requirement.--An insured depository
institution that chooses to opt-out of the TAG Program shall
notify each person with a noninterest-bearing transaction
account with the institution that the institution is opting-out
of the TAG Program.
``(e) Assessments.--
``(1) In general.--The Corporation shall levy assessments
on those insured depository institutions participating in the
TAG Program.
``(2) Risk-based assessment system.--In levying assessments
under paragraph (1), the Corporation shall levy higher
assessments on those insured depository institutions that the
Corporation determines present a higher risk that the
Corporation will incur a loss under the TAG Program with
respect to such institutions.
``(3) Amount of assessment.--The Corporation shall set the
amount of assessments made under paragraph (1) at a level such
that the aggregate amount of all assessments is sufficient to
cover the estimated amount of payments made by the Corporation
by reason of guarantees made under the TAG Program.
``(f) Rulemaking.--The Corporation shall issue such regulations as
are necessary to carry out the provisions of this section.
``(g) Definitions.--For purposes of this section:
``(1) Noninterest-bearing transaction account.--The term
`noninterest-bearing transaction account' means--
``(A) a transaction account with respect to which
interest is neither accrued nor paid and on which the
insured depository institution does not reserve the
right to require advance notice of an intended
withdrawal;
``(B) accounts commonly known as Interest on
Lawyers Trust Accounts, or functionally equivalent
accounts; and
``(C) negotiable order of withdrawal accounts with
interest rates no higher than 0.50 percent, if the
insured depository institution at which the account is
held has committed to maintain the interest rate at or
below 0.50 percent.
``(2) TAG program.--The term `TAG Program' means the
Transaction Account Guarantee Program established under
subsection (a).''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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