Protect Prepaid Accounts Act of 2016

“(i) Limited exclusion for prepaid card deposits

“(1) In general—Prepaid funds deposited by an agent or nominee in an insured depository institution shall satisfy the requirements of the primary purpose exclusion to the definition of deposit broker set forth in subsection (g)(2)(I) of this section, unless such agent or nominee controls the deposits and has the contractual right to cause the transfer of such deposits from the insured depository institution then holding the deposits to another insured depository institution selected by such agent or nominee.

“(2) Definitions—In this subsection, the following definitions shall apply:

“(A) Prepaid funds—The term prepaid funds means—

“(i) funds deposited through a prepaid program (as defined in 1010.100(ff)(4)(iii) of title 31, Code of Federal Regulations); or

“(ii) funds available from a card, code, or other device that is not otherwise an account (as defined in 1005.2(b)(1) of title 31, Code of Federal Regulations) that is established primarily for personal, household, or family purposes, where such card, code, or other device is—

“(I) issued on a prepaid basis to a consumer in a specified amount, or is not issued on a prepaid basis but capable of being loaded with funds thereafter; and

“(II) redeemable at multiple unaffiliated merchants for goods or services, usable at automated teller machines, or usable for person-to-person transfers.”