Section 1 Short title
This Act may be cited as the “Consumer Transaction Account Protection Act of 2017”.
Consumer Transaction Account Protection Act of 2017
A BILL
To amend the Federal Deposit Insurance Act to provide that the consumer transaction account deposits of an insured depository institution are not considered to be funds obtained by or through a deposit broker, and for other purposes.
Sec. 2 Limited exception for consumer transaction account deposits
Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) is amended by adding at the end the following new subsection:
“(i) Limited exception for consumer transaction account deposits
“(1) In general—Consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker.
“(2) Consumer transaction account deposit defined—For purposes of this subsection, the term “consumer transaction account deposit” means a deposit in a transaction account, as defined in section 19(b)(1) of the Federal Reserve Act, with an insured depository institution—
“(A) that is entirely covered by deposit insurance;
“(B) that is opened by a natural person;
“(C) that is held in the name of such natural person;
“(D) that is used monthly by such natural person to make payments to, and to receive deposits from, third parties; and
“(E) with respect to which only such natural person is recognized by the insured depository institution as being authorized to designate that withdrawals or payments be made from the account.”