US Codex
Bill
Notes

To temporarily provide for Federal insurance of transaction accounts during the COVID–19 emergency.

H.R. 6380 · 116th Congress · Mar 24, 2020 · Lineage

A BILL

Section 1 Insurance of transaction accounts

(a)
Banks and savings associations—
(1)
Amendments— Section 11(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amended—
(A)
in subparagraph (B)—
(i)
by striking “The net amount” and inserting the following:

“(i) In general—Subject to clause (ii), the net amount”

(ii)
by adding at the end the following new clauses:

“(ii) Authorization for insurance for transaction accounts—Notwithstanding clause (i), the Corporation may fully insure the net amount that any depositor at an insured depository institution maintains in a transaction account. Such amount shall not be taken into account when computing the net amount due to such depositor under clause (i).

“(iii) Transaction account defined—For purposes of this subparagraph, the term “transaction account” has the meaning given that term under section 19 of the Federal Reserve Act (12 U.S.C. 461).”

(B)
in subparagraph (C), by striking “subparagraph (B)” and inserting “subparagraph (B)(i)”.
(2)
Prospective repeal— Effective January 1, 2022, section 11(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)), as amended by paragraph (1), is amended—
(A)
in subparagraph (B)—
(i)
by striking “deposit.—” and all that follows through “clause (ii), the net amount” and insert “deposit.—The net amount”; and
(ii)
by striking clauses (ii) and (iii); and
(B)
in subparagraph (C), by striking “subparagraph (B)(i)” and inserting “subparagraph (B)”.
(b)
Credit unions—
(1)
Amendments— Section 207(k)(1) of the Federal Credit Union Act (12 U.S.C. 1787(k)(1)) is amended—
(A)
in subparagraph (A)—
(i)
by striking “Subject to the provisions of paragraph (2), the net amount” and inserting the following:

“(i) Net amount of insurance payable—Subject to clause (ii) and the provisions of paragraph (2), the net amount”

(ii)
by adding at the end the following new clauses:

“(ii) Authorization for insurance for transaction accounts—Notwithstanding clause (i), the Board may fully insure the net amount that any member or depositor at an insured credit union maintains in a transaction account. Such amount shall not be taken into account when computing the net amount due to such member or depositor under clause (i).

“(iii) Transaction account defined—For purposes of this subparagraph, the term “transaction account” has the meaning given that term under section 19 of the Federal Reserve Act (12 U.S.C. 461).”

(B)
in subparagraph (B), by striking “subparagraph (A)” and inserting “subparagraph (A)(i)”.
(2)
Prospective repeal— Effective January 1, 2022, section 207(k)(1) of the Federal Credit Union Act (12 U.S.C. 1787(k)(1)), as amended by paragraph (1), is amended—
(A)
in subparagraph (A)—
(i)
by striking “(i) Net amount of insurance payable.—” and all that follows through “paragraph (2), the net amount” and inserting “Subject to the provisions of paragraph (2), the net amount”; and
(ii)
by striking clauses (ii) and (iii); and
(B)
in subparagraph (B), by striking “subparagraph (A)(i)” and inserting “subparagraph (A)”.
(c)
COVID–19 emergency defined— In this section, the term “COVID–19 emergency” means the period that begins upon the date of the enactment of this Act and ends upon the date of the termination by the Federal Emergency Management Agency of the emergency declared on March 13, 2020, by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019 (COVID-19) pandemic.