---
kind: "section"
citation: "12 U.S.C. § 1831f"
title: "12"
title_heading: "Banks and Banking"
number: "1831f"
heading: "Brokered deposits"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1831f"
units:
  - "Chapter 16 — Federal Deposit Insurance Corporation"
---

# §1831f. Brokered deposits

- (a) **In general—** An [insured depository institution](/usc/12/1813.md?p=c-2) that is not well capitalized may not accept funds obtained, directly or indirectly, by or through any [deposit](/usc/12/1813.md?p=l) broker for [deposit](/usc/12/1813.md?p=l) into 1 or more [deposit](/usc/12/1813.md?p=l) accounts.
- (b) **Renewals and rollovers treated as acceptance of funds—** Any renewal of an account in any troubled institution and any rollover of any amount on [deposit](/usc/12/1813.md?p=l) in any such account shall be treated as an acceptance of funds by such troubled institution for purposes of [subsection (a)](#a).
- (c) **Waiver authority—** The Corporation may, on a case-by-case basis and upon application by an [insured depository institution](/usc/12/1813.md?p=c-2) which is adequately capitalized (but not well capitalized), waive the applicability of [subsection (a)](#a) upon a finding that the acceptance of such [deposits](/usc/12/1813.md?p=l) does not constitute an unsafe or unsound practice with respect to such institution.
- (d) **Limited exception for certain conservatorships—** In the case of any [insured depository institution](/usc/12/1813.md?p=c-2) for which the Corporation has been appointed as conservator, [subsection (a)](#a) shall not apply to the acceptance of [deposits](/usc/12/1813.md?p=l) (described in such subsection) by such institution if the Corporation determines that the acceptance of such [deposits](/usc/12/1813.md?p=l)—
  - (1) is not an unsafe or unsound practice;
  - (2) is necessary to enable the institution to meet the demands of its depositors or pay its obligations in the ordinary course of business; and
  - (3) is consistent with the conservator’s fiduciary duty to minimize the institution’s losses.

  Effective 90 days after the date on which the institution was placed in conservatorship, the institution may not accept such [deposits](/usc/12/1813.md?p=l).

- (e) **Restriction on interest rate paid—**
  - (1) **Definitions—** In this subsection—
    - (A) the terms “agent institution”, “reciprocal [deposits](/usc/12/1813.md?p=l)”, and “well capitalized” have the meanings given those terms in [subsection (i)](#i); and
    - (B) the term “covered [insured depository institution](/usc/12/1813.md?p=c-2)” means an [insured depository institution](/usc/12/1813.md?p=c-2) that—
      - (i) under subsection [(c)](#c) or [(d)](#d), accepts funds obtained, directly or indirectly, by or through a [deposit](/usc/12/1813.md?p=l) broker; or
      - (ii) while acting as an agent institution under [subsection (i)](#i), accepts reciprocal [deposits](/usc/12/1813.md?p=l) while not well capitalized.
  - (2) **Prohibition—** A covered [insured depository institution](/usc/12/1813.md?p=c-2) may not pay a rate of interest on funds or reciprocal [deposits](/usc/12/1813.md?p=l) described in [paragraph (1)](#e-1) that, at the time that the funds or reciprocal [deposits](/usc/12/1813.md?p=l) are accepted, significantly exceeds the limit set forth in [paragraph (3)](#e-3).
  - (3) **Limit on interest rates—** The limit on the rate of interest referred to in [paragraph (2)](#e-2) shall be—
    - (A) the rate paid on [deposits](/usc/12/1813.md?p=l) of similar maturity in the normal market area of the covered [insured depository institution](/usc/12/1813.md?p=c-2) for [deposits](/usc/12/1813.md?p=l) accepted in the normal market area of the covered [insured depository institution](/usc/12/1813.md?p=c-2); or
    - (B) the national rate paid on [deposits](/usc/12/1813.md?p=l) of comparable maturity, as established by the Corporation, for [deposits](/usc/12/1813.md?p=l) accepted outside the normal market area of the covered [insured depository institution](/usc/12/1813.md?p=c-2).
- (f) **Additional restrictions—** The Corporation may impose, by regulation or order, such additional restrictions on the acceptance of brokered [deposits](/usc/12/1813.md?p=l) by any institution as the Corporation may determine to be appropriate.
- (g) **Definitions relating to deposit broker—**
  - (1) **Deposit broker—** The term “[deposit](/usc/12/1813.md?p=l) broker” means—
    - (A) any [person](/usc/12/5481.md?p=19) engaged in the business of placing [deposits](/usc/12/1813.md?p=l), or facilitating the placement of [deposits](/usc/12/1813.md?p=l), of third parties with [insured depository institutions](/usc/12/1813.md?p=c-2) or the business of placing [deposits](/usc/12/1813.md?p=l) with [insured depository institutions](/usc/12/1813.md?p=c-2) for the purpose of selling interests in those [deposits](/usc/12/1813.md?p=l) to third parties; and
    - (B) an agent or trustee who establishes a [deposit](/usc/12/1813.md?p=l) account to facilitate a business arrangement with an [insured depository institution](/usc/12/1813.md?p=c-2) to use the proceeds of the account to fund a prearranged loan.
  - (2) **Exclusions—** The term “[deposit](/usc/12/1813.md?p=l) broker” does not include—
    - (A) an [insured depository institution](/usc/12/1813.md?p=c-2), with respect to funds placed with that [depository institution](/usc/12/1813.md?p=c-1);
    - (B) an employee of an [insured depository institution](/usc/12/1813.md?p=c-2), with respect to funds placed with the employing [depository institution](/usc/12/1813.md?p=c-1);
    - (C) a trust department of an [insured depository institution](/usc/12/1813.md?p=c-2), if the trust in question has not been established for the primary purpose of placing funds with [insured depository institutions](/usc/12/1813.md?p=c-2);
    - (D) the trustee of a pension or other employee benefit plan, with respect to funds of the plan;
    - (E) a [person](/usc/12/5481.md?p=19) acting as a plan administrator or an investment adviser in connection with a pension plan or other employee benefit plan provided that that [person](/usc/12/5481.md?p=19) is performing managerial functions with respect to the plan;
    - (F) the trustee of a testamentary account;
    - (G) the trustee of an irrevocable trust (other than one described in [paragraph (1)(B)](#g-1-B)), as long as the trust in question has not been established for the primary purpose of placing funds with [insured depository institutions](/usc/12/1813.md?p=c-2);
    - (H) a trustee or custodian of a pension or profitsharing plan qualified under section [401(d)](/usc/26/401.md?p=d) or [403(a)](/usc/26/403.md?p=a) of title 26; or
    - (I) an agent or nominee whose primary purpose is not the placement of funds with [depository institutions](/usc/12/1813.md?p=c-1).
  - (3) **Inclusion of depository institutions engaging in certain activities—** Notwithstanding [paragraph (2)](#g-2), the term “[deposit](/usc/12/1813.md?p=l) broker” [includes](/usc/12/1813.md?p=t-1) any [insured depository institution](/usc/12/1813.md?p=c-2) that is not well capitalized (as defined in [section 1831o](/usc/12/1831o.md) of this title), and any employee of such institution, which engages, directly or indirectly, in the solicitation of [deposits](/usc/12/1813.md?p=l) by offering rates of interest which are significantly higher than the prevailing rates of interest on [deposits](/usc/12/1813.md?p=l) offered by other [insured depository institutions](/usc/12/1813.md?p=c-2) in such [depository institution](/usc/12/1813.md?p=c-1)’s normal market area.
  - (4) **Employee—** For purposes of this subsection, the term “employee” means any employee—
    - (A) who is employed exclusively by the [insured depository institution](/usc/12/1813.md?p=c-2);
    - (B) whose compensation is primarily in the form of a salary;
    - (C) who does not share such employee’s compensation with a [deposit](/usc/12/1813.md?p=l) broker; and
    - (D) whose office space or place of business is used exclusively for the benefit of the [insured depository institution](/usc/12/1813.md?p=c-2) which employs such individual.
- (h) **Deposit solicitation restricted—** An [insured depository institution](/usc/12/1813.md?p=c-2) that is undercapitalized, as defined in [section 1831o](/usc/12/1831o.md) of this title, shall not solicit [deposits](/usc/12/1813.md?p=l) by offering rates of interest that are significantly higher than the prevailing rates of interest on [insured deposits](/usc/12/1813.md?p=m-1)—
  - (1) in such institution’s normal market areas; or
  - (2) in the market area in which such [deposits](/usc/12/1813.md?p=l) would otherwise be accepted.
- (i) **Limited exception for reciprocal deposits—**
  - (1) **In general—** The sum of the following amounts of reciprocal [deposits](/usc/12/1813.md?p=l) of an agent institution shall not be considered to be funds obtained, directly or indirectly, by or through a [deposit](/usc/12/1813.md?p=l) broker:
    - (A) An amount equal to 50 percent of the portion of the total liabilities of the agent institution that is less than or equal to $1,000,000,000.
    - (B) An amount equal to 40 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $1,000,000,000, but less than or equal to $10,000,000,000.
    - (C) An amount equal to 30 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $10,000,000,000, but less than or equal to $96,333,333,333.
  - (2) **Definitions—** In this subsection:
    - (A) **Agent institution—** The term “agent institution” means an [insured depository institution](/usc/12/1813.md?p=c-2) that places a covered [deposit](/usc/12/1813.md?p=l) through a [deposit](/usc/12/1813.md?p=l) placement network at other [insured depository institutions](/usc/12/1813.md?p=c-2) in amounts that are less than or equal to the standard maximum [deposit](/usc/12/1813.md?p=l) insurance amount, specifying the interest rate to be paid for such amounts, if the [insured depository institution](/usc/12/1813.md?p=c-2)—
      - (i)
        - (I) when most recently examined under [section 1820(d) of this title](/usc/12/1820.md?p=d) was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and
        - (II) is well capitalized;
      - (ii) has obtained a waiver pursuant to [subsection (c)](#c); or
      - (iii) does not receive an amount of reciprocal [deposits](/usc/12/1813.md?p=l) that causes the total amount of reciprocal [deposits](/usc/12/1813.md?p=l) held by the agent institution to be greater than the average of the total amount of reciprocal [deposits](/usc/12/1813.md?p=l) held by the agent institution on the last day of each of the 4 calendar quarters preceding the calendar quarter in which the agent institution was found not to have a composite condition of outstanding or good or was determined to be not well capitalized.
    - (B) **Covered deposit—** The term “covered [deposit](/usc/12/1813.md?p=l)” means a [deposit](/usc/12/1813.md?p=l) that—
      - (i) is submitted for placement through a [deposit](/usc/12/1813.md?p=l) placement network by an agent institution; and
      - (ii) does not consist of funds that were obtained for the agent institution, directly or indirectly, by or through a [deposit](/usc/12/1813.md?p=l) broker before submission for placement through a [deposit](/usc/12/1813.md?p=l) placement network.
    - (C) **Deposit placement network—** The term “[deposit](/usc/12/1813.md?p=l) placement network” means a network in which an [insured depository institution](/usc/12/1813.md?p=c-2) participates, together with other [insured depository institutions](/usc/12/1813.md?p=c-2), for the processing and receipt of reciprocal [deposits](/usc/12/1813.md?p=l).
    - (D) **Network member bank—** The term “network member [bank](/usc/12/1813.md?p=a-1)” means an [insured depository institution](/usc/12/1813.md?p=c-2) that is a member of a [deposit](/usc/12/1813.md?p=l) placement network.
    - (E) **Reciprocal deposits—** The term “reciprocal [deposits](/usc/12/1813.md?p=l)” means [deposits](/usc/12/1813.md?p=l) received by an agent institution through a [deposit](/usc/12/1813.md?p=l) placement network with the same maturity (if any) and in the same aggregate amount as covered [deposits](/usc/12/1813.md?p=l) placed by the agent institution in other network member [banks](/usc/12/1813.md?p=a-1).
    - (F) **Well capitalized—** The term “well capitalized” has the meaning given the term in [section 1831o(b)(1)](/usc/12/1831o.md?p=b-1) of this title.
- (j) **Limited exception for custodial deposits—**
  - (1) **In general—** Custodial [deposits](/usc/12/1813.md?p=l) of an eligible institution shall not be considered to be funds obtained, directly or indirectly, by or through a [deposit](/usc/12/1813.md?p=l) broker to the extent that the total amount of such custodial [deposits](/usc/12/1813.md?p=l) does not exceed an amount equal to 20 percent of the total liabilities of the eligible institution.
  - (2) **Definitions—** In this subsection:
    - (A) **Custodial deposit—** The term “custodial [deposit](/usc/12/1813.md?p=l)” means a [deposit](/usc/12/1813.md?p=l) that is not deposited at an [insured depository institution](/usc/12/1813.md?p=c-2) in return for fees paid by the [insured depository institution](/usc/12/1813.md?p=c-2) pursuant to an agreement with a third party and that would otherwise be considered to be obtained, directly or indirectly, by or through a [deposit](/usc/12/1813.md?p=l) broker, if the [deposit](/usc/12/1813.md?p=l) is deposited at 1 or more [insured depository institutions](/usc/12/1813.md?p=c-2), for the purpose of providing or maintaining [deposit](/usc/12/1813.md?p=l) insurance for the benefit of a third party, by or through any of the following, each acting in a formal custodial or fiduciary capacity for the benefit of a third party:
      - (i) An [insured depository institution](/usc/12/1813.md?p=c-2) serving as agent, trustee, or custodian.
      - (ii) A trust entity controlled by an [insured depository institution](/usc/12/1813.md?p=c-2) serving as agent, trustee, or custodian.
      - (iii) A [State](/usc/12/1813.md?p=a-3)-chartered trust [company](/usc/12/1813.md?p=w-7) serving as agent, trustee, or custodian.
      - (iv) A plan administrator or investment advisor, acting in a formal custodial or fiduciary capacity for the benefit of a plan.
    - (B) **Eligible institution—** The term “eligible institution” means an [insured depository institution](/usc/12/1813.md?p=c-2) that accepts custodial [deposits](/usc/12/1813.md?p=l), if the [insured depository institution](/usc/12/1813.md?p=c-2) has less than $10,000,000,000 in total assets as reported on the consolidated report of condition and income as reported quarterly to the [appropriate Federal banking agency](/usc/12/1813.md?p=q) and—
      - (i)
        - (I) when most recently examined under [section 10(d)](/usc/12/10.md) was assigned a composite rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and
        - (II) is well capitalized; or
      - (ii) has obtained a waiver pursuant to [subsection (c)](#c).
    - (C) **Plan—** The term “plan” has the meaning given the term in [section 1002 of title 29](/usc/29/1002.md).
    - (D) **Plan administrator—** The term “plan administrator” has the meaning given the term “administrator” in [section 1002 of title 29](/usc/29/1002.md).
    - (E) **Well capitalized—** The term “well capitalized” has the meaning given the term in [section 1831o(b)](/usc/12/1831o.md?p=b) of this title.
- (k) **Restriction on interest rate paid on certain custodial deposits—**
  - (1) **Definitions—** In this subsection—
    - (A) the terms “custodial [deposit](/usc/12/1813.md?p=l)”, “eligible institution”, and “well capitalized” have the meanings given those terms in [subsection (j)](#j); and
    - (B) the term “covered [insured depository institution](/usc/12/1813.md?p=c-2)” means an [insured depository institution](/usc/12/1813.md?p=c-2) that while acting as an eligible institution under [subsection (j)](#j), accepts custodial [deposits](/usc/12/1813.md?p=l) while not well capitalized.
  - (2) **Prohibition—** A covered [insured depository institution](/usc/12/1813.md?p=c-2) may not pay a rate of interest on custodial [deposits](/usc/12/1813.md?p=l) that are accepted while not well capitalized that, at the time the funds or custodial [deposits](/usc/12/1813.md?p=l) are accepted, significantly exceeds the limit set forth in [paragraph (3)](#k-3).
  - (3) **Limit on interest rates—** The limit on the rate of interest referred to in [paragraph (2)](#k-2) shall be not greater than—
    - (A) the rate paid on [deposits](/usc/12/1813.md?p=l) of similar maturity in the normal market area of the covered [insured depository institution](/usc/12/1813.md?p=c-2) for [deposits](/usc/12/1813.md?p=l) accepted in the normal market area of the covered [insured depository institution](/usc/12/1813.md?p=c-2); or
    - (B) the national rate paid on [deposits](/usc/12/1813.md?p=l) of comparable maturity, as established by the Corporation, for [deposits](/usc/12/1813.md?p=l) accepted outside the normal market area of the covered [insured depository institution](/usc/12/1813.md?p=c-2).

## Source credit

(Sept. 21, 1950, ch. 967, § 2[29], as added Pub. L. 101–73, title II, § 224(a), Aug. 9, 1989, 103 Stat. 273; amended Pub. L. 102–242, title III, § 301(a), (c), Dec. 19, 1991, 105 Stat. 2343, 2345; Pub. L. 102–550, title XVI, § 1605(a)(1), Oct. 28, 1992, 106 Stat. 4084; Pub. L. 103–325, title III, § 337, Sept. 23, 1994, 108 Stat. 2235; Pub. L. 115–174, title II, § 202, May 24, 2018, 132 Stat. 1307; Pub. L. 119–101, title IX, §§ 901, 902(a), (b), July 11, 2026, 140 Stat. 964–966.)

## Notes

### Editorial Notes

### Amendments

2026—Subsec. (i)(1). Pub. L. 119–101, § 902(a), added par. (1) and struck out former par. (1) which read as follows: “Reciprocal deposits of an agent institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker to the extent that the total amount of such reciprocal deposits does not exceed the lesser of—

“(A) $5,000,000,000; or

“(B) an amount equal to 20 percent of the total liabilities of the agent institution.”

Subsec. (i)(2)(A)(i)(I). Pub. L. 119–101, § 902(b), substituted “was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system)” for “was found to have a composite condition of outstanding or good” in introductory provisions.

Subsec. (j). Pub. L. 119–101, § 901(a), added subsec. (j).

Subsec. (k). Pub. L. 119–101, § 901(b), added subsec. (k).

2018—Subsec. (e). Pub. L. 115–174, § 202(b), added subsec. (e) and struck out former subsec. (e). Prior to amendment, text read as follows:

“Any insured depository institution which, under subsection (c) or (d), accepts funds obtained, directly or indirectly, by or through a deposit broker, may not pay a rate of interest on such funds which, at the time that such funds are accepted, significantly exceeds—

“(1) the rate paid on deposits of similar maturity in such institution’s normal market area for deposits accepted in the institution’s normal market area; or

“(2) the national rate paid on deposits of comparable maturity, as established by the Corporation, for deposits accepted outside the institution’s normal market area.”

Subsec. (i). Pub. L. 115–174, § 202(a), added subsec. (i).

1994—Subsec. (g)(3). Pub. L. 103–325 inserted “that is not well capitalized (as defined in section 1831o of this title)” after “includes any insured depository institution”, substituted “of such institution” for “of any insured depository institution”, and struck out “(with respect to such deposits)” after “offering rates of interest” and “having the same type of charter” after “other insured depository institutions”.

1992—Subsec. (a). Pub. L. 102–550, § 1605(a)(1)(A), substituted “An insured” for “A insured”.

Subsec. (c). Pub. L. 102–550, § 1605(a)(1)(B), substituted “capitalized (but not well capitalized)” for “capitalized”.

1991—Subsec. (a). Pub. L. 102–242, § 301(a)(1), substituted “insured depository institution that is not well capitalized” for “troubled institution”.

Subsec. (c). Pub. L. 102–242, § 301(a)(2), substituted “insured depository institution which is adequately capitalized” for “insured depositary institution”.

Subsec. (d). Pub. L. 102–242, § 301(a)(3), added pars. (2) and (3) and closing provisions, struck out “and” at end of par. (1), and struck out former par. (2) which read as follows: “either—

“(A) is necessary to enable the institution to meet the demands of its depositors or pay its obligations in the ordinary course of business; or

“(B) is consistent with the conservator’s fiduciary duty to minimize the losses of the institution.”

Subsecs. (e) to (h). Pub. L. 102–242, § 301(a)(4)–(6), (c), added subsec. (e), redesignated former subsec. (e) as (f) and struck out “troubled” before “institution as the”, redesignated former subsecs. (f) and (g) as (g) and (h), respectively, added subsec. (h), and struck out former subsec. (h), as previously redesignated, which defined “troubled institution”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1992 Amendment

Amendment by Pub. L. 102–550 effective as if included in the Federal Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102–242, as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102–550, set out as a note under section 191 of this title.

### Effective Date

Pub. L. 101–73, title II, § 224(b), Aug. 9, 1989, 103 Stat. 275, provided that: “The amendment made by subsection (a) [enacting this section] shall apply to deposits accepted after the end of the 120-day period beginning on the date of the enactment of this Act [Aug. 9, 1989].”

### Regulations

Pub. L. 102–242, title III, § 301(d), Dec. 19, 1991, 105 Stat. 2345, provided that: “The Corporation shall promulgate final regulations to carry out the amendments made under subsections (a), (b), and (c) [enacting section 1831f–1 of this title and amending this section] not later than 150 days after the date of enactment of this Act [Dec. 19, 1991], and those regulations shall become effective not later than 180 days after that date of enactment, except that such regulations shall not apply to any specific time deposit made before that date of enactment until the stated maturity of the time deposit.”