IN THE SENATE OF THE UNITED STATES
February 4, 2021
Mr. Rubio (for himself, Mrs. Blackburn, Mr. Cramer, Mr. Cotton, and Mr. Cruz) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
To amend the Federal Deposit Insurance Act to permit the Federal Deposit Insurance Corporation to terminate the insured status of a depository institution that refuses to provide services to certain Federal contractors, and for other purposes.
This Act may be cited as the
Financial Defense for Industrial Contractors Act or the
Termination of insurance
Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended—
in subsection (a)(3), by inserting
or (x) after
subsection (w); and
by adding at the end the following:
Termination of insurance relating to denial of services to Federal contractors
In this subsection—
the term contractor means an entity that—
is a party to a contract with the Federal Government;
has complied with all applicable laws and regulations in fulfilling the responsibilities of the entity with respect to the contract described in clause (i); and
satisfies traditional underwriting and credit standards with respect to the banking service sought by the entity under paragraph (2); and
the term covered institution means an insured depository institution that has more than $50,000,000,000 in total consolidated assets.
Notice of termination; pretermination hearing
If a covered institution refuses to provide a banking service sought by a contractor, the Board of Directors shall—
issue to the insured depository institution a notice of its intention to terminate the insured status of the insured depository institution; and
schedule a hearing on the matter, which shall be conducted in all respects as a termination hearing pursuant to paragraphs (3) through (5) of subsection (a).
Temporary insurance of previously insured deposits
Upon termination of the insured status of any depository institution pursuant to paragraph (2), the deposits of such depository institution shall be treated in accordance with subsection (a)(7).