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S. 229: FDIC Act


The text of the bill below is as of Feb 4, 2021 (Introduced).


II

117th CONGRESS

1st Session

S. 229

IN THE SENATE OF THE UNITED STATES

February 4, 2021

(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

A BILL

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.

1.

Short title

This Act may be cited as the Financial Defense for Industrial Contractors Act or the FDIC Act.

2.

Termination of insurance

Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended—

(1)

in subsection (a)(3), by inserting or (x) after subsection (w); and

(2)

by adding at the end the following:

(x)

Termination of insurance relating to denial of services to Federal contractors

(1)

Definitions

In this subsection—

(A)

the term contractor means an entity that—

(i)

is a party to a contract with the Federal Government;

(ii)

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

(iii)

satisfies traditional underwriting and credit standards with respect to the banking service sought by the entity under paragraph (2); and

(B)

the term covered institution means an insured depository institution that has more than $50,000,000,000 in total consolidated assets.

(2)

Notice of termination; pretermination hearing

If a covered institution refuses to provide a banking service sought by a contractor, the Board of Directors shall—

(A)

issue to the insured depository institution a notice of its intention to terminate the insured status of the insured depository institution; and

(B)

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).

(3)

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).

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