Municipal Deposit Insurance Protection Act of 2003

        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 453 Introduced in House (IH)]

108th CONGRESS
1st Session
H. R. 453

To amend the Federal Deposit Insurance Act with respect to municipal
deposits.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

January 29, 2003

Mr. Gillmor (for himself, Mr. Ney, Mr. Bereuter, and Mrs. Jones of
Ohio) introduced the following bill; which was referred to the
Committee on Financial Services

_______________________________________________________________________

A BILL

To amend the Federal Deposit Insurance Act with respect to municipal
deposits.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Municipal Deposit Insurance
Protection Act of 2003''.

SEC. 2. INCREASED INSURANCE COVERAGE FOR MUNICIPAL DEPOSITS.

Section 11(a)(2) of the Federal Deposit Insurance Act (12 U.S.C.
1821(a)(2)) is amended--
(1) in subparagraph (A)--
(A) by moving the margins of clauses (i) through
(v) 4 ems to the right;
(B) by striking, in the matter following clause
(v), `such depositor shall' and all that follows
through the period; and
(C) by striking the semicolon at the end of clause
(v) and inserting a period;
(2) by striking ``(2)(A) Notwithstanding'' and all that
follows through ``a depositor who is--'' and inserting the
following new paragraph:
``(2) Municipal Depositors.--
``(A) In general.--Notwithstanding any limitation
in this Act or in any other provision of law relating
to the amount of deposit insurance available to any 1
depositor--
``(i) a municipal depositor shall, for the
purpose of determining the amount of insured
deposits under this subsection, be deemed to be
a depositor separate and distinct from any
other officer, employee, or agent of the United
States or any public unit referred to in
subparagraph (E); and
``(ii) except as provided in subparagraph
(B), the deposits of a municipal depositor
shall be insured in an amount not to exceed the
amount referred to in paragraph (1)(B).
``(B) In-state municipal depositors.--In the case
of the deposits of an in-State municipal depositor
described in clause (ii), (iii), (iv), or (v) of
subparagraph (E) at an insured depository institution,
such deposits shall be insured in an amount not to
exceed the lesser of--
``(i) $2,000,000; or
``(ii) the sum of--
``(I) the amount referred to in
paragraph (1)(B); and
``(II) 80 percent of the amount of
any deposits in excess of such amount.
``(C) Municipal deposit parity.--No State may deny
to insured depository institutions within its
jurisdiction the authority to accept deposits insured
under this paragraph, or prohibit the making of such
deposits in such institutions by any in-State municipal
depositor.
``(D) In-state municipal depositor defined.--For
purposes of this paragraph, the term `in-State
municipal depositor' means a municipal depositor that
is located in the same State as the office or branch of
the insured depository institution at which the
deposits of that depositor are held.
``(E) Municipal depositor.--For purposes of this
paragraph, the term `municipal depositor' means a
depositor that is--'';
(3) by striking ``(B) The'' and inserting the following:
``(F) Authority to limit deposits.--The''; and
(4) by striking ``depositor referred to in subparagraph (A)
of this paragraph'' each place such term appears and inserting
``municipal depositor''.
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