Bill > S2999

This bill, known as the "Main Street Depositor Protection Act," amends the Federal Deposit Insurance Act and the Federal Credit Union Act to provide expanded deposit insurance for noninterest-bearing transaction accounts. Specifically, the bill allows the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) to insure up to $10 million in noninterest-bearing transaction accounts, which are accounts that do not earn interest and allow the account holder to make withdrawals through various methods like checks, electronic transfers, or payment orders. The bill establishes a 10-year transition period during which these institutions will gradually increase coverage to 100%, and provides that smaller financial institutions (with total assets of $10 billion or less) will not be required to pay additional special assessments to support this expanded insurance. The bill also includes provisions to prevent financial institutions and third parties from circumventing the new insurance limitations, and allows the FDIC and NCUA to create regulations to implement these changes. Importantly, the bill excludes certain large bank holding companies and foreign bank branches from this expanded insurance coverage.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/2999/all-info