HR 3070 — To amend the Federal Deposit Insurance Act to clarify the definition of a deposit broker, and for other purposes.

(a) In general An insured depository institution that is not well capitalized may not accept funds obtained, directly or indirectly, by or through any deposit broker for deposit into 1 or more deposit 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 in any such account shall be treated as an acceptance of funds by such troubled institution for purposes of subsection (a). (c) Waiver authority The Corporation may, on a case-by-case basis and upon application by an insured depository institution which is adequately capitalized (but not well capitalized), waive the applicability of subsection (a) upon a finding that the acceptance of such deposits 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 for which the Corporation has been appointed as conservator, subsection (a) shall not apply to the acceptance of deposits (described in such subsection) by such institution if the Corporation determines that the acceptance of such deposits— (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. (e) Restriction on interest rate paid (1) Definitions In this subsection— (A) the terms “agent institution”, “reciprocal deposits”, and “well capitalized” have the meanings given those terms in subsection (i); and (B) the term “covered insured depository institution” means an insured depository institution that— (i) under subsection (c) or (d), accepts funds obtained, directly or indirectly, by or through a deposit broker; or (ii) while acting as an agent institution under subsection (i), accepts reciprocal deposits while not well capitalized. (2) Prohibition A covered insured depository institution may not pay a rate of interest on funds or reciprocal deposits described in paragraph (1) that, at the time that the funds or reciprocal deposits are accepted, significantly exceeds the limit set forth in paragraph (3). (3) Limit on interest rates The limit on the rate of interest referred to in paragraph (2) shall be— (A) the rate paid on deposits of similar maturity in the normal market area of the covered insured depository institution for deposits accepted in the normal market area of the covered insured depository institution; or (B) the national rate paid on deposits of comparable maturity, as established by the Corporation, for deposits accepted outside the normal market area of the covered insured depository institution. (f) Additional restrictions The Corporation may impose, by regulation or order, such additional restrictions on the acceptance of brokered deposits by any institution as the Corporation may determine to be appropriate. (g) Definitions relating to deposit broker (1) Deposit broker The term “deposit broker” means— (A) any person engaged in the business of placing deposits, or facilitating the placement of deposits, of third parties with insured depository institutions or the business of placing deposits with insured depository institutions for the purpose of selling interests in those deposits to third parties; and (B) an agent or trustee who establishes a deposit account to facilitate a business arrangement with an insured depository institution to use the proceeds of the account to fund a prearranged loan. (2) Exclusions The term “deposit broker” does not include— (A) an insured depository institution, with respect to funds placed with that depository institution; (B) an employee of an insured depository institution, with respe...