S.Amdt. 3649

This amendment aims to add a new section regarding Transaction Account Insurance to bill S. 2296. Its purpose is to provide additional insurance coverage for specific types of bank and credit union accounts.

Key Changes and Additions:

• Increased Insurance Coverage: It allows for the insurance of noninterest-bearing transaction accounts up to $20,000,000 for depositors and members.
• Eligibility Limits: This increased insurance applies to insured depository institutions or credit unions (and their holding companies) that have total assets of less than $250,000,000,000.
• Defining Accounts: A noninterest-bearing transaction account is defined as an account where:
  • No interest is paid or accrued.
  • The holder can make withdrawals via electronic media, telephone, or other transferable instruments for payments to third parties.
  • The institution does not require advance notice for withdrawals.
• Implementation: The Federal Deposit Insurance Corporation and the National Credit Union Administration Board must publish plans within one year to gradually include these deposits over a 10-year period.
• Regulation: The amendment requires the creation of regulations to prevent institutions and third parties from bypassing the insurance limitations.