LIMITATIONS ON BROKERED DEPOSITS AND DEPOSIT SOLICITATIONS.

SEC. 301. LIMITATIONS ON BROKERED DEPOSITS AND DEPOSIT SOLICITATIONS. (a) In General.— Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) is amended— (1) in subsection (a), by striking “troubled institution” and inserting “insured depository institution that is not well capitalized”; (2) in subsection (c), by inserting “which is adequately capitalized” after “insured depository institution”; (3) in subsection (d), by striking all after “unsound practice;” and inserting the following: “(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.”; 105 STAT. 2344 (4) by redesignating subsections (e) through (g) as subsections (f) through (h), respectively, and inserting after subsection (d) the following: “(e) Restriction on Interest Rate Paid.— Any insured depository institution which, under subsection (c) or (d), accepts funds obtained, directly or indirectly, by or through a deposit broker, may not pay a rate of interest on such funds which, at the time that such funds are accepted, significantly exceeds— “(1) the rate paid on deposits of similar maturity in such institution’s normal market area for deposits accepted in the institution’s normal market area; or “(2) the national rate paid on deposits of comparable maturity, as established by the Corporation, for deposits accepted outside the institution’s normed market area.”; (5) in subsection (f), as redesignated, by striking “troubled”; and (6) by striking subsection (h), as redesignated. (b) Notification and Recordkeeping.— The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by inserting after section 29 the following: “SEC. 29A. DEPOSIT BROKER NOTIFICATION AND RECORDKEEPING. “(a) Notification.— “(1) In general.— A deposit broker, as defined in section 29(g), shall not solicit or place any deposit with an insured depository institution, unless such deposit broker has provided the Corporation with written notice that it is a deposit broker. “(2) Termination of deposit broker status.— When a deposit broker referred to in paragraph (1) ceases to act as a deposit broker it shall provide the Corporation with a written notice that it is no longer acting as a deposit broker. “(3) Form and content.— The notices required by paragraphs (1) and (2) shall be in such form and contain such information concerning the deposit solicitation and placement activities of a deposit broker as the Corporation may prescribe as necessary or appropriate to carry out the purposes of this subsection. “(b) Records.— The Corporation may prescribe regulations requiring each deposit broker that has filed a notice under subsection (a)(1) to maintain separate records relating to the total amounts and maturities of the deposits placed by such broker for each insured depository institution during specified time periods. Such regulations shall specify the format in which and the period for which such records shall be preserved, as well as the time period within which the deposit broker shall furnish to the Corporation copies of such records (or designated portions thereof) as the Corporation may request. “(c) Periodic Reports.— “(1) In general.— The Corporation may prescribe regulations requiring each deposit broker that has filed a notice under subsection (a)(1) to file with the Corporation separate quarterly reports relating to the total amounts and maturities of the deposits placed by such broker for each depository institution during the applicable quarter. Such regulations shall specify the form and content of such reports, as well as the applicable reporting period. “(2) Designated agent.— The Corporation may designate another entity as its agent for the purpose of receiving and 105 STAT. 2345maintaining reports under this subsection. If the Corporation designates such an agent the Corporation may, through its agent, prescribe and collect an appropriate quarterly fee from each deposit broker that filed reports with the agent during the applicable quarter, in an amount sufficient to defray the Corporation’s cost of retaining the agent and to reflect the proportionate amount of the deposits placed with insured depository institutions by each broker during the applicable quarter.”. (c) Deposit Solicitation Restricted.— Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) is amended by adding at the end the following: “(h) Deposit Solicitation Restricted.— An insured depository institution that is undercapitalized, as defined in section 38, shall not solicit deposits by offering rates of interest that are significantly higher than the prevailing rates of interest on insured deposits— “(1) in such institution’s normal market areas; or “(2) in the market area in which such deposits would otherwise be accepted.”. (d) Deadline for Regulations.— The Corporation shall promulgate final regulations to carry out the amendments made under subsections (a), (b), and (c) not later than 150 days after the date of enactment of this Act, and those regulations shall become effective not later than 180 days after that date of enactment, except that such regulations shall not apply to any specific time deposit made before that date of enactment until the stated maturity of the time deposit.