full deposit insurance for public units

full deposit insurance for public units Section 101. (a) The Federal Deposit Insurance Act is amended— (1) in subsection (m) of section 3 (12 U.S.C. 1813(m)), by inserting immediately after “depositor” in the first sentence the following: “(other than a depositor referred to in the third sentence of this subsection)”; (2) in subsection (i) of section 7 (12 U.S.C. 1817(i)), by striking out “Trust” and inserting in lieu thereof the following: “Except with respect to trust funds which are owned by a depositor referred to in paragraph (2) of section 11(a) of this Act, trust”; and (3) in subsection (a) of section 11 (12 U.S.C. 1821(a)), by inserting “(1)” immediately after “(a)”, by striking out “The” in the last sentence and inserting in lieu thereof the following: “Except as provided in paragraph (2), the”, and by inserting at the end of such subsection the following: “(2)(A) Notwithstanding any limitation in this Act or in any other provision of law relating to the amount of deposit insurance available for the account of any one depositor, in the case of a depositor who is— “(i) an officer, employee, or agent of the United States having official custody of public funds and lawfully investing or depositing the same in time and savings deposits in an insured bank; “(ii) an officer, employee, or agent of any State of the United States, or of any county, municipality, or political subdivision thereof having official custody of public funds and lawfully investing or depositing the same in time and savings deposits in an insured bank in such State; “(iii) an officer, employee, or agent of the District of Columbia having official custody of public funds and lawfully investing or depositing the same in time and savings deposits in an insured bank in the District of Columbia; or “(iv) an officer, employee, or agent of the Commonwealth of Puerto Rico, of the Virgin Islands, of American Samoa, or of Guam, or of any county, municipality, or political subdivision thereof having official custody of public funds and lawfully investing or depositing the same in time and savings deposits in an insured bank in the Commonwealth of Puerto Rico, the Virgin Islands, American Samoa, or Guam, respectively; 88 Stat. 1501 his deposit shall be insured in an amount not to exceed $100,000 per account. “(b) The Corporation may limit the aggregate amount of funds that may be invested or deposited in time and savings deposits in any insured bank by any depositor referred to in subparagraph (A) of this paragraph on the basis of the size of any such bank in terms of its assets: Provided, however, such limitation may be exceeded by the pledging of acceptable securities to the depositor referred to in sub paragraph (A) of this paragraph when and where required.” (b) Title IV of the National Housing Act is amended— (1) section 401(b)(12 U.STC. 1724(b)), by striking out “Funds” in the third sentence and inserting in lieu thereof the following: “Except in the case of an insured member referred to in the preceding sentence, funds”; (2) in section 405(a)(12 U.S.C. 1728(a)), by inserting after “except that no member or investor” the following: “(other than a member or investor referred to in subsection (d))”; and (3) by adding at the end of section 405 (12 U.S.C. 1728) the following new subsection: “(d)(1) Notwithstanding any limitation in this subchapter or in any other provision of law relating to the amount of deposit insurance available for any one account, in the case of an insured member who is— “(i) an officer, employee, or agent of the United States having official custody of public funds and lawfully investing the same in an insured institution; “(ii) an officer, employee, or agent of any State of the United States, or of any county, municipality, or political subdivision thereof having official custody of public funds and lawfully investing the same in an insured institution in such State; “(iii) an officer, employee, or agent of the District of Columbia having official custody of public funds and lawfully investing the same in an insured institution in the District of Columbia; or “(iv) an officer, employee, or agent of the Commonwealth of Puerto Rico, or of the Virgin Islands, or of any county, municipality, or political subdivision thereof having official custody of public funds and lawfully investing the same in an insured institution in the Commonwealth of Puerto Rico or the Virgin Islands, respectively; the account of such insured member shall be insured in an amount not to exceed $100,000 per account. “(2) The Corporation may limit the aggregate amount of funds that may be invested in any insured institution by any insured member referred to in paragraph (1) of this subsection on the basis of the size of any such institution in terms of its assets.” (c) Subsection (c) of section 207 of the Federal Credit Union Act (12 U.S.C. 1787) is amended by— (1) inserting “(1)” after “(c)”, (2) striking out “For the purposes of this subsection,” and inserting in lieu thereof the following: “Subject to the provisions of paragraph (2), for the purposes of this subsection,”, and (3) adding at the end thereof the following: “(2)(A) Notwithstanding any limitation in this Act or in any other provision of law relating to the amount of insurance available for the account of any one depositor or member, in the case of a depositor or member who is— “(i) an officer, employee, or agent of the United States having official custody of public funds and lawfully investing the same in a credit union insured in accordance with this title; “(ii) an officer, employee, or agent of any State of the United 88 Stat. 1502States, or of any county, municipality, or political subdivision thereof having official custody of public funds and lawfully investing the same in a credit union insured in accordance with this title in such State; “(iii) an officer, employee, or agent of the District of Columbia having official custody of public funds and lawfully investing the same in a credit union insured in accordance with this title in the District of Columbia; or “(iv) an officer, employee, or agent of the Commonwealth of Puerto Rico, of the Panama Canal Zone, or of any territory or possession of the United States, or of any county, municipality, or political subdivision thereof having official custody of public funds and lawfully investing the same in a credit union insured in accordance with this title in the Commonwealth of Puerto Rico, the Panama Canal Zone, or any such territory or possession, respectively; his account shall be insured in an amount not to exceed $100,000 per account. “(B) The Administrator may limit the aggregate amount of funds that may be invested or deposited in any credit union insured in accordance with this title by any depositor or member referred to in subparagraph (A) on the basis of the size of any such credit union in terms of its assets.” (d) Section 107(7) of the Federal Credit Union Act (12 U.S.C. 1757(7)) is amended by adding at the end thereof the following: “and to receive from an officer, employee, or agent of those nonmember units of Federal, State, or local governments and political subdivisions thereof enumerated in section 207 of this Act (12 U.S.C. 1787) and in the manner so prescribed payments on shares, share certificates, and share deposits;”. (e) Section 5(b)(2) of the Home Owners’ Loan Act of 1933 is amended by inserting immediately after “security,” “may be surety as defined by the Board”. (f)(1) The Advisory Commission on Intergovernmental Relations (hereinafter referred to as the “Commission”) shall conduct a study of the impact of this section on funds available for housing and on State and local bond markets. (2) The Commission shall make a report to the Congress of the results of its study not later than two years after the date of enactment of this Act. (3) There is authorized to be appropriated to the Commission such sums as may be necessary to carry out this subsection. (g) This section and the amendments made by it shall take effect on the thirtieth day beginning after the date of enactment of this Act.