COLLATERALIZATION OF PUBLIC DEPOSITS.

SEC. 317. COLLATERALIZATION OF PUBLIC DEPOSITS. Section 13(e) of the Federal Deposit Insurance Act (12 U.S.C. 1823(e)) is amended— (1) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and indent appropriately; (2) by striking “No agreement” and inserting the following: “(1) In general.— No agreement”; and (3) by adding at the end the following new paragraph: “(2) Public deposits.— An agreement to provide for the lawful collateralization of deposits of a Federal, State, or local governmental entity or of any depositor referred to in section 11(a)(2) shall not be deemed to be invalid pursuant to paragraph (1)(B) solely because such agreement was not executed contemporaneously with the acquisition of the collateral or with any changes in the collateral made in accordance with such agreement.”.