LIMITING POTENTIAL LIABILITY ON FOREIGN ACCOUNTS.

SEC. 326. LIMITING POTENTIAL LIABILITY ON FOREIGN ACCOUNTS. (a) Amendment to the Federal Reserve Act.— The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended by inserting after section 25B the following new section: “SEC. 25C. POTENTIAL LIABILITY ON FOREIGN ACCOUNTS. “(a) Exceptions From Repayment Requirement.— A member bank shall not be required to repay any deposit made at a foreign branch of the bank if the branch cannot repay the deposit due “(1) an act of war, insurrection, or civil strife; or “(2) an action by a foreign government or instrumentality (whether de jure or de facto) in the country in which the branch is located; unless the member bank has expressly agreed in writing to repay the deposit under those circumstances. “(b) Regulations.— The Board and the Comptroller of the Currency may jointly prescribe such regulations as they deem necessary to implement this section.”. (b) Conforming Amendments to the Federal Deposit Insurance Act.— (1) In general.— Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by inserting after subsection (p) the following new subsection: “(q) Sovereign Risk.— Section 25C of the Federal Reserve Act shall apply to every nonmember insured bank in the same manner and to the same extent as if the nonmember insured bank were a member bank.”. (2) Conforming amendment.— Subparagraph (A) of section 3(1)(5) of the Federal Deposit Insurance Act (12 U.S.C. 1813(1)(5)) is amended to read as follows: “(A) any obligation of a depository institution which is carried on the books and records of an office of such bank or savings association located outside of any State, unless— “(i) such obligation would be a deposit if it were carried on the books and records of the depository institution, and would be payable at, an office located in any State; and “(ii) the contract evidencing the obligation provides by express terms, and not by implication, for payment at an office of the depository institution located in any State; and”. (c) Existing Claims Not Affected.— Section 25C of the Federal Reserve Act (as added by subsection (a)) shall not be applied retroactively and shall not he construed to affect or apply to any claim or cause of action addressed by that section arising from 108 STAT. 2230events or circumstances that occurred before the date of enactment of this Act.