INSURANCE OF TRANSACTION ACCOUNTS.

SEC. 343. INSURANCE OF TRANSACTION ACCOUNTS.(a) Banks and Savings Associations.—(1) Amendments.—Section 11(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amended—(A) in subparagraph (B)—(i) by striking “The net amount” and inserting the following:“(i) In general.—Subject to clause (ii), the net amount”; and(ii) by adding at the end the following new clauses:“(ii) Insurance for noninterest-bearing transaction accounts.—Notwithstanding clause (i), the Corporation shall fully insure the net amount that any depositor at an insured depository institution maintains in a noninterest-bearing transaction account. Such amount shall not be taken into account when computing the net amount due to such depositor under clause (i).“(iii) Noninterest-bearing transaction account defined.—For purposes of this subparagraph, the term ‘noninterest-bearing transaction account’ means a deposit or account maintained at an insured depository institution—“(I) with respect to which interest is neither accrued nor paid;“(II) on which the depositor or account holder is permitted to make withdrawals by negotiable or transferable instrument, payment orders of withdrawal, telephone or other electronic media transfers, or other similar items for the purpose of making payments or transfers to third parties or others; and“(III) on which the insured depository institution does not reserve the right to require advance notice of an intended withdrawal.”; and(B) in subparagraph (C), by striking “subparagraph (B)” and inserting “subparagraph (B)(i)”.(2) Effective date.—The amendments made by paragraph (1) shall take effect on December 31, 2010.(3) Prospective repeal.—Effective January 1, 2013, section 11(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)), as amended by paragraph (1), is amended—(A) in subparagraph (B)—(i) by striking “deposit.—” and all that follows through “clause (ii), the net amount” and insert “deposit.—The net amount”; and124 STAT. 1545(ii) by striking clauses (ii) and (iii); and(B) in subparagraph (C), by striking “subparagraph (B)(i)” and inserting “subparagraph (B)”.(b) Credit Unions.—(1) Amendments.—Section 207(k)(1) of the Federal Credit Union Act (12 U.S.C. 1787(k)(1)) is amended—(A) in subparagraph (A)—(i) by striking “Subject to the provisions of paragraph (2), the net amount” and inserting the following:“(i) Net amount of insurance payable.—Subject to clause (ii) and the provisions of paragraph (2), the net amount”; and(ii) by adding at the end the following new clauses:“(ii) Insurance for noninterest-bearing transaction accounts.—Notwithstanding clause (i), the Board shall fully insure the net amount that any member or depositor at an insured credit union maintains in a noninterest-bearing transaction account. Such amount shall not be taken into account when computing the net amount due to such member or depositor under clause (i).“(iii) Noninterest-bearing transaction account defined.—For purposes of this subparagraph, the term ‘noninterest-bearing transaction account’ means an account or deposit maintained at an insured credit union—“(I) with respect to which interest is neither accrued nor paid;“(II) on which the account holder or depositor is permitted to make withdrawals by negotiable or transferable instrument, payment orders of withdrawal, telephone or other electronic media transfers, or other similar items for the purpose of making payments or transfers to third parties or others; and“(III) on which the insured credit union does not reserve the right to require advance notice of an intended withdrawal.”; and(B) in subparagraph (B), by striking “subparagraph (A)” and inserting “subparagraph (A)(i)”.(2) Effective date.—The amendments made by paragraph (1) shall take effect upon the date of the enactment of this Act(3) Prospective repeal.—Effective January 1, 2013, section 207(k)(1) of the Federal Credit Union Act (12 U.S.C. 1787(k)(1)), as amended by paragraph (1), is amended—(A) in subparagraph (A)—(i) by striking “(i) net amount of insurance payable.—” and all that follows through “paragraph (2), the net amount” and inserting “Subject to the provisions of paragraph (2), the net amount”; and(ii) by striking clauses (ii) and (iii); and(B) in subparagraph (B), by striking “subparagraph (A)(i)” and inserting “subparagraph (A)”.124 STAT. 1546