,,ii  #aadth ,,congress  #b;d ,session  
,s4 #ccgc  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #ba1
 #bjaf,mr4 ,warner 7for himself and ,mr4
 ,moran7 introduced the following bill2 
which was read twice and referred to the
 ,committee on ,banking1 ,housing1 and  
,urban ,affairs  ,a ,,bill  ,to amend   
the ,federal ,deposit ,insurance ,act to
 ensure that the reciprocal deposits of 
an insured depository institution are   
not considered to be funds obtained by  
or through a deposit broker1 and for    
other purposes4  #a4 ,limited exception 
for reciprocal deposits  7a7 ,in general
 ,section #bi of the ,federal ,deposit  
,insurance ,act 7#ab ,u4,s4,c4 #ahca;f7 
is amended by adding at the end the     
following3  7i7 ,limited exception for  
reciprocal deposits  7#a7 ,definitions  
,in this subsection3 7,a7 ,agent        
institution ,the term agent institution 
means an insured depository institution 
that places a covered deposit through a 
deposit placement network at other      

insured depository institutions in      
amounts that are less than or equal to  
the standard maximum deposit insurance  
amount1 specifying the interest rate to 
be paid for such amounts1 if the agent  
institution--  7i7 7,i7 when most       
recently examined under section #aj7;d7 
was found to have a composite condition 
of outstanding or good2 and  7,,ii7 is  
well capitalized 7as defined in section 
#ch7;b772  7ii7 has obtained a waiver   
pursuant to subsection 7c72 or  7iii7   
does not receive an amount of reciprocal
 deposits that causes the total amount  
of reciprocal deposits held by the agent
 institution to be greater than the     
average of the total amount of          
reciprocal deposits held by the agent   
institution on the last day of each of  
the #d calendar quarters preceding the  
calendar quarter in which the agent     
institution was found not to have a     
composite condition of outstanding or   
good or was determined to be not well   
capitalized4  7,b7 ,covered deposit ,the

 term covered deposit means a deposit   
that-- 7i7 is submitted for placement   
through a deposit placement network by  
an agent institution2 and  7ii7 does not
 consist of funds that were obtained for
 the agent institution1 directly or     
indirectly1 by or through a deposit     
broker before submission for placement  
through a deposit placement network4    
7,c7 ,deposit placement network ,the    
term deposit placement network means a  
network in which an insured depository  
institution participates1 together with 
other insured depository institutions1  
for the processing and receipt of       
reciprocal deposits4  7,d7 ,network     
member bank ,the term network member    
bank means an insured depository        
institution that is a member of a       
deposit placement network4  7,e7        
,reciprocal deposits ,the term          
reciprocal deposits means deposits      
received by an agent institution through
 a deposit placement network with the   
same maturity 7if any7 and in the same  

aggregate amount as covered deposits    
placed by the agent institution in other
 network member banks4  7#b7            
,consideration of reciprocal deposits   
,reciprocal deposits of an insured      
depository institution shall not be     
considered to be funds obtained1        
directly or indirectly1 by or through a 
deposit broker to the extent that the   
total amount of such reciprocal deposits
 does not exceed the lesser of--  7,a7  
#aj1jjj1jjj1jjj2 or  7,b7 an amount     
equal to #bj percent of the total       
liabilities of the insured depository   
institution4  7#c7 ,rule of construction
 ,nothing in this subsection shall be   
construed to limit the authority of the 
corporation to require1 on a            
case-by-case basis1 that an agent       
institution that is less than adequately
 capitalized 7as defined in section     
#ch7;b77 not accept particular types of 
deposits upon finding that the          
acceptance of such deposits constitutes 
an unsafe or unsound practice with      

respect to such institution4  4  7b7    
,applicability ,nothing in the          
amendments made by this ,act shall be   
construed to limit the application of   
any provision of the ,federal ,deposit  
,insurance ,act 7#ab ,u4,s4,c4 #ahaa et 
seq471 other than section #bi of that   
,act 7#ab ,u4,s4,c4 #ahca;f71 to an     
insured depository institution 7as      
defined in section #c of that ,act 7#ab 
,u4,s4,c4 #ahac774