,i  #aaeth ,,congress  #ast ,session    
,h4 ,r4 #bdjc  ,,in ,,the ,,house ,,of  
,,representatives  ,may #h1 #bjag,ms4   
,moore 7for herself1 ,mr4 ,emmer1 ,ms4  
,maxine ,waters of ,california1 ,mrs4   
,carolyn ,b4 ,maloney of ,new ,york1    
,mr4 ,meeks1 ,mr4 ,heck1 ,mr4 ,pocan1   
,mr4 ,clay1 ,mr4 ,cleaver1 ,ms4 ,sinema1
 ,mr4 ,stivers1 ,mr4 ,pittenger1 ,mr4   
,messer1 ,mr4 ,zeldin1 ,mr4 ,huizenga1  
,mr4 ,hill1 and ,mr4 ,lucas7 introduced 
the following bill2 which was referred  
to the ,committee on ,financial         
,services  ,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 ,short title ,this 
,act may be cited as the ,keeping       
,capital ,local for ,underserved        
,communities ,act of #bjag4  #b4        
,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 following new     
subsection3  7i7 ,limited exception for 
reciprocal deposits  7#a7 ,in general   
,reciprocal deposits of an agent        
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 agent institution4   
7#b7 ,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;b77#a77;,a772  7ii7 has obtained a 
waiver pursuant to subsection 7c7 of    
this section2 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  4  7b7 ,interest
 rate restriction ,subsection 7e7 of    

section #bi of the ,federal ,deposit    
,insurance ,act 7#ab ,u4,s4,c4          
#ahca;f7e77 is amended to read as       
follows3  7e7 ,restriction on interest  
rate paid  7#a7 ,in general ,an insured 
depository institution that-- 7,a7 under
 subsection 7c7 or 7d71 accepts funds   
obtained1 directly or indirectly1 by or 
through a deposit broker1 or  7,b7 while
 acting as an agent institution under   
subsection 7i71 accepts reciprocal      
deposits 7as defined in such subsection7
 while not well capitalized 7as defined 
in section #ch7;b77#a77;,a771  may not  
pay a rate of interest on such funds or 
reciprocal deposits which1 at the time  
that such funds or reciprocal deposits  
are accepted1 significantly exceeds the 
limit set forth in paragraph 7#b74  7#b7
 ,limit on interest rates ,the limit on 
the rate of interest referred to in     
paragraph 7#a7 shall be--  7,a7 the rate
 paid on deposits of similar maturity in
 such institution's normal market area  
for deposits accepted in the            

institution's normal market area2 or    
7,b7 the national rate paid on deposits 
of comparable maturity1 as established  
by the ,corporation1 for deposits       
accepted outside the institution's      
normal market area4  4