Home > 106th Congressional Bills > H.R. 974 (enr) To establish a program to afford high school graduates from the District of Columbia the benefits of in-State tuition at State colleges and universities outside the District of Columbia, and for other purposes. [Enrolled bill] ...H.R. 974 (enr) To establish a program to afford high school graduates from the District of Columbia the benefits of in-State tuition at State colleges and universities outside the District of Columbia, and for other purposes. [Enrolled bill] ...
107th CONGRESS
1st Session
H. R. 974
_______________________________________________________________________
AN ACT
To repeal the prohibition on the payment of interest on demand
deposits, to increase the number of interaccount transfers which may be
made from business accounts at depository institutions, to authorize
the Board of Governors of the Federal Reserve System to pay interest on
reserves, and for other purposes.
107th CONGRESS
1st Session
H. R. 974
_______________________________________________________________________
AN ACT
To repeal the prohibition on the payment of interest on demand
deposits, to increase the number of interaccount transfers which may be
made from business accounts at depository institutions, to authorize
the Board of Governors of the Federal Reserve System to pay interest on
reserves, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Interest Checking Act
of 2001''.
SEC. 2. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED.
(a) Repeal of Prohibition on Payment of Interest on Demand
Deposits.--
(1) Federal reserve act.--Section 19(i) of the Federal
Reserve Act (12 U.S.C. 371a) is amended to read as follows:
``(i) [Repealed]''.
(2) Home owners' loan act.--The first sentence of section
5(b)(1)(B) of the Home Owners' Loan Act (12 U.S.C.
1464(b)(1)(B)) is amended by striking ``savings association may
not--'' and all that follows through ``(ii) permit any'' and
inserting ``savings association may not permit any''.
(3) Federal deposit insurance act.--Section 18(g) of the
Federal Deposit Insurance Act (12 U.S.C. 1828(g)) is amended to
read as follows:
``(g) [Repealed]''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect at the end of the 2-year period beginning on the date of
the enactment of this Act.
SEC. 3. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED FOR ALL
BUSINESSES.
Section 2 of Public Law 93-100 (12 U.S.C. 1832) is amended--
(1) in subsection (a), by adding at the end the following
new paragraph:
``(3) Exception from paragraph (2) limitation.--Paragraph
(2) shall not apply to any depository institution which is
prohibited by the applicable law of its chartering State from
offering demand deposits and either--
``(A) does not engage in any lending activities; or
``(B) is not an affiliate of any company or
companies with assets that, in the aggregate, represent
more than 10 percent of the total assets of the
depository institution.'';
(2) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(3) by inserting after subsection (a) the following:
``(b) Notwithstanding any other provision of law, any depository
institution may permit the owner of any deposit or account which is a
deposit or account on which interest or dividends are paid and is not a
deposit or account described in subsection (a)(2) to make up to 24
transfers per month (or such greater number as the Board may determine
by rule or order), for any purpose, to another account of the owner in
the same institution. Nothing in this subsection shall be construed to
prevent an account offered pursuant to this subsection from being
considered a transaction account (as defined in section 19(b) of the
Federal Reserve Act for purposes of such Act).''.
SEC. 4. PAYMENT OF INTEREST ON RESERVES AT FEDERAL RESERVE BANKS.
(a) In General.--Section 19(b) of the Federal Reserve Act (12
U.S.C. 461(b)) is amended by adding at the end the following new
paragraph:
``(12) Earnings on reserves.--
``(A) In general.--Balances maintained at a Federal
reserve bank by or on behalf of a depository
institution may receive earnings to be paid by the
Federal reserve bank at least once each calendar
quarter at a rate or rates not to exceed the general
level of short-term interest rates.
``(B) Regulations relating to payments and
distribution.--The Board may prescribe regulations
concerning--
``(i) the payment of earnings in accordance
with this paragraph;
``(ii) the distribution of such earnings to
the depository institutions which maintain
balances at such banks or on whose behalf such
balances are maintained; and
``(iii) the responsibilities of depository
institutions, Federal home loan banks, and the
National Credit Union Administration Central
Liquidity Facility with respect to the
crediting and distribution of earnings
attributable to balances maintained, in
accordance with subsection (c)(1)(B), in a
Federal reserve bank by any such entity on
behalf of depository institutions.''.
(b) Authorization for Pass Through Reserves for Member Banks.--
Section 19(c)(1)(B) of the Federal Reserve Act (12 U.S.C. 461(c)(1)(B))
is amended by striking ``which is not a member bank''.
(c) Survey of Bank Fees and Services.--Section 19 of the Federal
Reserve Act (as amended by subsections (a) and (b) of this section) is
amended by adding at the end the following new subsection:
``(n) Survey of Bank Fees and Services.--
``(1) Annual survey required.--The Board shall obtain
annually a sample, which is representative by type and size of
the institution and geographic location, of the following
retail banking services and products provided by insured
depository institutions and insured credit unions (along with
related fees and minimum balances):
``(A) Checking and other transaction accounts.
``(B) Negotiable order of withdrawal and savings
accounts.
``(C) Automated teller machine transactions.
``(D) Other electronic transactions.
``(E) Credit Cards.
``(2) Minimum survey requirement.--The annual survey
described in paragraph (1) shall meet the following minimum
requirements:
``(A) Checking and other transaction accounts.--
Data on checking and transaction accounts shall
include, at a minimum, the following:
``(i) Monthly and annual fees and minimum
balances to avoid such fees.
``(ii) Minimum opening balances.
``(iii) Check processing fees.
``(iv) Check printing fees.
``(v) Balance inquiry fees.
``(vi) Fees imposed for using a teller or
other institution employee.
``(vii) Stop payment order fees.
``(viii) Nonsufficient fund fees.
``(ix) Overdraft fees.
``(x) Deposit items returned fees.
``(xi) Availability of no-cost or low-cost
accounts for consumers who maintain low
balances.
``(B) Negotiable order of withdrawal accounts and
savings accounts.--Data on negotiable order of
withdrawal accounts and savings accounts shall include,
at a minimum, the following:
``(i) Monthly and annual fees and minimum
balances to avoid such fees.
``(ii) Minimum opening balances.
``(iii) Rate at which interest is paid to
consumers.
``(iv) Check processing fees for negotiable
order of withdrawal accounts.
``(v) Check printing fees for negotiable
order of withdrawal accounts.
``(vi) Balance inquiry fees.
``(vii) Fees imposed for using a teller or
other institution employee.
``(viii) Stop payment order fees for
negotiable order of withdrawal accounts.
``(ix) Nonsufficient fund fees for
negotiable order of withdrawal accounts.
``(x) Overdraft fees for negotiable order
of withdrawal accounts.
``(xi) Deposit items returned fees.
``(xii) Availability of no-cost or low-cost
accounts for consumers who maintain low
balances.
``(C) Automated teller transactions.--Data on
automated teller machine transactions shall include, at
a minimum, the following:
``(i) Annual and monthly fees.
``(ii) Card fees.
``(iii) Fees charged to customers for
withdrawals, deposits, transfers between
accounts, balance inquiries through
institution-owned machines.
``(iv) Fees charged to customers for
withdrawals, deposits, transfers between
accounts, balance inquiries through machines
owned by others.
``(v) Fees charged to noncustomers for
withdrawals, deposits, transfers between
accounts, balance inquiries through
institution-owned machines.
``(vi) Point-of-sale transaction fees.
``(vii) Surcharges.
``(D) Other electronic transactions.--Data on other
electronic transactions shall include, at a minimum,
the following:
``(i) Wire transfer fees.
``(ii) Fees related to payments made over
the Internet or through other electronic means.
``(E) Credit card charges and fees.--Data related
to credit cards shall include, at a minimum, the
following:
``(i) Application fees.
``(ii) Annual and monthly fees.
``(iii) Rates of interest charged for
purchases and cash advances, when an account is
not in default.
``(iv) Rates of interest charged for
purchases and cash advances, when an account is
in default.
``(v) Average annual finance charges paid
by customers.
``(vi) Late payment fees.
``(vii) Cash advance and convenience check
fees.
``(viii) Balance transfer fees.
``(ix) Over-the-credit-limit fees.
``(x) Foreign currency conversion fees.
``(F) Other fees and charges.--Data on any other
fees and charges that the Board determines to be
appropriate to meet the purposes of this section.
``(3) Annual Report to Congress Required.--
``(A) Preparation.--The Board shall prepare a
report of the results of each survey conducted pursuant
to paragraph (1) and (2).
``(B) Contents of the report.--In addition to the
data required to be collected pursuant to paragraphs
(1) and (2), each report prepared pursuant to
subparagraph (A) shall include a description of any
discernible trend, in the Nation as a whole, in each of
the 50 States, and in each metropolitan statistical
area (as defined by the Director of the Office of
Management and Budget), in the cost and availability of
the retail banking services, including those described
in paragraphs (1) and (2) (including related fees and
minimum balances), that delineates differences between
institutions on the basis of the type of institution,
the size of the institution and any engagement of the
institution in multistate activity.
``(C) Submission to congress.--The Board shall
submit an annual report to the Congress under this
paragraph not later than June 1, 2002, and not later
than June 1 of each subsequent year.
``(4) Definitions.--For purposes of this subsection, the
terms `insured depository institution' and `insured credit
union' mean any depository institution (as defined in
subsection (b)(1)(A)) the deposits or shares in which are
insured under the Federal Deposit Insurance Act or the Federal
Credit Union Act.''.
(d) Technical and Conforming Amendments.--Section 19 of the Federal
Reserve Act (12 U.S.C. 461) is amended--
(1) in subsection (b)(4) (12 U.S.C. 461(b)(4)), by striking
subparagraph (C) and redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively; and
(2) in subsection (c)(1)(A) (12 U.S.C. 461(c)(1)(A)), by
striking ``subsection (b)(4)(C)'' and inserting ``subsection
(b)''.
SEC. 5. INCREASED FEDERAL RESERVE BOARD FLEXIBILITY IN SETTING RESERVE
REQUIREMENTS.
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