119-hr5317

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5317 Reported in House

    (RH) ]

<DOC>

 Union Calendar No. 321
119th CONGRESS
 1st Session
 H. R. 5317

 [Report No. 119-369]

 To amend the Federal Deposit Insurance Act to ensure that certain 
custodial deposits of well capitalized insured depository institutions 
are not considered to be funds obtained by or through deposit brokers, 
 and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 September 11, 2025

Mr. Hill of Arkansas introduced the following bill; which was referred 
 to the Committee on Financial Services

 November 4, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
 in italic]
 [For text of introduced bill, see copy of bill as introduced on 
 September 11, 2025]

_______________________________________________________________________

 A BILL

 To amend the Federal Deposit Insurance Act to ensure that certain 
custodial deposits of well capitalized insured depository institutions 
are not considered to be funds obtained by or through deposit brokers, 
 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 ``Community Bank Deposit Access Act of 
2025''.

SEC. 2. LIMITED EXCEPTION FOR CUSTODIAL DEPOSITS.

    (a) In General.--

Section 29 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831f) is amended by adding at the end the following:
 ``

    (j) Limited Exception for Custodial Deposits.--
 ``

    (1) In general.--Custodial deposits of an eligible 
 institution shall not be considered to be funds obtained, 
 directly or indirectly, by or through a deposit broker to the 
 extent that the total amount of such custodial deposits does 
 not exceed an amount equal to 20 percent of the total 
 liabilities of the eligible institution.
 ``

    (2) === Definitions. ===
-In this subsection:
 ``
        (A) Custodial deposit.--The term `custodial 
 deposit' means a deposit that is not deposited at an 
 insured depository institution in return for fees paid 
 by the insured depository institution pursuant to an 
 agreement with a third party and that would otherwise 
 be considered to be obtained, directly or indirectly, 
 by or through a deposit broker, if the deposit is 
 deposited at 1 or more insured depository institutions, 
 for the purpose of providing or maintaining deposit 
 insurance for the benefit of a third party, by or 
 through any of the following, each acting in a formal 
 custodial or fiduciary capacity for the benefit of a 
 third party:
 ``
            (i) An insured depository institution 
 serving as agent, trustee, or custodian.
 ``
            (ii) A trust entity controlled by an 
 insured depository institution serving as 
 agent, trustee, or custodian.
 ``
            (iii) A State-chartered trust company 
 serving as agent, trustee, or custodian.
 ``
            (iv) A plan administrator or investment 
 advisor, acting in a formal custodial or 
 fiduciary capacity for the benefit of a plan.
 ``
        (B) Eligible institution.--The term `eligible 
 institution' means an insured depository institution 
 that accepts custodial deposits, if the insured 
 depository institution has less than $10,000,000,000 in 
 total assets as reported on the consolidated report of 
 condition and income as reported quarterly to the 
 appropriate Federal banking agency and--
 ``
            (i) 
            (I) when most recently examined under 
 

section 10
            (d) was assigned a composite rating 
 of 1, 2, or 3 under the Uniform Financial 
 Institutions Rating System (or an equivalent 
 rating under a comparable rating system); and
 ``
            (II) is well capitalized; or
 ``
            (ii) has obtained a waiver pursuant to 
 subsection
            (c) .
 ``
            (C) Plan.--The term `plan' has the meaning given 
 the term in 

section 3 of the Employee Retirement Income 
 Security Act of 1974 (29 U.S.C. 1002).
 ``
            (D) Plan administrator.--The term `plan 
 administrator' has the meaning given the term 
 `administrator' in 

section 3 of the Employee Retirement 
 Income Security Act of 1974 (29 U.S.C. 1002).
 ``
        (E) Well capitalized.--The term `well 
 capitalized' has the meaning given the term in 

section 38

    (b) .''.

    (b) Interest Rate Restriction.--

Section 29 of the Federal Deposit 
Insurance Act (12 U.S.C. 1831f), as amended by subsection

    (a) , is 
further amended by adding at the end the following:
 ``

    (k) Restriction on Interest Rate Paid on Certain Custodial 
Deposits.--
 ``

    (1) === Definitions. ===
-In this subsection--
 ``
        (A) the terms `custodial deposit', `eligible 
 institution', and `well capitalized' have the meanings 
 given those terms in subsection

    (j) ; and
 ``
        (B) the term `covered insured depository 
 institution' means an insured depository institution 
 that while acting as an eligible institution under 
 subsection

    (j) , accepts custodial deposits while not 
 well capitalized.
 ``

    (2) Prohibition.--A covered insured depository 
 institution may not pay a rate of interest on custodial 
 deposits that are accepted while not well capitalized that, at 
 the time the funds or custodial deposits are accepted, 
 significantly exceeds the limit set forth in paragraph

    (3) .
 ``

    (3) Limit on interest rates.--The limit on the rate of 
 interest referred to in paragraph

    (2) shall be not greater 
 than--
 ``
        (A) the rate paid on deposits of similar maturity 
 in the normal market area of the covered insured 
 depository institution for deposits accepted in the 
 normal market area of the covered insured depository 
 institution; or
 ``
        (B) the national rate paid on deposits of 
 comparable maturity, as established by the Corporation, 
 for deposits accepted outside the normal market area of 
 the covered insured depository institution.''.
 Union Calendar No. 321

119th CONGRESS

 1st Session

 H. R. 5317

 [Report No. 119-369]

_______________________________________________________________________

 A BILL

 To amend the Federal Deposit Insurance Act to ensure that certain 
custodial deposits of well capitalized insured depository institutions 
are not considered to be funds obtained by or through deposit brokers, 
 and for other purposes.

_______________________________________________________________________

 November 4, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed