HR 1048 IH

To facilitate transfers between interest-bearing accounts and transactions accounts at depository institutions for small businesses.

March 15, 2001

Mr. ANDREWS introduced the following bill; which was referred to the Committee on Financial Services

To facilitate transfers between interest-bearing accounts and transactions accounts at depository institutions for small businesses.

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 Banking Improvement Act'.

SEC. 2. IMMEDIATE INCREASE IN THE NUMBER OF COMMERCIAL INTERACCOUNT TRANSFERS ALLOWED EACH MONTH.

Section 2 of Public Law 93-100 (12 U.S.C. 1832) is amended--

(1) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and

(2) by inserting after subsection (a) the following new subsection:

`(b) INTERACCOUNT TRANSFERS-

`(1) IN GENERAL- Notwithstanding any other provision of law, any depository institution may permit the owner of any deposit or account on which interest or dividends are paid and which is not a deposit or account described in subsection (a)(2) to make up to 24 transfers per month, for any purpose, to another account of the owner in the same institution.

`(2) RULE OF CONSTRUCTION- No provision of this subsection shall be construed as preventing 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.'.

END