Laws: Cases and Codes : U.S. Code : Title 12 : Section 1834


   
U.S. Code as of: 01/19/04
Section 1834. Reduced assessment rate for deposits attributable to lifeline accounts

    (a) Qualification of lifeline accounts by Federal Reserve Board
      (1) In general
        The Board of Governors of the Federal Reserve System, and the
      Federal Deposit Insurance Corporation shall establish minimum
      requirements for accounts providing basic transaction services
      for consumers at insured depository institutions in order for
      such accounts to qualify as lifeline accounts for purposes of
      this section and section 1817(b)(2)(H) of this title.
      (2) Factors to be considered
        In determining the minimum requirements under paragraph (1) for
      lifeline accounts at insured depository institutions, the Board
      and the Corporation shall consider the following factors:
          (A) Whether the account is available to provide basic
        transaction services for individuals who maintain a balance of
        less than $1,000 or such other amount which the Board may
        determine to be appropriate.
          (B) Whether any service charges or fees to which the account
        is subject, if any, for routine transactions do not exceed a
        minimal amount.
          (C) Whether any minimum balance or minimum opening
        requirement to which the account is subject, if any, is not
        more than a minimal amount.
          (D) Whether checks, negotiable orders of withdrawal, or
        similar instruments for making payments or other transfers to
        third parties may be drawn on the account.
          (E) Whether the depositor is permitted to make more than a
        minimal number of withdrawals from the account each month by
        any means described in subparagraph (D) or any other means.
          (F) Whether a monthly statement itemizing all transactions
        for the monthly reporting period is made available to the
        depositor with respect to such account or a passbook is
        provided in which all transactions with respect to such account
        are recorded.
          (G) Whether depositors are permitted access to tellers at the
        institution for conducting transactions with respect to such
        account.
          (H) Whether other account relationships with the institution
        are required in order to open any such account.
          (I) Whether individuals are required to meet any prerequisite
        which discriminates against low-income individuals in order to
        open such account.
          (J) Such other factors as the Board may determine to be
        appropriate.
      (3) Definitions
        For purposes of this subsection - 
        (A) Board
          The term "Board" means the Board of Governors of the Federal
        Reserve System.
        (B) Insured depository institution
          The term "insured depository institution" has the meaning
        given to such term in section 1813(c)(2) of this title.
        (C) Lifeline account
          The term "lifeline account" means any transaction account (as
        defined in section 461(b)(1)(C) of this title) which meets the
        minimum requirements established by the Board under this
        subsection.
    (b) Omitted
    (c) Availability of funds
      The provisions of this section shall not take effect until
    appropriations are specifically provided in advance. There are
    hereby authorized to be appropriated such sums as may be necessary
    to carry out the provisions of this section.



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