S583-118

2. Termination of insurance Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended— in subsection (a)(3), by inserting or (x) after subsection (w); and by adding at the end the following: In this subsection— the term contractor means an entity that— is a party to a contract with the Federal Government; has complied with all applicable laws and regulations in fulfilling the responsibilities of the entity with respect to the contract described in clause (i); and satisfies traditional underwriting and credit standards with respect to the banking service sought by the entity under paragraph (2); and the term covered institution means an insured depository institution that has more than $50,000,000,000 in total consolidated assets. If a covered institution refuses to provide a banking service sought by a contractor, the Board of Directors shall— issue to the insured depository institution a notice of its intention to terminate the insured status of the insured depository institution; and schedule a hearing on the matter, which shall be conducted in all respects as a termination hearing pursuant to paragraphs (3) through (5) of subsection (a). Upon termination of the insured status of any depository institution pursuant to paragraph (2), the deposits of such depository institution shall be treated in accordance with subsection (a)(7). (x)Termination of insurance relating to denial of services to Federal contractors(1)DefinitionsIn this subsection—(A)the term contractor means an entity that—(i)is a party to a contract with the Federal Government;(ii)has complied with all applicable laws and regulations in fulfilling the responsibilities of the entity with respect to the contract described in clause (i); and(iii)satisfies traditional underwriting and credit standards with respect to the banking service sought by the entity under paragraph (2); and(B)the term covered institution means an insured depository institution that has more than $50,000,000,000 in total consolidated assets.(2)Notice of termination; pretermination hearingIf a covered institution refuses to provide a banking service sought by a contractor, the Board of Directors shall— (A)issue to the insured depository institution a notice of its intention to terminate the insured status of the insured depository institution; and(B)schedule a hearing on the matter, which shall be conducted in all respects as a termination hearing pursuant to paragraphs (3) through (5) of subsection (a).(3)Temporary insurance of previously insured depositsUpon termination of the insured status of any depository institution pursuant to paragraph (2), the deposits of such depository institution shall be treated in accordance with subsection (a)(7)..