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H.R. 974 107th Congress House

Small Business Interest Checking Act of 2001

Official title: 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 accou… Show full official titleShow less

Official title: 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.

Introduced: April 3, 2001 See on congress.gov
Finance and Financial Sector Administrative procedureAutomated teller machinesBank depositsBank records
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Bank reservesChecking accountsChecksCommerceCongressCongressional reporting requirementsCorporate financeCredit cardsDividendsEconomics and Public FinanceElectronic funds transfersFederal Reserve SystemFeesGovernment Operations and PoliticsGovernment paperworkInterestLawMonetary policyMoney supplyNOW accountsSavings accountsScience, Technology, CommunicationsSurveys
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This bill died when the 107th Congress ended
It never became law before the 107th Congress (2001–2002) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 17 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Apr 4, 2001
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Apr 3, 2001
Reported (Amended) by the Committee on Financial Services. H. Rept. 107-38.
Apr 3, 2001
The title of the measure was amended. Agreed to without objection.
Apr 3, 2001
Motion to reconsider laid on the table Agreed to without objection.
Apr 3, 2001
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H1374-1375)
Apr 3, 2001
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H1374-1375)
Apr 3, 2001
DEBATE - The House proceeded with forty minutes of debate on H.R. 974.
Apr 3, 2001
Considered under suspension of the rules. (consideration: CR H1374-1379)
Apr 3, 2001
Mr. Oxley moved to suspend the rules and pass the bill, as amended.
Apr 3, 2001
Placed on the Union Calendar, Calendar No. 27.
Mar 28, 2001
Ordered to be Reported (Amended) by Voice Vote.
Mar 28, 2001
Committee Consideration and Mark-up Session Held.
Mar 21, 2001
Forwarded by Subcommittee to Full Committee.
Mar 21, 2001
Subcommittee Consideration and Mark-up Session Held.
Mar 20, 2001
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
Mar 13, 2001
Introduced in House
Mar 13, 2001
Referred to the House Committee on Financial Services.
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 Latest action April 4, 2001

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

 Plain-English summary Congressional Research Service
Small Business Interest Checking Act of 2001- Amends Federal banking law governing interaccount transfers to provide that a depository institution may permit owners of certain interest- or dividend-paying accounts to make up to 24 transfers monthly for any purpose to their other accounts in the same institution.

Amends the Federal Reserve Act to authorize a Federal reserve bank to pay interest at least quarterly (at a rate not to exceed the general level of short term interest rates) to a depository institution on any balance it maintains at the reserve bank.

Repeals a specified restriction in order to authorize pass-through reserves for member banks (as well as non-member banks).

Reformulates the mandatory depository institution reserve ratio to: (1) one that is not greater than three percent, and may be zero, (currently, a flat ratio of three percent) for transaction accounts of $25 million or less; and (2) reduce from eight percent to zero the minimum ratio for transaction accounts exceeding $25 million. (Thus authorizes zero reserve requirements for such accounts.)

Requires the Federal Reserve banks to transfer certain surplus funds for deposit into the general fund of the Treasury equal to the estimated net cost of making the quarterly payments of interest mandated by this Act for FY 2002 through 2006.

Prohibits such banks from replenishing surplus funds by the amount of any such transfers during that time period.

 Related & companion bills 1
  • S 524 Identical bill Small Business Interest Checking Act of 2001
 Bill text 4 versions

Source documents hosted by congress.gov.

 Committees of jurisdiction 3
 Cosponsors 2
All 2 Democratic 1 Republican 1
D
Sherman, Brad
California · Apr 3, 2001
 R
Capito, Shelley Moore
West Virginia · Mar 13, 2001
Cite this page click to expand
APA
U.S. Congress. (2026). H.R. 974: Small Business Interest Checking Act of 2001. 107th Congress. Open America. https://openamerica.io/bill/107-HR-974/
MLA
"H.R. 974: Small Business Interest Checking Act of 2001." 107th Congress, 2026, Open America, https://openamerica.io/bill/107-HR-974/.
Bluebook (legal)
H.R. 974, 107th Cong. (2026), https://openamerica.io/bill/107-HR-974/.
Markdown link
[H.R. 974: Small Business Interest Checking Act of 2001](https://openamerica.io/bill/107-HR-974/)
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