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S 524 107th Congress Senate Finance and Financial Sector Administrative procedure Bank deposits Bank reserves Checking accounts Commerce Corporate finance Dividends Economics and Public Finance Federal Reserve System Government Operations and Politics Interest Law Monetary policy Money supply NOW accounts Savings accounts

Small Business Interest Checking Act of 2001

Introduced: March 13, 2001 Introduced by: Schumer, Charles E. Democratic · New York See on congress.gov
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 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Mar 13, 2001
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Mar 13, 2001
Introduced in Senate
 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.

What's happening now March 13, 2001

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

 Committees of jurisdiction 1