Depositor Protection Act of 1985

Depositor Protection Act of 1985 - Title I: Required Deposit Insurance - Part A: Federal Deposit Insurance Corporation Amendments - Amends the Federal Deposit Insurance Act to require the deposits of all State banks (including institutions which receive trust funds) to be insured by the Federal Deposit Insurance Corporation (FDIC) or an approved State program.

Provides that any State bank that applies and is rejected for FDIC insurance shall be an interim insured bank for purposes of such Act. Limits to $10,000 the maximum amount of deposits such a bank may insure for any depositor. Requires such limitation to be prominently displayed. Requires the FDIC Board of Directors to inform each interim insured bank of the reasons for denying its insurance application. Allows such a bank five years to remedy such reasons or have its interim insured status terminated.

Prohibits an insured bank from terminating its insured status unless it ceases to engage in the business of receiving deposits or its insured status is terminated by the FDIC Board. Terminates a bank's authority to receive deposits two years after its insured status is terminated.

Part B: Federal Savings and Loan Insurance Corporation Amendments - Amends the National Housing Act to require the accounts of all building and loan, savings and loan, and homestead associations and cooperative banks to be insured by the Federal Savings and Loan Insurance Corporation (FSLIC) or an approved State program. Provides for limited interim insurance and termination of the insured status and business of such entities as provided under Part A for State banks.

Part C: Credit Unions - Amends the Federal Credit Union Act to require all credit union accounts to be insured by the National Credit Union Administration Board (NCUAB) or an approved State program. Provides for limited interim insurance and termination of the insured status and business of a credit union as provided for a State bank under Part A.

Title II: State Insurance Funds - Directs the FDIC Board, the Federal Home Loan Bank Board, and the NCUAB to establish minimum standards for State insurance programs. Requires each State program to register with the appropriate Federal agency in order to become an approved State program and to comply with such minimum standards within two years in order to remain an approved program. Requires the appropriate Federal agency to examine and certify each program annually.

Prohibits any institution insured by a State program from including in any advertisement, announcement, or solicitation any statement that its accounts are insured by a federally approved program.