Custodial deposits up to 20 percent of liabilities are not brokered deposits
To increase the supply of housing in America, and for other purposes, section 901, Sec. 901.
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Custodial deposits up to 20 percent of liabilities are not brokered deposits
The document says “shall not”Who acts: Federal Deposit Insurance CorporationHow: statuteSec. 901 in the PDF
What the document says
“Custodial deposits of an eligible institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker to the extent that the total amount of such custodial deposits does not exceed an amount equal to 20 percent of the total liabilities of the eligible institution.”
The section adds a new subsection (j) to section 29 of the Federal Deposit Insurance Act providing that custodial deposits of an eligible institution are not treated as funds obtained through a deposit broker, so far as they do not exceed 20 percent of the institution's total liabilities.
What the document actually says
“Custodial deposits of an eligible institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker to the extent that the total amount of such custodial deposits does not exceed an amount equal to 20 percent of the total liabilities of the eligible institution.”
That sentence, in plain words
Some deposits a bank holds for others do not count as brokered. The share that escapes is up to 20 percent. That share is measured against all the bank owes.
What this is about
A brokered deposit comes to a bank through a middleman. Rules limit how far a bank may lean on them. This carves out a slice that is not counted.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Increase the supply of housing in America, Public Law 119-101, sec. 901, 140 Stat. 964 (2026). https://www.govinfo.gov/content/pkg/PLAW-119publ101/html/PLAW-119publ101.htm
This page
“Custodial deposits up to 20 percent of liabilities are not brokered deposits,” Increase the supply of housing in America, section 901, Sec. 901. Read the Mandate, https://readthemandate.org/pl-119-101/proposal/sec901-custodial-exception/ (retrieved October 10, 2026).
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