After carefully reading HR 974, I realized that Section 2 of the bill (effective 2 years from enactment) eliminates the decades-old prohibition on payment of interest on DDA accounts.
Section 3 of the bill permits the 24 transfer per month interest-bearing account (presumably this is really only interesting during the 2-year delay for section 2 effective date). But the account (the "sending" account) will be a transaction account --
quote:
Nothing in this subsection shall be construed to prevent an account offered pursuant to this subsection from being considered a transaction account (as defined in section 19(b) of the Federal Reserve Act for purposes of such Act).
I read this to say that we'd be able to allow daily sweeps from an interest-bearing account (other than an MMDA or savings account) into a business checking account without that being considered payment of interest on the checking account. But because this account could be defined by the Fed as a transaction account, it looks like this legislation will do nothing to eliminate the dastardly 6/3 transfer limits on MMDA/Savings accounts.
[This message has been edited by John Burnett (edited 04-23-2001).]