1. Short title This Act may be cited as the Keeping Capital Local for Underserved Communities Act of 2017 . 2. Limited exception for reciprocal deposits (a) In general Section 29 of the Federal Deposit Insurance Act ( 12 U.S.C. 1831f ) is amended by adding at the end the following new subsection: (i) Limited exception for reciprocal deposits (1) In general Reciprocal deposits of an agent 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 reciprocal deposits does not exceed the lesser of— (A) $10,000,000,000; or (B) an amount equal to 20 percent of the total liabilities of the agent institution. (2) Definitions In this subsection: (A) Agent institution The term agent institution means an insured depository institution that places a covered deposit through a deposit placement network at other insured depository institutions in amounts that are less than or equal to the standard maximum deposit insurance amount, specifying the interest rate to be paid for such amounts, if the agent institution— (i) (I) when most recently examined under section 10(d) was found to have a composite condition of outstanding or good; and (II) is well capitalized (as defined in section 38(b)(1)(A)); (ii) has obtained a waiver pursuant to subsection (c) of this section; or (iii) does not receive an amount of reciprocal deposits that causes the total amount of reciprocal deposits held by the agent institution to be greater than the average of the total amount of reciprocal deposits held by the agent institution on the last day of each of the 4 calendar quarters preceding the calendar quarter in which the agent institution was found not to have a composite condition of outstanding or good or was determined to be not well capitalized. (B) Covered deposit The term covered deposit means a deposit that— (i) is submitted for placement through a deposit placement network by an agent institution