Share Insurance Now Covers Lawyers’ Trust Accounts
December 22, 2014 – Legislation, H.R. 3468 the Credit Union Share Insurance Fund Parity Act, has been signed into law. Starting immediately, National Credit Union Share Insurance Fund (NCUSIF) share insurance is extended to cover the funds in Interest on Lawyer Trust Accounts (IOLTA) and other escrow accounts. So long as the lawyer, or escrow agent, administering the account, is a member of the credit union, than share insurance will pass through to each owner of the funds on deposit in the account up to the current $250,000. This change creates parity between the NCUSIF and the Federal Deposit Insurance Corporation (FDIC).
The legislation was originally introduced by Rep. Ed Royce (R-Calif.).