Credit Union Share Insurance Fund Parity Act

(This measure has not been amended since it was passed by the House on May 6, 2014. The summary of that version is repeated here.)

Credit Union Share Insurance Fund Parity Act - Amends the Federal Credit Union Act regarding insured amounts payable in connection with a bankrupt state-chartered credit union for which the National Credit Union Administration (NCUA) Board is the liquidating agent.

Revises requirements relating to the limitation to the standard maximum share insurance amount ($250,000) for the net amount of share insurance payable to any member at an insured credit union in the event of such a bankruptcy. Applies the limitation also to any person with funds lawfully held in a member account.

Requires the Board to provide pass-through share insurance paid by certain lawyers administering deposits or shares of any interest on a lawyer's trust account (IOLTA), or paid by the escrow agent administering other similar escrow accounts.

Defines "IOLTA" as a system in which lawyers place certain client funds in interest-bearing or dividend-bearing accounts, with the interest or dividends then used to fund programs such as legal service organizations providing services to clients in need.

Treats IOLTAs as escrow accounts for share insurance purposes, and considers them as member accounts if the administering attorney or escrow agent is a member of the insured credit union in which the funds are held.

Declares that nothing in this Act shall be construed as authorizing an insured credit union to accept IOLTA or similar escrow account deposits in an amount greater than authorized under federal or state law.

[113th Congress Public Law 252]
[From the U.S. Government Publishing Office]



[[Page 128 STAT. 2893]]

Public Law 113-252
113th Congress

                                 An Act


 
 To amend the Federal Credit Union Act to extend insurance coverage to 
 amounts held in a member account on behalf of another person, and for 
         other purposes. <<NOTE: Dec. 18, 2014 -  [H.R. 3468]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Credit Union 
Share Insurance Fund Parity Act.>> 
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Credit Union Share Insurance Fund 
Parity Act''.
SEC. 2. INSURANCE OF AMOUNTS HELD ON BEHALF OF OTHERS.

    Section 207(k) of the Federal Credit Union Act (12 U.S.C. 1787(k)) 
is amended--
            (1) in paragraph (1)(A)--
                    (A) by inserting after ``payable to any member'' the 
                following: ``, or to any person with funds lawfully held 
                in a member account,''; and
                    (B) by striking ``and paragraphs (5) and (6)'';
            (2) in paragraph (2)(A), by striking ``(as determined under 
        paragraph (5))'';
            (3) by redesignating paragraph (5) as paragraph (6); and
            (4) by inserting after paragraph (4) the following:
            ``(5) Coverage for interest on lawyers trust accounts 
        (iolta) and other similar escrow accounts.--
                    ``(A) Pass-through insurance.--The Administration 
                shall provide pass-through share insurance for the 
                deposits or shares of any interest on lawyers trust 
                account (IOLTA) or other similar escrow accounts.
                    ``(B) Treatment of ioltas.--
                          ``(i) Treatment as escrow accounts.--For share 
                      insurance purposes, IOLTAs are treated as escrow 
                      accounts.
                          ``(ii) Treatment as member accounts.--IOLTAs 
                      and other similar escrow accounts are considered 
                      member accounts for purposes of paragraph (1), if 
                      the attorney administering the IOLTA or the escrow 
                      agent administering the escrow account is a member 
                      of the insured credit union in which the funds are 
                      held.
                    ``(C) Definitions.--For purposes of this paragraph:
                          ``(i) Interest on lawyers trust account.--The 
                      terms `interest on lawyers trust account' and 
                      `IOLTA' mean a system in which lawyers place 
                      certain client funds in interest-bearing or 
                      dividend-bearing accounts,

[[Page 128 STAT. 2894]]

                      with the interest or dividends then used to fund 
                      programs such as legal service organizations who 
                      provide services to clients in need.
                          ``(ii) Pass-through share insurance.--The term 
                      `pass-through share insurance' means, with respect 
                      to IOLTAs and other similar escrow accounts, 
                      insurance coverage based on the interest of each 
                      person on whose behalf funds are held in such 
                      accounts by the attorney administering the IOLTA 
                      or the escrow agent administering a similar escrow 
                      account, in accordance with regulations issued by 
                      the Administration.
                    ``(D) Rule of construction.--No provision of this 
                paragraph shall be construed as authorizing an insured 
                credit union to accept the deposits of an IOLTA or 
                similar escrow account in an amount greater than such 
                credit union is authorized to accept under any other 
                provision of Federal or State law.''.

    Approved December 18, 2014.

LEGISLATIVE HISTORY--H.R. 3468:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 160 (2014):
            May 6, considered and passed House.
            Dec. 11, considered and passed Senate.

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