[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 4052 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 4052

 To require the Federal Deposit Insurance Corporation to fully insure 
                  Interest on Lawyers Trust Accounts.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 22, 2010

   Mr. Merkley (for himself, Mr. Johnson, Mr. Corker, and Mr. Enzi) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To require the Federal Deposit Insurance Corporation to fully insure 
                  Interest on Lawyers Trust Accounts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. INTEREST ON LAWYERS TRUST ACCOUNTS.

    (a) In General.--Section 11(a)(1)(B)(iii) of the Federal Deposit 
Insurance Act, as added by section 343 of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (Public Law 111-203), is amended--
            (1) by redesignating subclauses (I), (II), and (III) as 
        items (aa), (bb), and (cc), respectively, and adjusting the 
        margins accordingly;
            (2) by striking ``means a deposit'' and inserting the 
        following: ``means--
                                    ``(I) a deposit'';
            (3) in item (cc), as so redesignated, by striking the 
        period at the end and inserting ``; and''; and
            (4) by adding at the end the following:
                                    ``(II) a trust account established 
                                by an attorney or law firm on behalf of 
                                a client, commonly known as an 
                                `Interest on Lawyers Trust Account', or 
                                a functionally equivalent account, as 
                                determined by the Corporation.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on December 31, 2010.
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