II 111th CONGRESS 2d Session S. 4052 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.

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.