[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3468 Enrolled Bill (ENR)]
H.R.3468
One Hundred Thirteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and fourteen
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
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, 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.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.