[United States Statutes at Large, Volume 128, 113th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]


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. <>

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,

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