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CU Parity Bill Passed and Ready for President's Signature
Friday, December 12, 2014 6:40 AM

The U.S. Senate just passed the Credit Union Share Insurance Fund Parity Act, which would direct the National Credit Union Administration to extend share insurance coverage to trust accounts, such as Interest on Lawyer Trust Accounts (IOLTAS) and other similar accounts, opened and managed by credit union members.

The Senate's approval by unanimous consent today of the IOLTA bill brings parity treatment for credit unions in relation to banks.

CUNA believes the legislation is needed because the National Credit Union Administration has interpreted that the Federal Credit Union Act does not permit it to extend share insurance coverage to trust accounts.

"This parity bill would provide credit unions the same opportunity as other financial institutions to serve their members and the community," CUNA President/CEO Jim Nussle said upon the bill's passage.

The House passed its version of the legislation (H.R. 3468) in May. The bill now will be sent to the president to be signed into law. The Credit Union National Association, an early and prominent supporter of the IOLTA bill, immediately sent a letter to President Barack Obama urging him to sign the bill into law.