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Obama Signs IOLTA Bill into Law
Friday, December 19, 2014 6:45 AM

Yesterday, the Credit Union Share Insurance Fund Parity Act was signed into law by President Barack Obama. The bill creates deposit insurance parity for credit unions by directing the National Credit Union Administration to extend share insurance coverage to trust accounts, such as Interest on Lawyer Trust Accounts (IOLTA) and other similar accounts, opened and managed by credit union members.

Credit Union National Association President/CEO Jim Nussle hailed the new law. "Each time the government removes barriers that hinder the operations for the nation's credit unions it is a victory for U.S. consumers," he said. "Credit unions can better serve their members, through their consistently superior service and lower fees and better rates, when not encumbered by unnecessary constraints that do nothing to maintain credit unions' stellar safety and soundness record."

CUNA had long argued that the statutory change was needed because the NCUA historically had interpreted that the Federal Credit Union Act did not permit it to extend share insurance coverage to trust accounts.

"CUNA thanks the president for signing this change into law," Nussle said, adding, "And we repeat our thanks to Sens. Angus King (I-ME) and Mark Warner (D-VA) and Reps. Ed Royce (R-CA), and Ed Perlmutter (D-CO) for standing with credit unions to bring parity to the not-for-profit cooperatives, their members, and the communities they serve."