On Tuesday, May 6, 2014, the House will consider H.R. 3468, the Credit Union Share Fund Insurance Parity Act, as amended, under a suspension of the rules. H.R. 3468 was introduced on November 13, 2013 by Rep. Ed Royce (R-CA) and was referred to the Committee on Financial Services, which ordered the bill reported, as amended, by voice vote.
H.R. 3468 amends the Federal Credit Union Act (12 U.S.C. 1787(k)) to expand federal deposit pass-through insurance to include Interest on Lawyer Trust Accounts (IOLTAs) and other similar escrow accounts housed within credit unions.
Currently, bank accounts held in a member’s account on behalf of another individual or individuals (including IOLTA funds) are eligible for insurance under the Federal Deposit Insurance Corporation (FDIC). However, similar accounts held at credit unions are not eligible to qualify for share insurance under the National Credit Union Share Insurance Fund (NCUSIF). This legislation would extend this coverage to IOLTA and similar escrow accounts held by credit unions.
CBO estimates that enacting H.R. 3468 would result in no significant net impact on direct spending over the ten-year period.
For questions or further information contact the GOP Conference at 5-5107.