Back in December 2014, Pres. Obama signed H.R. 3468, the Credit Union Share Insurance Fund Parity Act, into law and it directed the NCUA to extend share insurance coverage to trust accounts, such as Interest on Lawyer Trust Accounts (IOTLAs), opened and managed by credit union members. In 2015, the NCUA implemented this legislation through rulemaking, and now full NCUA share insurance is afforded to IOTAs.
Now, the Florida Bar Board of Governors (Florida Bar) is considering an amendment to its rules regulating the Florida Bar to allow credit unions as permissible custodian institutions of these accounts. The Florida Bankers Association has lodged opposition to this amendment through a comment letter. The League has responded with its own letter, and now it needs credit unions, their attorney members, and their law firms to join in supporting this amendment.
Many of our credit unions have inquired about being able to offer these types of accounts. Now is the time to show the Florida Bar that credit unions are equipped to offer them. Send comments today through the LSCU Action Center.