Press
CUNA-backed bill to reduce regulatory burden approved by Senate
WASHINGTON, DC (December 11, 2014) — Today the Senate approved CUNA supported bill H.R. 3468, legislation that extends Share Insurance Coverage to Lawyer Trust Accounts (IOLTA). The bill passed the Senate by unanimous consent.
“CUNA is proud to have actively supported IOLTA’s passage in both the House and the Senate,” said Jim Nussle, President and CEO of CUNA. “This much needed legislation is an important first step in removing barriers that impede credit unions from fully serving their members. CUNA thanks Senators Angus King (I-ME) and Mark Warner (D-VA) for standing with credit unions to bring parity to the not-for-profit cooperatives, their members, and the communities they serve.”
H.R. 3468 would direct the National Credit Union Administration (NCUA) to issue a regulation extending share insurance to owners of the funds held in trust accounts opened and managed by credit union members. This legislation is necessary because NCUA has interpreted that the Federal Credit Union Act does not support such parity treatment for these accounts. The inability of federally insured credit unions to extend share insurance coverage to IOLTAs and prepaid debit card master accounts forces credit union members to use a bank or thrift in order to receive the maximum deposit insurance coverage for all owners of the funds held in such an account.
CUNA worked closely with both the House and Senate on this bill. CUNA sent a letter to the Senate urging passage of the IOLTA legislation in last month. The House passed H.R. 3468, introduced by Representatives Ed Royce (R-CA) and Ed Perlmutter (D-CO), by voice vote on May 6, 2014. CUNA testified in support of this legislation at a hearing before the House Financial Services Committee in April 2013. We also submitted a letter of support for the bill when it was reported out of the Financial Services Committee on November 14, 2013 by voice vote.
About CUNA
With its network of affiliated state credit union leagues, Credit Union National Association (CUNA) serves America’s credit unions, which are owned by 100 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life. For more information about CUNA, visit www.cuna.org or follow @CUNA on Twitter. For more information about credit unions, visit www.aSmarterChoice.org and follow @asmarterchoice on Twitter. Visit the CUNA Press Room for a full listing of media mentions, press releases and resources to stay informed on current events within the credit union industry.