IIB 

113TH CONGRESS 

2D SESSION H. R. 3468 

IN THE SENATE OF THE UNITED STATES 

MAY 7, 2014 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

To amend the Federal Credit Union Act to extend insurance 

coverage to amounts held in a member account on behalf 

of another person, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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HR 3468 RFS

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Credit Union Share 

3 Insurance Fund Parity Act’’. 

4 SEC. 2. INSURANCE OF AMOUNTS HELD ON BEHALF OF 

5 OTHERS. 

6 Section 207(k) of the Federal Credit Union Act (12 

7 U.S.C. 1787(k)) is amended— 

8 (1) in paragraph (1)(A)— 

9 (A) by inserting after ‘‘payable to any 

10 member’’ the following: ‘‘, or to any person with 

11 funds lawfully held in a member account,’’; and 

12 (B) by striking ‘‘and paragraphs (5) and 

13 (6)’’; 

14 (2) in paragraph (2)(A), by striking ‘‘(as deter15 mined under paragraph (5))’’; 

16 (3) by redesignating paragraph (5) as para17 graph (6); and 

18 (4) by inserting after paragraph (4) the fol19 lowing: 

20 ‘‘(5) COVERAGE FOR INTEREST ON LAWYERS

21 TRUST ACCOUNTS (IOLTA) AND OTHER SIMILAR ES22 CROW ACCOUNTS.— 

23 ‘‘(A) PASS-THROUGH INSURANCE.—The 

24 Administration shall provide pass-through share 

25 insurance for the deposits or shares of any inVerDate Mar 15 2010 01:10 May 08, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3468.RFS H3468

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1 terest on lawyers trust account (IOLTA) or 

2 other similar escrow accounts. 

3 ‘‘(B) TREATMENT OF IOLTAS.— 

4 ‘‘(i) TREATMENT AS ESCROW AC5 COUNTS.—For share insurance purposes, 

6 IOLTAs are treated as escrow accounts. 

7 ‘‘(ii) TREATMENT AS MEMBER AC8 COUNTS.—IOLTAs and other similar es9 crow accounts are considered member ac10 counts for purposes of paragraph (1), if 

11 the attorney administering the IOLTA or 

12 the escrow agent administering the escrow 

13 account is a member of the insured credit 

14 union in which the funds are held. 

15 ‘‘(C) DEFINITIONS.—For purposes of this 

16 paragraph: 

17 ‘‘(i) INTEREST ON LAWYERS TRUST

18 ACCOUNT.—The terms ‘interest on lawyers 

19 trust account’ and ‘IOLTA’ mean a system 

20 in which lawyers place certain client funds 

21 in interest-bearing or dividend-bearing ac22 counts, with the interest or dividends then 

23 used to fund programs such as legal serv24 ice organizations who provide services to 

25 clients in need. 


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1 ‘‘(ii) PASS-THROUGH SHARE INSUR2 ANCE.—The term ‘pass-through share in3 surance’ means, with respect to IOLTAs 

4 and other similar escrow accounts, insur5 ance coverage based on the interest of each 

6 person on whose behalf funds are held in 

7 such accounts by the attorney admin8 istering the IOLTA or the escrow agent 

9 administering a similar escrow account, in 

10 accordance with regulations issued by the 

11 Administration. 

12 ‘‘(D) RULE OF CONSTRUCTION.—No provi13 sion of this paragraph shall be construed as au14 thorizing an insured credit union to accept the 

15 deposits of an IOLTA or similar escrow account 

16 in an amount greater than such credit union is 

17 authorized to accept under any other provision 

18 of Federal or State law.’’. 

Passed the House of Representatives May 6, 2014. 

Attest: KAREN L. HAAS, 

Clerk. 


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