Credit Union Share Insurance Fund Parity Act

Bill: 113-hr-3468
Sponsor: full_name: Rep. Royce, Edward R. [R-CA-39]
Introduced: 2013-11-13
Policy area: Finance and Financial Sector
Subjects: Bank accounts, deposits, capital

Banking and financial institutions regulation

Bankruptcy

Interest, dividends, interest rates

Lawyers and legal services
Latest action: action_date: 2014-12-18
text: Became Public Law No: 113-252.

Summaries:
action_date: 2013-11-13
action_desc: Introduced in House
text: <p>Credit Union Share Insurance Fund Parity Act - Amends the Federal Credit Union Act to include in the net amount of share insurance payable to any member at an insured credit union the total amount of the shares or deposits held in the member's account on behalf of another person, after making certain offsets and deductions.</p> <p>Modifies National Credit Union Administration (NCUA) Board authority to define the extent of the share insurance coverage provided where a member holds funds for the use of a nonmember. Requires coverage for an account established by a member to be consistent with Federal Deposit Insurance Corporation (FDIC) coverage, regardless of the membership status of the owner of the funds deposited in an account established by a credit union member.</p>

action_date: 2014-05-06
action_desc: Passed House amended
text: <p>Credit Union Share Insurance Fund Parity Act - Amends the Federal Credit Union Act regarding insured amounts payable in connection with a bankrupt state-chartered credit union for which the National Credit Union Administration (NCUA) Board is the liquidating agent. </p> <p>Revises requirements relating to the limitation to the standard maximum share insurance amount ($250,000) for the net amount of share insurance payable to any member at an insured credit union in the event of such a bankruptcy. Applies the limitation also to any person with funds lawfully held in a member account.</p> <p>Requires the Board to provide pass-through share insurance paid by certain lawyers administering deposits or shares of any interest on a lawyer's trust account (IOLTA), or paid by the escrow agent administering other similar escrow accounts.</p> <p>Defines &quot;IOLTA&quot; as a system in which lawyers place certain client funds in interest-bearing or dividend-bearing accounts, with the interest or dividends then used to fund programs such as legal service organizations providing services to clients in need.</p> <p>Treats IOLTAs as escrow accounts for share insurance purposes, and considers them as member accounts if the administering attorney or escrow agent is a member of the insured credit union in which the funds are held.</p> <p>Declares that nothing in this Act shall be construed as authorizing an insured credit union to accept IOLTA or similar escrow account deposits in an amount greater than authorized under federal or state law.</p>

action_date: 2014-12-11
action_desc: Passed Senate without amendment
text: <p><b>(This measure has not been amended since it was passed by the House on May 6, 2014. The summary of that version is repeated here.)</b></p> <p>Credit Union Share Insurance Fund Parity Act - Amends the Federal Credit Union Act regarding insured amounts payable in connection with a bankrupt state-chartered credit union for which the National Credit Union Administration (NCUA) Board is the liquidating agent. </p> <p>Revises requirements relating to the limitation to the standard maximum share insurance amount ($250,000) for the net amount of share insurance payable to any member at an insured credit union in the event of such a bankruptcy. Applies the limitation also to any person with funds lawfully held in a member account.</p> <p>Requires the Board to provide pass-through share insurance paid by certain lawyers administering deposits or shares of any interest on a lawyer's trust account (IOLTA), or paid by the escrow agent administering other similar escrow accounts.</p> <p>Defines &quot;IOLTA&quot; as a system in which lawyers place certain client funds in interest-bearing or dividend-bearing accounts, with the interest or dividends then used to fund programs such as legal service organizations providing services to clients in need.</p> <p>Treats IOLTAs as escrow accounts for share insurance purposes, and considers them as member accounts if the administering attorney or escrow agent is a member of the insured credit union in which the funds are held.</p> <p>Declares that nothing in this Act shall be construed as authorizing an insured credit union to accept IOLTA or similar escrow account deposits in an amount greater than authorized under federal or state law.</p>

action_date: 2014-12-18
action_desc: Public Law
text: <p><b>(This measure has not been amended since it was passed by the House on May 6, 2014. The summary of that version is repeated here.)</b></p> <p>Credit Union Share Insurance Fund Parity Act - Amends the Federal Credit Union Act regarding insured amounts payable in connection with a bankrupt state-chartered credit union for which the National Credit Union Administration (NCUA) Board is the liquidating agent. </p> <p>Revises requirements relating to the limitation to the standard maximum share insurance amount ($250,000) for the net amount of share insurance payable to any member at an insured credit union in the event of such a bankruptcy. Applies the limitation also to any person with funds lawfully held in a member account.</p> <p>Requires the Board to provide pass-through share insurance paid by certain lawyers administering deposits or shares of any interest on a lawyer's trust account (IOLTA), or paid by the escrow agent administering other similar escrow accounts.</p> <p>Defines &quot;IOLTA&quot; as a system in which lawyers place certain client funds in interest-bearing or dividend-bearing accounts, with the interest or dividends then used to fund programs such as legal service organizations providing services to clients in need.</p> <p>Treats IOLTAs as escrow accounts for share insurance purposes, and considers them as member accounts if the administering attorney or escrow agent is a member of the insured credit union in which the funds are held.</p> <p>Declares that nothing in this Act shall be construed as authorizing an insured credit union to accept IOLTA or similar escrow account deposits in an amount greater than authorized under federal or state law.</p>

tv_txt: I 113th CONGRESS 1st Session H. R. 3468 IN THE HOUSE OF REPRESENTATIVES November 13, 2013 Mr. Royce (for himself, Mr. Perlmutter , Mr. Gary G. Miller of California , and Mr. Sherman ) introduced the following bill; which was referred to the Committee on Financial Services A BILL 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. Short title This Act may be cited as the Credit Union Share Insurance Fund Parity Act . 2. Insurance of amounts held on behalf of others Section 207(k)(1) of the Federal Credit Union Act ( 12 U.S.C. 1787(k)(1) ) is amended— (1) in subparagraph (A), by inserting after deposits in the name of the member the following: or held in the member’s account on behalf of another person ; and (2) in subparagraph (C), by striking the period and inserting the following: , or where a member holds funds for the use of a nonmember. Coverage for an account established by a member shall be consistent with that of the Federal Deposit Insurance Corporation regardless of the membership status of the owner of the funds that are deposited in an account established by a credit union member. .

tv_txt: 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. Short title This Act may be cited as the Credit Union Share Insurance Fund Parity Act . 2. Insurance of amounts held on behalf of others Section 207(k) of the Federal Credit Union Act ( 12 U.S.C. 1787(k) ) is amended— (1) in paragraph (1)(A)— (A) by inserting after payable to any member the following: , or to any person with funds lawfully held in a member account, ; and (B) by striking and paragraphs (5) and (6) ; (2) in paragraph (2)(A), by striking (as determined under paragraph (5)) ; (3) by redesignating paragraph (5) as paragraph (6); and (4) by inserting after paragraph (4) the following: (5) Coverage for Interest On Lawyers Trust Accounts (IOLTA) and other similar escrow accounts (A) Pass-through insurance The Administration shall provide pass-through share insurance for the deposits or shares of any interest on lawyers trust account (IOLTA) or other similar escrow accounts. (B) Treatment of IOLTAs (i) Treatment as escrow accounts For share insurance purposes, IOLTAs are treated as escrow accounts. (ii) Treatment as member accounts IOLTAs and other similar escrow accounts are considered member accounts for purposes of paragraph (1), if the attorney administering the IOLTA or the escrow agent administering the escrow account is a member of the insured credit union in which the funds are held. (C) Definitions For purposes of this paragraph: (i) Interest on lawyers trust account The terms interest on lawyers trust account and IOLTA mean a system in which lawyers place certain client funds in interest-bearing or dividend-bearing accounts, with the interest or dividends then used to fund programs such as legal service organizations who provide services to clients in need. (ii) Pass-through share insurance The term pass-through share insurance means, with respect to IOLTAs and other similar escrow accounts, insurance coverage based on the interest of each person on whose behalf funds are held in such accounts by the attorney administering the IOLTA or the escrow agent administering a similar escrow account, in accordance with regulations issued by the Administration. (D) Rule of construction No provision of this paragraph shall be construed as authorizing an insured credit union to accept the deposits of an IOLTA or similar escrow account in an amount greater than such credit union is authorized to accept under any other provision of Federal or State law. .

Passed the House of Representatives May 6, 2014. Karen L. Haas, Clerk

tv_txt: I 113th CONGRESS 2d Session H. R. 3468 IN THE HOUSE OF REPRESENTATIVES 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. Short title This Act may be cited as the Credit Union Share Insurance Fund Parity Act . 2. Insurance of amounts held on behalf of others Section 207(k) of the Federal Credit Union Act ( 12 U.S.C. 1787(k) ) is amended— (1) in paragraph (1)(A)— (A) by inserting after payable to any member the following: , or to any person with funds lawfully held in a member account, ; and (B) by striking and paragraphs (5) and (6) ; (2) in paragraph (2)(A), by striking (as determined under paragraph (5)) ; (3) by redesignating paragraph (5) as paragraph (6); and (4) by inserting after paragraph (4) the following: (5) Coverage for Interest On Lawyers Trust Accounts (IOLTA) and other similar escrow accounts (A) Pass-through insurance The Administration shall provide pass-through share insurance for the deposits or shares of any interest on lawyers trust account (IOLTA) or other similar escrow accounts. (B) Treatment of IOLTAs (i) Treatment as escrow accounts For share insurance purposes, IOLTAs are treated as escrow accounts. (ii) Treatment as member accounts IOLTAs and other similar escrow accounts are considered member accounts for purposes of paragraph (1), if the attorney administering the IOLTA or the escrow agent administering the escrow account is a member of the insured credit union in which the funds are held. (C) Definitions For purposes of this paragraph: (i) Interest on lawyers trust account The terms interest on lawyers trust account and IOLTA mean a system in which lawyers place certain client funds in interest-bearing or dividend-bearing accounts, with the interest or dividends then used to fund programs such as legal service organizations who provide services to clients in need. (ii) Pass-through share insurance The term pass-through share insurance means, with respect to IOLTAs and other similar escrow accounts, insurance coverage based on the interest of each person on whose behalf funds are held in such accounts by the attorney administering the IOLTA or the escrow agent administering a similar escrow account, in accordance with regulations issued by the Administration. (D) Rule of construction No provision of this paragraph shall be construed as authorizing an insured credit union to accept the deposits of an IOLTA or similar escrow account in an amount greater than such credit union is authorized to accept under any other provision of Federal or State law. .

Passed the House of Representatives May 6, 2014. Karen L. Haas, Clerk.

tv_txt: I One Hundred Thirteenth Congress of the United States of America At the Second Session Begun and held at the City of Washington on Friday, the third day of January, two thousand and fourteen H. R. 3468 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. Short title This Act may be cited as the Credit Union Share Insurance Fund Parity Act . 2. Insurance of amounts held on behalf of others Section 207(k) of the Federal Credit Union Act ( 12 U.S.C. 1787(k) ) is amended— (1) in paragraph (1)(A)— (A) by inserting after payable to any member the following: , or to any person with funds lawfully held in a member account, ; and (B) by striking and paragraphs (5) and (6) ; (2) in paragraph (2)(A), by striking (as determined under paragraph (5)) ; (3) by redesignating paragraph (5) as paragraph (6); and (4) by inserting after paragraph (4) the following: (5) Coverage for Interest On Lawyers Trust Accounts (IOLTA) and other similar escrow accounts (A) Pass-through insurance The Administration shall provide pass-through share insurance for the deposits or shares of any interest on lawyers trust account (IOLTA) or other similar escrow accounts. (B) Treatment of IOLTAs (i) Treatment as escrow accounts For share insurance purposes, IOLTAs are treated as escrow accounts. (ii) Treatment as member accounts IOLTAs and other similar escrow accounts are considered member accounts for purposes of paragraph (1), if the attorney administering the IOLTA or the escrow agent administering the escrow account is a member of the insured credit union in which the funds are held. (C) Definitions For purposes of this paragraph: (i) Interest on lawyers trust account The terms interest on lawyers trust account and IOLTA mean a system in which lawyers place certain client funds in interest-bearing or dividend-bearing accounts, with the interest or dividends then used to fund programs such as legal service organizations who provide services to clients in need. (ii) Pass-through share insurance The term pass-through share insurance means, with respect to IOLTAs and other similar escrow accounts, insurance coverage based on the interest of each person on whose behalf funds are held in such accounts by the attorney administering the IOLTA or the escrow agent administering a similar escrow account, in accordance with regulations issued by the Administration. (D) Rule of construction No provision of this paragraph shall be construed as authorizing an insured credit union to accept the deposits of an IOLTA or similar escrow account in an amount greater than such credit union is authorized to accept under any other provision of Federal or State law. .

Speaker of the House of Representatives. Vice President of the United States and President of the Senate.