Wednesday, Nov. 26, 2008
New FDIC Rule creates unlimited protection for IOLTA accounts
Client funds deposited in IOLTA accounts are eligible for unlimited deposit insurance coverage
The Federal Deposit Insurance Corporation (FDIC) announced today that effective immediately client funds deposited in IOLTA accounts are eligible for unlimited deposit insurance coverage. All funds in an IOLTA account, regardless of size, will now be insured in full by the FDIC and backed by the full faith and credit of the United States Government as part of the Temporary Liquidity Guarantee Program (TLGP).
The TLGP, which was established last month, fully guarantees funds in non-interest bearing accounts until Tuesday, June 30, 2009.
For further information, please contact the IOLTA Committee at (617) 723-9093.