Search

IOLTA bill passes Senate

Thursday, Dec. 18, 2014

H.R. 3468, the "Credit Union Share Insurance Fund Parity Act," which provides credit unions with the same level of funding protection as banks, on escrow accounts such as Interest on Lawyer Trust Accounts (IOLTA), has passed in the Senate and now awaits President Barack Obama's signature.

Credit unions often provide higher interest rates than banks, and the passage of this bill will hopefully mean increased funding for IOLTAs. Lawyers and law firms are required to establish interest-bearing accounts (IOLTAs) for client deposits which are nominal in amount or large amounts held for a short period of time.