What is it?
Relieves credit unions of some regulatory burden by expanding federal deposit insurance to include Interest on Lawyer Trust Accounts (IOLTAs) and similar escrow accounts housed within credit unions. Interest On Lawyer Trust Accounts are a type of pooled, interest-bearing account set up by lawyers who handle very small or short-term client funds that cannot earn net interest on their own. These accounts are often used to increase access to legal services for the poor.
If enacted, the bill would provide greater regulatory relief to credit unions and greater insurance to IOLTA funds, in addition to increasing party between banks and credit unions.
Enacting this legislation would increase the cost to the government of resolving some future credit union failures; CBO estimates those costs would be minimal and would generally be offset by other collections, resulting in no significant net impact on direct spending over the next 10 years.
Credit Union Share Insurance Fund Parity 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.