TALLAHASSEE, Fla. (2/16/16)--The League of Southeastern Credit Unions & Affiliates (LSCU) is seeking credit unions and their attorneys to join in supporting an amendment by the Florida Bar Board of Governors to authorize credit unions as permissible custodian institutions of trust accounts, including interest on lawyer trust accounts (IOLTAs).
The support is needed because the Florida Bankers Association has lodged opposition to the amendment through a comment letter.
LSCU has responded with its own letter, and seeks the support of its member credit unions and the legal community.
“Many of our credit unions have inquired about being able to offer these types of accounts,” the league advised members Feb. 12 in eSignal Daily, its newsletter. “Now is the time to show the Florida Bar that credit unions are equipped to offer them.”
In December 2014, President Barack Obama signed H.R. 3468, the Credit Union Share Insurance Fund Parity Act, into law and it directed the National Credit Union Administration (NCUA) to extend share insurance coverage to trust accounts, including IOLTAs, opened and managed by credit union members. In 2015, the NCUA implemented this legislation through rulemaking, and now full NCUA share insurance is afforded to IOLTAs.
Most recently the Florida bar has responded with an amendment to Florida state rules, which banks have opposed.