WASHINGTON (12/18/14, UPDATED 3:00 p.m. ET)--The Credit Union Share Insurance Fund Parity Act was just signed into law by President Barack Obama. The bill creates deposit insurance parity for credit unions by directing the National Credit Union Administration to extend share insurance coverage to trust accounts, such as Interest on Lawyer Trust Accounts (IOLTA) and other similar accounts, opened and managed by credit union members.
Credit Union National Association President/CEO Jim Nussle hailed the new law: "Each time the government removes barriers that hinder the operations for the nation's credit unions it is a victory for U.S. consumers. Credit unions can better serve their members, through their consistently superior service and lower fees and better rates, when not encumbered by unnecessary constraints that do nothing to maintain credit unions' stellar safety and soundness record."
Nussle added that CUNA is proud to have been an early and prominent supporter of the IOLTA bill in both the House and Senate.
The statutory change was needed, CUNA had argued, because the NCUA historically had interpreted that the Federal Credit Union Act did not permit it to extend share insurance coverage to trust accounts.
"CUNA thanks the president for signing this change into law," Nussle said, adding, "And we repeat our thanks to Sens. Angus King (I-Maine) and Mark Warner (D-Va.) and Reps. Ed Royce (R-Calif.) and Ed Perlmutter (D-Colo.) for standing with credit unions to bring parity to the not-for-profit cooperatives, their members and the communities they serve."
The Senate passed the bill by unanimous consent last week and the House voted passage in May.