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Recently, President Barack Obama signed into law a provision sponsored by U.S. Senator Angus King (I-Maine) due, in part to ongoing conversations with your League, that creates insurance coverage parity between certain bank and credit union accounts. The Credit Union Share Insurance Fund Parity Act, legislation that Senator King introduced and helped usher through the Senate, 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.
"For years credit unions across Maine struggled under disparate treatment afforded to Interest on Lawyer Trust Accounts," Senator King said. "With this provision now in law, IOLTA accounts at Maine's credit unions will be treated equally with those as other financial institutions, generating more revenue from interest that will go directly toward assisting low-income Mainers who are seeking help with legal services. And across the nation, those states that have not authorized credit unions as depositories for attorney IOLTA funds should now be able to do so. I'm glad we were able to secure this common sense fix that will make a big difference in the lives of Mainers who need it most."
"We truly appreciate the hard work, articulation and strong support of Senator King and his staff working tirelessly to overcome obstacles and challenges in getting this legislation passed," said your League's President John Murphy, adding, "We are pleased that Senator King is proud of championing this legislation, as its passage has been covered by many media outlets throughout Maine noting the benefit to credit unions."
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