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Your League recently hosted a webinar to provide a refresher for Maine credit unions regarding IOLTA (interest on lawyer trust) Accounts. The webinar is the continuation of your League's role in the Credit Union Share Insurance Act, which Senator Angus King sponsored, makes lawyers' trust accounts at federally-insured credit unions now insured to the limit allowed by the Share Insurance Fund, and came about, in part, as a result of conversations with your League on the need for this legislation. Congress passed the legislation in December, and President Obama signed it shortly, thereafter.
"We had received a number of questions regarding the impact of the Credit Union Share Insurance Parity Act on Maine credit unions, and this webinar was an opportunity provide guidance and clarification to credit unions," explained Cheryl Lancaster, Vice President of Member Services for your League.
The webinar, led by Rod Rovzar, who is the general counsel for your League and an attorney with Norman, Hanson & DeTroy, LLC. The webinar covered a variety of topics including an overview of IOLTA Accounts, the potential next steps in the NCUA Rulemaking on IOLTA and related accounts, operational strategies for credit unions to consider, business organization accounts and membership; and a review of trusts and the rules and procedures governing them.
Rovzar said the National Credit Union Administration (NCUA) is still working to amend its regulations to conform to the new law, and on guidance on whether accounts such as prepaid funeral accounts and realtor escrow accounts are covered under this new law.
This webinar has been archived and is available for credit unions to access. For more information, please contact your League's Member Services via email; or call 800.442.6715.
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