[2] The bill would modify National Credit Union Administration (NCUA) Board authority to define the extent of the share insurance coverage provided where a member holds funds for the use of a nonmember.

The bill would require coverage for an account established by a member to be consistent with Federal Deposit Insurance Corporation (FDIC) coverage, regardless of the membership status of the owner of the funds deposited in an account established by a credit union member.

Enacting this legislation would increase the cost to the government of resolving some future credit union failures; the Congressional Budget Office (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.

[1] Attorneys and law firms use IOLTAs to pool client funds that are small enough in size and expected duration that establishing separate trusts would not benefit the individuals.

Interest earned on IOLTA deposits is used to fund legal expenses for low-income individuals and for other justice-related projects.

By definition, deposits into IOLTAs are nominal in size and are held for a short period of time; thus, they make up a very small percentage of a credit union’s liabilities.

[1] The Credit Union Share Insurance Fund Parity Act was introduced into the United States House of Representatives on November 13, 2013 by Rep. Edward R. Royce (R, CA-39).

[5] Vice President of Legislative Affairs Brad Thaler said that "we applaud the committee for taking the steps today to advance regulatory relief for community institutions and hope that this will be the start of an ongoing effort.