Effective date for NCUA enhanced IOLTA insurance coverage

The NCUA Board has published a final rule [80 FR 80635] amending its share insurance regulations at 12 CFR Part 745 to implement statutory amendments to the Federal Credit Union Act resulting from the recent enactment of the Credit Union Share Insurance Fund Parity Act. The statutory amendments require NCUA to provide enhanced, pass-through share insurance for interest on lawyers trust accounts (IOLTA) and other similar escrow accounts. As its name implies, the Insurance Parity Act ensures that NCUA and the Federal Deposit Insurance Corporation (FDIC) insure IOLTAs and other similar escrow accounts in an equivalent manner. The amendments will become effective January 27, 2016.