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The NCUA issued
a Final Rule adding share insurance coverage for Lawyers Trust Accounts and
other similar escrow accounts, and issued a Notice and Request for Comment
regarding Regulatory Review in Accordance with the Economic Growth Regulatory
Paperwork Reduction Act of 1996 (EGRPRA).
During the closed portion of the meeting the NCUA considered a
Supervisory Action and received a briefing on a Supervisory matter. These items were closed to the public.
We are dissapointed with this final IOLTA rule and our CEO Jim Nussle said "We have little doubt that the law gives NCUA the authority
to extend insurance coverage to pre-paid accounts, and we are very disappointed
that NCUA has not exercised that authority at this time. While we appreciate
recent actions on business lending and field of membership aimed at removing
from regulation requirements that are not in law, this final rule is an example
of the agency unnecessarily impeding access to credit unions by making it more
difficult for them to offer products and services to their members.”
Final Rule – Part 745, Adding Share
Insurance Coverage for Lawyers Trust Accounts and Other Similar Escrow
Final Rule amends NCUA’s share insurance regulations to implement the Credit
Union Share Insurance Fund Parity Act to provide enhanced, pass-through share
insurance for interest on lawyers trust accounts (IOLTA) and other similar
escrow accounts. Specifically it will
provide pass through insurance coverage for IOLTA accounts, real estate escrow
accounts and prepaid funeral accounts, as well as any other escrow account that
meets the definition of “other similar escrow accounts” contained in the
rule. The rule generally does not
provide pass through coverage for prepaid cards unless the prepaid card
satisfies the definition of “other similar escrow accounts” contained in the
rule, or otherwise qualifies for share insurance.
Notice and Request for Comment,
Regulatory Review in Accordance with the Economic Growth Regulatory Paperwork
Reduction Act of 1996.
Request for Comment pursuant to EGRPRA is the last and fourth notice of the
second decennial review of agency regulations.
This final notice covers two categories of rules including Rules of
Procedure and Safety and Soundness Rules.
The notice seeks comments from the public and industry oh how the burden
imposed by the rules might be reduced or eliminated.
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ADA Compliance Notice & Legal
© 2017 Credit Union National Association |
ADA Compliance Notice & Legal