,,ii  #aacth ,,congress  #b;d ,session  
,s4 #bfii  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #cj1     
#bjad ,mr4 ,king 7for himself and ,mr4  
,warner7 introduced the following bill2 
which was read twice and referred to the
 ,committee on ,banking1 ,housing1 and  
,urban ,affairs  ,a ,,bill  ,to require 
the ,national ,credit ,union            
,administration to provide pass-through 
share insurance for the deposits or     
shares of any interest on lawyers trust 
accounts1 and for other purposes4  #a4  
,insurance of amounts held on behalf of 
others ,section #bjg7k7 of the ,federal 
,credit ,union ,act 7#ab ,u4,s4,c4      
#aghg7k77 is amended-- 7#a7 in paragraph
 7#a77;,a7-- 7,a7 by inserting after    
payable to any member the following3 1  
or to any person with funds lawfully    
held in a member account12 and  7,b7 by 
striking and paragraphs 7#e7 and 7#f72  
7#b7 in paragraph 7#b77;,a71 by striking
 7as determined under paragraph 7#e772  
7#c7 by redesignating paragraph 7#e7 as 

paragraph 7#f72 and  7#d7 by inserting  
after paragraph 7#d7 the following3     
7#e7 ,coverage for interest on lawyers  
trust accounts and other similar escrow 
accounts  7,a7 ,pass-through insurance  
,the ,administration shall provide      
pass-through share insurance for the    
deposits or shares of any interest on   
lawyers trust account 7commonly referred
 to as ,,iolta7 or other similar escrow 
accounts4  7,b7 ,treatment of           
,i,o,l,t,as  7i7 ,treatment as escrow   
accounts ,for share insurance purposes1 
,i,o,l,t,as are treated as escrow       
accounts4  7ii7 ,treatment as member    
accounts ,i,o,l,t,as and other similar  
escrow accounts are considered member   
accounts for purposes of paragraph 7#a71
 if the attorney administering the      
,,iolta or the escrow agent             
administering the escrow account is a   
member of the insured credit union in   
which the funds are held4  7,c7         
,definitions ,for purposes of this      
paragraph3 7i7 ,interest on lawyers     

trust account ,the terms interest on    
lawyers trust account or ,,iolta mean a 
system in which lawyers place certain   
client funds in interest-bearing or     
dividend-bearing accounts1 with the     
interest or dividends then used to fund 
programs such as legal service          
organizations who provide services to   
clients in need4  7ii7 ,pass-through    
share insurance ,the term pass-through  
share insurance means1 with respect to  
,i,o,l,t,as and other similar escrow    
accounts1 insurance coverage based on   
the interest of each person on whose    
behalf funds are held in such accounts  
by the attorney administering the       
,,iolta or the escrow agent             
administering a similar escrow account1 
in accordance with regulations issued by
 the ,administration4  7,d7 ,rule of    
construction ,no provision of this      
paragraph shall be construed as         
authorizing an insured credit union to  
accept the deposits of an ,,iolta or    
similar escrow account in an amount     

greater than such credit union is       
authorized to accept under any other    
provision of ,federal or ,state law4  4