The FDIC issued a final rule to include Interest on Lawyer Trust Accounts in the temporary unlimited deposit coverage for noninterest-bearing transaction accounts. The Dodd-Frank Wall Street Reform and Consumer Protection Act provides temporary, unlimited deposit insurance for all noninterest-bearing transaction accounts and this rule includes IOLTAs within the definition of a "noninterest-bearing transaction account." All funds held in IOLTA accounts, together with all other noninterest-bearing transaction account deposits, are fully insured, without limit, through December 31, 2012. Click here for the FDIC’s press release.
Alert January 25, 2011