The House passed a bill Tuesday that would provide financial safeguards to the trust accounts that help fund civil legal services to the poor—potentially giving those providers more money.
The Credit Union Share Insurance Fund Parity Act includes a regulatory change for credit unions to fix a disparity between the way trust accounts are federally insured at credit unions and banks. It allows for pass-through share insurance when financial institutions hold funds on behalf of certain trust accounts, specifically interest on lawyers’ trust accounts, called IOLTAs.
