President Obama Extends FDIC Unlimited Insurance on IOLTA Accounts
December 29, 2010
On December 29, 2010, President Obama signed H.R. 6398 into law, thereby extending unlimited FDIC insurance to IOLTA accounts through December 31, 2012. In addition, the FDIC posted information on its website on Monday, December 27th, regarding the passage of the legislation by Congress and indicated that:
"The FDIC will issue guidance to all insured depository institutions providing information on Congress's action to include IOLTAs in the definition of noninterest-bearing transaction accounts. Pending issuance of this guidance, the FDIC is advising insured depository institutions that they do not have to send individual notices to IOLTA depositors, as is currently required. After the bill is signed, institutions that have already notified IOLTA depositors may provide a revised notice advising that IOLTAs will receive unlimited insurance coverage as noninterest-bearing transaction accounts for two years ending December 31, 2012. The FDIC's guidance will also provide new language for the posted notice required by 12 CFR § 330.16."
Below is a link to the full text of the information provided on the FDIC's website regarding this issue: