FDIC Issues Rule Including IOLTAs in Temporary Unlimited Deposit Insurance Coverage for Noninterest-Bearing Transaction Accounts

Dodd-Frank provides temporary, unlimited deposit insurance for all noninterest-bearing transaction accounts. The attached FDIC final rule implements the December 29, 2010 amendment to Dodd-Frank by including 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, from December 31, 2010, through December 31, 2012. This coverage is separate from, and in addition to, the coverage provided to depositors for other accounts at an insured depository institution.

Date

January 18, 2011

Cross References (links may require a Cabinet subscription)

Dodd-Frank § 343

Unlimited Coverage for Noninterest-bearing Transaction Accounts; Inclusion of Interest on Lawyers Trust Accounts