Due to an extraordinary lobbying effort led by Ann Carmichael of the ABA, the Senate, in one of its last actions of the 111th Congress, passed a bill to fix a potential problem with certain IOLTA accounts resulting from a change in FDIC insurance coverage.

NLADA worked closely with the ABA and the National Association of IOLTA Programs (NAIP) to obtain this legislative fix of a potential problem for attorneys depositing client trust funds in IOLTA accounts resulting from a provision of the Dodd-Frank financial reform legislation. The provision, which only extended unlimited FDIC insurance to non-interest bearing accounts, created a potential problem for attorneys depositing large sums of short-term client funds. This is the case because IOLTA accounts would not have been covered by full FDIC insurance after December 31, 2010. Rather, they would have fallen under the limit of $250,000 per client, per financial institution.

Thanks to strong bi-partisan support in both the House and Senate, coupled with the herculean efforts of our national partners, we are relieved and thrilled to report this legislative victory.