This past week, the League filed comment on an amendment to the Rules Regulating the Florida Bar that would allow credit unions as permissible custodians of attorney trust accounts. IOTAs, as they are known in Florida, are currently only allowed to be opened at banks because the NCUA would not insure these accounts previously.
With the 2014 passage of the Credit Union Share Insurance Fund Parity Act, the NCUA will now afford coverage to attorney trust accounts, thus opening the door for an amendment to Florida’s Rules. We also learned this week that the Florida Bankers Association has filed comment in opposition. Be on the lookout this week for an Action Alert asking credit unions, their attorney members and any law firms they work with, to also comment on the proposal.