For those of you who were worried that IOLTA insurance coverage was about to expire, worry no more. On the last possible of the 111th Congress, legislators finally voted to extend the unlimited FDIC insurance protection to IOLTA trust accounts that was set to expire December 31. Their action extended the unlimited deposit insurance coverage of IOLTA accounts that has been in effect since November 2008 when the FDIC announced the coverage as part of a program to boost liquidity in credit markets.
The possible lapse in unlimited coverage was an oversight. The Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in July extended the 2008 law for two more years, beginning Jan. 1, 2011, but inadvertently did not extend unlimited FDIC coverage to IOLTA accounts.
