IMPORTANT: FDIC to insure IOLTA accounts without limit under Temporary Liquidity Guarantee Program

Update:  Unlimited FDIC coverage available for IOLTA Accounts through Dec. 31, 2009

What follows is an excerpt from the FDIC’s Final Rule Regarding The Temporary Liquidity Gurantee Program announced today, November 21, 2008: Note:  (1) The link is to a press release.  Click on the link at the bottom of the press release to go to the text of the final rule. (2) As of this posting there are no pages numbers on the Final Rule.  When one opens the Final Rule in Adobe, the excerpt can be found at page 61 as shown in the Adobe page navigation window.)

Accordingly, in the Final Rule the FDIC has provided that the term “noninterest-bearing transaction account” shall include IOLTAs (or IOLAs, or IOTAs). As a result, assuming that the other requirements of the Transaction Account Guarantee Program are met by a participating entity and irrespective of the standard maximum deposit insurance amount defined in 12 CFR Part330, IOLTAs will be guaranteed by the FDIC in full as noninterest-bearing transaction accounts.