Legislation

HFSC to mark up bill to extend share insurance coverage to nonmember trust accounts

170px-Seal_of_the_United_States_House_of_Representatives.svgThe House Financial Services Committee will mark up legislation on Nov. 14 that would expand share insurance coverage to trust accounts held by nonmembers.

The bill, which is expected to be introduced next week by Rep. Ed Royce (R-Calif.), seeks to extend coverage consistent with that of the FDIC’s, regardless of the membership status of the owner of the funds that are deposited in an account held by a credit union member.

The Credit Union National Association said the lack of share insurance for nonmember trust accounts puts credit unions at a disadvantage to attract trust customers, if all clients must be members.

The committee will also mark up H.R. 3329, a bill introduced by Rep. Blaine Luetkemeyer (R-Mo.) that seeks to raise the cap on the application of the Small Bank Holding Company Policy Statement on Assessment of Financial and Managerial Factors from $500 million to $1 billion.

“We hope that the legislation considered on Thursday will be the first of several regulatory relief bills to move through the committee, and we are very appreciative of Chairman Jeb Hensarling and Ranking Member Maxine Waters for their leadership in this process,” CUNA Senior Vice President of Legislative Affairs Ryan Donovan said.

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