The Senate passed the Credit Union Share Insurance Fund Parity Act Thursday, which would direct the NCUA to issue a regulation extending share insurance to owners of funds held in trust accounts opened and managed by credit union members.

“This much needed legislation is an important first step in removing barriers that impede credit unions from fully serving their members. CUNA thanks Senators Angus King (I-Maine) and Mark Warner (D-Va.) for standing with credit unions to bring parity to the not-for-profit cooperatives, their members, and the communities they serve,” CUNA President/CEO Jim Nussle said.

“We thank the Senate for their passage and greatly appreciate the leadership of the chief sponsors in getting this done.  This is just the beginning of the regulatory relief we will be seeking for credit unions,” NAFCU President/CEO Dan Berger said in a statement.

The bill was originally introduced by Rep. Ed Royce (R-Calif.) last November and passed the House in May of this year.

“The Credit Union Share Insurance Fund Parity Act strengthens national credit unions' commitment to IOLTAs and the legal services they help fund for local communities,” Royce said after the Senate's passage of the legislation.

“The universal support for this bill in both chambers of Congress speaks to the merits of establishing parity for the treatment of IOLTAs and other similar accounts regardless of whether they are kept at a bank or a credit union,” Royce noted.