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From: Bryce Benjet
Please consider this comment to the rule concerning the Temporary Liquidity Guarantee Program:
I have been informed that the FDIC is considering rule changes that would adversely impact non-profits that depend on IOLTA money for their operations. Specifically, IOLTA accounts would not receive protection given to other accounts under the Temporary Liquidity Guarantee Program. This will have a severe and unintended consequence of depriving funds to non-profit legal organizations dependent on IOLTA accounts.
One of those agencies is the Texas Civil Rights Project. This is an extremely dynamic and important institution in Texas. TCRP fills an incredibly important role in providing representation in civil cases for persons who would ordinarily not be able to obtain counsel. They regularly obtain meaningful injunctive relief that corrects civil rights violations around the state. In Texas, it has become increasingly difficult to find lawyers to take civil rights cases where there is not a large recovery. The expansion of sovereign immunity and other bars to relief have made prosecuting civil rights actions extremely difficult and expensive. Most lawyers cannot afford to take these cases on contingency and the plaintiffs do not have the resources to pay counsel on an hourly basis. TCRP provides expert civil rights representation to fill this gap. They are an extremely efficient organization financially, and make the most of the money they receive.
Any cut in the funding will have an enormous impact on their ability to fulfill their vital function in protecting the civil rights of ordinary Texans. Please take this impact under account and amend the rule to include protection of IOLTA accounts.
|Last Updated 11/13/2008||Regs@fdic.gov|