Peoples Westchester Sav. Bank v. FDIC
Peoples Westchester Sav. Bank v. FDIC, 961 F.2d 327 (2d Cir. 1992) (argued for FDIC) (holding that (i) an interest on lawyers account (IOLA) is a general deposit—not a special account—and clients of an attorney with money in an IOLA when a bank fails are entitled to federal deposit insurance only up to the insured amount, and (ii) for amounts that exceed the insured-deposit limit, clients are entitled only to their pro rata share of assets available for distribution to general unsecured creditors).
