IOLTA for Lawyers and Legal Paraprofessionals
From the Arizona State Bar -
IOLTAs and Bank Closures
Recent news about bank closures have created anxiety among lawyers, particularly relating to client trust accounts (IOLTAs). Click here for information and some important reminders about how FDIC insurance works with regard to client trust accounts. Have more questions? Call Practice 2.0's free and confidential trust account helpline, 602-340-7305.
Client Trust Accounts
Arizona Supreme Court Rule 43 requires all lawyers and legal paraprofessionals who receive client funds in Arizona or in connection with representation of clients in Arizona to maintain an interest-bearing trust account in an approved financial institution to pool client funds of minimal amounts.
IOLTA Forms for Lawyers and Legal Paraprofessionals
IOLTA Financial Institutions
To select a financial institution for your Arizona IOLTA account, please see our complete listing of approved participating financial institutions. When opening an IOLTA account, lawyers and legal paraprofessionals must instruct their financial institution to identify the account as an IOLTA account by submitting to them the Notification to Financial Institutions. In addition, the State Bar of Arizona must be notified of the new account by submitting the Arizona IOLTA Enrollment/Change Form.
State Bar of Arizona IOLTA Info
FDIC Updates
On June 22, 2010, the FDIC adopted a final rule extending the TAG program including restrictions on the interest calculations on NOW deposit. Please note that IOLTA accounts are approved separately from other types of NOW deposits and thus are not subject to the rate restriction guidelines.
For details:
http://www.fdic.gov/news/board/rule2.pdf
http://www.fdic.gov/news/board/memo3.pdf
For additional FDIC deposit insurance updates:
http://www.fdic.gov/deposit/deposits/changes.html<p>
For details:
http://www.fdic.gov/news/board/rule2.pdf
http://www.fdic.gov/news/board/memo3.pdf
For additional FDIC deposit insurance updates:
http://www.fdic.gov/deposit/deposits/changes.html<p>
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