Maine Supreme Court Rules in Favor of Credit Unions, Allows IOLTA Use to Continue
AUGUSTA, Maine -- Despite questions on certain eligibility criteria, the Maine Supreme Court recently ruled that all of Maine credit unions could indeed offer interest on lawyers trust accounts or IOLTAs.
With IOLTAs, attorneys routinely hold funds in trust for clients to pay costs related to legal services like court filings, depositions and business transactions. If these funds are large or held for a long period of time, the attorney customarily deposits these monies in an interest-bearing account for the benefit of the client. Interest from collective, short-term trust accounts is paid to a non-profit foundation for programs like providing legal services to the poor.