BOSTON — The past several months have seen the high courts in several states adopt amendments to IOLTA rules and guidelines with the goal of increasing IOLTA revenues, the National Association of IOLTA Programs reports.
In June, the Connecticut Superior Court endorsed a proposal for an amendment adding a comparability requirement to the state's IOLTA rule. Effective Sept. 1, the amended rule will require banks holding IOLTA deposits to pay no less on those deposits than the highest interest rate or dividend paid to a bank's own non-IOLTA customers when the IOLTA account meets the same balance or other eligibility qualifications.
The Connecticut Bar Foundation, which operates the state's IOLTA program, expects that this change will double its IOLTA revenue. On May 18, the Supreme Court of Mississippi amended the state's IOLTA rule to convert the IOLTA program from opt-out to mandatory status. The new rule will require Mississippi attorneys who handle client funds to offer IOLTAs starting Jan. 1, 2007. The move to mandatory is expected to boost IOLTA revenues.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.