AUGUSTA, Maine — Maine credit unions recently scored a win when a Maine Supreme Court ruling allowed them to offer interest on lawyers trust accounts despite opposition from the state's bar foundation.

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 nonprofit foundation for programs like providing legal services to the poor.

The Maine Supreme Court ruled that credit unions may accept IOLTA deposits for all deposits at low-income designated credit unions regardless of membership status and for funds deposited that belong to a member of the credit union question. The rule takes effect Jan. 1, 2008.

The Maine Credit Union League had been working behind the scenes to have credit unions included in IOLTA use. The Maine Bar Foundation sought to limit use to credit unions with a low-income designation.

In August 2006, the Washington Supreme Court ruled credit unions could remain on a list of financial institutions offering IOLTAs despite opposition from the Washington State Bar Association.