RALEIGH, N.C. — Though still small in numbers, Coastal FederalCredit Union has joined the short list of credit unions nationwidethat have started offering interest on lawyer's trust accounts orIOLTAs.
With IOLTAs, attorneys routinely hold funds in trust for clientsto pay costs related to legal services like court filings,depositions and business transactions. Interest from the short-termtrust accounts is paid to a nonprofit foundation for programs likeproviding legal services to the poor.
The $2 billion Coastal FCU said its IOLTAs feature no monthlymaintenance fees, minimum balance requirements and unlimitedmonthly deposit and withdrawals. The credit union said it willforward all dividends from the account, net of service charges, tothe North Carolina State Bar IOLTA program. According to the creditunion citing North Carolina law, all attorneys that hold money intrust for the clients must obtain an IOLTA by June 30.
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