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IOLTA RULES CHANGE
February 2, 2007 - The Supreme Court of Texas signed a court order to amend IOLTA Rule 7, requiring that Texas attorneys place IOLTA accounts at “eligible” institutions. Eligible institutions are those that pay interest rates comparable to those paid to their similarly situated, non-IOLTA customers. The rule change goes into effect on March 1, 2007.
In the next few days, the Texas Access to Justice Foundation, administrator of the IOLTA Program, will be sending a packet of information on eligibility requirements to banks holding IOLTA accounts. The rule mostly impacts large deposit accounts. The Foundation will work with banks in an effort to ensure that they meet the eligibility requirements. If a bank chooses not to pursue eligibility, attorneys will be required to move their IOLTA accounts.
For most IBAT member banks, the rule change will be a nonevent. The major impact will be on the mega banks with extremely large balances for the mega law firms. However, IBAT and TEAJF wanted to give you a heads up!
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