New Rule Provides Unlimited FDIC Coverage to IOLTA Accounts

On November 26, 2008 the FDIC published a final rule that extends unlimited deposit insurance coverage to client funds deposited in IOLTA accounts at participating financial institutions. The coverage is provided under the Temporary Account Guarantee provisions of the FDIC’s Temporary Liquidity Guarantee Program. All funds in an IOLTA account, regardless of size, will now be insured in full by the FDIC and backed by the full faith and credit of the United States government.  

The additional coverage began October 14, 2008 and will remain in effect until December 31, 2009, unless extended. Financial institutions are required to post disclosures stating their participation in the program, or their decision to opt out of the additional coverage.

The final rule is available at: http://www.fdic.gov/regulations/resources/TLGP/

The Supreme Court of Illinois has amended the IOLTA Rule to require attorneys and law firms to hold their IOLTA accounts in eligible financial institutions.

An attorney must ensure their IOLTA accounts are maintained in eligible institutions prior to the effective date of JUNE 1, 2007. If you would like additional background information about IOLTA, please click here.

If you are an attorney looking for an eligible financial institution, please click here.

If you are a financial institution interested in completing the certification process, please click here.


Legal Aid Safey Net

IOLTA Basics for Attorneys

IOLTA Rules & Resources

Eligible Financial Institutions Eligible Financial Institutions

dd Electronic Enrollment Form

 IOLTA Basics for Banks

 IOLTA Instructions for Banks

 IOLTA Forms & Reports

 Requirements for Eligible Financial Institutions

 

Effective April 1, 2009:

The "Safe Harbor" interest rate
for IOLTA accounts is
1.00%

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