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Banks/Credit Unions
The Texas Access to Justice Foundation currently administers several funds, which are earmarked for the provision of civil legal aid. One of these funds, the Texas Interest on Lawyers’ Trust Accounts (IOLTA) Program, was created in 1984 as a mechanism to enable poor Texans to have access to the civil justice system. When an attorney receives nominal funds or funds held for a short period of time, he or she must deposit the funds into an interest-bearing IOLTA bank account. The collected interest is remitted to the Texas Access to Justice Foundation, which then grants the money to nonprofit groups across the state on a yearly basis. The Supreme Court of Texas has adopted IOLTA rules requiring Texas attorneys to place IOLTA accounts at eligible financial institutions. If your financial institution currently holds IOLTA accounts, and you would like to learn more about becoming eligible, visit the Become an Eligible Financial Institution section for more information. If your institution does not currently hold IOLTA accounts, please contact Janice Cappiello at 512.320.0099, ext. 108, before opening IOLTA accounts. You must acquire a bank code and a packet of instructions and forms from the Foundation before qualifying for the eligibility process. Update: Nov. 13, 2009 - FDIC's extended Transaction Account Guarantee (TAG) Program The deadline for financial institutions to opt-out of the FDIC's extended TAG program was Nov. 2. The coverage extension begins Jan. 1, 2010, and ends June 30, 2010, during which time funds in IOLTA accounts held at participating financial institutions will continue to be eligible for unlimited deposit guarantee coverage. IOLTA accounts held at institutions that initially participated in the TAG program but opt out of the extension will be insured without limit through Dec. 31, 2009, after which time coverage will revert to the standard insurance amount of $250,000 PER CLIENT (not per account) until Dec. 31, 2013. The list of financial institutions opting-out of the extended TAG program is posted at: http://www.fdic.gov/regulations/resources/TLGP/optout.html . Notable large banks opting out of the extended TAG, include: Bank of America, BNY/Mellon, Chase, Citibank, HSBC, PNC Bank, Sovereign Bank, SunTrust, US Bank, and Wachovia/Wells Fargo. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHANGES TO IOLTA RULES EFFECTIVE JAN. 13, 2009
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