The IOLA program is a partnership of lawyers, banks and community organizations. It produces more than $10 million annually to finance legal aid for low income New Yorkers and improvements in the administration of justice throughout New York State.
A state law enacted in 1988 requires every lawyer who maintains a qualifying client trust fund or escrow account to convert it to an interest bearing IOLA account. It allows interest earned on nominal or short-term deposits held in lawyers' pooled IOLA client trust accounts to be remitted directly to the IOLA fund by participating financial institutions.
If you are a lawyer who maintains a qualifying client trust account and have not yet opened an interest-bearing IOLA account for making nominal or short-term deposits, you should take steps to do so immediately.
Step One: Download the IOLA Enrollment Form, which comes with detailed instructions for opening the account.
Step Two: Open an IOLA account with a participating financial institution. Banks vary widely in terms of the "net yield" (interest rate less service fees) their IOLA accounts pay into the IOLA Fund, so shop around or contact the Fund to get a list of banks offering attractive rates and fees.
Step Three: Register your account by filling out and mailing your Enrollment Form to the IOLA Fund.
