Lawyer Trust Account
Commission
Lawyer
Trust Account Commission
Judicial
Branch Building
1111
East Court Avenue
Des
Moines, Iowa 50319
(515)
725-8029
IOLTA@iowacourts.gov
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The Lawyer Trust
Account Commission manages a fund generated from interest on the pooled trust
accounts of attorneys. Lawyers' pooled trust accounts hold client funds that
are so small or held for such a brief period that it is not possible for the
funds to economically benefit the individual client. Prior to the creation of
the program, these accounts earned no interest. The fund is used to support
civil legal services to the poor. Funds are disbursed to charitable and
educational programs through grants. For more information contact IOLTA@iowacourts.gov
News for IOLTA Depository Institutions
New Address for Forwarding Interest
Payments
The
Lawyer Trust Account Commission moved its office to the new Judicial Branch
Building during 2003. Interest payments
and report forms for IOLTA accounts now should be forwarded by participating
IOLTA institutions to the following address:
Lawyer
Trust Account Commission
Judicial
Branch Building
1111
East Court Avenue
Des
Moines, Iowa 50319
Revised Interest Remittance Report
Form for Monthly and Quarterly Reporting
The
Commission has adopted a revised report form for use by IOLTA institutions
submitting their monthly or quarterly interest remittances. Notably, the form incorporates explicit
reporting of the interest rate paid on the account balance and fees or charges
assessed against the interest. A copy of
the revised report form is included with the downloadable forms on this web
page.
New Requirement for Reporting of
Overdrafts
The
Supreme Court of Iowa recently revised the lawyer disciplinary rules to include
a provision for bank notification of the Client Security and Attorney
Disciplinary Commission any time an overdraft condition exists with respect to
a lawyer trust account. The Iowa rule
change is modeled after a similar provision adopted in Minnesota in 1990. At least thirty states have adopted a similar
provision requiring that banks immediately notify the lawyer and the state
disciplinary office whenever an overdraft occurs in a lawyer trust
account. The experience in those states
that have adopted such a rule is that early intervention following reporting of
an overdraft helps prevent additional losses to clients that would occur absent
a timely response by the disciplinary authority when an overdraft report is
received. The Client Security and
Attorney Disciplinary Commission requests the cooperation of participating
IOLTA institutions in overdraft reporting as set forth in the revised rule. Questions regarding the overdraft reporting
requirement may be addressed to staff of the Client Security and Attorney
Disciplinary Commission staff at (515) 725-8029 or clientsecurity@iowacourts.gov.
Commission Clarifies Bank Charges
Chargeable Against IOLTA Interest
The Supreme Court of
Iowa recently revised the lawyer discipline rules to clarify what bank charges
are a lawyer or law firm responsibility and what bank charges may be deducted
from IOLTA interest. Prior to the rule
change, the Lawyer Trust Account Commission had became aware that some banks
are using interest otherwise payable to the Commission under the Interest on
Lawyer Trust Account (IOLTA) program to pay fees and charges associated with
particular account transactions, such as wire transfer fees incurred incident
to real estate closings conducted by a law firm, or stop payment fees on checks
issued by the law firm. Under the
revised rule, the only fee or charge a bank or other depository institution may
collect from IOLTA interest is the monthly fee customarily assessed by the
institution against a depositor solely for the privilege of maintaining the
type of account involved. Fees or
charges assessed by a bank incident to transactions involving a lawyer's trust
account, such as fees for wire transfers, stop payment orders or check
printing, are a lawyer or law firm responsibility and may not be paid or
deducted from interest or dividends otherwise payable to the Lawyer Trust
Account Commission. Questions regarding
the handling of fees and charges incident to trust account operations may be
addressed to Commission staff at (515) 725-8029 or IOLTA@iowacourts.gov.
Forms (download a copy)
IOLTA
Monthly/Quarterly Report Form. This report form is intended for use by
IOLTA depository institutions submitting their monthly or quarterly interest
remittances to the Lawyer Trust Account Commission.
IOLTA
Instructions and Report Form Package.
These instructions and report form are intended for use by new IOLTA
depository institutions to set up new pooled lawyer trust accounts and begin
submitting monthly or quarterly interest reports and remittances.
Grant
Application Form. This form may be used to apply for an IOLTA
grant from the Lawyer Trust Account Commission.
Grant applications normally are accepted during the period from
mid-January through mid-April each year, for the grant year commencing the
following July 1st. The
specific grant acceptance period and deadline is announced each year by press
release available at the main Judicial Branch web site.
Six
Month Program Report Form. This form
is used to submit the program evaluation report required of most grantees
following the end of the first six months of the grant year.
Twelve
Month Program Report Form. This form
is used to submit the final program evaluation report required of all grantees
following the end of the grant year.
Members
The
commission is composed of seven members--four Iowa lawyers and three Iowa
residents who are not lawyers. The members are appointed by the Iowa Supreme
Court for terms of three years except for appointments to fill vacancies of
unexpired terms. No member shall serve more than two terms. The following
persons currently serve on the Commission:
Thomas
J. Heronimus, Grundy Center, Chair
Suzan
E. Boden, Sioux City
Russell
Glasgow, West Burlington
Jill
Thompson Hansen, West Des Moines
Therese
Munn, Sioux City
Alison
Werner Smith, Iowa City
Lloyd
A. Stjernberg, Des Moines
