Unlimited FDIC Coverage of IOLTA Accounts Extended to December 31, 2012.
On December 22, 2010, Congress passed a bill to amend the Federal Deposit Insurance Act to provide Interest on Lawyers’ Trust Accounts (IOLTAs) with the same temporary, unlimited insurance coverage afforded to noninterest-bearing transaction accounts under the Dodd-Frank Wall Street Reform and Consumer Protection Act. President Obama signed the legislation into law on December 29, 2010.
This legislation was necessary to protect IOLTAs as they had been excluded from the extension of unlimited insurance coverage in the Dodd-Frank Wall Street Reform and Consumer Protection Act, such that unlimited coverage of IOLTAs would have ended as of December 31, 2010. Some banks had already notified their customers of this upcoming change; those banks will need to provide a revised notice advising that IOLTAs will receive unlimited insurance coverage as noninterest-bearing transaction accounts for two years ending December 31, 2012.
25th Anniversary
In 2009, NC IOLTA celebrated its 25th anniversary. To honor the occasion, the NC State Bar Journal published a three-part series of articles on NC IOLTA. The first article focuses on the program’s establishment and its exceptional leadership throughout its history. The second article discusses the ups and downs of IOLTA income over the years, and the final article highlights the program’s grant-making. The entire series of articles can be accessed on the State Bar’s website at: http://www.ncbar.com/IOLTA_articles.pdf.
Author of IOLTA Series Wins National Award
Clifton Barnes, author of the NC State Bar Journal series of articles, titled “NC IOLTA Celebrates Its 25th Anniversary,” won a national writing award for the piece. The award was presented by DC area-based Communications Concepts through its 2010 Awards for Publication Excellence competition. His IOLTA article received the award in the Best Series category. Judges felt that Barnes' three-part series was “very well written, and did a very effective job of explaining the program’s history, funding, and grantmaking.” He was also praised for his compelling use of quotes. Award officials said there were more than 3,700 entries in the contest and that competition was “exceptionally intense.” The awards are based on excellence in writing, quality of content, and the success of the entry in achieving overall communications effectiveness.
IOLTA Update
