"Interest on Lawyers’ Trust Accounts," or IOLTA, is a program mandated by the Supreme Judicial Court. It requires lawyers and law firms to establish interest-bearing accounts for client deposits which are nominal in amount or large amounts held for a short period of time. This site is designed to provide information about what the committee does, to provide lawyers information for opening an IOLTA account, and provide banks information for setting up, maintaining, and reporting on IOLTA accounts.
Frequently Asked Questions
Frequently Asked Questions
New FDIC Rule Creates Unlimited Protection for IOLTA Accounts
The Federal Deposit Insurance Corporation (FDIC) announced on November 21, 2008, that effective immediately client funds deposited in IOLTA accounts at participating financial intuitions are eligible for unlimited deposit insurance coverage as part of the Temporary Liquidity Guarantee Program (TLGP). 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, as part of the Transaction Account Guarantee (TAG) provisions of the TLGP. Financial institutions opting out of the TAG coverage must display a notification to customers. The additional coverage is in effect until December 31, 2009, unless extended.
Pursuant to a July 26, 2006 order of the Supreme Judicial Court, financial institutions must be certified by the IOLTA Committee to be eligible to hold IOLTA funds. Additional changes in the operation of IOLTA accounts were adopted in December, 2008. Effective February 1, 2009, all Massachusetts attorneys may only deposit their IOLTA funds in financial institutions that have been certified to meet new requirements.
Please visit our List of Approved IOLTA Depositories to insure your accounts are maintained at an eligible institution.