Are there eligiblity requirements for financial instituions to participate in the IOLTA program?
A. Yes. Participation in IOLTA is voluntary for financial institutions, but a lawyer cannot keep attorney escrow funds in financial institutions unless the financial institution has been approved by the Attorney Grievance Commission to hold such funds pursuant to Maryland Rules of Procedure, Chapter 600, governing attorney trust accounts. Banks, trust companies, savings banks, or savings and loan associations authorized by law to do business in Maryland, in the District of Columbia, or a state contiguous to Maryland, which are insured by an agency or instrumentality of the federal government may apply to become an “approved financial institution.” (Rule 16-602(g)). The Rule requires, among other things, that participating financial institutions pay IOLTA accounts no less than the highest rate generally available to the financial institution’s own non-IOLTA customers when the IOLTA account meets the same minimum balance or other eligibility requirements. (Rule 16-610(b)(1)(D).
