section .1300 - RULES GOVERNING THE ADMINISTRATION OF THE PLAN
FOR INTEREST ON LAWYERS' TRUST ACCOUNTS (IOLTA)
27 NCAC 01D .1301 Purpose
(a) The IOLTA Board of Trustees (board) shall carry out the
provisions of the Plan for Interest on Lawyers' Trust Accounts and administer
the IOLTA program (NC IOLTA). Any funds remitted to the North Carolina State
Bar from banks by reason of interest earned on general trust accounts
established by lawyers pursuant to Rule 1.15-2(b) of the Rules of Professional
Conduct or interest earned on trust or escrow accounts maintained by settlement
agents pursuant to G.S. 45A-9 shall be deposited by the North Carolina State
Bar through the board in a special account or accounts which shall be
segregated from other funds of whatever nature received by the State Bar.
(b) The funds received, and any interest, dividends, or
other proceeds earned on or with respect to these funds, net of banking charges
described in section .1316(e)(1), shall be used for programs concerned with the
improvement of the administration of justice, under the supervision and
direction of the NC IOLTA Board. The board will award grants or non-interest
bearing loans under the four categories approved by the North Carolina Supreme
Court being mindful of its tax exempt status and the IRS rulings that private
interests of the legal profession are not to be funded with IOLTA funds.
(c) The programs for which the funds may be awarded are:
(1) providing civil legal services for
indigents;
(2) enhancement and improvement of grievance
and disciplinary procedures to protect the public more fully from incompetent
or unethical attorneys;
(3) development and maintenance of a fund for
student loans to enable meritorious persons to obtain a legal education who
would not otherwise have adequate funds for this purpose;
(4) such other programs designed to improve the
administration of justice as may from time to time be proposed by the board and
approved by the Supreme Court of North Carolina.
History Note: Authority G.S. 84-23;
Readopted Eff. December 8, 1994;
Amended Eff. March 8, 2012; March 6, 2008; March 6, 1997;
April 3, 1996.