Section .1300 - Rules Governing The Administration Of The Plan For Interest On Lawyers' Trust Accounts (Iolta)

Link to law: http://reports.oah.state.nc.us/ncac/title 27 - state bar/chapter 01 - rules and regulations for the north carolina state bar/subchapter d/27 ncac 01d .1301.html
Published: 2015

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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.