27 NCAC 02 RULE 1.15-4. INTEREST ON LAWYERS' TRUST ACCOUNTS

(a)  Pursuant to a plan promulgated by the North Carolina State Bar and approved by the North Carolina Supreme Court, a lawyer may elect to create or maintain an interest-bearing general trust account for those funds of clients which, in the lawyer's good-faith judgment, are nominal in amount or are expected to be held for a short period of time. Funds deposited in a permitted interest-bearing general trust account under the plan must be available for withdrawal upon request and without delay. The account shall be maintained in a bank. The North Carolina State Bar shall furnish to each lawyer or firm that elects to participate in the Interest on Lawyers' Trust Account (IOLTA) plan, a suitable plaque or scroll indicating participation in the program, which plaque or scroll shall be exhibited in the office of the participating lawyer or firm.

(b)  Lawyers or law firms electing to deposit client funds in a general trust account under the plan shall direct the bank:

(1)           to remit interest or dividends, as the case may be (less any deduction for bank service charges, fees, and taxes collected with respect to the deposited funds) at least quarterly to the North Carolina State Bar;

(2)           to transmit with each remittance to the North Carolina State Bar a statement showing the name of the lawyer or law firm maintaining the account with respect to which the remittance is sent and the rate of interest applied in computing the remittance; and

(3)           to transmit to the depository lawyer or law firm at the same time a report showing the amount remitted to the North Carolina State Bar and the rate of interest applied in computing the remittance.

(c)  As used herein, "Confidential Information" means all information regarding IOLTA account(s) other than (1) a lawyer's or law firm's status as a participant, former participant or non-participant in the IOLTA program, and (2) information regarding the policies and practices of any bank in respect of IOLTA trust accounts, including rates of interest paid, service charge policies, the number of IOLTA accounts at such bank, the total amount on deposit in all IOLTA accounts at such bank, the total amounts of interest paid to the IOLTA program and the total amount of service charges imposed by such bank upon such accounts. 

Confidential Information shall not be disclosed by the staff, or trustees of NC IOLTA to any person or entity, except that Confidential Information may be disclosed (1) to any chairperson of the grievance committee, staff attorney, or investigator of the North Carolina State Bar upon his or her written request specifying the information requested and stating that the request is made in connection with a grievance complaint or investigation regarding one or more trust accounts of a lawyer or law firm; or, (2) in response to a lawful order or other process issued by a court of competent jurisdiction, or a subpoena, investigative demand, or similar notice issued by a federal, state, or local law enforcement agency. 

(d)  The North Carolina State Bar shall periodically deliver to each nonparticipating lawyer a form whereby the lawyer may elect not to participate in the IOLTA plan. If a lawyer does not so elect within the time provided, the lawyer shall be deemed to have opted to participate in the plan and shall provide to the North Carolina State Bar such information as is required to participate in IOLTA.

(e)  A lawyer or law firm participating in the IOLTA plan may terminate participation at any time by notifying the North Carolina State Bar or the IOLTA Board of Trustees. Participation will be terminated as soon as practicable after receipt of written notification from a participating lawyer or firm.

 

History Note:        Authority G.S. 84-23;

Eff. July 24, 1997;

Amended Eff. March 8, 2007; January 24, 2003; August 24, 2000; May 4, 2000.