Basics Of IOLA: What New Lawyers Need To Know

This three credit program will address the administration of attorney trust accounts, IOLA accounts, and the rules governing the handling of funds in those accounts.

Handling attorney trust accounts is a large part of the practice of law in New York. Statewide, attorneys maintain over 48,000 IOLA accounts in approximately 200 banking institutions. Every New York lawyer who handles client funds must maintain an IOLA account. Lawyers must use an IOLA account for qualifying funds, unless he or she uses an account that will generate compute and pay net interest to the client (net of all bank fees and the lawyer’s or law-firms related services). A New York lawyer may not place qualifying funds in a non-interest bearing account. For additional information, visit www.iola.org.

Panelists will provide an overview of the statutes and regulations governing escrow agreements, IOLA accounts, provisions of the General Business Law governing treatment of a buyer’s down payment in the purchase and sale of a home, as well as various ethics opinions and judicial decisions. Speakers will provide an overview of IOLA’s laws and regulations including State Finance Law §97-V, Judiciary Law §497 Trustees’ Regulations (21 N.Y.C.R.R. Part 7000), the Rules of Professional Conduct (22 N.Y.C.R.R. Part 1200, Rule 1.15) and the Dishonored Check Rule (22 N.Y.C.R.R. Par 1300). You will learn more about the correct titling of IOLA accounts, missing clients, deceased attorneys and the designation of successor signatories. The Lawyers’ Fund for Client Protection which reimburses clients for losses resulting from attorney thefts will also be discussed.

Attendees will receive a complementary copy of the New York State Bar Associations publication, Attorney Escrow Accounts, Fourth Edition (e-book). Attorney Escrow Accounts, Fourth Edition is a handy reference for newly admitted and seasoned attorneys. It comprehensively covers the most common situations where attorneys handle client funds and clearly discusses the legal and ethics issues encountered in handling clients' funds.