New York Codes, Rules and Regulations › Title 21 - Miscellaneous › Chapter LXIX - Interest On Lawyer Account Fund › Part 7000 - Trustees' Regulations And Procedures › Section 7000.10 - Eligible banking institutions

Current through Register Vol. 46, No. 28, July 10, 2024
With respect to IOLA accounts, eligible banking institutions
				  that choose to offer, establish, accept or maintain IOLA accounts:
(a) shall have no duty to inquire or
				determine whether deposits consist of qualified funds;
(b) shall charge only equitable service
				charges or fees against the interest earned on IOLA accounts which shall not be
				greater than it imposes on similar accounts maintained at the institution and
				shall be limited to per check charges, per deposit charges, monthly maintenance
				fees, a fee in lieu of a minimum balance, federal deposit insurance fees, or a
				service charge for the preparation and issuance of reports required by this
				section, as approved by the trustees of the fund. All other fees for special
				services requested by the account-holder are the responsibility of, and may be
				charged to, the lawyer or law firm maintaining the IOLA account;
(c) may elect to waive any charges or fees on
				IOLA accounts;
(d) shall remit at
				least quarterly any interest earned on IOLA accounts to the IOLA fund, after
				deduction of equitable service charges or fees, if any;
(e) shall not take any equitable service
				charges or fees in excess of the interest or dividends earned on an IOLA
				account for any month or quarter from interest or dividends earned on another
				IOLA account or from the principal of the account and such charges or fees in
				excess of the interest or dividends earned on an IOLA account may be carried
				over to the next remitting periods and deducted from interest or dividends
				earned in such account;
(f) shall
				transmit to the IOLA fund with each remittance a report that shall identify
				each lawyer or law firm for whom the remittance is sent, the amount of
				remittance attributable to each IOLA account, the rate and type of interest or
				dividends applied, the amount of interest or dividends earned, the amount and
				type of fees deducted, if any, and the average balance for each IOLA account
				for the period in which the report is made;
(g) shall transmit to each attorney or law
				firm who maintains an IOLA account a report in accordance with the normal
				procedures for reporting to its depositors;
(h) shall have no liability for any claims by
				any person or entity for payments from an IOLA account to or upon the order of
				the attorney or law firm maintaining the account;
(i) shall have no liability for any claims by
				any person or entity for any remittance of interest to the IOLA fund pursuant
				to the provisions of section
				97-v of the
				State Finance Law; and
(j) shall
				not be subject to any action solely by reason of its opening, offering or
				maintaining an IOLA account, accepting any funds for deposit to any such
				accounts or remitting any interest to the IOLA fund. If in the sole discretion
				of the board of trustees of the IOLA fund, a banking institution has, because
				of a mistake of fact, error in calculation or erroneous interpretation of
				section
				97-v of the
				State Finance Law, section
				497 of the
				Judiciary Law or of this Part, remitted to the IOLA fund any moneys not
				required by such provision to be remitted, the board of trustees shall refund
				such moneys upon application of any aggrieved party. Any such refund shall be
				paid from the IOLA fund without interest and without the deduction of any
				service charge and shall constitute a full satisfaction and discharge of any
				claim for such refund.