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PA IOLTA Board
P.O. Box 62446
Harrisburg, PA 17107-2445

Tel. 717-238-2001
Toll Free 888-PA-IOLTA (724-6582)
Fax. 717-238-2003
paiolta@pacourts.us

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FDIC Insurance

FDIC Insurance for IOLTA Accounts

Funds held in an IOLTA account are FDIC-insured up to $250,000 per client, assuming that the client has no other accounts with the banking institution.

The FDIC has issued at least two advisory opinions regarding the insured status of IOLTA deposits:

Under Rule 1.15 of the Pennsylvania Rules of Professional Conduct, it is the responsibility of the lawyer to identify IOLTA accounts as IOLTA accounts, and also the responsibility of the lawyer to maintain complete records regarding the funds, including ownership thereof.  The IOLTA designation is sufficient to disclose the existence of a fiduciary relationship.

Special Considerations for Sweep Accounts

Some lawyers use sweep account arrangements for their IOLTA accounts.  In a sweep account arrangement, some funds are maintained in the IOLTA checking account, and the funds actually in the IOLTA checking account are covered by FDIC insurance in accordance with applicable regulations.  Deposited funds above a limit established or negotiated by the banking institution are “swept” into an alternate investment vehicle, which must consist only of United States Government Securities or the “sweep” must be fully collateralized by United States Government Securities. Specific investment vehicles will vary among banks.  Lawyers using sweep account arrangements should take reasonable steps to assess the structure of the particular sweep arrangement and the safety of the investments used in a sweep account arrangement before placing IOLTA funds into a sweep account.  Provided that the sweep arrangement is properly structured and secured, it may be prudent for a lawyer to consider using a sweep account if the lawyer is holding funds of a client or third party in excess of applicable FDIC insurance limits.

Additional information regarding the Federal Deposit Insurance Corporation and deposit insurance can be found at www.fdic.gov.

Pro Hac Vice

Out-of-state attorneys seeking to enter their appearance on a Pennsylvania case must pay an admission fee of $375 per case to the IOLTA Board prior to filing the motion with the court. Complete your pro hac vice application online and pay the $375 fee by check or credit card.

Pro Hac Vice Admission Fee
Payment Form »

Platinum Leader Banks

Platinum Leader Banks are financial institutions that go above and beyond eligibility requirements to ensure the success of the IOLTA program and increase funding for legal aid. Pennsylvania attorneys are encouraged to patronize them.

Become A Platinum
Leader Bank »

Support Us

There is one legal aid lawyer for every 6,415 people living in poverty. Pro bono representation by private attorneys is an enormously valuable supplement to the services of civil legal aid programs.

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Direct Class Action Residual funds and Cy Pres awards to the PA IOLTA Board!

Class Action Residuals Toolkit »