Legal Foundation of Washington
Important Update for Washington Attorneys, Limited Practice Officers and Financial Institutions:
Changes in FDIC Insurance Coverage for IOLTA Accounts
New FDIC Rule Extends Unlimited Protection for IOLTA Accounts Until June 30, 2010
The Federal Deposit Insurance Corporation (FDIC) announced on November 21, 2008, that effective immediately; client funds deposited in IOLTA accounts at participating financial institutions are eligible for unlimited deposit insurance coverage as part of the Temporary Liquidity Guarantee Program (TLCP). All funds in an IOLTA account, regardless of size, will now be insured in full by the FDIC and backed by the full faith and credit of the United States Government, as part of the Transaction Account Guarantee (TAG) provisions of the TLGP.
On September 1, 2009, the FDIC extended the TAG program from December 31, 2009 until June 30, 2010. Financial institutions opting out of the TAG coverage must display a notification to customers.
August 26, 2009 http://www.fdic.gov/news/news/financial/2009/fil09048.html
May 20, 2009 http://www.fdic.gov/deposit/deposits/changes.html
IOLTA FACT SHEET
Equal justice is a fundamental principle of democracy. Our laws guarantee basic rights and protections for all of us – not just those who can afford a lawyer.
Many among us are just one bad car accident, consumer scam or job loss away from facing an urgent civil legal problem leaving us with nowhere to turn. Every day serious legal problems are suffered by our neighbors, our children’s classmates, our parents or their friends and others in our community with whom we interact daily.
The Interest on Lawyer and LPO Trust Accounts program (IOLTA) was created to complement state and federal funds to enable low-income people in Washington state to access the civil justice system.
Alliance for Equal Justice members, who each year provide and coordinate thousands of hours of legal assistance, are forced to turn away 90% of low-income people with urgent civil legal problems because programs only have resources to help a fraction of those in need.
With your participation in IOLTA, the Campaign for Equal Justice and other efforts to increase support for legal aid, we can ensure that thousands more low-income and vulnerable individuals and families in crisis can return to safe, productive lives through the help of civil legal aid.
As you visit our website, consider helping to make the vision of access to justice in Washington state a reality for all. Donate and Get Involved because justice for all is everyone’s business.
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