Thursday workshop scheduled to help R.I. CUs navigate IOLTA
April 14, 2015
PROVIDENCE, R.I. (4/15/15)--To help credit unions get a handle on newly available Interest on Lawyer Trust Accounts (IOLTAs), the Cooperative Credit Union Association (CCUA) will host an informational workshop in cooperation with the Rhode Island Bar Foundation later this week.
The workshop, scheduled for 9 a.m. (ET) Thursday at the Rhode Island Bar Foundation and Bar Association headquarters in Providence, will focus on both the policy and operational elements of IOLTAs (Daily CU Scan April 14).
IOLTAs allow attorneys to pool funds in trust accounts at financial institutions. The resulting interest earned on those accounts is then paid back typically to state bar associations to be used for charitable purposes, such as providing civil legal services to indigent persons.
The workshop will provide an overview of the IOLTA program, in addition to explanations of the procedural requirements for credit unions. CCUA has organized similar workshops in New Hampshire and Massachusetts.
Credit unions can offer these types of accounts thanks to the Credit Union Insurance Fund Parity Act, which was signed by President Barack Obama in December and became effective Dec. 19.