Financial Institution Portal

A financial institution starts with submitting the IOLTA Compliance Form to the SC Bar Foundation.

The TIN number for all IOLTA accounts must be the Foundation’s TIN which is 23-7181552. The attorney’s or law firm’s TIN should never be used when an IOLTA account is opened. Bank statements should be sent to the account holder and not to the Foundation.

No, the Foundation has no direct oversight over any IOLTA accounts. You should call your client directly (the law firm or attorney) who opened the account. Many times, banks list IOLTA Accounts under the Foundation’s name and mistakenly list the Foundation’s address and phone number instead of the client’s. Be sure your IOLTA Account is set up so that the client is the one contacted about verifying checks.

Financial institutions may choose to waive any and all fees on an IOLTA account. If the financial institution assesses service charges and fees on the IOLTA account, they should be reasonable and customary. Certain reasonable fees as defined in Rule 412 may not be deducted from the IOLTA principal but may be deducted from interest or dividends that are earned on the IOLTA account. All other fees and service charges are the responsibility of the attorney or law firm maintaining the account.

There are no tax consequences for the attorney or client. Financial institutions should not issue IRS 1099 forms to anyone including the attorney, law firm, nor the attorney’s client.

Insufficient Funds (NSF) notices should be sent to the Office of Disciplinary Counsel. Their address is PO Box 12159, Columbia, SC 29211. A copy does NOT need to be sent to the Foundation.

There is no requirement that you notify the Foundation.

The rate of interest or dividend paid on IOLTA accounts shall not be less than the highest rate of interest or dividend generally available from the financial institution to non-IOLTA customers when the IOLTA account meets the same minimum balance or other eligibility qualifications.

An eligible institution may choose to pay a rate equal to the greater of 0.65% or 65% (the “index”) of the federal funds target rate (the “benchmark”) as of the first business day of the IOLTA remitting period which rate is deemed to be net of allowable reasonable fees, on an IOLTA checking account.

Eligible institutions may also choose to pay higher rates than the comparable rates described above.

Prime Partners are financial institutions that go above and beyond eligibility requirements to ensure the success of the IOLTA program and increase funding to law-related public service projects and programs designed to improve the administration of justice. These institutions pay an interest rate, net of allowable reasonable fees, that is equal to the highest of 75% of the Federal Funds Target Rate or 0.75%. The Foundation encourages attorneys and firms to support our Prime Partners. Contact the Foundation to learn about how your financial institution can become a Prime Partner.

You can view our list of Prime Partners below.

The Benchmark rate is equal to the higher of 65% of the Federal Funds Target Rate, or 0.65%, and is effective on the first day of the financial institution’s reporting period. So, for example, if the Fed rate is changed on November 15th, the IOLTA rate should be changed effective December 1st for monthly reporting banks, and January 1st for quarterly reporting banks. The Federal Funds Target Rate can be found here and in many financial publications (Wall Street Journal, etc.).

You can view our list of Benchmark Institutions below.

No. We can work with you to create a single blended rate or tiered rates that are based on the current portfolio of products, without establishing IOLTA accounts in those different product types.

Rule 412 allows financial institutions to pay different rates on different accounts. It is often more practical to consider a single blended rate, or tiered rates, which are calculated and based on the different products or rates individual accounts may qualify for.

You will need to re-submit the IOLTA Compliance Form with the proposed change.

If an attorney does not maintain an office in the state of South Carolina, s/he is not required to have an IOLTA account in South Carolina. If an attorney or firm has offices in multiple states, including South Carolina, they may need an IOLTA account benefitting more than one jurisdiction.  The financial institution needs to be aware of which IOLTA account benefits which state, and remit the interest and reporting form accordingly.

Monthly bank statements should go to the attorney or firm (your client), and not the SC Bar Foundation.