Through the IOLTA program, banks and credit unions provide important funding for civil legal services in Oregon. Our Leadership Banks & Credit Unions have made a profound commitment to providing justice for all in Oregon.
Does Your Customer Need an Oregon IOLTA?
An Oregon attorney should have an IOLTA account in the state where their primary office is located. If an Oregon-licensed attorney’s main office is in Oregon, they need an Oregon IOLTA. Oregon attorneys who have a main office outside of Oregon typically do not need an Oregon IOLTA.
Out of state banks: before you get setup to offer Oregon IOLTA accounts, it is OK to ask your customer to double-check with us to find out if they need an Oregon IOLTA. Rules for IOLTA accounts differ from state to state, so it is important for lawyers to check with us to find out if they need an Oregon account.
Requirements to Start Offering IOLTA Accounts in Oregon
Financial intuitions musts clear three business regulatory requirements to offer IOLTA accounts in Oregon:
- Financial institutions must be authorized to transact banking business in Oregon by the state or federal laws governing their charters,
- Financial institutions must be insured by the Federal Deposit Insurance Corporation or an analogous federal government agency like the National Credit Union Administration, and
- Financial institutions must be registered with the Oregon Secretary of State’s Business Registry.
Financial institutions must enter into two agreements, one with the Oregon Law Foundation and the other with the Oregon State Bar, to offer IOLTA accounts in Oregon:
Contact us to enter into both of these agreements.
If you want to attract more lawyer customers and accrue Community Reinvestment Act credit, look below to find out how you can partner with us through our Leadership Bank and Credit Union Program.
Ongoing IOLTA Requirements
Oregon Law Foundation Tax ID
Financial institutions must use the Oregon Law Foundation’s Tax ID on Oregon IOLTA accounts: 93-0817536.
Financial institutions must remit interest to the OLF at least quarterly; we prefer monthly remittance. Institutions should calculate interest on the average daily balance in accounts or in accordance with their standard accounting practice. When possible, interest should be transmitted electronically by ACH.
Financial institutions must send a report to the OLF at least quarterly; we prefer monthly reporting. Reports must include
- The names of the lawyers or law firms for whom a remittance is sent,
- IOLTA account numbers,
- The balances on which interest was computed for each month for which the remittance is made,
- The interest rate applied,
- The period for which the remittance is made, and
- The amount and description of any service charges deducted during the remittance period.
Reports must be submitted as an electronic file in CSV, tab-deliminated, or Excel format; contact us for additional details.
Service charges that are considered customary account maintenance charges may be charged against the interest earned on the IOLTA account. We encourage financial institutions to waive services charges to ensure that the maximum amount of funding is remitted to the foundation. Many banks waive service charges associated with IOLTA accounts; in fact, only about 4% of Oregon IOLTA deposits are at banks that apply service charges against IOLTA interest.
Fees for wire transfer, insufficient funds, bad checks, stop payment, account reconciliation, negative collected balances and check printing are not considered customary account maintenance charges and may not be assessed against IOLTA interest. Such non-routine fees are the responsibility of the lawyer or law firm. Lawyers typically prefer these
Leadership Banks & Credit Unions
We connect lawyers with our Leadership Banks & Credit Unions which pay over-market interest rates on IOLTA. Through the OLF, lawyers and bankers work together to provide justice for all Oregonians. Leadership Banks & Credit Unions receive a number of benefits.
Attract High-value Customers
The Oregon Law foundation publishes and distributes lists of Leadership Banks & Credit Unions to Oregon attorneys. Along with the Campaign for Equal Justice, the OLF helps lawyers know that using Leadership Banks & Credit Unions funds justice for all. Oregon’s lawyers value justice for all and know that where they bank matters. In fact, 61% of recently opened IOLTAs are with our Leadership Banks & Credit Unions.
Earn Community Reinvestment Credits
Annually, the Oregon Law Foundation provides Leadership Banks with documentation of contributions. Banks can use this documentation in Community Reinvestment Act evaluations.
Make a Big Difference in Your Community
Helping low-income people and seniors address critical legal issues can break the cycle of poverty. Legal services can remove the barriers that have held people back allowing them to reach their full potential and allowing communities to prosper.
How to Participate
- Start paying a current Leadership interest rate on IOLTA accounts,
- Waive all service fees on IOLTA accounts, and
- Contact us to let us know you want to be on our list of Leadership Banks & Credit Unions.