pa-56-35-1238: Proposed amendments to the Pennsylvania Rules of Disciplinary Enforcement and Disciplinary Board Rules and procedures relating to eligible institutions and mandatory overdraft notification

Summary

Notice of Proposed Rulemaking Notice is hereby given that the Disciplinary Board of the Supreme Court of Pennsylvania (the ''Board''), the Interest on Lawyers' Trust Accounts Board (''IOLTA''), and the Pennsylvania Lawyers Fund for Client Security Board (the ''Fund'') are considering recommending to the Supreme Court of Pennsylvania amendments to Pennsylvania Rule of Disciplinary Enforcement 221 (Funds of clients and third persons. Mandatory overdraft notification) and Disciplinary Board Rules and Procedures § 91.173 (Approval and termination of Eligible Institutions) and § 91.174 (Reports of overdrafts). EXPLANATORY REPORT The Board, IOLTA, and the Fund propose modifying the procedures governing a financial institution's approval as an Eligible Institution for lawyer trust accounts and the Eligible Institution's mandatory overdraft notification obligation. Current Procedures Eligible Institution Agreement A financial institution that seeks to be a depository for attorney trust accounts must be approved as an Eligible Institution by the Supreme Court. The financial institution initiates the process by requesting the agreement from the Fund. The financial institution returns the executed agreement to the Fund, which then forwards the agreement to IOLTA. The institution also completes and submits an interest rate certification to IOLTA. IOLTA assigns a bank number to the institution and advises the Fund of that number. The Fund sends an acceptance letter to the institution,...

The agency’s own summary, as published.