N.Y. Comp. Codes R. & Regs. tit. 21 § 7000.2

Current through Register Vol. 46, No. 50, December 11, 2024

Section 7000.2 - Definitions

(a) Banking institutions are banks, trust companies, savings banks, savings and loan associations, credit unions or foreign banking corporations, whether incorporated, chartered, organized or licensed under the laws of this State or the United States, provided that such banking institutions have a banking office in this State.

(b) Eligible bank or eligible banking institution means a banking institution that maintains IOLA accounts that comply with section 497 of the New York Judiciary Law, section 97-v of the New York State Finance Law and the criteria provided in these regulations, and has been approved by the board of trustees to maintain IOLA accounts.

(c) Funds received in a fiduciary capacity are funds received by an attorney or a law firm from a client or third person in the course of the practice of law, including but not limited to funds received in an escrow capacity, but not including funds received as trustee, executor, administrator, guardian or receiver in bankruptcy.

(d) Interest on Lawyer Account or IOLA accounts means an unsegregated interest-bearing or dividend-bearing account, as approved by the board of trustees of the IOLA fund, maintained in an eligible bank for the deposit by an attorney or law firm as a fiduciary of qualified funds.

(e) Qualified funds are moneys received by an attorney or law firm in a fiduciary capacity from a client or third person and which, in the sole discretion and judgment of the attorney or law firm, are too small in amount or are reasonably expected to be held for too short a time to generate sufficient income to justify the expense of administrating a segregated account for the benefit of the client or third person and cannot earn income for a client or third person in excess of the cost incurred to secure such income. Qualified funds do not include those moneys which are deposited for the particular client or client's matter on which the interest will be paid to the client or an interest-bearing trust account at a banking institution with provision by the bank or by the depositing attorney or law firm for computation of interest earned by the client funds and the payment thereof to the client.

(f) New York Interest on Lawyer Account fund or IOLA fund means the fiduciary fund established by subdivision (1) of section 97-v of the New York State Finance Law and administered by the IOLA board of trustees.

(g) IOLA board of trustees, board of trustees or board means the body of individuals appointed by the Governor pursuant to subdivision (2) of section 97-v of the New York State Finance Law that is authorized to administer the IOLA fund.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 7000.2