Unlimited FDIC Insurance for IOLTA Accounts Set to Expire January 1

Effective January 1, 2013, IOLTA accounts will no longer enjoy the temporary unlimited FDIC insurance that has been in effect for the last two years under Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Instead, insurance will be limited to $250,000 per client, per financial institution, provided the lawyer or law firm that holds the funds has designated the account as a trust account and has properly accounted for each individual client's funds.  Coverage for non-interest bearing accounts will also be $250,000 as of January 1.

Additional information, including examples, is available on the FDIC website.  Attorneys may also contact the Arkansas IOLTA Foundation with any questions about the change in FDIC insurance coverage.

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