IOLTA for Financial Institutions

Guide

MLSC has created a manual entitled A Guide to the IOLTA Program for Financial Institutions to explain IOLTA to those financial institutions offering these accounts for attorneys. Some of the topics include:

  • Enrollment
  • Account Establishment or Conversion
  • Remittance to MLSC
  • Reporting Requirements
  • Use of Taxpayer Identification Number

Enrollment

Before establishing IOLTA accounts, a financial institution must enter into an agreement with MLSC assuring that all requirements will be met and must be approved by the Attorney Grievance Commission. To establish IOLTA accounts, attorneys should complete the Notice of New Maryland IOLTA Account form, which financial institutions then submit with their next monthly or quarterly remittance report. All IOLTA accounts bear MLSC’s tax identification number (52-1266744). Please see the following forms:


IOLTA Honor Roll

By enrolling as an Honor Roll institution, your organization is going above and beyond in support of civil legal services for low-income Marylanders and will receive special recognition from MLSC and the Maryland State Bar Association. Learn more about the Honor Roll and see the following form:

Remitting & Reporting IOLTA Funds

Remitting Funds

Remittance payments are sent directly to MLSC’s depository bank by ACH ONLY. Please contact the MLSC office at 410-576-9494 for instructions.

Reports

Remittance reports are sent directly to MLSC via email. Also, for each monthly/quarterly remittance period, any Notice of New Maryland IOLTA Account/IOLTA Enrollment Forms should be submitted to MLSC for each new account.

A monthly or quarterly remittance report should be prepared showing:

  • Name of the lawyer or law firm for whom the remittance is sent
  • Account number
  • Average collected period balance (monthly or quarterly)
  • Rate of interest applied
  • Gross interest
  • Any service charges assessed
  • Net amount remitted for the account
  • Totals for all numeric columns

Please click here to download the Remittance Report, which must be submitted in Excel or CSV format. If submitting as CSV, please see these formatting specifications.

If you have questions about IOLTA, please review the below FAQs and contact us.

FAQs for Financial Institutions