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To amend section 4705.10 of the Revised Code to | 1 |
require a depository institution maintaining an | 2 |
interest-bearing trust account (IOLTA) for a | 3 |
lawyer, law firm, or legal professional | 4 |
association to notify the Ohio Supreme Court when | 5 |
a properly payable item is presented for payment | 6 |
from an IOLTA having insufficient funds. | 7 |
Section 1. That section 4705.10 of the Revised Code be | 8 |
amended to read as follows: | 9 |
Sec. 4705.10. (A) | 10 |
interest-bearing trust account established under authority of | 11 |
section 4705.09 of the Revised
Code | 12 |
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(1) All funds in the account shall be subject to withdrawal | 14 |
upon request and without delay, or as soon as is permitted by | 15 |
federal law; | 16 |
(2) The rate of interest payable on the account shall not be | 17 |
less than the rate paid by the depository institution to regular, | 18 |
nonattorney depositors. Higher rates offered by the institution to | 19 |
customers whose deposits exceed certain time or quantity | 20 |
qualifications, such as those offered in the form of certificates | 21 |
of deposit, may be obtained by a person or law firm establishing | 22 |
the account if there is no impairment of the right to withdraw or | 23 |
transfer principal immediately. | 24 |
(3) The depository institution shall be directed, by the | 25 |
person or law firm establishing the account, to do all of the | 26 |
following: | 27 |
(a) Remit interest or dividends, whichever is applicable, on | 28 |
the average monthly balance in the account or as otherwise | 29 |
computed in accordance with the institution's standard accounting | 30 |
practice, less reasonable service charges, to the treasurer of | 31 |
state at least quarterly for deposit in the legal aid fund | 32 |
established under section 120.52 of the Revised Code; | 33 |
(b) Transmit to the treasurer of state, upon its request, to | 34 |
the Ohio Legal Assistance Foundation, and the depositing attorney, | 35 |
law firm, or legal professional association upon the attorney's, | 36 |
firm's, or association's request, at the time of each remittance | 37 |
required by division (A)(3)(a) of this section, a statement | 38 |
showing the name of the attorney for whom or the law firm or legal | 39 |
professional association for which the remittance is sent, the | 40 |
rate of interest applied, the accounting period, the net amount | 41 |
remitted to the treasurer of state for each account, the total | 42 |
remitted, the average account balance for each month of the period | 43 |
for which the report is made, and the amount deducted for service | 44 |
charges; | 45 |
(4) The depository institution shall notify the office of | 46 |
disciplinary counsel or other entity designated by the supreme | 47 |
court on each occasion when a properly payable instrument is | 48 |
presented for payment from the account, and the account contains | 49 |
insufficient funds. The depository institution shall provide this | 50 |
notice without regard to whether the instrument is honored by the | 51 |
depository institution. The depository institution shall provide | 52 |
the notice described in division (A)(4) of this section by | 53 |
electronic or other means within five banking days of the date | 54 |
that the instrument was honored or returned as dishonored. The | 55 |
notice shall contain all of the following: | 56 |
(a) The name and address of the depository institution; | 57 |
(b) The name and address of the lawyer, law firm, or legal | 58 |
professional association that maintains the account; | 59 |
(c) The account number and either the amount of the overdraft | 60 |
and the date issued or the amount of the dishonored instrument and | 61 |
the date returned. | 62 |
(B)(1) The statements and reports of individual depositor | 63 |
information
made under | 64 |
section are confidential and shall be used only for purposes of | 65 |
administering the legal aid fund and for enforcement of the rules | 66 |
of professional conduct adopted by the supreme court. | 67 |
(2) A depository institution may charge the lawyer, law firm, | 68 |
or legal professional association that maintains the account with | 69 |
fees associated with producing and mailing a notice required by | 70 |
division (A)(4) of this section but shall not deduct such fees | 71 |
from the interest earned on the account. | 72 |
Section 2. That existing section 4705.10 of the Revised Code | 73 |
is hereby repealed. | 74 |