• Participation helps transform client funds that would otherwise earn minimal or no interest into vital grant revenue for legal aid programs in Delaware.
• Being a “Prime Partner” institution (offering premium rates) provides enhanced visibility and leadership in supporting access to justice.
• Strengthen your institution’s relationship with the legal community (law firms, attorneys) in Delaware.

To be certified as an eligible IOLTA financial institution under Delaware Rules of Professional Conduct (for Attorneys) Rules 1.15 and 1.15A, your organization must meet the following minimum criteria:

• Be approved by the Lawyers’ Fund for Client Protection (the “Fund”). To be designated an “Approved Rule 1.15A Financial Institution” the financial institution shall have first filed with the Fund an executed “Overdraft Notification Agreement".
• Certify to the Fund that all accounts into which attorney trust or escrow funds are deposited shall include in the account title the words “Rule 1.15A Attorney Trust Account” or “1.15A Trust Account” or a “Rule 1.15A Attorney Escrow Account” or “1.15A Escrow Account”; and
• Report to the Office of Disciplinary Counsel when an electronic debit or instrument is presented against a Rule 1.15A Attorney Trust Account or Rule 1.15A Attorney Escrow Account containing insufficient funds, irrespective of whether or not the debit or instrument is honored.
• Physical presence in Delaware: The institution must have a bricks-and-mortar branch or retail location within the State of Delaware to hold funds of a Delaware client.
• Interest rate comparability: The institution must pay on IOLTA accounts interest (or dividends) no less than the rate it pays on similarly situated non-IOLTA accounts, or else elect the Safe Harbor rate.
• Agreement to remit interest: The IOLTA account interest (net of allowable fees) must be remitted to the Delaware Bar Foundation, at least quarterly (or monthly if required) under the IOLTA program structure.
• Allowable fees only: Only “allowable reasonable service charges” may be deducted from IOLTA interest (e.g., per‐check charges, per‐deposit charges, sweep fees, FDIC insurance fees). Other fees (e.g., wire transfers, overdraft fees) must be borne by the lawyer/firm.
• Compliance documentation and certification: The institution must complete the Foundation’s Compliance Statement and submit any required supporting documentation, and agree to periodic monitoring/reporting.

1. Internal Review & Preparation
   • Review your current deposit and sweep products and evaluate how IOLTA accounts will be treated vis-à-vis comparable non-IOLTA accounts.
   • Decide whether you will follow full comparability (match your highest applicable non-IOLTA rate) or elect the Safe Harbor interest rate alternative.
   • Confirm that you have a branch retail presence in Delaware.
   • Review your remittance process — ensure you can remit interest to the Foundation and provide appropriate statements.
   • Review allowable fee structure for IOLTA accounts to ensure compliance.
2. Complete the Certification Package
   • Download and complete the “Financial Institution Compliance Statement” from the Foundation’s website.
   • Elect to pay a rate on IOLTA accounts equal to 65% of the Federal Funds Target Rate as of the first business day of the month or IOLTA remitting period, or
   • 65%, whichever is higher, net of allowable reasonable fees as described in Rule 1.15 (h)(1)(C) as the Safe Harbor Rate. [Note: This option qualifies for Prime Partner Bank status.] OR
   • Prepare supporting documentation: product rate schedules, disclosures.
   • Provide institutional branch address in Delaware.
3. Submit to the Foundation
   • Email or upload the completed form and supporting documentation to the Delaware Bar Foundation (contact details below).
   • The Foundation will review your submission and determine eligibility certification.
4. Certification & Listing
   • Once approved, your institution will be added to the Foundation list of eligible financial institutions and may be eligible to become a “Prime Partner.”
   • You may begin to offer IOLTA accounts to Delaware attorneys and law firms with the required product labeling and remittance process in place.
5. Ongoing Compliance & Reporting
   • Provide the Foundation with periodic remittance of IOLTA account interest and any required monthly/quarterly statements.
   • Complete any survey or compliance certification requested by DBF
   • Advance notice and approval of any rate change is required. Any change that will result in a reduction of the previously approved rate requires at least thirty (30) days notice to review. Please provide the Foundation by email with all required documentation for consideration of a new comparable rate.
   • Participate in DBF’s review process if selected for audit or verification of compliance.

• The “Prime Partner” designation is available to eligible institutions that elect to pay a rate on IOLTA accounts equal to 65% of the Federal Funds Target Rate as of the first business day of the month or IOLTA remitting period, or 0.65%, whichever is higher, net of allowable reasonable fees as described in Rule 1.15 (h)(1)(C, thereby generating additional funds to grant to Delaware’s legal aid agencies.
• Benefits of Prime Partner status include: enhanced recognition on DBF communications, marketing to law firms/attorneys, and demonstrating leadership in access to justice.
• If interested, contact DBF’s Executive Director (below) to discuss Prime Partner terms and commitments.

Q. Is participation mandatory for financial institutions?
A. No, participation is voluntary for financial institutions. The rules impose obligations on lawyers to use eligible institutions, but banks/credit unions opt into the program.

Q. What if our institution pays high non-IOLTA rates but we don’t want to offer IOLTA?
A. You are free not to participate; however, if you do offer IOLTA accounts you must meet the eligibility criteria (comparability or Safe Harbor, branch presence, remittance process).

Q. What is the Safe Harbor rate and how does it apply?
A. The Safe Harbor rate for IOLTA accounts is a rate on IOLTA accounts equal to 65% of the Federal Funds Target Rate as of the first business day of the month or IOLTA remitting period, or 0.65%, whichever is higher, net of allowable reasonable fees as described in Rule 1.15 (h)(1)(C). [Note: This option qualifies for Prime Partner Bank status.]

Q. What constitutes “similarly situated non-IOLTA accounts” when evaluating comparability?
A. It refers to the institution’s deposit product(s) with similar balance requirements, interest modality (checking vs sweep vs money market), and eligibility criteria. The institution must examine its rate schedules internally and ensure IOLTA accounts are treated no less favorably.

Q. Are there any fees banks can deduct from IOLTA account interest?
A. Yes—but only “allowable reasonable service charges” such as per-check or per-deposit charges, FDIC insurance fees, sweep fees, etc. The institution must ensure the net yield to the IOLTA account is not undermined by excessive fees.