New Mexico IOLTA information for Financial Institutions . . .
"IOLTA" stands for Interest on Lawyer Trust Accounts. An IOLTA account is a pooled, interest-bearing demand deposit account used by lawyers to hold client funds. In New Mexico IOLTA enrollment is mandatory for all New Mexico attorneys who maintain a pooled trust account. The interest earned on IOLTA accounts is remitted to the State Bar of New Mexico and provides an important source of funding for civil legal assistance to the poor, legal education, and improvements to the administration of justice in New Mexico.
What is IOLTA?
- provides a brief description of the IOLTA programs.
New Mexico Lawyers may only maintain an IOLTA account in an "eligible financial institution" as defined by the Rules and certified by the State Bar of New Mexico. Rule 24-109 NMRA governs IOLTA accounts in New Mexico. A financial institution that wishes to be certified as an "eligible financial institution" in New Mexico should consult the IOLTA rules and complete a Financial Institution Participation Agreement
to be submitted for certification as an IOLTA-eligible financial institution by the State Bar of New Mexico.
Once certified, attorney IOLTA accounts may be established at the financial institution. An Attorney Notice to Eligible Financial Institution
to needs to be completed, signed by the lawyer and a bank official and a copy forwarded to the IOLTA program at the time the account is established. Interest generated by the IOLTA accounts should be accounted for on the Interest Remittance Form
and shall to be submitted monthly or quarterly with the interest generated via ACH or Check to the State Bar of New Mexico IOLTA program.
If you have any further questions regarding the New Mexico IOLTA program, please e-mail IOLTA@nmbar.org