Lawyer IOLTA accounts that help fund civil legal aid and other legal programs are likely to lose their unlimited federal insurance coverage on Jan. 1.
The ABA Governmental Affairs Office says it appears unlikely that lawmakers will act this year to extend the unlimited coverage provided by the Federal Deposit Insurance Corp., according to an ABA statement.
If Congress does not act, the amount of FDIC insurance available will be $250,000 per client, per financial institution, as long as the account is properly designated as a trust account and there is a proper accounting of each client’s funds.
IOLTA grants totaled $125 million last year. About 90% of the money supports legal aid offices and pro bono programs.
via Unlimited FDIC Insurance on IOLTA Accounts Likely to Expire; $250K Will Be New Client Coverage Limit – News – ABA Journal.
This is an article from the ABA News website:
In a move that is expected to improve access to the civil justice system for low-income individuals, Chief Judge Jonathan Lippman announced at a press conference Wednesday a new Court of Appeals rule requiring all law graduates to complete 50 hours of pro bono work before they will be admitted to practice in New York.
It is expected that many will complete the pro bono requirement while they are still law students, according to Reuters. However, the pro bono requirement can also be met after an individual earns his or her law degree.
The pro bono requirement doesn’t take effect until Jan. 1, 2015, so it does not apply to current third-year law students.
What qualifies as pro bono work is broadly defined, the article notes, alleviating concerns by law school deans that the program would be difficult to administer.
A 15-member advisory committee that helped draft the new pro bono rule will also oversee its implementation and evaluate how well it works, the news agency notes.
The New York Law Journal (reg. req.) provides a link to a copy of the new pro bono rule (PDF).
via NY Is First State to Require Law Students to Do Pro Bono Work to Get Licensed After Graduation – News – ABA Journal.