Supreme Court of Missouri
en banc

In re:

Repeal of subdivision (a)(3)(A)(ii) and subdivision (i)(5) of Rule 4-1.15, entitled “Safekeeping Property,” of Rule 4, entitled “Rules of Professional Conduct,” and in lieu thereof adoption of a new subdivision (a)(3)(A)(ii) and a new subdivision (i)(5) of Rule 4-1.15, entitled “Safekeeping Property.”


1.  It is ordered that subdivision (a)(3)(A)(ii) and subdivision (i)(5) of subdivision 4-1.15 of Rule 4 be and the same are hereby repealed and a new subdivision (a)(3)(A)(ii) and a new subdivision (i)(5) adopted in lieu thereof to read as follows:

4-1.15 SAFEKEEPING PROPERTY

(a) As used in this Rule 4-1.15(a) to (i), the following terms mean:


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(3) "Eligible institution," a bank or savings and loan association authorized by federal or state law to do business in Missouri, the deposits of which are insured by an agency of the federal government, or an open-end investment company registered with the Securities and Exchange Commission authorized by federal or state law to do business in Missouri that has voluntarily chosen to offer and maintain IOLTA accounts to its lawyer and law firm customers.  To be an "eligible institution," the foundation also must determine that the institution:


(A) pays no less on IOLTA accounts than the lesser of:

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(ii) an amount on funds that would otherwise qualify for the investment options noted at Rule 4.1.15(a)(6)(B) to (D) equal to the greater of 60% of the federal funds target rate as of the first business day of the IOLTA remitting period or 0.60%, which amount is deemed to be already net of allowable reasonable fees;


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(i) Every lawyer shall certify in connection with this Court's annual enrollment statement that the lawyer or the law firm with which the lawyer is associated either maintains an IOLTA account with an eligible institution as provided in Rule 4-1.15(h) or is exempt because the:

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(5) Foundation, for the current reporting period, has exempted the lawyer or law firm from the requirement of maintaining an IOLTA account and depositing client and third person funds therein because a lawyer or law firm:


(A) maintains an IOLTA account that has not and cannot reasonably be expected to produce interest or dividends in excess of allowable reasonable fees;  or


(B) establishes that no eligible institution within reasonable proximity to his, her or its office offers IOLTA accounts.

The foundation may establish criteria and procedures by which an exemption under this Rule 4-1.15(i)(5) may be obtained.

The trust accounts of lawyers or law firms exempt under this Rule 4-1.15(i)(5) shall be non-interest-bearing, except that such accounts shall be interest-bearing if funds held for particular clients or matters warrant one or more non-IOLTA accounts under Rule 4-1.15(h)(3).


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2.  It is ordered that notice of this order be published in the Journal of The Missouri Bar.

3.  It is ordered that this order be published in the South Western Reporter.

Day – to – Day

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LAURA DENVIR STITH
Chief Justice