If the funds are not substantial enough to warrant a separate interest-bearing account, they are placed in an IOLTA account. The financial institution holding the IOLTA account pays interest on the pooled funds, which is then directed to the state bar association or a designated nonprofit organization. This mechanism not only ensures compliance with ethical obligations regarding client funds but also creates a sustainable model for funding legal services. The interest generated can be significant, especially when aggregated from numerous small accounts, leading to millions of dollars being directed toward…
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