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ARDC: more than 300 financial institutions on trust-account-eligible list

NOTICE

If your bank does not yet appear on the List of Financial Institutions Eligible to Hold Trust Accounts as of September 1, 2011, do not panic.

There are now more than 300 financial institutions included on the List of Financial Institutions Eligible to Hold Trust Accounts. To date, only one small bank has refused to be included on that list. However, a significant number of banks have not yet submitted an agreement to provide overdraft notification, which is a prerequisite to being included on the list.

The ARDC and the Lawyers Trust Fund of Illinois are working with banks and other financial institutions to make compliance with the new provisions of Rule 1.15 as easy as possible. Some banking institutions have informed the ARDC that they want to comply with the new trust account rules, cannot meet the deadline, but are hoping to accommodate depositors as soon after September 1, 2011 as is possible. We believe that most of the banks that have not yet submitted an agreement intend to do so, but require additional time do so. There is no immediate need to change banks.

If your bank does not yet appear on the List, there is no need to move your account to a different bank until you know, for a fact, that your bank does not intend to agree to Trust Account Overdraft Notification.

Please continue to monitor the ARDC website, as we receive new Trust Account Overdraft Notification Agreements every day.

Please note that, in light of the problems caused in the wake of Hurricane Irene, certain banks headquartered on the East Coast may not be in compliance with the Rule by the effective date.

Posted on August 29, 2011 by Chris Bonjean
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