Current through Register Vol. 54, No. 40, October 5, 2024
Section 91.173 - Approval and termination of Eligible Institutions(a)Approval. Enforcement Rule 221(h) provides that an Eligible Institution shall be approved as a depository for Trust Accounts if it shall file with the Board an agreement in a form approved by the Board in which the Eligible Institution agrees to comply with IOLTA Regulations governing approved Eligible Institutions and to make a prompt report to the Lawyers Fund for Client Security Board under the circumstances described in § 91.174 (relating to reports of overdrafts). Upon receiving a signed agreement from an Eligible Institution as required by this subsection, the Board shall report that fact to the Supreme Court with a recommendation that the Court enter an order approving the Eligible Institution as a depository for Trust Accounts.(b)Termination of approval. Enforcement Rule 221(k) provides that a failure on the part of an Eligible Institution to make a report to the Lawyers Fund for Client Security Board called for by this subchapter or to comply with IOLTA Regulations governing approved Eligible Institutions may be cause for termination of its approval by the Supreme Court, but such failure shall not, absent gross negligence, give rise to a cause of action by any person who is proximately caused harm thereby. Upon learning that a financial institution has failed to make a report called for by this subchapter, the Board shall report that fact to the Supreme Court with a recommendation that the Court enter an order terminating the approval of the financial institution as a depository for Trust Accounts.(c)List of approved Eligible Institutions. The Board will periodically publish in the Pennsylvania Bulletin a list of Eligible Institutions that are approved at the time as depositories for Trust Accounts under this subchapter. The current list shall also be published in the Pennsylvania Code as an appendix to this section.The provisions of this §91.173 amended August 5, 2005, effective immediately, 35 Pa.B. 4301; amended May 29, 2009, effective 5/30/2009, 39 Pa.B. 2687; amended February 2, 2018, effective in 30 days, 48 Pa.B. 727.