New York Laws
Article 6 - Funds of the State
97-V - The New York Interest on Lawyer Account (Iola) Fund.

* § 97-v. The New York interest on lawyer account (IOLA) fund. 1.
There is hereby established in the custody of the state comptroller a
fiduciary fund to be known as the New York interest on lawyer account
(IOLA) fund. A board of trustees shall be appointed to administer the
New York IOLA fund.

2. The board shall consist of fifteen members appointed by the
governor. All members shall be residents of the state of New York and
shall be knowledgeable and supportive of the delivery of civil legal
services to the poor and the improvement of the administration of
justice. At least eight of the members shall be attorneys licensed to
practice law in the state of New York. Two members shall be appointed
upon the recommendation of the temporary president of the senate, at
least one of whom shall be an attorney; two members shall be appointed
upon the recommendation of the speaker of the assembly, at least one of
whom shall be an attorney; one member shall be appointed upon the
recommendation of the minority leader of the senate; and one member
shall be appointed upon the recommendation of the minority leader of the
assembly. Two members shall be appointed upon the recommendation of the
court of appeals, each of whom shall be an attorney. The governor shall
designate one of the members of the board as chairman.

a. The term of office shall be three years, provided, however, that of
the members first appointed, five shall be appointed for terms expiring
on December thirty-first, nineteen hundred eighty-four, five shall be
appointed for terms expiring on December thirty-first, nineteen hundred
eighty-five and five shall be appointed for terms expiring on December
thirty-first, nineteen hundred eighty-six. Vacancies shall be filled in
the manner of original appointments for the remainder of the term.

b. The members shall receive no compensation for their services as
members, but shall be reimbursed for their actual and necessary expenses
incurred in the performance of their duties.

c. The members shall be considered employees of the state for the
purposes of section seventeen of the public officers law.

d. No member of the senate or assembly shall be eligible to serve as a
member of the board.

3. a. The board shall have the power to receive, hold and manage any
moneys and property received from any source. It shall distribute funds
as grants and contracts to not-for-profit tax-exempt entities for the
purpose of delivering civil legal services to the poor and for purposes
related to the improvement of the administration of justice, including,
but not limited to, the provision of civil legal services to groups
currently underserved by legal services, such as the elderly and the
disabled, and the enhancement of civil legal services to the poor
through innovative and cost-effective means, such as volunteer lawyer
programs and support and training services.

b. No less than seventy-five percent of the total funds distributed in
any fiscal year shall be allocated to not-for-profit tax-exempt
providers for the purpose of delivering civil legal services to the
poor. The funds distributed annually to legal services providers shall
be allocated according to the geographical distribution of poor persons
throughout the state based on the latest available figures from the
United States department of commerce, bureau of census, as prescribed by
rules and regulations of the board of trustees.

c. The remaining funds shall be allocated for purposes related to the
improvement of the administration of justice, including, but not limited
to, the provision of civil legal services to groups currently
underserved by legal services, such as the elderly and the disabled, and
the enhancement of civil legal services to the poor through innovative

and cost-effective means, such as volunteer lawyer programs and support
and training services.

d. The board shall adopt rules and regulations for the administration
of the IOLA fund to carry out the purposes and provisions of this
section and of section four hundred ninety-seven of the judiciary law.
Such regulations shall be adopted in accordance with article two of the
state administrative procedure act.

e. The board may employ and remove such personnel as it may deem
necessary for the performance of its functions and fix their
compensation within the amounts made available therefor and may allocate
funds for the actual and necessary nonpersonnel administrative costs of
the program. No more than ten percent of the funds available in any
fiscal year shall be spent on personnel and related services, and on
necessary nonpersonnel administrative costs of the program provided,
however, that such limitations may be waived by the board by the
adoption of a resolution and such waiver shall remain in effect until
the board determines by a subsequent resolution that the program is
fully operational.

f. The board shall insure that grants and contracts are made with
not-for-profit providers of civil legal services for the poor to provide
stable, economical and high quality delivery of civil legal services to
the poor throughout the state.

g. Notwithstanding any statute or rule to the contrary, the board
shall maintain all papers, records, documents or other information
identifying an attorney, client or beneficial owner of an IOLA account
on a private and confidential basis and shall not disclose such
information unless such disclosure is necessary to accomplish the
purposes of this section and section four hundred ninety-seven of the
judiciary law, or unless disclosure is pursuant to compulsory legal
process.

h. All payments from the IOLA fund shall be made by the state
comptroller upon certification and authorization of the board of
trustees of the fund.

4. a. The board of trustees shall establish by regulation a specific
dollar amount equivalent to the cost of administering a segregated
interest bearing account for a client or beneficial owner. This dollar
amount may be used by participating attorneys as a guide when
determining whether the moneys are qualified funds.

b. The board of trustees shall also establish by regulation the
qualifications of a recipient of funds and the nature and scope of civil
legal services to be provided to poor persons by the funds disbursed
under this section.

5. If it shall appear to the satisfaction of the board of trustees
that, because of a mistake of fact, error in calculation or erroneous
interpretation of the provisions of this chapter or of section four
hundred ninety-seven of the judiciary law, or of any regulation adopted
by the board, a banking institution has remitted to the IOLA fund any
moneys not required by such provisions to be remitted, the board shall
refund such moneys upon application of any aggrieved party. Any such
refund shall be paid from the IOLA fund without interest and without the
deduction of any service charge, and shall be and constitute a full
satisfaction and discharge of any claim for such refund.

* NB There are 2 § 97-v's

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