FDIC FAQs- Are Interest on Realtor Trust Accounts (IORTAs) or similar accounts where an attorney/realtor holds client funds in trust also included within the definition of a noninterest-bearing transaction accounts?

Compliance > Deposit Operations > FDIC FAQs on Insurance and Payment of Interest on Demand Deposit Accounts
Q: Are Interest on Realtor Trust Accounts (IORTAs) or similar accounts where an
attorney/realtor holds client funds in trust also included within the definition of a
noninterest-bearing transaction accounts?

A: No. IOLTAs -- accounts established by an attorney, containing funds held by the attorney
on behalf of one or more clients, with accrued interest paid to the state bar association or
other organizations to fund legal assistance programs – are included within the definition of
noninterest-bearing transaction accounts, but all other interest-bearing fiduciary accounts
maintained by attorneys or other entities (including, IORTAs) are subject to the standard
insurance limits.

This can be found in - FAQ#8 of FDIC’s FAQs.  FDIC’s FAQs can be found at: http://www.fdic.gov/deposit/deposits/unlimited/faq.pdf

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