Rule 1306 - Eligible IOLTA Financial Institutions(a) Lawyers may maintain IOLTA accounts only in eligible financial institutions approved by the Bar.(b) Eligible financial institutions are those that voluntarily offer IOLTA accounts and meet the requirements of this Rule, including maintaining IOLTA accounts which pay the highest interest rate or dividend generally available from the institution to its non-IOLTA account customers when the IOLTA account meets or exceeds the same minimum balance or other account eligibility qualifications, if any. In determining the highest interest rate or dividend generally available from the institution to its non-IOLTA accounts, eligible financial institutions may consider factors, in addition to the IOLTA account balance, customarily considered by the institution when setting interest rates or dividends for its customers, provided those factors do not include that the account is an IOLTA account.(c) An eligible financial institution may satisfy the comparability requirements of subsection (b) by electing one of the following options:(1) establish the IOLTA account as the comparable rate product;(2) pay the comparable rate on the IOLTA account in lieu of actually establishing the comparable rate or dividend product; or(3) pay a rate equal to the greater of 70%, or such other rate as may be recommended by the Foundation, of the Federal Fund Target Rate as of the first business day of the IOLTA account earnings period, which rate is deemed to be net of allowable reasonable service charges or fees, on an IOLTA account.(d) IOLTA accounts may be established as: (1) a business checking account with an automated investment feature, such as an overnight investment in repurchase agreements or money market funds invested solely in or fully collateralized by United States government securities, including United States Treasury obligations and obligations issued or guaranteed as to principal and interest by the United States or any agency or instrument thereof;(2) a checking account paying preferred interest rates, such as money market or indexed rates;(3) a government interest-bearing checking account such as accounts used for municipal deposits;(4) an interest-bearing checking account such as a negotiable order of withdrawal (NOW) account, or business checking account with interest; or(5) any other suitable interest-bearing deposit account offered by the financial institution to its non-IOLTA account customers, provided: (A) A daily financial institution repurchase agreement shall be fully collateralized by United States government securities and may be established only with an eligible institution that is "well capitalized" or "adequately capitalized" as those terms are defined by applicable federal statutes and regulations. An open-end money-market fund shall be invested solely in United States government securities or repurchase agreements fully collateralized by United States government securities, shall hold itself out as a "money-market fund" as that term is defined by federal statutes and regulations under the Investment Company Act of 1940 and, at the time of the investment, shall have total assets of at least two hundred fifty million dollars ($250,000,000).(e) Nothing in these Rules precludes a financial institution from paying a higher interest rate or dividend than described above or electing to waive any service charges or fees on IOLTA accounts.(f) Interest and dividends shall be calculated in accordance with the financial institution's standard practice for non-IOLTA account customers.(g) Allowable reasonable service charges or fees may be deducted from interest or dividends on an IOLTA account only at the rates and in accordance with the customary practices of the eligible institution for non-IOLTA account customers. No fees or service charges other than allowable reasonable service charges or fees may be assessed against the accrued interest or dividends on an IOLTA account. Any fees and service charges other than allowable reasonable service charges or fees shall be the sole responsibility of, and may be charged to, the lawyer maintaining the IOLTA account.