For Immediate Release 07/26/10
Contace: Ellen Ferrise
Executive Director, the IOLTA Fund of the Bar of NJ
Notice to the Bar - Deauthorization of JP Morgan Chase Bank as an Approved Trust Account Depository Under Rule 1:21-6
The Supreme Court has determined that, in accordance with the provisions of its Supplemental Administrative Determination Regarding IOLTA (“Income on Non-Interest Bearing Lawyers Trust Accounts”) and the “Best Customer” Standard adopted on February 18, 2009, the JP Morgan Chase Bank is no longer an authorized depository for attorney trust accounts required to be maintained by R. 1:21-6. A copy of the Court's July 20, 2010 deauthorization Order is being published contemporaneously with this Notice.
Pursuant to the Court's 2009 Supplemental Administrative Determination and its July 20, 2010 Order, the Director of the Office of Attorney Ethics is communicating with all attorneys who maintain any attorney trust accounts (including IOLTA accounts) at JP Morgan Chase Bank and is advising them that they have sixty (60) days from the receipt of his letter within which they must certify to the OAE that all such accounts have been closed, specifying the title and account numbers of each. The affected attorneys also shall include in their certification the name and address of the Court-approved financial institution, located in New Jersey, in which all new attorney trust accounts (including IOLTA accounts) and business accounts have been opened, specifying the title and account numbers of each.
Consistent with the Supreme Court's 2009 Supplemental Administrative Determination, attorneys with accounts in the JP Morgan Chase Bank must open their new attorney trust accounts exclusively in financial institutions ranked by IOLTA in the highest paying two quartiles of all approved trust account depositories. The OAE Director’s letter will contain a specific list of these institutions. If an attorney affected by the Court's July 20 Order fails to comply with it in a timely manner, the attorney may be subject to the imposition of discipline for that non-compliance.
/s/ Mark Neary
Mark Neary, Esquire
Clerk of the Supreme Court
Dated: July 26, 2010