New Jersey State Bar Association - The voluntary Bar Association of New Jersey, serving members since 1899.

For Immediate Release:  07/20/10

Contact:  Ellen Ferrise

Executive Director, The IOLTA Fund of the Bar of NJ

732-247-8222

Supreme Court of New Jersey Order Regarding Chase Bank

SUPREME COURT OF NEW JERSEY

The Trustees of the IOLTA Fund (Income on Non-Interest Bearing Lawyers Trust Accounts) of the Bar of New Jersey having reported to the Court that the JP Morgan Chase Bank has failed to comply with the Court’s February 18, 2009, Supplemental Administrative Determination Re IOLTA and the “Best Customer” Standard,

And the Court having directed the Clerk of the Supreme Court to send a Final Notice to that institution,

And the Clerk having sent notice to the JP Morgan Chase Bank on June 14, 2010, giving it thirty (30) days within which to comply with the Court’s “Best Customer” Standard or face deauthorization as an approved trust account depository under Rule 1:21-6(b),

And the JP Morgan Chase Bank having failed to respond to that notice,

And good cause appearing;

IT IS ORDERED that the JP Morgan Chase Bank is deauthorized as a trust account depository in the State of New Jersey and is therefore removed from the Supreme Court's list of financial institutions approved to hold attorney trust accounts; and it is further

ORDERED that the Director, Office of Attorney Ethics, shall forthwith communicate with all attorney trust account depositors at the JP Morgan Chase Bank, informing them that they must close all attorney trust accounts with that institution within sixty (60) days of the receipt of that notification; and it is further

ORDERED that as provided in the “Best Customer” Standard, attorneys affected by this Order must open new attorney trust accounts in financial institutions ranked by IOLTA in the highest paying two quartiles of all approved trust account depositories, a list of which institutions will be forwarded to such attorneys by the Director, Office of Attorney Ethics with the notice of JP Morgan Chase Bank's deauthorization; and it is further

ORDERED that within the sixty-day period provided for in this Order, each affected attorney must file a certification with the Director, Office of Attorney Ethics, providing the name of the approved financial institution that the attorney has selected, together with the numbers of all trust and business accounts the attorney has established in that institution; and it is further

ORDERED that if an attorney affected by this Order fails to comply with it in a timely manner, the attorney may be subject to the imposition of discipline for non-compliance.

 

For the Court:

/s/ Stuart Rabner
C.J.

Dated: July 20, 2010