No. HB 893
Filed under Taxes & Budget.
Trust Fund Interest for Purposes Approved by Supreme Court; Authorizes financial institutions to hold funds in specified trust accounts used for specified purposes expressly authorized by Supreme Court rule; requires certain entities to use interest & dividends for specified purposes; requires certain financial institutions to pay specified interest or dividends.
Plain English Summary
AI-GENERATEDBanks must pay interest on lawyer trust accounts at the Wall Street Journal prime rate minus 300 basis points. This rate is capped at 1.5 percent and floored at 0.25 percent.
The collected interest must be remitted to a Supreme Court-established entity. That entity is required to use the funds to provide free legal services to low-income individuals.
The bill authorizes financial institutions to hold these specific interest-bearing trust accounts. It creates a new statutory section, 655.98, to govern these account requirements.
AIAllows banks to hold lawyer trust funds in interest-bearing accounts that pay interest to a Supreme Court entity.
AIRequires the receiving entity to use collected interest to provide free legal services to low-income individuals or other Supreme Court-authorized purposes.
AIRequires financial institutions to pay interest at the Wall Street Journal prime rate minus 300 basis points, with a floor of 0.25 percent and a ceiling of 1.5 percent.