4/7/10 N.Y. St. Reg. IOL-47-09-00011-A
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Action taken:
Amendment of section 7000.9(b)(1) of Title 21 NYCRR.
Statutory authority:
State Finance Law, section 97-v(3)(d)
Subject:
An IOLA account interest rate option.
Purpose:
Revise an IOLA account interest rate option to ensure that the account yields highest income to the IOLA Fund.
Text or summary was published
in the November 25, 2009 issue of the Register, I.D. No. IOL-47-09-00011-P.
Final rule as compared with last published rule:
No changes.
Text of rule and any required statements and analyses may be obtained from:
Stephen G. Brooks, IOLA Fund of the State of New York, 11 East 44th Street, New York, NY 10017, (646) 865-1541, email:
sgbrooks@iola.orgAssessment of Public Comment
Three written comments were received in letter form. All were entirely favorable.
The IOLA Fund's assessment of the comments is as follows:
1. In summary, each of the comments were brief and supported the amendment without reservation; each noted the need for, and potential benefits that may result from, the amendment and two specifically noted the importance of the amendment in this time of an economic recession that results in more low-income people needing legal help.
2. No issues were raised or alternatives suggested.
3. Consequently, this constitutes an analysis of the comments and no alternatives have been considered or incorporated.
4. No changes have been made as a result of such comments.
We believe this amendment would provide institutions with a simpler administrative mechanism for setting interest rates on IOLA accounts, would provide a floor for the interest rate an institution would pay using the option in Section (b)(1) and would in some cases lead to higher rates paid on those accounts. Any such increase in income yielded by IOLA accounts would be valuable for the millions of New Yorkers who cannot afford a lawyer for basic legal needs that are essential to their safety and well being.
With the drastic decline in money available for distribution at a time when the need for legal assistance continues to grow as a result of the recession, low-income New Yorkers need the civil legal services funded by IOLA more than ever. We commend the IOLA Fund for taking an important step to ensure that revenue coming into the fund will be at the highest level possible.
