Would you please clarify IOREBTA and IOLTA accounts?

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Question:

Would you please clarify IOREBTA ACCOUNTS - are they the same as IOLTA?

Answer:

IOREBTA (Interest On Real Estate Broker Trust Accounts) At least on state, Connecticut, has a statute that allows real estate firms to place client funds in an IOREBTA account. They are similar to IOLTA (Interest On Lwayers Trust Accounts) accounts that the interest on the funds is not paid to the customer or its clients but to a trade foundation for charitable purposes.

First published on BankersOnline.com 7/15/02