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NOTICE TO THE BAR

RE: IOLTA AND IMPLEMENTATION OF "BEST CUSTOMER" STANDARD

As detailed in its Administrative Determination of November 15, 2005, which is being published contemporaneously with this Notice, the Supreme Court has acted favorably in respect of the key recommendations contained in the report submitted by the Joint Working Group on IOLTA and Financial Institutions. Consistent with the Working Group's report, the Court has adopted a new return standard designated the Best Customer Standard. The new standard will be used to evaluate the reasonableness of the net yield on IOLTA accounts. In addition, the Court directed that a Notice be published to remind the Bar about handling bank service charges in the context of IOLTA accounts.

Best Customer Standard

The Best Customer Standard replaces the Reasonable Return Standard as the method for IOLTA to evaluate the reasonableness of returns provided by banks. Financial institutions must implement the new standard no later than January 31, 2006. Attorneys should be aware that:

Bank Charges

IOLTA wishes to remind the Bar and participating financial institutions of the following:

The IOLTA Fund of the Bar of New Jersey
New Jersey Law Center
One Constitution Square
New Brunswick, NJ 08901-1520
(732) 247-6868

Stephen W. Townsend, Esquire
Clerk of the Supreme Court
Dated: November 15, 2005

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