News Release

 
September 5, 2018

Austin Capital Bank Joins Prime Partner Bank Program
Program Boosts Funding for Legal Aid in Texas

AUSTIN, Texas — The Texas Access to Justice Foundation (TAJF) proudly welcomes Austin Capital Bank as the newest member of its Prime Partner Bank program. Prime Partner banks and credit unions make a direct impact on the funding available to help low-income Texans with their civil legal issues by voluntarily paying higher interest rates for Interest on Lawyers’ Trust Accounts (IOLTA).

All attorneys that handle client funds are required to keep those funds in IOLTA accounts until they can be made available to a client. The Texas Access to Justice Foundation receives funding from the interest generated by these accounts and uses the money to distribute grants to legal aid providers throughout Texas. This funding provides legal assistance to more than 150,000 Texas families each year.

“Many Texans face serious legal issues, such as escaping situations of domestic violence or avoiding foreclosure, and simply do not have the resources to hire an attorney,” Richard L. Tate, chair of the board of directors for the Texas Access to Justice Foundation, said. “By paying higher interest rates on IOLTA accounts, Austin Capital Bank is helping ensure that low-income Texans have access to life-saving civil legal services.”

Due to low interest rates, the Texas Access to Justice Foundation has seen a 65 percent decline in IOLTA revenue since 2007. As a result, more than $140 million in funding for free legal services for low-income and disadvantaged Texans has been lost. Prime Partner banks pay 75 percent of the Federal Funds target rate on IOLTA accounts, which is above and beyond the eligibility requirements for banks participating in the IOLTA program.

“Austin Capital Bank was built on a foundation of helping the community it serves,” Erik Beguin, CEO and President said. “We are excited to join the Prime Partner Bank program and help make a positive impact on the lives of disadvantaged Texans who need affordable legal assistance.”

More than 5.6 million Texans qualify for legal aid and many are turned away simply because legal aid providers do not have the resources or funding to help everyone in need. Prime Partner banks help mitigate the decline in revenue available to fund legal aid.

Austin Capital Bank is now one of nearly 60 banks that participate in the Prime Partner Bank program across the state. See a current list of Prime Partner banks in Texas at: http://www.teajf.org/financial_institutions/prime_partners.aspx

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The Texas Access to Justice Foundation, created by the Supreme Court of Texas in 1984, is the largest state-based funding source for the provision of civil legal aid in Texas. The organization is committed to the vision that all Texans will have equal access to justice, regardless of their income. The Foundation administers a variety of funding sources, which are earmarked to assist nonprofit organizations in providing legal aid to more than 150,000 Texas families each year. For more information, please visit: www.teajf.org.

Austin Capital Bank is a 5-star rated, FDIC insured, Texas State Savings bank with its headquarters located in Austin, Texas. Founded in 2006, Austin Capital Bank has grown to become one of the preeminent community banks in Texas, a national leader in Fintech - empowering responsible financial innovation by leveraging its proprietary Trident technology platform, and its digitally enabled HomeVantage Mortgage division is rapidly becoming a nationwide leader in residential mortgage lending. The bank has been recognized for three consecutive years on the Inc. 5000 list of most rapidly growing privately held companies in the United States. Austin Capital Bank is an all-inclusive and non-discriminatory financial institution, which provides its services in an equitable and fair manner to all members of the communities it serves. For more information, please visit: www.AustinCapitalBank.com.

 

Contact: Kimberly Schmitt
512-320-0099, ext. 104
kschmitt@teajf.org

 

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