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News Release
Program Boosts Funding for Legal Aid in Texas
AUSTIN, Texas — The
Texas Access to Justice Foundation (TAJF) proudly welcomes Texas Brand Bank
of Dallas 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, Texas Brand 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 70 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
interest on IOLTA accounts, which is above and beyond the eligibility
requirements for banks participating in the IOLTA program.
“Texas Brand Bank,
with three offices in the Dallas metropolitan area, is an active supporter
of numerous organizations in our local community” according to William E.
Lowe, president of the bank. ‘We are excited to participate in the Prime
Partner Bank Program to help make an impact on the lives of disadvantaged
Texans who need 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.
Texas Brand 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
Contact: Kimberly Schmitt512-320-0099, ext. 104 kschmitt@teajf.org
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