News Release
Program Boosts Funding for Legal Aid in Texas
AUSTIN, Texas — The
Texas Access to Justice Foundation (TAJF) proudly welcomes Texas Capital
Bank as the newest member of its Prime Partner Bank program that provides
funding to help low-income Texans on civil legal issues.
Prime Partner banks
and credit unions voluntarily pay higher interest rates for Interest on
Lawyers’ Trust Accounts (IOLTA), an innovative method of raising money for
civil legal aid and to support improvements to the justice system.
Every state
operates an IOLTA program, and the funding helps TAJF provide legal
assistance to more than 150,000 Texas families each year.
All attorneys who
handle client funds are required to keep that money in IOLTA accounts until
allocated to a client. The Texas Access to Justice Foundation receives
funding from the interest generated by these accounts, using the money to
distribute grants to legal aid providers throughout Texas.
“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,” said Richard L. Tate, chair of the board of directors for the
Texas Access to Justice Foundation. “By paying higher interest rates on
IOLTA accounts, Texas Capital Bank is helping ensure low-income Texans have
access to life-saving civil legal services.”
Because of low
interest rates, the Texas Access to Justice Foundation has seen a 53%
decline in IOLTA revenue since 2007. As a result, nearly $152 million in
funding for free legal services for low-income and disadvantaged Texans has
been lost. Prime Partner banks pay 75% 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 Capital Bank
is committed to helping communities prosper through strategic investments
that serve the needs of low-to-moderate-income individuals, families and
communities,” said Keith Cargill, president and CEO of Texas Capital Bank.
“This is an important and innovative way for the private sector to increase
access to justice for disadvantaged Texans needing legal assistance.”
All of Texas
Capital Bank’s branches, including those in Austin, Dallas, Fort Worth,
Houston and San Antonio, are now part of the Prime Partner Bank program.
More than 5.5
million Texans qualify for legal aid and many are turned away because legal
aid providers do not have the resources to help everyone in need. Prime
Partner banks help mitigate the decline in revenue available to fund legal
aid.
Texas 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.
ABOUT TEXAS CAPITAL
BANCSHARES, INC.
Contact: Kimberly Schmitt512-320-0099, ext. 104 kschmitt@teajf.org
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