MINUTES – May 12, 2005

THE WEST VIRGINIA BAR FOUNDATION, INC.
IOLTA ADVISORY COMMITTEE MEETING
STATE BAR CENTER – CHARLESTON
MAY 12, 2005

The meeting of the Bar Foundation’s IOLTA Advisory Committee was called to order by Chairperson Elliot Hicks on May 12, 2005 at the State Bar Center in Charleston.

Bob Baker was in attendance at the meeting. Participating by telephone conference call was Professor Chuck DiSalvo. State Bar Executive Director Tom Tinder was also in attendance.

The first item on the Agenda was a review of the Minutes of the last Committee Meeting which had been held on February 24, 2005. A motion was duly made, seconded and passed that the Minutes be approved as presented.

A report was then given on the status of federal government funding. It was reported that the federal budget proposal included a reduction in funds for the Legal Services Corporation, but efforts were underway to get it back to this year’s level of $338 million. During a recent American Bar Association sponsored day in Washington, D.C., contacts were made with all five members of West Virginia’s Congressional Delegation and they were all supportive of the need for legal services program funding.

Comments were made regarding the operation of Legal Aid of West Virginia. It was mentioned that there may be some new sources of funding for this entity, but there will be a loss of money from the United Way of central West Virginia.

Professor DiSalvo gave a report on behalf of the special grantees. He said that there will be 16 law student summer interns working in legal services programs and that a review is being done as to the implementation of a loan repayment program for graduating law students.

The next item for discussion related to the financial report. Recent increases in interest rates and the removals of service fees on IOLTA accounts have placed more money in the IOLTA Program – the monthly amounts have increased from the $30,000 range to the $40,000 range in the past four months.

The Committee was informed that the amount of $143,000 was available for distribution. After some discussion, a motion was duly made, seconded and passed that the amount of money in the Rainy Day Fund be increased to $20,000, that $25,000 be set aside for the payment of the administration fee on June 30 and that the remaining amount of $98,000 be distributed in accordance with the Supreme Court Order. In addition, it was agreed that the $50,000 administrative fee would be paid on June 30, 2005.

The next item on the Agenda related to interest rates and service fees for the five largest banks in the state which generate approximately 60% of all IOLTA funds. Four of the five banks – BB&T, BankOne, United and City National – have increased their interest rates to a range of .50% to 1.0% and have waived any service fees. The fifth bank, Wesbanco, has been contacted and indications are that it will follow suit. With the recent increases in federal interest rates, consideration needs to be given to requesting that the banks also increase their IOLTA interest rates.

The Committee members talked about recognition of the five banks for their involvement in the IOLTA Program. After some comments were made, it was agreed that an amount up to $1,000 would be used for some type of a recognition plaque and that a request would be made to the Bar Foundation to pay for these plaques.

Chairperson Hicks announced that the next meeting of the Committee would be just prior to the summer meeting of the Bar Foundation’s Board of Directors which will be set later today. Consequently, it was later determined that the next meeting of the IOLTA Advisory Committee would be on August 11, 2005 at 11:00 a.m. at the State Bar Center in Charleston.

There being no further business to transact, the meeting was adjourned.