ANNAPOLIS, MD (March 2, 2011) — Severn Savings Bank, FSB has joined Maryland’s IOLTA Honor Roll. The Interest on Lawyer Trust Account (IOLTA) program administered by the Maryland Legal Services Corporation (MLSC) pools deposits that would not otherwise earn interest and deposits them into special interest bearing accounts maintained by law firms. In order to participate in the optional Maryland IOLTA program banks must agree to pay a rate of interest on IOLTA accounts that is comparable to that paid on other similarly situated accounts. In addition to meeting this requirement Severn Savings Bank has joined the Maryland IOLTA Honor Roll, a joint program of the Maryland State Bar Association and MLSC. As a member of the Honor Roll, Severn has agreed to pay a net yield of the greater of 65% of the Federal Funds Target Rate or 1% on all IOLTA deposits, exceeding the minimum requirements governing IOLTA participation.
Interest proceeds from IOLTA accounts are automatically paid to the MLSC to support law-related charitable purposes. Revenue generated from the IOLTA Honor Roll program is used to make grants to nonprofit organizations providing legal services to low income individuals. IOLTA disbursements may also be awarded to organizations and projects which strengthen local communities. “It is important to us to participate in the Honor Roll program. Particularly in what have been very challenging economic times we recognize the increased need for this type of assistance and support from community banks and we are happy to be able to help strengthen our local communities by generating revenue used to fund civil legal services in Maryland, “stated Alan J. Hyatt president and chief executive officer.