Jurisdiction Reference
North Dakota IOLTA
Program: North Dakota Bar Foundation IOLTA Program
North Dakota Rule of Professional Conduct 1.15, effective April 1, 2026, requires client and third-party property to be segregated in identifiable interest-bearing trust accounts at Disciplinary Board-approved eligible institutions. Nominal or short-term funds go to pooled IOLTA for the North Dakota Bar Foundation; funds capable of a positive net return use a client-benefit account or subaccount. The rule also addresses electronic payments, six-year records, annual certification, lawyer-directed withdrawals, multi-jurisdiction exemptions, and mandatory overdraft reporting.
General information, not legal advice — always confirm against the official North Dakota sources below.
Ask about North Dakota's IOLTA rules
Deposits, reconciliation, reporting, recordkeeping — answered from North Dakota's official sources. Not legal advice.
Quick reference
Plain-language summaries of common North Dakota trust-accounting requirements. Use these to orient yourself, then verify the exact rule text through the official sources.
| Topic | Summary | Category |
|---|---|---|
| Segregation and identifiable accounts | Keep client and third-party property separate from lawyer property and deposit funds in one or more identifiable interest-bearing trust accounts. | N.D.R. Prof. Conduct 1.15(a) |
| Approved eligible institution | Use an eligible institution authorized to do business in North Dakota, federally insured as specified, and approved by the Disciplinary Board. | N.D.R. Prof. Conduct 1.15(f), (k) |
| Advance fees and electronic payments | Deposit advance fees and expenses in trust; electronic unearned-fee payments may enter operating only temporarily and must be promptly transferred. | N.D.R. Prof. Conduct 1.15(b)-(c) |
| Mandatory pooled IOLTA | Deposit client or third-party funds that are nominal or expected to be held briefly in a pooled interest-bearing IOLTA account. | N.D.R. Prof. Conduct 1.15(f)(1) |
| Client-benefit alternatives | Use a separate interest-bearing account or pooled account with subaccounting when net interest can be paid to the client or third person. | N.D.R. Prof. Conduct 1.15(f)(2) |
| Positive-net-return analysis | Consider expected interest, account and tax-reporting costs, lawyer services, and institutional capability when selecting IOLTA or client-benefit treatment. | N.D.R. Prof. Conduct 1.15(f)(3) |
| Quarterly remittance and statement | Direct the institution to remit net IOLTA interest at least quarterly to the Foundation and send the prescribed statement to the Foundation and lawyer. | N.D.R. Prof. Conduct 1.15(f)(4) |
| Multi-jurisdiction exemption | A qualifying multijurisdictional lawyer or firm may use an out-of-state pooled account remitting interest under that jurisdiction's rules, without losing other Rule 1.15 duties. | N.D.R. Prof. Conduct 1.15(g) |
| Current records for six years | Maintain current records sufficient to show compliance and preserve them for at least six years after the representation terminates. | N.D.R. Prof. Conduct 1.15(h) |
| Annual certification and insurance disclosure | Certify Rule 1.15 compliance with annual license renewal and provide the rule's professional-liability-insurance information and lapse notice. | N.D.R. Prof. Conduct 1.15(i)-(j) |
| Lawyer-controlled withdrawals | Ensure every check or other withdrawal is signed or, for electronic, telephone, or wire transfers, directed by an authorized lawyer. | N.D.R. Prof. Conduct 1.15(k) |
| Overdraft reporting consent | Use only institutions agreeing to report instruments presented against insufficient funds and consent to required reporting and production. | N.D.R. Prof. Conduct 1.15(l)-(n) |
Official sources
The authoritative material for this jurisdiction. Confirm every requirement here before acting on it.
North Dakota Rules of Professional Conduct — Rule 1.15
Current official Supreme Court rule, effective April 1, 2026, governing safekeeping, IOLTA, records, certification, withdrawals, and overdraft reporting.
OpenNorth Dakota Supreme Court Administrative Rule 24
Official rule establishing mandatory IOLTA administration by the North Dakota Bar Foundation's Lawyer Trust Account Committee.
OpenNorth Dakota Court System — Lawyer Trust Accounts
Official Disciplinary Board page with approved-institution, overdraft-agreement, and trust-account resources.
OpenState Bar Association of North Dakota — IOLTA
Official State Bar page linking North Dakota lawyer trust-account guidance and IOLTA resources.
OpenNotes
- The current Rule 1.15 took effect April 1, 2026; use the current-version page rather than an obsolete historical version.
- North Dakota combines IOLTA administration by the Bar Foundation with Disciplinary Board approval of depositories and mandatory overdraft reporting.
- This page is general compliance information, not legal advice. Confirm current requirements with the North Dakota Court System, SBAND, Bar Foundation, or qualified ethics counsel.
North Dakota — Frequently asked
Common questions for North Dakota trust accounts. General information only — verify against the official sources above.
Who must use a North Dakota trust account?
A lawyer holding client or third-party property in connection with a representation must keep it separate and place funds in one or more identifiable interest-bearing trust accounts, unless another provision controls.
Which funds go into North Dakota IOLTA?
Funds that are nominal in amount or expected to be held only briefly must be placed in the pooled interest-bearing IOLTA account when they cannot produce a practical positive net return for the owner.
When should funds benefit the client directly?
Use a separate interest-bearing account or pooled account with subaccounting when the funds can produce a positive net return after account, administrative, lawyer-service, and tax-reporting costs.
Who receives IOLTA interest?
Net IOLTA interest is paid to and administered by the North Dakota Bar Foundation under Administrative Rule 24. The Foundation holds the beneficial interest in the pooled account's interest.
How often is IOLTA interest remitted?
The institution must remit net interest or dividends to the Foundation at least quarterly and transmit the required account statement to both the Foundation and the depositing lawyer or firm.
Which financial institutions may hold trust accounts?
Use an eligible, federally insured institution authorized to do business in North Dakota and approved by the Disciplinary Board. Check the Board's periodically updated approved-institution list.
How are advance fees and expenses handled?
Except where Rule 1.5(f) applies, advance legal fees and expenses go into trust and may be withdrawn only as fees are earned or expenses incurred.
Can electronic unearned-fee payments enter operating?
Yes, temporarily. Credit-card or electronic-transfer payments for unearned fees may enter the operating account only if the client or third-party funds are promptly transferred to trust.
May lawyer funds be kept in trust?
Only the amount necessary for bank service charges and fees associated with credit-card or electronic transfers related to the account, with accurate records identifying the lawyer's portion.
Is there a multijurisdictional exemption?
A lawyer admitted elsewhere, or a firm with such a lawyer, may qualify when it maintains a pooled interest-bearing account outside North Dakota and remits interest under the governing jurisdiction's rules. Other Rule 1.15 duties remain.
How long are records retained?
Keep current records sufficient to demonstrate compliance for at least six years after the representation terminates.
What is certified during annual renewal?
The lawyer certifies compliance with Rule 1.15 and provides the required private-client and professional-liability-insurance disclosures, including current insurer and policy information.
Who may authorize withdrawals?
Checks and other instruments must be personally signed by an authorized lawyer; electronic, telephone, and wire transfers must be directed by one or more lawyers authorized by the firm.
What happens when an account has insufficient funds?
An approved institution must report a properly payable instrument presented against insufficient funds to the Disciplinary Board whether the item is dishonored or honored, using the timing and information required by Rule 1.15.
How should disputed funds and account closure be handled?
Keep disputed property separate, promptly distribute undisputed amounts, complete the final accounting, resolve outstanding items and charges, deliver all remaining property, and preserve the six-year records.