Illinois Rule of Professional Conduct 1.15 regulates the safekeeping of client funds. In most cases, this means depositing client funds into an IOLTA account (IOLTA stands for "interest on lawyers trust accounts").

If there's an overdraft on an attorney's IOLTA account, amendments to Rule 1.15 implemented in 2011 require the bank holding the account to notify the ARDC. And the investigation that often follows such a notice can expose bookkeeping lapses that result in disciplinary action.

Michael P. Downey, a partner at Armstrong Teasdale in St. Louis who represents attorneys before the ARDC, says the overdraft notice and other 2011 changes to Rule 1.15 are a game changer for Illinois practitioners. The rule now requires attorneys to maintain accurate records of all funds entering and leaving their IOLTA accounts. It also requires them to retain copies of client retainer agreements, bills sent to clients, and applicable bank records, among other documents. Unsuspecting attorneys who accidentally overdraw their IOLTA accounts may be in for a more in-depth examination of their record keeping practices. Find out more from Matt Hector's article in the March Illinois Bar Journal.