Md. Rule 19-409 (2026)

(a) Definitions. In this Rule, (1) “AIS” means the Attorney Information System created in Rule 19-801 and (2) “AOC” means the Administrative Office of the Courts.

(b) Generally. Any interest paid on funds deposited in an attorney trust account, after deducting service charges and fees of the financial institution, shall be credited and belong to the client or third person whose funds are on deposit during the period the interest is earned, except to the extent that interest is paid to the Maryland Legal Services Corporation Fund as authorized by law. The attorney or law firm shall have no right or claim to the interest.

Cross reference: See Rule 19-411 (b)(1)(D) providing that certain fees may not be deducted from interest that otherwise would be payable to the Maryland Legal Services Corporation Fund.

(c) Duty to Report IOLTA Participation.

(1) Required as a Condition of Practice. As a condition of continuing to practice law in Maryland, each attorney admitted to practice in Maryland shall report in accordance with this Rule information concerning all IOLTA accounts.

(2) IOLTA Compliance Report. On or before July 10 of each year, the State Court Administrator shall send electronically to each attorney in active status a notice requiring the attorney to complete through AIS an IOLTA Compliance Report on or before September 10 of that year. The report shall be in a form approved by the State Court Administrator in consultation with the Maryland Legal Services Corporation. The report shall require, at a minimum, the disclosure of the name, address, location, and account number of each IOLTA account maintained by the attorney as of July 10 of each year.

(3) Shared Law Firm IOLTA Accounts. If all IOLTA eligible trust funds of all attorneys in a law firm are deposited in shared law firm IOLTA accounts, the firm shall designate an attorney to be its “IOLTA Reporting Attorney.” The IOLTA Reporting Attorney shall report on all law firm IOLTA accounts by submitting one report listing the specific account information for the firm with the IOLTA Reporting Attorney's signature. Each attorney at the law firm other than the firm's IOLTA Reporting Attorney shall submit a report that includes the attorney's name, law firm address and phone number, and the name of the IOLTA Reporting Attorney. The report of an attorney other than the firm's IOLTA Reporting Attorney need not include account information for a shared law firm IOLTA account.

(4) Filing Report Through AIS. On or before September 10 of each year, each attorney in active status shall file electronically through AIS a completed IOLTA Compliance Report with AOC.

(d) Enforcement.

(1) Notice of Default. As soon as practicable after February 10 of each year, the State Court Administrator shall send electronically a Notice of Default to each attorney who has failed to file the IOLTA Compliance Report. The Notice of Default shall (A) be on a form approved by the State Court Administrator, (B) state that the attorney has not filed the IOLTA Compliance Report, and (C) state that failure to cure the default will result in the entry of an order by the Supreme Court administratively suspending the attorney from the practice of law in Maryland.

(2) List of Defaulting Attorneys. As soon as practicable after February 10 of each year but no later than March 10, the State Court Administrator shall:

(A) transmit to the Supreme Court a list that includes the name and AIS number of each attorney engaged in the practice of law who has failed to file the IOLTA Compliance Report for the preceding reporting period; and

(B) at the request of the Court, furnish additional information from its records or give further notice to the defaulting attorneys.

(3) Administrative Suspension Order. If satisfied that the State Court Administrator has given the Notice of Default to the attorneys named on the list, the Supreme Court shall enter an Administrative Suspension Order prohibiting each attorney in default from practicing law in Maryland. The Clerk of the Supreme Court shall (A) send electronically a copy of the Order to each administratively suspended attorney named in the order, (B) comply with Rule 19-761, and (C) post the Order on the Judiciary website.

(4) Effect of Order. An attorney who has been sent a copy of the Administrative Suspension Order and who has not been restored to good standing may not practice law in Maryland and shall comply with the requirements of Rule 19-741 (b) and (c). In addition to any other remedy or sanction allowed by law, an action for contempt may be brought against an attorney who practices law in violation of an Administrative Suspension Order.

(5) Termination of Order.

(A) Notice to Supreme Court. If, after an administrative suspension under this Rule, an attorney files the outstanding IOLTA Compliance Report and the attorney is in compliance with the requirements of Rules 19-503 and 19-605, the State Court Administrator shall inform the Supreme Court that the attorney is no longer in default and request the Court to enter an order terminating the attorney's administrative suspension.

(B) Duty of Court. Upon receipt of the notice and request provided for in subsection (d)(5)(A) of this Rule and payment of any fee for reinstatement, the Supreme Court shall enter an order terminating the administrative suspension of the attorney and the Clerk of the Court shall (A) send electronically a copy of the Reinstatement Order to each attorney who has been restored to good standing, (B) comply with Rule 19-761, and (C) post the Order on the Judiciary website.

(C) Disclosure of Administrative Suspension. After an attorney's administrative suspension for failure to file an IOLTA Compliance Report has been terminated, the attorney need not disclose the administrative suspension in response to a request for information as to whether the attorney has been the subject of a disciplinary or remedial proceeding.

(e) Confidentiality. Except as provided in section (f) of this Rule, IOLTA Compliance Reports are confidential and are not subject to inspection or disclosure under Code, General Provisions Article, § 4-301 or Title 16, Chapter 900 of these Rules. Neither AIS nor AOC shall release those Reports to any person, except as provided in this Rule or upon order of the Supreme Court. Non-identifying information and data contained in an attorney's IOLTA Compliance Report are not confidential.

(f) Information Furnished to the Maryland Legal Services Corporation. AOC promptly shall submit to the Maryland Legal Services Corporation all information from the IOLTA Compliance Reports.

Cross reference: See Code, Business Occupations and Professions Article, § 10-303.

Source: This Rule is derived from former Rule 16-608 (2016).

Credits

[Adopted June 6, 2016, eff. July 1, 2016. Amended Dec. 4, 2018, eff. Jan. 1, 2019; April 21, 2023, eff. nunc pro tunc April 1, 2023; Feb. 23, 2026, eff. July 1, 2026.]