A typical sequence of events is that a US client will mail a check to the US law firm to pay in advance for work that is to be carried out by a foreign patent firm in some foreign country. In normal daily routine, the law firm will be constantly depositing money into one account or the other, and transferring money back and forth between the two accounts. Often this type of bank account will be referred to by the geek term “Iolta” meaning “interest on lawyer’s trust account”. In most states, a state regulatory agency requires banks to set up such an account in a particular way so that the interest earned on the funds in the account gets paid over to the state regulatory agency. The separate bank account is often colloquially called a “trust account” or “escrow account”. The law firm has an “operating account” which is an ordinary checking account, and the law firm has a separate bank account where client funds are preserved so that they do not get commingled with the law firm’s own funds. If you are a law firm and you formerly did your banking at BBVA USA, I’d guess you are likewise now in the process of dumping PNC bank.Īny law firm necessarily has at least two bank accounts, not just one. We are now in the process of dumping PNC Bank. The acquisition by PNC bank of BBVA USA bank was a disaster. If you are a law firm, and if until recently you did your banking at BBVA USA bank, you already know most of what I am now describing.
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