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FL S1336
Bill
AI Summary
- Creates section 655.97, Florida Statutes, requiring the Chief Financial Officer to set the interest rate payable by eligible institutions on Interest on Trust Accounts (IOTA) on a quarterly basis, effective January 1, April 1, July 1, and October 1 of each year
- Sets the compliance rate at the higher of 68 percent of the upper bound of the federal funds rate or 25 basis points (0.25 percent), with an annual percentage yield cap of 255 basis points (2.55 percent)
- Requires the Chief Financial Officer to notify Funding Florida Legal Aid of the established compliance rate for each upcoming quarter
- Allows eligible institutions, as an alternative to the compliance rate, to pay the higher of the highest interest rate or dividend generally available to their non-IOTA business, consumer, or nonmaturing deposit account customers, or 25 basis points, provided IOTA accounts meet the same minimum balance or eligibility qualifications
- Institutions choosing the alternative rate option must submit an IOTA Rate – Comparability Information Form promulgated by The Florida Bar to Funding Florida Legal Aid; the act would take effect July 1, 2024
Legislative Description
Interest on Trust Accounts
Last Action
Died in Appropriations Committee on Agriculture, Environment, and General Government
3/8/2024
Committee Referrals
Appropriations Subcommittee on Agriculture, Environment, and General Government1/23/2024
Full Bill Text
No bill text available