1991 Coltaf Annual Report
| Publication year | 1991 |
| Pages | 2031 |
| Citation | Vol. 10 No. 1991 Pg. 2031 |
1991, October, Pg. 2031. 1991 COLTAF Annual Report
In 1990-91, the Colorado Lawyer Trust Account Foundation ("COLTAF") again increased its income and grant making capabilities.
This was COLTAF's first full year under revised DR 9-102 of the Code of Professional Responsibility, which requires lawyers to hold all client funds in interest-bearing accounts for the benefit of the client, or, where that is not feasible, for the benefit of COLTAF.
As a result, COLTAF's income again grew significantly, from $1,300,000 to $1,800,000 in 1990-91.
This allowed COLTAF to provide increased funding to many valuable organizations that provide services meeting one or more of COLTAF's purposes, which are to:
1. Assist in providing legal services to the disadvantaged.
2. Improve the delivery of legal services.
3. Promote knowledge and awareness of law in the community.
4. Improve the administration of justice.
In 1990-91, COLTAF distributed $1,345,000, compared with $970,000 distributed in 1989-90.
COLTAF now is at the point where almost all lawyers who are required to participate are doing so. As a result, absent a major improvement in the economy or a rise in interest rates paid by financial institutions, income is expected to level off. The projection is that 1991-92 income will be approximately the same as 1990-91.
COLTAF has become a significant funding source for some of its grantees. Because the loss of COLTAF funding could have a major impact on these programs, the COLTAF board of directors determined in 1988 that it would be prudent to establish a reserve fund. The fund would serve as a buffer against bad economic times or as phase-out funding for grantees if there were a major reduction or elimination of COLTAF funding at some future time. COLTAF has been setting aside 30 percent of annual revenue over $600,000. There is now over $500,000 in the fund. The goal is to continue adding to the reserve until there are funds equivalent to one year's grants.
However, over the next five years, COLTAF will reduce the percentage set aside each year by 5 percent. This will allow COLTAF to disburse slightly more each year, providing cost-of-living increases for on-going grantees even though income will level off.
COLTAF continues to appreciate the strong support it has received from Colorado's legal and banking communities, who together have made this program possible.
At its annual meeting on September 4, 1991, COLTAF honored Bruce Buell for his role as founder and long-time motivating force behind COLTAF.
Buell, a partner in the law firm of Holland & Hart, began his work on behalf of COLTAF in early 1982, when he took a three-month sabbatical to do pro bono work. He was appointed by then-Colorado Bar Association President David Wood to chair a committee to study the concept of interest on lawyer trust accounts ("IOLTA") and make a recommendation to the CBA Board of Governors.
The committee moved quickly under BuelPs leadership. Effective November 1, 1982, the Colorado Supreme Court amended DR 9-102 to allow pooled short-term or nominal client funds to be held at interest for the benefit of COLTAF, becoming the fifth state in the nation to have such a program. There are now IOLTA programs in forty-nine states and the District of Columbia.
Through Buell's vision and leadership, COLTAF quickly became a thriving program which has been a model for other IOLTA programs around the country. Buell has become a leader in the national efforts to encourage IOLTA programs and serves on the American Bar Association's Commission on IOLTA.
Buell served as COLTAF's first president, from 1983 to 1985. His patience, wisdom and creativity were critical during the early days, when the COLTAF board and staff were educating lawyers and bankers about this new and exciting program. He again served as president during the 1988-89 fiscal year, and led COLTAF through another very important challenge, the conversion from a voluntary program to a mandatory one.
In honor of his many years of dedicated service and leadership, the Board of Directors of...
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