Becoming an Approved Bank

Thanks for your interest in becoming a COLTAF Bank! Both banks and credit unions are eligible to become approved financial institutions. Colorado lawyers and Licensed Legal Paraprofessionals (LLPs) are only permitted to deposit client and third-party funds at approved COLTAF banks. By going through the approval process, you will be able to offer both COLTAF, or pooled trust accounts, and individual trust accounts to lawyers and LLPs in Colorado.

Before beginning this process, you must schedule a time to speak with COLTAF staff.

Requirements:

  1. Your financial institution must do business in the state of Colorado.
  2. You must enter into a written agreement with the Office of Attorney Regulation Counsel. This agreement lays out your responsibilities as an approved financial institution, including the obligation to cooperate with COLTAF and to report overdrafts to the Office of Attorney Regulation Counsel using a standardized reporting format.
  3. Have your rate approved by COLTAF.
    1. Your rate can be approved in one of the following three ways:
      1. Elect to pay the Prime Partner rate of 75% of the Federal Funds Rate. Please note that there is a floor of 0.50% for the Prime Partner Rate.
      2. Elect to pay the Benchmark Bank rate of 60% of the Federal Funds Rate. Please note that there is a floor of 0.35% for the Benchmark Rate.
      3. Propose your own rate. However, any proposed rate must offer COLTAF a rate equal to the highest rate that you offer on any comparable product. You will need to submit a full rate sheet to COLTAF staff for a determination of whether your rate satisfies this requirement.