An IOTA shall be: (1) established in the name of the title insurance agent or company that creates and maintains it, and (2) titled as “IOTA,” or as “Interest on Trust Account,” in accordance with Ohio Revised Code Section 3953.231.

31-1126612 is the federal tax identification number (EIN) of all Ohio IOTAs. A title agent or title company must use this number when opening an IOTA.

IOTAs must be established at an eligible participating financial institution that is authorized to do business in Ohio and either FDIC or NCUA insured.

Once an IOTA is established at a participating financial institution, the title agent/agency should promptly notify the Foundation to register the account by emailing [email protected] or calling 614-715-8560, Option 2.

Promptly reporting the IOTA to the Foundation ensures that accounts are set up correctly and are in compliance with Ohio statutes.

While not required by Ohio law, some financial institutions may request documentation to open an IOTA.  If needed, you may complete and submit the Request to Establish Ohio IOLTA/IOTA form directly to them.

Title insurance agents and title insurance companies must deposit into an IOTA, all non-directed escrow funds that meet the requirements of Ohio Revised Code Sections 1349.20 to 1349.22, which are either nominal in amount or held for a short period of time. Funds must be placed in the IOTA no later than the next business day after receipt.

Bulletin No. 2005-1 clarifies that title insurance agents and companies may not cause or request parties to a real property transaction to direct funds that are otherwise considered non-directed escrow funds into accounts for the agent’s or company’s benefit, or to have the interest earned on those funds paid to the agent or company.

FDIC regulations ensure funds held in an IOTA, in an amount up to $250,000 per client, provided certain requirements are met.

To be eligible for this coverage, the account must be clearly designated as an IOTA and a proper accounting of each client’s funds must be maintained. This per client coverage is available, regardless of the total amount held in the IOTA and regardless of any other deposits which the title agent or title company may hold at the financial institution. See 12 U.S.C. 1787(k)(5); and 12 C.F.R. 330.5. See also, https://www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits/.

Only reasonable service charges and other related charges (maintenance, deposit and withdrawal fees applied on the accounts, and wire transfer fees) may be deducted from the interest earned on an IOTA.

In the event title agents use interest earned on an IOTA to pay fees, the title agent shall not charge or seek reimbursement from anyone, including the consumer, with respect to such charges.

The following charges or fees may not be deducted from interest earned on an IOTA:

• check printing or sorting charges;
• not-sufficient-funds charges;
• stop payment charges;
• copies of check charges; and
• other business-related expenses, which are not part of the above-mentioned permissible types of fees.

Should any of the above service charges be deducted from IOTA interest, please contact the Foundation immediately via email so that we can resolve this matter with the financial institution.

Funds held in an IOTA shall be sent to the Department of Commerce, Division of Unclaimed Funds (“the Division”) if:

• funds have been held for 3 years, and
• the owner is either unknown or efforts to reunite the funds to the owner have been unsuccessful.

Title agents are required to remit the funds to the Division using the Nature of Funds Code TR88, in accordance with Ohio Revised Code Sections 169.01(L) & 169.03.

Please visit the Foundation’s Unclaimed Funds webpage for more information.