The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:

“Attorney.” An individual attorney, partnership, professional association or professional corporation engaged in the practice of law.

“Board.” The Lawyer Trust Account Board.

“Depository institution.” A bank, bank and trust company, trust company, savings bank, savings and loan association, credit union or foreign banking corporation, whether incorporated, chartered, organized or licensed under the laws of this Commonwealth or the United States, doing business in Pennsylvania and insured by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation or the National Credit Union Administration or an alternate share insurer.

“Eligible client.” Any person unable to afford the cost of private legal assistance who satisfies the financial eligibility standards established in the Federally funded Statewide legal services system.

“Interest on Lawyer Trust Account” or “IOLTA.” An unsegregated interest-bearing deposit account with a depository institution for the deposit of qualified funds by an attorney.

“Legal assistance.” Civil legal services for eligible clients, including advice, counsel, direct representation, training, research coordination with private attorneys and other activities necessary to insure the cost-effective delivery of quality legal services.

“Qualified funds.” Moneys received by an attorney in a fiduciary capacity which, in the good faith judgment of the attorney, are nominal in amount or are reasonably expected to be held for such a short term that sufficient interest income will not be generated to justify the expense of administering a segregated account. Qualified funds include moneys received from any client or beneficial owner which are too small in amount or are expected to be held for too short a period of time to generate at least $50 of interest annually.

“Qualified recipients.” Not-for-profit entities incorporated in Pennsylvania, tax-exempt under section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)), or any successor provision, which operate within this Commonwealth for the primary purpose of providing civil legal services without charge, and which: