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Rules of Practice 1994 (S.R. 1994, No. 229)
|Requested: 29 Apr 2017|
|Consolidated as at: 17 Mar 2006|
Division 2 - Payments
21. Payment of trust money
(1) A firm must not make a cash payment of trust money without the written authority of the client.
(2) A firm must keep any written authority received by it.
A cheque for the payment of trust money is to
(a) be crossed "Not Negotiable"; and
(b) be issued payable to order or bearer; and
(c) record the name of the firm; and
(d) record the words "Trust Account" on the cheque; and
(e) be signed by a principal of the firm or an approved person.
23. Cheque butts
A firm must
(a) keep a cheque butt as a record of each payment of trust money; or
(b) keep cheque requisitions or some other record of each payment of trust money; or
(c) enter details of the payment of trust money into the cash book when the cheque is issued.
24. Details of cheque butts
A firm must ensure that the following details are recorded on each cheque butt, cheque requisition or other record of payment of trust money in respect of each payment from a trust bank account:
(a) the number of the cheque;
(b) the date of the cheque;
(c) the amount of the cheque;
(d) the name of the payee;
(e) details clearly identifying the trust ledger account to be debited;
(f) the description of the matter;
(g) details of the purpose for which the payment was made.
25. Details of cheque requisitions
If a firm keeps cheque requisitions or some other record of each payment of trust money instead of cheque butts, the firm must
(a) record the relevant cheque number on that requisition or record; and
(b) store the requisitions or records in numerical order.