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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.

22. Cheques

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.



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