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Rules of Practice 1994 (S.R. 1994, No. 229)
Requested:  30 May 2017
Consolidated as at:  17 Mar 2006

Division 8 - Withdrawals from and payments to trust bank account

37. Withdrawal of money

(1) A firm must not withdraw money from a trust bank account for or on behalf of a client unless –

(a) money amounting to at least the amount withdrawn is held in that account at the time of that withdrawal –

(i) in the trust bank account to the credit of that client; or

(ii) in the possession of the firm for payment into the trust bank account to the credit of that client; or

(iii) in the trust bank account identifiable by details recorded in the trust ledger account as being money to which that client is entitled; or

(b) that withdrawal arises from the debiting of a cheque which has been properly used to obtain a bank cheque on behalf of that client while that bank cheque remains in the possession of the firm pending its proper disposition.

(2) A firm must not retain a bank cheque drawn under subrule (1) for a period exceeding 2 banking days.

38. Receipt of money

A firm receiving money that is to be paid into that firm's trust bank account in accordance with section 101 of the Act must –

(a) record details of that money in the trust ledger account; and

(b) pay that money into the trust bank account before the end of the next banking day.

39. Payment of costs and expenses

A firm may –

(a) withdraw from the trust bank account any money held in the trust bank account for or on behalf of a client, if the withdrawal does not cause a debit balance in that client's account in the firm's trust ledger account; and

(b) apply that money to its own use, either –

(i) in payment of any costs owing to the firm by a client; or

(ii) in reimbursement of any out of pocket expenses incurred by the firm on behalf of a client.

40. Limit on withdrawal of money

(1) A firm must not withdraw any money in excess of $100 from a client's account in the trust ledger account except –

(a) with an authorization in writing from the client; or

(b) in accordance with an account, bill of costs, letter, statement or memorandum posted to the client within a reasonable time to the client's last known address.

(2) A copy of every account, bill of costs, letter, statement or memorandum referred to in subrule (1) must be kept by the firm for at least 2 years.
(3) Subrule (1) does not apply to money received by a firm for costs.


CURRENT VIEW: 31 Dec 1994 - 1 Oct 2016
VIEW THE AS MADE VERSION