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Rules of Practice 1994 (S.R. 1994, No. 229)
|Requested: 27 Apr 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(a) money amounting to at least the amount withdrawn is held in that account at the time of that withdrawal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.