deposit: the amount of each dis- bursement; the payee and check number (for disbursements); the purpose of the transaction; and, the balance of funds remaining in the account in connection with the client matter. A lawyer shall not disburse funds from a trust account that would create a negative balance in connection with an individual client matter.
4. A separate ledger must be main- tained for nominal funds of the lawyer held in each trust account reflecting bank charges and fees.
5. A monthly trial balance of the ledgers identifying each client matter, the balance of funds held in connection with each client matter at the end of each month. and the total of all the client and third person balances. No balance for a client matter or with respect to funds maintained for a third person may be negative at any time.
6. A monthly reconciliation of the checkbook balance, the ledger trial balance total, and the adjust- ed bank statement balance. The adjusted bank statement balance is determined from the month-end bank statement balance by add- ing outstanding deposits and subtracting outstanding checks.
7. Bank statements, canceled checks or copies of canceled checks if they are provided with the bank statements, and duplicate deposit slips. Cash fee payments must be documented by copies of receipts countersigned by the payor. All disbursements must be by check unless made by wire transfer. If a withdrawal is made by wire trans- fer, a lawyer must create a written memorandum authorizing the transaction, signed by the lawyer responsible for the transaction. The wire transfer must be entered in the check register and include all the identifying information listed in subsection (b) (2) (b) of this Rule.
8. A lawyer who maintains trust ac- count records by computer must print, contemporaneously with making the computer entry, hard copies and retain, on a monthly basis, the checkbook register, the trial balance of the ledgers and the reconciliation report. The checkbook register must contain
Winter 2007 Trial Reporter 53
all the information identified in section (b)(2) of this Rule.
9. A record of all property, specifi- cally identified, other than funds held in trust for clients or third persons.
10. Records documenting timely no- tice to clients and third persons of all receipts and disbursements of their funds to and from each trust account.
Comment
New Rule 1.15(b), sets forth minimum record-keeping requirements. The records required to be kept permit the lawyer, clients and third persons to be assured that funds and property are being maintained by the lawyer consistent with the care required of a professional fiduciary. Elec- tronic records should be regularly backed up by an appropriate storage device. The frequency of the backup procedure should be directly related to the volume of activ- ity in the trust account. (b) (c) A lawyer may deposit the lawyer’s own funds in a client trust account for the sole purpose of paying bank service charges on that account, but only in an amount necessary for the purpose.
(c) (d) Unless the client gives informed consent, confirmed in writing, to a different arrangement, a lawyer shall deposit into a client trust account legal fees and expenses that have been paid in advance, to be withdrawn by the lawyer only as fees are earned or expenses incurred.
(d) (e) Upon receiving funds or other property in which a client or third person has an interest, a lawyer shall promptly notify the client or third person. Except as stated in this Rule or otherwise permitted by law or by agreement with the client, a lawyer shall promptly deliver to the client or third person any funds or other prop- erty that the client or third person is entitled to receive and, upon request by the client or third person, shall promptly render a full accounting regarding such property.
(e) (f ) When in the course of represen- tation a lawyer is in possession of property in which two or more per- sons (one of whom may be the lawyer) claim interests, the property shall be kept separate by the lawyer until the dispute is resolved. The lawyer shall promptly distribute all portions of the property as to which the interests are not in dispute.
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