sec.397Sufficiency of fidelity fund

### sec.397 Sufficiency of fidelity fund If the law society believes that the fidelity fund is likely to be insufficient to meet the fund’s ascertained and contingent liabilities, it may do any or all of the following— postpone all payments relating to all or any class of claims out of the fund; impose a levy under section 369 ; make partial payments of the amounts of 1 or more allowed claims out of the fund with payment of the balance being a charge on the fund; make partial payments of the amounts of 2 or more allowed claims out of the fund on a pro rata basis, with payment of the balance ceasing to be a liability of the fund. In deciding whether to do any or all of the things mentioned in subsection (1) , the law society— must have regard to cases of hardship if it knows relevant information; and must endeavour to treat outstanding claims equally and equitably, but may make special adjustments in cases of hardship. If the law society declares that a decision is made under subsection (1) (d) — the balance stated in the declaration ceases to be a liability of the fidelity fund; and the law society may, but need not, revoke the declaration in relation to either all or a stated part of the balance, and the balance or that part of the balance again becomes a liability of the fund. A decision of the law society made under this section is final and not subject to appeal or review. (sec.397-ssec.1) If the law society believes that the fidelity fund is likely to be insufficient to meet the fund’s ascertained and contingent liabilities, it may do any or all of the following— postpone all payments relating to all or any class of claims out of the fund; impose a levy under section 369 ; make partial payments of the amounts of 1 or more allowed claims out of the fund with payment of the balance being a charge on the fund; make partial payments of the amounts of 2 or more allowed claims out of the fund on a pro rata basis, with payment of the balance ceasing to be a liability of the fund. (sec.397-ssec.2) In deciding whether to do any or all of the things mentioned in subsection (1) , the law society— must have regard to cases of hardship if it knows relevant information; and must endeavour to treat outstanding claims equally and equitably, but may make special adjustments in cases of hardship. (sec.397-ssec.3) If the law society declares that a decision is made under subsection (1) (d) — the balance stated in the declaration ceases to be a liability of the fidelity fund; and the law society may, but need not, revoke the declaration in relation to either all or a stated part of the balance, and the balance or that part of the balance again becomes a liability of the fund. (sec.397-ssec.4) A decision of the law society made under this section is final and not subject to appeal or review. - (a) postpone all payments relating to all or any class of claims out of the fund; - (b) impose a levy under section 369 ; - (c) make partial payments of the amounts of 1 or more allowed claims out of the fund with payment of the balance being a charge on the fund; - (d) make partial payments of the amounts of 2 or more allowed claims out of the fund on a pro rata basis, with payment of the balance ceasing to be a liability of the fund. - (a) must have regard to cases of hardship if it knows relevant information; and - (b) must endeavour to treat outstanding claims equally and equitably, but may make special adjustments in cases of hardship. - (a) the balance stated in the declaration ceases to be a liability of the fidelity fund; and - (b) the law society may, but need not, revoke the declaration in relation to either all or a stated part of the balance, and the balance or that part of the balance again becomes a liability of the fund.