37Journal transfers

37 Journal transfers

(1)  Trust money may be transferred by journal entry from one trust ledger account in a law practice's trust account ledger to another trust ledger account in the trust account ledger, but only if –

(a) the law practice is entitled to withdraw the money and pay it to the other trust ledger account; and

(b) subregulation (2) is complied with.

(2)  The transfer must be authorised in writing –

(a) by an authorised principal of the law practice; or

(b) if a principal referred to in paragraph (a) is not available –

(i) by an authorised legal practitioner associate; or

(ii) by an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or

(iii) by two or more authorised associates jointly; or

(c) by an external intervener for the practice.

(3)  In a paragraph of subregulation (2)  –

associate means an associate of the law practice;

authorised means authorised by the law practice or an external intervener for the practice to effect, direct, or give authority for, the transfer of trust money by journal entry from one trust ledger account in the practice's trust account ledger to another trust ledger account in the trust account ledger;

external intervener has the same meaning as in section 520 of the Act.

(4)  A law practice must keep a trust account transfer journal if it transfers trust money by journal entry.

(5)  The following particulars must be recorded in the trust account transfer journal in respect of each transfer of trust money by journal entry: