54Deficiencies in trust accounts

54 Deficiencies in trust accounts

(1)  For the purposes of section 253 of the Act, a deficiency in a trust account or trust ledger account does not arise if –

(a) money amounting to at least the amount withdrawn is held in relation to that account at the time of the withdrawal –

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

(ii) in the possession of the law practice for payment into the trust account to the credit of the client; or

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

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

(2)  A law practice must not retain a bank cheque drawn under subregulation (1) for a period exceeding 2 banking days.