Subchapter H. FUNDS OF CLIENTS AND THIRD PERSONS; MANDATORY OVERDRAFT NOTIFICATION
Sec.
91.171. Definitions.
91.172. Maintenance of fiduciary accounts.
91.173. Approval and termination of Eligible Institutions.
Appendix A. Financial Institutions Approved as Depositories of Trust Accounts of Attorneys
91.174. Reports of overdrafts.
91.175. Responsibility for Identificaton of Trust Accounts.
91.176. Rules for determining reporting obligation.
91.177. Required records.
91.178. Availability of required records and requirement to produce.
91.179. Effect of failure to produce required records.
91.180. Reporting of Fiduciary and Operating Accounts on Annual Registration Form.
Source The provisions of this Subchapter H adopted November 3, 1995, effective November 4, 1995, 25 Pa.B. 4696, unless otherwise noted.
§ 91.171. Definitions.
The following terms when used in this subchapter shall have the meanings given to them in this section:
Eligible Institution. An Eligible Institution is a Financial Institution which has been approved as a depository of Trust Accounts pursuant to § 91.173(a) (relating to approval and termination of Eligible Institutions).
Financial Institution. A Financial Institution is an entity which is authorized by federal or state law and licensed to do business in the Commonwealth of Pennsylvania as one of the following: a bank, bank and trust company, trust company, credit union, savings bank, savings and loan association or foreign banking corporation, the deposits of which are insured by an agency of the Federal government, or as an investment adviser registered under the Investment Advisers Act of 1940 or with the Pennsylvania Securities Commission, an investment company registered under the Investment Company Act of 1940, or a broker dealer registered under the Securities Exchange Act of 1934.
Fiduciary Funds. Fiduciary Funds are Rule 1.15 Funds which an attorney holds as a Fiduciary, as defined in Rule 1.15(a)(2) of the Pennsylvania Rules of Professional Conduct. Fiduciary Funds may be either Qualified Funds or Non-Qualified Funds.
Rule 1.15 Funds. Rule 1.15 Funds are funds which an attorney receives from a client or third person in connection with a client-lawyer relationship, or as an escrow agent, settlement agent or representative payee, or as a Fiduciary, or receives as an agent, having been designated as such by a client or having been so selected as a result of a client-lawyer relationship or the attorney’s status as such. When the term ‘‘property’’ appears with ‘‘Rule 1.15 Funds,’’ it means property of a client or third person which the attorney receives in any of the foregoing capacities.
Trust Account. A Trust Account is an account in an Eligible Institution in which an attorney holds Rule 1.15 Funds. A Trust Account must be maintained either as an IOLTA Account or as a Non-IOLTA Account, as defined in Rule 1.15(a)(5) and (7) of the Pennsylvania Rules of Professional Conduct.
Source The provisions of this § 91.171 amended August 5, 2005, effective August 6, 2005, 35 Pa.B. 4301; amended May 29, 2009, effective May 30, 2009, 39 Pa.B. 2687; amended December 15, 2023, effective 30 days after publication, 53 Pa.B. 7704. Immediately preceding text appears at serial pages (415426) and (411865).
§ 91.172. Maintenance of fiduciary accounts.
Enforcement Rule 221(b) provides that a Trust Account may be maintained only in an Eligible Institution approved by the Supreme Court of Pennsylvania for the maintenance of such accounts.
Source The provisions of this § 91.172 amended August 5, 2005, effective August 6, 2005, 35 Pa.B. 4301; amended May 29, 2009, effective May 30, 2009, 39 Pa.B. 2687. Immediately preceding text appears at serial page (312774).
§ 91.173. Approval and termination of Eligible Institutions.
(a) Approval. Enforcement Rule 221(h) provides that an Eligible Institution shall be approved as a depository for Trust Accounts if it shall file with the Board an agreement in a form approved by the Board in which the Eligible Institution agrees to comply with IOLTA Regulations governing approved Eligible Institutions and to make a prompt report to the Lawyers Fund for Client Security Board under the circumstances described in § 91.174 (relating to reports of overdrafts). Upon receiving a signed agreement from an Eligible Institution as required by this subsection, the Board shall report that fact to the Supreme Court with a recommendation that the Court enter an order approving the Eligible Institution as a depository for Trust Accounts.
(b) Termination of approval. Enforcement Rule 221(k) provides that a failure on the part of an Eligible Institution to make a report to the Lawyers Fund for Client Security Board called for by this subchapter or to comply with IOLTARegulations governing approved Eligible Institutions may be cause for termination of its approval by the Supreme Court, but such failure shall not, absent gross negligence, give rise to a cause of action by any person who is proximately caused harm thereby. Upon learning that a financial institution has failed to make a report called for by this subchapter, the Board shall report that fact to the Supreme Court with a recommendation that the Court enter an order terminating the approval of the financial institution as a depository for Trust Accounts.
(c) List of approved Eligible Institutions. The Board will periodically publish in the Pennsylvania Bulletin a list of Eligible Institutions that are approved at the time as depositories for Trust Accounts under this subchapter. The current list shall also be published in the Pennsylvania Code as an appendix to this section.
Source The provisions of this § 91.173 amended August 5, 2005, effective August 6, 2005, 35 Pa.B. 4301; amended May 29, 2009, effective May 30, 2009, 39 Pa.B. 2687; amended February 2, 2018, effective 30 days after publication, 48 Pa.B. 727. Immediately preceding text appears at serial page (389091).
APPENDIX A
FINANCIAL INSTITUTIONS APPROVED AS DEPOSITORIES OF TRUST ACCOUNTS OF ATTORNEYS
Bank Code A. 595 Abacus Federal Savings Bank 2 ACNB Bank 613 Allegent Community Federal Credit Union 375 Altoona First Savings Bank 376 Ambler Savings Bank 532 AMERICAN BANK (PA) 615 Americhoice Federal Credit Union 116 AMERISERV FINANCIAL 648 Andover Bank (The) 377 Apollo Trust Company
Bank Code B. 558 Bancorp Bank (The) 485 Bank of America, NA 662 BANK OF BIRD-IN-HAND 415 Bank of Landisburg (The) 596 Bank of Princeton (The) 664 BankUnited, NA 501 BELCO Community Credit Union 673 BENCHMARK FEDERAL CREDIT UNION 652 Berkshire Bank 663 BHCU 5 BNY Mellon, NA 392 Brentwood Bank 495 Brown Brothers Harriman Trust Co., NA
Bank Code C. 654 CACL Federal Credit Union 618 Capital Bank, NA 675 CENTRE 1ST BANK, A DIVISION OF OLD DOMINION NATIONAL BANK 394 CFS BANK 623 Chemung Canal Trust Company 599 Citibank, NA 238 Citizens & Northern Bank 561 Citizens Bank, NA 206 Citizens Savings Bank 576 Clarion County Community Bank 591 Clearview Federal Credit Union 23 CNB Bank 223 Commercial Bank & Trust of PA 21 Community Bank (PA) 371 Community Bank, NA (NY) 132 Community State Bank of Orbisonia 380 County Savings Bank 536 Customers Bank
Bank Code D. 339 Dime Bank (The) 27 Dollar Bank, FSB
Bank Code E. 500 Elderton State Bank 567 Embassy Bank for the Lehigh Valley 541 Enterprise Bank 28 Ephrata National Bank 601 Esquire Bank, NA 340 ESSA Bank & Trust
Bank Code F. 629 1st Colonial Community Bank 158 1st Summit Bank 31 F&M Trust Company—Chambersburg 658 Farmers National Bank of Canfield 34 Fidelity Deposit & Discount Bank (The) 583 Fifth Third Bank 661 First American Trust, FSB 643 First Bank 174 First Citizens Community Bank 539 First Commonwealth Bank 674 First Commonwealth Federal Credit Union 504 First Federal S & L Association of Greene County 525 First Heritage Federal Credit Union 42 First Keystone Community Bank 51 First National Bank & Trust Company of Newtown (The) 48 First National Bank of Pennsylvania 426 First Northern Bank & Trust Company 604 First Priority Bank, a division of Mid Penn Bank 592 FIRST RESOURCE BANK 657 First United Bank & Trust 408 First United National Bank 151 Firstrust Savings Bank 416 Fleetwood Bank 647 FORBRIGHT BANK 291 Fox Chase Bank 241 Franklin Mint Federal Credit Union 639 Freedom Credit Union 58 Fulton Bank, NA
Bank Code G. 499 Gratz Bank (The) 498 Greenville Savings Bank
Bank Code H. 244 Hamlin Bank & Trust Company 362 Harleysville Savings Bank 363 Hatboro Federal Savings 463 Haverford Trust Company (The) 606 Hometown Bank of Pennsylvania 68 Honesdale National Bank (The) 605 Huntington National Bank (The) 608 Hyperion Bank
Bank Code I. 669 Industrial Bank 365 InFirst Bank 668 Inspire FCU 557 Investment Savings Bank 526 Iron Workers Savings Bank
Bank Code J. 70 Jersey Shore State Bank 127 Jim Thorpe Neighborhood Bank 488 Jonestown Bank & Trust Company 191 Journey Bank 659 JPMorgan Chase Bank, NA 72 JUNIATA VALLEY BANK (THE)
Bank Code K. 651 KeyBank NA 414 Kish Bank
Bank Code L. 78 Luzerne Bank
Bank Code M. 361 M&T Bank 510 Marion Center Bank 387 Marquette Savings Bank 367 Mauch Chunk Trust Company 511 MCS (Mifflin County Savings) Bank 641 Members 1st Federal Credit Union 555 Mercer County State Bank 192 Merchants Bank of Bangor 671 Merchants Bank of Indiana 610 Meridian Bank 294 Mid Penn Bank 677 Middletown Valley Bank 276 MIFFLINBURG BANK & TRUST COMPANY 457 Milton Savings Bank
Bank Code N. 433 National Bank of Malvern 168 NBT Bank, NA 347 Neffs National Bank (The) 434 NEW TRIPOLI BANK 15 NexTier Bank, NA 666 Northern Trust Co. 439 Northumberland National Bank (The) 93 Northwest Bank
Bank Code O. 653 OceanFirst Bank 489 OMEGA Federal Credit Union 94 Orrstown Bank
Bank Code P. 598 PARKE BANK 40 Penn Community Bank 540 PennCrest Bank 419 Pennian Bank 447 Peoples Security Bank & Trust Company 99 PeoplesBank, a Codorus Valley Company 556 Philadelphia Federal Credit Union 448 Phoenixville Federal Bank & Trust 665 Pinnacle Bank 79 PNC Bank, NA 449 Port Richmond Savings 667 Premier Bank 354 Presence Bank 451 Progressive-Home Federal Savings & Loan Association 637 Provident Bank 491 PS Bank
Bank Code Q. 107 QNB Bank 560 Quaint Oak Bank
Bank Code R. 452 Reliance Savings Bank
Bank Code S. 153 S & T Bank 316 Santander Bank, NA 460 Second Federal S & L Association of Philadelphia 646 Service 1st Federal Credit Union 458 Sharon Bank 462 Slovenian Savings & Loan Association of Franklin-Conemaugh 486 SOMERSET TRUST COMPANY 633 SSB Bank 122 Susquehanna Community Bank
Bank Code T. 638 3Hill Credit Union 143 TD Bank, NA 656 TIOGA FRANKLIN SAVINGS BANK 182 Tompkins Community Bank 660 Top Tier FCU 577 Traditions Bank 609 Tristate Capital Bank 672 Truist Bank 640 TruMark Financial Credit Union 467 Turbotville National Bank (The)
Bank Code U. 483 UNB Bank 481 Union Building and Loan Savings Bank 634 United Bank, Inc. 472 United Bank of Philadelphia 475 United Savings Bank 600 Unity Bank 232 Univest Bank & Trust Co.
Bank Code V. 611 Victory Bank (The)
Bank Code W. 119 Washington Financial Bank 121 Wayne Bank 676 Webster Bank 631 WELLS FARGO BANK, NA 553 WesBanco Bank, Inc. 494 West View Savings Bank 473 Westmoreland Federal S & L Association 476 William Penn Bank 272 Woodlands Bank 573 Woori America Bank 630 WSFS (Wilmington Savings Fund Society), FSB Bank Code X.
Bank Code Y.
Bank Code Z.
PLATINUM LEADER BANKS
The HIGHLIGHTED ELIGIBLE INSTITUTIONS are Platinum Leader Banks—Institutions that go above and beyond eligibility requirements to foster the IOLTA Program. These Institutions pay a net yield at the higher of 1% or 75 percent of the Federal Funds Target Rate on all PA IOLTA accounts. They are committed to ensuring the success of the IOLTA Program and increased funding for legal aid.
IOLTA EXEMPTION Exemptions are not automatic. If you believe you qualify, you must apply by sending a written request to the IOLTA Board’s executive director: 601 Commonwealth Avenue, Suite 2400, P.O. Box 62445, Harrisburg, PA 17106-2445. If you have questions concerning IOLTA or exemptions from IOLTA, please visit their website at www.paiolta.org or call the IOLTA Board at (717) 238-2001 or (888) PAIOLTA.
FINANCIAL INSTITUTIONS WHO HAVE FILED AGREEMENTS TO BE APPROVED AS A DEPOSITORY OF TRUST ACCOUNTS AND TO PROVIDE DISHONORED CHECK REPORTS IN ACCORDANCE
WITH RULE 221, Pa.R.D.E.
New 676 Webster Bank 677 Middletown Valley Bank
Name Change 175 FNCB Bank—Change to 447 Peoples Security Bank & Trust Company 584 Parkview Community Federal Credit Union—Change to 591 Clearview Federal Credit Union Platinum Leader Change
Correction
Removal
(Editor’s Note: Appendix A (relating to financial institutions approved as depositories of trust accounts of attorneys) is codified by the Board under 204 Pa. Code § 91.173(c) (relating to approval and termination of eligible institutions).)
Source The provisions of this Appendix A adopted December 22, 1995, effective December 23, 1995, 25 Pa.B. 5916; amended April 25, 1997, effective April 26, 1997, 27 Pa.B. 2038; amended April 24, 1998, effective April 25, 1998, 28 Pa.B. 1933; amended April 16, 1999, effective April 17, 1999, 29 Pa.B. 2021; amended May 5, 2000, effective May 6, 2000, 30 Pa.B. 2224; amended May 3, 2002, effective May 4, 2002, 32 Pa.B. 2212; amended April 25, 2003, effective April 26, 2003, 33 Pa.B. 2060; amended April 23, 2004, effective April 24, 2004, 34 Pa.B. 2168; amended April 28, 2005, effective April 29, 2005, 35 Pa.B. 2625; amended April 28, 2006, effective April 29, 2006, 36 Pa.B. 1986; amended April 27, 2007, effective April 28, 2007, 37 Pa.B. 1963; amended April 25, 2008, effective April 26, 2008, 38 Pa.B. 1933; amended May 1, 2009, effective May 2, 2009, 39 Pa.B. 2201; amended April 30, 2010, effective May 1, 2010, 40 Pa.B. 2258; amended April 22, 2011, effective April 23, 2011, 41 Pa.B. 2119; amended April 20, 2012, effective April 21, 2012, 42 Pa.B. 2189; amended April 5, 2013, effective April 6, 2013, 43 Pa.B. 1843; amended April 11, 2014, effective April 12, 2014, 44 Pa.B. 2216; amended March 27, 2015, effective March 28, 2015, 45 Pa.B. 1497; amended April 15, 2016, effective April 16, 2016, 46 Pa.B. 1899; amended January 30, 2018, 48 Pa.B. 978; amended May 1, 2018, 48 Pa.B. 2941; amended August 8, 2018, 48 Pa.B. 5352; amended November 6, 2018, 48 Pa.B. 7307; amended February 8, 2019, 49 Pa.B. 838; amended June 15, 2019, 49 Pa.B. 3074; amended August 8, 2019, 49 Pa.B. 4812; amended November 7, 2019, 49 Pa.B. 6951; amended February 10, 2020, 50 Pa.B. 1240; amended May 14, 2020, 50 Pa.B. 2737; amended August 10, 2020, 50 Pa.B. 4236; amended November 6, 2020, 50 Pa.B. 6662; amended February 8, 2021, 51 Pa.B. 910; amended May 6, 2021, 51 Pa.B. 2795; amended September 4, 2021, 51 Pa.B. 5600; amended November 17, 2021, 51 Pa.B. 7460; amended February 9, 2022, 52 Pa.B. 1239; amended May 5, 2022, 52 Pa.B. 2955; amended August 5, 2022, 52 Pa.B. 5127; amended November 16, 2022, 52 Pa.B. 7376; amended February 7, 2023, 53 Pa.B. 936; amended May 19, 2023, 53 Pa.B. 2730; amended August 11, 2023, 53 Pa.B. 4971; amended November 24, 2023, 53 Pa.B. 7287; amended February 23, 2024, 54 Pa.B. 959; amended May 17, 2024, 54 Pa.B. 2771; amended August 16, 2024, 54 Pa.B. 5232. Immediately preceding text appears at serial pages (419664) to (419671).
§ 91.174. Reports of overdrafts.
(a) General rule. Enforcement Rule 221(h) provides that an Eligible Institution shall report to the Lawyers Fund for Client Security Board whenever any check or similar instrument is presented against a Trust Account when such account contains insufficient funds to pay the instrument, regardless of:
(1) whether the instrument is honored; or
(2) whether funds are subsequently deposited that cover the overdraft or the dishonored instrument is made good.
(b) Timing of report. Enforcement Rule 221(p) provides that the report required to be made under this subchapter shall be made by the Eligible Institution to the Lawyers Fund for Client Security Board within five business days of the presentation of the instrument.
(c) Handling of report. Enforcement Rule 221(o) provides that a designated representative of the Lawyers Fund for Client Security Board shall conduct a preliminary inquiry regarding the report and shall, where appropriate, refer the matter to the Office of Disciplinary Counsel for further investigation.
(d) Effect of report or referral. Enforcement Rule 221(o) also provides that neither a report filed with the Lawyers Fund for Client Security Board pursuant to this subchapter nor a referral of such report to the Office of Disciplinary Counsel shall, in and of itself, be considered a disciplinary complaint.
(e) Immunity. Enforcement Rule 221(l) provides that Eligible Institutions shall be immune from suit for the filing of any reports required by this subchapter or believed in good faith to be required by this subchapter. See § 91.173(b) (relating to termination of approval).
(f) Service charge. Enforcement Rule 221(m) provides that an Eligible Institution shall be free to impose a reasonable service charge upon the attorney in whose name the account is held for the filing of the report required by this section.
Source The provisions of this Rule 91.174 amended August 5, 2005, effective August 6, 2005, 35 Pa.B. 4301; amended May 29, 2009, effective May 30, 2009, 39 Pa.B. 2687; amended December 15, 2023, effective 30 days after publication, 53 Pa.B. 7704. Immediately preceding text appears at serial page (394659).
§ 91.175. Responsibility for Identification of Trust Accounts.
Enforcement Rule 221(d) provides that the responsibility for identifying an account as a Trust Account shall be that of the attorney in whose name the account is held.
Source The provisions of this § 91.175 amended August 5, 2005, effective August 6, 2005, 35 Pa.B. 4301; amended May 29, 2009, effective May 30, 2009, 39 Pa.B. 2687; amended December 15, 2023, effective 30 days after publication, 53 Pa.B. 7704. Immediately preceding text appears at serial page (394659).
§ 91.176. Rules for determining reporting obligation.
For purposes of this subchapter:
(1) Enforcement Rule 221(i)(1) provides that a Trust Account shall not be deemed to contain insufficient funds to pay a check or similar instrument solely because it contains insufficient collected funds to pay the instrument, and no report shall be required in the case of an instrument presented against uncol-lected or partially uncollected funds. This provision shall not be deemed an endorsement of the practice of drawing checks against uncollected funds.
(2) Enforcement Rule 221(i)(2) provides that funds deposited in an account prior to the close of business on the calendar date of presentation of an instrument shall be considered to be in the account at the close of business on that date notwithstanding the Eligible Institution’s treatment of such funds, for other purposes, as being received at the opening of the next banking day pursuant to 13 Pa.C.S. § 4108(b) (relating to items or deposits received after cutoff hour).
(3) Enforcement Rule 221(i)(3) provides that a check or draft against a Trust Account shall be deemed to be presented at the close of business on the date of presentation.
(4) Enforcement Rule 221(j) provides that no report need be made when the Eligible Institution determines that an instrument presented against insufficient funds had been issued in reliance on a deposited instrument that was ultimately dishonored. This provision shall not be deemed an endorsement of the practice of drawing checks against uncollected funds.
Source The provisions of this Rule 91.176 amended August 5, 2005, effective August 6, 2005, 35 Pa.B. 4301; amended May 29, 2009, effective May 30, 2009, 39 Pa.B. 2687. Immediately preceding text appears at serial pages (326995) to (326996).
§ 91.177. Required records.
(a) In general. Enforcement Rule 221(e) provides that an attorney shall maintain and preserve for a period of five years after termination of the client-lawyer or Fiduciary relationship or after distribution or disposition of the property, whichever is later, the following records:
(1) the writing required by Pa.R.P.C. 1.5 (relating to the requirement of a writing communicating the basis or rate of the fee);
(2) the records identified in Pa.R.P.C. 1.5(c) (relating to the requirement of a written fee agreement and distribution statement in a contingent fee matter); and
(3) the following books and records for each Trust Account and for any other account in which Rule 1.15 Funds are held:
(i) all transaction records provided to the attorney by the Financial Institution, such as periodic statements, canceled checks in whatever form, deposited items and records of electronic transactions; and
(ii) check register or separately maintained ledger, which shall include the payee, date, purpose and amount of each check, withdrawal and transfer, the payor, date, and amount of each deposit, and the matter involved for each transaction; provided, however, that where an account is used to hold funds of more than one client, a lawyer shall also maintain an individual ledger for each trust client, showing the source, amount and nature of all funds received from or on behalf of the client, the description and amounts of charges or withdrawals, the names of all persons or entities to whom such funds were disbursed, and the dates of all deposits, transfers, withdrawals and disbursements.
(b) Regular trial balance and monthly reconciliations. Enforcement Rule 221(e) also provides that: a regular trial balance of the individual client trust ledgers shall be maintained; the total of the trial balance must agree with the control figure computed by taking the beginning balance, adding the total of moneys received in trust for the client, and deducting the total of all moneys disbursed; on a monthly basis, a lawyer shall conduct a reconciliation for each fiduciary account; and the reconciliation is not complete if the reconciled total cash balance does not agree with the total of the client balance listing.
(c) Preservation of records and computations. Enforcement Rule 221(e) provides that a lawyer shall preserve for a period of five years copies of all records and computations sufficient to prove compliance with the requirement of subsection (b).
(d) Form. Enforcement Rule 221(f) provides that the records required by this section may be maintained in hard copy form or by electronic, photographic, or other media provided that the records otherwise comply with this section and that printed copies can be produced. Whatever method is used to maintain required records must have a backup so that the records are secure and always available. If records are kept only in electronic form, then such records shall be backed up, on a separate electronic storage device, at least at the end of any day on which entries have been entered into the records.
Source The provisions of this Rule 91.177 adopted August 5, 2005, effective August 6, 2005, 35 Pa.B. 4301; amended May 29, 2009, effective May 30, 2009, 39 Pa.B. 2687; amended January 30, 2015, effective March 2, 2015, 45 Pa.B. 544. Immediately preceding text appears at serial page (344963).
§ 91.178. Availability of required records and requirement to produce.
(a) In general. Enforcement Rule 221(g) provides that the records required to be maintained by Pa.R.P.C. 1.15 shall be readily accessible to the lawyer and available for production to the Pennsylvania Lawyers Fund for Client Security and the Office of Disciplinary Counsel in a timely manner upon request or demand by either agency made pursuant to the Enforcement Rules, these Rules, the Pennsylvania Lawyers Fund for Client Security Board Rules and Regulations, agency practice, or subpoena.
(b) Request for production by letter. Enforcement Rule 221(g)(1) provides that upon a request by Disciplinary Counsel under subdivision (g) of that Enforcement Rule, which request may take the form of a letter to the respondent-attorney briefly stating the basis for the request and identifying the type and scope of the records sought to be produced, a respondent-attorney must produce the records within ten business days after personal service of the letter on the respondent-attorney or after the delivery of a copy of the letter to an employee, agent or other responsible person at the office of the respondent-attorney as determined by the address furnished by the respondent-attorney in the last registration form filed by the respondent-attorney pursuant to Enforcement Rule 219(c) (relating to annual registration of attorneys), but if the latter method of service is unavailable, within ten business days after the date of mailing a copy of the letter to the last registered address or addresses set forth on the form.
(c) Request for production pursuant to Board Rule. Enforcement Rule 221(g)(2) provides in part that when Disciplinary Counsel’s request or demand for Pa.R.P.C. 1.15 records is made under an applicable provision of these Rules, the respondent-attorney must produce the records and must do so within the time frame established by these Rules. See § 87.7(e) (relating to production of Pa.R.P.C. 1.15 records upon Disciplinary Counsel’s request in a Form DB-7 (Request for Statement of Respondent’s Position) or Form DB-7A (Supplemental Request for Statement of Respondent’s Position)).
(d) Request for production by subpoena. Enforcement Rule 221(g)(2) provides in part that when Disciplinary Counsel’s request or demand for Pa.R.P.C. 1.15 records is made by subpoena under Enforcement Rule 213(a), the respondent-attorney must produce the records and must do so within the time frame established by Enforcement Rule 213 and these Rules. See Enforcement Rule 213(b) and § 91.2(b) (both of which relate to procedure for issuance of subpoenas).
Source The provisions of this § 91.178 adopted January 30, 2015, effective March 2, 2015, 45 Pa.B. 544; amended December 15, 2023, effective 30 days after publication, 53 Pa.B. 7704. Immediately preceding text appears at serial pages (394661) to (394662).
§ 91.179. Effect of failure to produce required records.
Enforcement Rule 221(g)(3) provides that failure to produce Pa.R.P.C. 1.15 records in response to a request or demand for such records may result in the initiation of proceedings pursuant to Enforcement Rule 208(f)(1) or (f)(5) (relating to emergency temporary suspension orders and related relief), the latter of which specifically permits Disciplinary Counsel to commence a proceeding for the temporary suspension of a respondent-attorney who fails to maintain or produce Pa.R.P.C. 1.15 records after receipt of a request or demand authorized by subdivision (g) of Enforcement Rule 221 or any provision of these Rules; and that if at any time a hearing is held before the Board pursuant to Enforcement Rule 208(f) (or § 91.151 relating to emergency temporary suspension orders and related relief) as a result of a respondent-attorney’s alleged failure to maintain or produce Pa.R.P.C. 1.15 records, a lawyer-Member of the Board shall be designated to preside over the hearing.
Official Note
If Disciplinary Counsel files a petition for temporary suspension, the respondent-attorney will have an opportunity to raise at that time any claim of impropriety pertaining to the request or demand for records.
Source The provisions of this § 91.179 adopted January 30, 2015, effective March 2, 2015, 45 Pa.B. 544.
§ 91.180. Reporting of Fiduciary and Operating Accounts on Annual Registration Form.
(a) Terminology. Enforcement Rule 221(r) provides that for purposes of paragraph (b) of this section, the phrase:
(1) ‘‘funds of a client or a third person subject to Pa.R.P.C. 1.15’’ means funds that belong to a client or third person and that an attorney receives:
(i) in connection with a client-attorney relationship;
(ii) as an escrow agent, settlement agent, representative payee, personal representative, guardian, conservator, receiver, trustee, agent under a durable power of attorney, or other similar fiduciary position;
(iii) as an agent, having been designated as such by a client or having been so selected as a result of a client-attorney relationship or the attorney’s status as such;
(iv) in connection with nonlegal services that are not distinct from legal services;
(v) in connection with nonlegal services that are distinct from legal services, and the attorney knows or reasonably should know that the recipient of the service might believe that the recipient is receiving the protection of a client-attorney relationship; or
(vi) as an owner, controlling party, employee, agent, or as one who is otherwise affiliated with an entity providing nonlegal services and the attorney knows or reasonably should know that the recipient of the service might believe that the recipient is receiving the protection of a client-attorney relationship;
(2) ‘‘funds of a third person’’ shall not include funds held in:
(i) an attorney’s personal account held jointly; or
(ii) a custodial account for a minor or dependent relative unless the source of any account funds is other than the attorney and his or her spouse or spousal equivalent.
(b) Accounts to be identified. Enforcement Rule 221(q) provides that an attorney who is required to file the registration form under Enforcement Rule 219(a) (relating to attorneys required to register), with the exception of a person holding a Limited In-House Corporate Counsel License under Pennsylvania Bar Admission Rule 302 or a Foreign Legal Consultant License under Pennsylvania Bar Admission Rule 341, shall identify the financial accounts enumerated in subparagraphs (1)—(3) of this paragraph (b) during the period from May 1 of the previous year to the date of the filing of the registration form. For each account, the attorney shall provide the name of the Financial Institution, as defined in Pa.R.P.C. 1.15(a)(4) or other bank or investment fund as allowed by Pa.R.P.C. 1.15(k) and (l), its location within or outside the Commonwealth, account number, type of account, and whether the account held funds subject to Pa.R.P.C. 1.15. The attorney shall identify:
(1) all accounts in which the attorney held funds of a client or a third person subject to Pa.R.P.C. 1.15;
Note
If an attorney employed by a law firm receives fiduciary funds from or on behalf of a client and deposits or causes the funds to be deposited into a law firm account, the attorney must report the account of deposit pursuant to this subparagraph (1).
(2) every account not reported under subparagraph (1) that held funds of a client or a third person (whether or not subject to Pa.R.P.C. 1.15) over which the attorney had sole or shared signature authority or authorization to transfer funds to or from the account; and
(3) every business operating account maintained or utilized by the attorney in the practice of law.
Note
The type of account shall be identified as an IOLTA Trust Account, see Pa.R.P.C. 1.15(a)(5); Non-IOLTA Trust Account (Interest for Clients), see Pa.R.P.C. 1.15(a)(7), (k), (l); IOLTA-exempt Trust Account (non-interest bearing), see Pa.R.P.C. 1.15(n); other authorized investments or accounts, see Pa.R.P.C. 1.15(k) and (l); or Business/Operating Account, see Pa.R.P.C. 1.15(j).
Source The provisions of this § 91.180 added December 15, 2023, effective 30 days after publication, 53 Pa.B. 7704.
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