Trust money received in form of cash
251 Trust money received in form of cash
(1) A law practice must deposit general trust money received in the form of cash in a general trust account of the practice.
(2) If the law practice has a written direction by an appropriate person to deal with general trust money received in the form of cash otherwise than by first depositing it in a general trust account of the practice:
(a) the practice must nevertheless deposit the money in a general trust account of the practice under subsection (1); and
(b) afterwards, the practice must deal with the money in accordance with any applicable terms of the direction so far as those terms are not inconsistent with paragraph (a).
(3) A law practice must deposit controlled money received in the form of cash in a controlled money account under section 248.
(4) A law practice must deposit transit money received in the form of cash in a general trust account of the law practice concerned before the money is otherwise dealt with in accordance with the instructions relating to the money.
(5) A law practice must deposit trust money that is received in the form of cash and is the subject of a power in a general trust account (or a controlled money account in the case of controlled money) of the practice before the money is otherwise dealt with in accordance with the power.
(6) This section has effect despite anything to the contrary in any relevant direction, instruction or power.
(7) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1), (2), (3), (4) or (5), the practitioner or practice is guilty of an offence.
Maximum penalty: 500 penalty units.
(8) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1), (2), (3), (4) or (5), each principal of the practice is guilty of an offence.
Maximum penalty: 500 penalty units.
(9) An offence against subsection (7) or (8) is an offence of strict liability.
In this section:
appropriate person, in relation to trust money, means a person who is legally entitled to give the law practice concerned directions in respect of dealings with the money.
general trust money means trust money, other than:
controlled money; and
transit money; and
money that is the subject of a power.
This Act’s bill:Explanatory statementSecond reading speech
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