Is it client / office / mixed money?

[rule 13] Client money (i) trustee, stakeholder, unpaid prof disbursements, SDLT, land reg fees. Office money (xi) Personal or office transactions are Office Money (xii), unless, a) b) c) Also acting for lender, or Also acting for spouse, or Non-partner and is regarded as a client of the firm.

Then they are client money.

Use of a client account [rule 15] (How to pay disbursement when theres not enough client money) a) Sols money to open or maintain account; b) An advance from the solicitor to fund a payment on behalf of a client; c) Money to replace any sum to remedy a breach of rule 22. d) A sum in lieu of interest.

Other client money withheld from client account [rule 17] If it is without delay paid in cash in the ordinary course of business to the client or on their behalf. o r2(2)Z without delay = on the day of receipt or next working day.

If a cheque is received and the firm endorses it over to the client without delay. If instructed to do so under rule 16.

Client money withheld from client account on clients instructions [rule 16] 1(a) and note (iii) - Can hold client money outside client account on their instruction, but must also record it pursuant to rule 32.

What can you do with the money? [rule 19] R19(1)(iii) and (c) - If solicitor receives mixed money: Follow rule 20: split the cheque or put all into client account but transfer out office money in 14 days,

r19(b) - If solicitor receives mixed money but client money is ONLY unpaid prof disbursement: Place entire sum into office account and pay the unpaid prof disbursement in 2 days.

Exceeding withdrawals from a client account [rule 22] R22(5) - must not exceed money held on client account, except: R22(6) :when there is sufficient money held on a separate designated client account and The appropriate transfer is made from said account.

When do recording obligation arise? [rule 32] Must keep accounting records for: R32(1) all client money, including money withheld on client instructions pursuant to r16. R32(6) do not need to open separate account for client and lender if, o Funds are identifiable and lender is an institutional lender that lends on standard terms.

Interest when does obligation to pay arise. [rule 24 and 25] R24(1) - Separate designated account: it all goes to client. R24(2) - General office account: must account a sum in lieu of interest o R25(2)(i) and (ii) rate must not be less than if it was a separate designated account or if it was a business account. De minimus provisions only apply to sums paid in lieu

Contracting out [rule 27] May contract out of payment of interest.