TrustReq Help Documentation
  • Welcome Page
  • Account Management
    • Creating a New Primary Account
    • Important Account Association Warning
  • Clio integration
    • How to import your Clio contacts into TrustReq
  • Security
    • Two-Factor Authentication (2FA)
  • Billing and Payment
    • Understanding Per Seat Pricing
    • Understanding how annual billing works
    • Handling Downgrades and Credits
  • Remote Identity Verification (IDV)
    • How to invite your client to verify their identity on TrustReq
    • Is TrustReq's remote identity verification tool compliant with the Law Society of Ontario?
  • Types of By-law 9 forms
    • Form 9A
    • A note about para. 1 of subsection 12(2) in By-Law 9
    • Form 9B
    • Form 9C
    • Form 9D and 9E
  • Trust Reconciliations
    • Monthly trust reconciliations for Ontario lawyers and paralegals
    • How to generate a trust listing report on Clio
    • How to record bank errors when performing a trust reconciliation
  • Cash Limits and Exceptions
    • Watch: How to perform a cash acceptance pre-check
    • Watch: How to record a cash transaction
    • What is the definition of cash?
    • How much cash can a licensee accept in a client matter?
    • When does the limit on accepting cash apply?
    • Are there any exceptions to the cash limit?
    • Definition of "public body" regarding cash limit exceptions
    • How much cash can a licensee accept in foreign currency?
    • Cash limit if the licensee is acting for more than one client on one client file
    • Example: If a client provides a licensee with $15,000...
  • Understanding how permissions work on TrustReq
  • Recording Keeping Guide
    • Record keeping requirements if cash received
    • Record keeping requirements if referral fee paid or received
    • Email money transfers into and out of a trust account
    • Circumstances when Ontario lawyers are not required to use a Form 9D nor a Form 9E under By-Law 9
    • Valuable Property Records
  • Referral Fees
    • Watch: How to generate a referral fee agreement
    • Watch: How to fill and manage the Law Society of Ontario's "Referral Fee Checklist"
    • Watch: How to record a referral fee transaction
    • Is the LSO's "Referral Fee Agreement" form mandatory?
    • What's the difference between a "matter" and a "referral fee matter" on TrustReq?
  • REFERENCE: Text of By-Law 9 (Financial Transactions and Records)
    • Part I - Interpretation
    • Section 1
    • Part II - Handling of money by bankrupt licensee
    • Section 2
    • PART II.1 - Handling of money by licensee whose license is suspended
    • Section 2.1
    • Section 2.2
    • Section 2.3
    • Section 2.4
    • Part III - Cash Transactions
    • Section 3
    • Section 4
    • Section 5
    • Section 6
    • Part IV - Trust Account
    • Section 7
    • Section 8
    • Section 8.1
    • Section 9
    • Section 10
    • Section 11
    • Section 12
    • Section 13
    • Section 14
    • Section 15
    • Section 16
    • Section 17
    • PART V - Record Keeping Requirements
    • Section 18
    • Section 19
    • Section 19.1
    • Section 20
    • Section 21
    • Section 22
    • Section 23
    • Section 24
  • TrustReq Referral rewards program
  • Project Roadmap
  • Terms of Use
  • Privacy Policy
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  1. REFERENCE: Text of By-Law 9 (Financial Transactions and Records)

Section 12

Withdrawal by electronic transfer

12. (1) Money withdrawn from a trust account by electronic transfer shall be withdrawn only in accordance with this section.

When money may be withdrawn

(2) Money shall not be withdrawn from a trust account by electronic transfer unless the following conditions are met: 1. The electronic transfer system used by the licensee must be one that does not permit an electronic transfer of funds unless, i. one person, using a password or access code, enters into the system the data describing the details of the transfer, and ii. another person, using another password or access code, enters into the system the data authorizing the financial institution to carry out the transfer. 2. The electronic transfer system used by the licensee must be one that will produce, not later than the close of the banking day immediately after the day on which the electronic transfer of funds is authorized, a confirmation from the financial institution confirming that the data describing the details of the transfer and authorizing the financial institution to carry out the transfer were received. 3. The confirmation required by paragraph 2 must contain, i. the number of the trust account from which money is drawn, ii. the name, branch name and address of the financial institution where the account to which money is transferred is kept, iii. the name of the person or entity in whose name the account to which money is transferred is kept, iv. the number of the account to which money is transferred, v. the time and date that the data describing the details of the transfer and authorizing the financial institution to carry out the transfer are received by the financial institution, and vi. the time and date that the confirmation from the financial institution is sent to the licensee. 4. Before any data describing the details of the transfer or authorizing the financial institution to carry out the transfer is entered into the electronic trust transfer system, an electronic trust transfer requisition must be signed by, i. a licensee, or ii. in exceptional circumstances, a person who is not a licensee if the person has signing authority on the trust account from which the money will be drawn and is bonded in an amount at least equal to the maximum balance on deposit during the immediately preceding fiscal year of the licensee in all trust accounts on which signing authority has been delegated to the person. 5. The data entered into the electronic trust transfer system describing the details of the transfer and authorizing the financial institution to carry out the transfer must be as specified in the electronic trust transfer requisition.

Application of para. 1 of subs. (2) to sole practitioner

(3) Paragraph 1 of subsection (2) does not apply to a licensee who practises law or provides legal services without another licensee as a partner, if the licensee practises law or provides legal services through a professional corporation, without another licensee practising law or providing legal services through the professional corporation and without another licensee or person as an employee, if the licensee himself or herself enters into the electronic trust transfer system both the data describing the details of the transfer and the data authorizing the financial institution to carry out the transfer.

Same

(4) In exceptional circumstances, the data referred to in subsection (3) may be entered by a person other than the licensee, if the person has signing authority on the trust account from which the money will be drawn and is bonded in an amount at least equal to the maximum balance on deposit during the immediately preceding fiscal year of the licensee in all trust accounts on which signing authority has been delegated to the person.

Additional requirements relating to confirmation

(5) Not later than the close of the banking day immediately after the day on which the confirmation required by paragraph 2 of subsection (2) is sent to a licensee, the licensee shall, (a) produce a printed copy of the confirmation; (b) compare the printed copy of the confirmation and the signed electronic trust transfer requisition relating to the transfer to verify whether the money was drawn from the trust account as specified in the signed requisition; (c) indicate on the printed copy of the confirmation the name of the client, the subject matter of the file and any file number in respect of which money was drawn from the trust account; and (d) after complying with clauses (a) to (c), sign and date the printed copy of the confirmation.

Same

(6) In exceptional circumstances, the tasks required by subsection (5) may be performed by a person other than the licensee, if the person has signing authority on the trust account from which the money will be drawn and is bonded in an amount at least equal to the maximum balance on deposit during the immediately preceding fiscal year of the licensee in all trust accounts on which signing authority has been delegated to the person.

Electronic trust transfer requisition

(7) The electronic trust transfer requisition required under paragraph 4 of subsection (2) shall be in Form 9A.

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Last updated 1 year ago