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 16

Special trust account

16. (1) The trust account from which Teranet may be authorized by a licensee to withdraw money shall be, (a) an account at a chartered bank, provincial savings office, credit union or central to which the Credit Unions and Caisses Populaires Act, 2020 applies or a registered trust corporation kept in the name of the licensee or in the name of the firm of licensees of which the licensee is a partner, through which the licensee practises law or by which the licensee is employed, and designated as a trust account; and (b) an account into which a licensee shall pay only, (i) money received in trust for a client for the purposes of paying the document registration fees and the land transfer tax, if any, related to the client’s real estate transaction; and (ii) money properly withdrawn from another trust account for the purposes of paying the document registration fees and the land transfer tax, if any, related to the client’s real estate transaction.

One or more special trust accounts

(2) A licensee may keep one or more trust accounts of the kind described in subsection (1).

Payment of money into special trust account

(3) A licensee shall not pay into a trust account described in subsection (1) more money than is required to pay the document registration fees and the land transfer tax, if any, related to a client’s real estate transaction, and if more money is, through inadvertence, paid into the trust account, the licensee shall transfer from the trust account described in subsection (1) into another trust account that is not a trust account described in subsection (1) the excess money.

Time limit on holding money in special trust account

(4) A licensee who pays money into a trust account described in subsection (1) shall not keep the money in that account for more than five days, and if the money is not properly withdrawn from that account by Teranet within five days after the day on which it is paid into that account, the licensee shall transfer the money from that account into another trust account that is not a trust account described in subsection (1).

Interpretation: counting days

(5) In subsection 16 (4), holidays shall not be counted in determining if money has been kept in a trust account described in subsection 16 (1) for more than five days.

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Last updated 1 year ago