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 7

Money received in trust for client

7. (1) Subject to section 8, every licensee who receives money in trust for a client shall immediately pay the money into an account at a chartered bank, provincial savings office, credit union or a central to which the Credit Unions and Caisses Populaires Act, 2020 applies or registered trust corporation, to be 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 provides legal services or by which the licensee is employed, and designated as a trust account.

Interpretation

(2) For the purposes of subsection (1), a licensee receives money in trust for a client if the licensee receives from a person, (a) money that belongs in whole or in part to a client; (b) money that is to be held on behalf of a client; (c) money that is to be held on a client’s direction or order; (d) money that is advanced to the licensee on account of fees for services not yet rendered; or (e) money that is advanced to the licensee on account of disbursements not yet made.

Money to be paid into trust account

(3) In addition to the money required under subsection (1) to be paid into a trust account, a licensee shall pay the following money into a trust account: 1. Money that may by inadvertence have been drawn from a trust account in contravention of section 9. 2. Money paid to a licensee that belongs in part to a client and in part to the licensee where it is not practical to split the payment of the money.

Money to be paid into trust account: money received before licence issued

(3.1) If a licensee who holds a Class P1 licence receives from a person, prior to being issued the licence, money for services yet to be rendered to a client and the licensee does not perform the services for the client by May 2, 2010, the licensee shall on May 3, 2010 pay the money into a trust account.

Withdrawal of money from trust account

(4) A licensee who pays into a trust account money described in paragraph 2 of subsection (3) shall as soon as practical withdraw from the trust account the amount of the money that belongs to him or her.

One or more trust accounts

(5) A licensee may keep one or more trust accounts.

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Last updated 1 year ago