Form 9A
This form is indicated at section 12 of By-law 9. This guide is not intended as legal advice.
Last updated
This form is indicated at section 12 of By-law 9. This guide is not intended as legal advice.
Last updated
According to , lawyers in Ontario must use for electronic trust transfers when withdrawing money from a trust account, except when another form is specified. There are also specific rules and requirements they must follow:
Conditions for Electronic Transfers (Subsection 2):
Two-Step Authorization: Lawyers must use an electronic transfer system that requires two steps for withdrawing funds. First, one person enters transfer details using a password or access code, and then another person with a different password or access code authorizes the financial institution to carry out the transfer. However, many banks do not allow this, so we recommend that you about this issue.
Confirmation Requirement: The electronic transfer system used must generate a confirmation from the financial institution no later than the close of the banking day after the transfer is authorized. This confirmation must include various information like the trust account number, the recipient bank's details, the recipient's name, account number, and timestamps for when the transfer details were entered and when the confirmation was sent.
Trust Transfer Requisition: Before entering any transfer details into the electronic system, an electronic trust transfer requisition must be signed. This can be done by the licensee (lawyer) or, in exceptional cases, by someone else who has authority over the trust account and meets certain bonding requirements.
Data Accuracy: The data entered into the electronic trust transfer system must match what is specified in the electronic trust transfer requisition.
Exceptions for Sole Practitioners (Subsections 3 and 4):
Paragraph 1 of subsection (2) does not apply to a licensee who practices law or provides legal services without another licensee as a partner. Additionally, the licensee must not have another licensee or person as an employee. Under these conditions, the licensee himself or herself must enter into the electronic trust transfer system. He or she is responsible for entering both the data describing the details of the transfer and the data authorizing the financial institution to carry out the transfer.
In the case of professional corporations, for this exception to apply, the licensee must not have another licensee practicing through the professional corporation, nor have any employees of the corporation.
In exceptional circumstances, the data referred to in subsection (3) may be entered by a person other than the licensee. This is permissible if the person has signing authority on the trust account from which the money will be drawn. Additionally, the person must be bonded. The bonding amount should be at least equal to the maximum balance on deposit. This refers to the maximum balance during the immediately preceding fiscal year of the licensee. It applies to all trust accounts on which signing authority has been delegated to this person.
Additional Confirmation Requirements (Subsections 5 and 6):
Once the confirmation from the financial institution is received, lawyers have further responsibilities:
Confirmation Copy: If the confirmation is sent electronically, lawyers must produce a printed copy of it.
Verification: They need to compare the printed confirmation with the signed electronic trust transfer requisition to ensure the money was withdrawn as specified.
Record Details: Lawyers should note the client's name, the file's subject matter, and any file number related to the withdrawal on the printed confirmation if this information is not already present.
Sign and Date: After fulfilling the above steps, lawyers must sign and date the printed confirmation.
In summary, Form 9A is used for electronic trust transfers in Ontario. Lawyers must follow a set of conditions and obligations, including using a two-step authorization process, maintaining accuracy in data entry, and meeting additional confirmation requirements when using this form. Sole practitioners have some exceptions, and in exceptional circumstances, certain tasks can be performed by other authorized individuals.
However, for those licensees looking to avoid excessive and unnecessary accumulation of paper, the "you can maintain your financial records by manual, mechanical or electronic means so long as you can produce your records promptly when requested to do so by the Law Society."