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LEGAL PROFESSION ACT 2006 - SECT 221 Keeping of general trust account

LEGAL PROFESSION ACT 2006 - SECT 221

Keeping of general trust account

    (1)     A law practice that receives trust money to which this part applies must keep a general trust account in the ACT.

    (2)     A law practice that is required to keep a general trust account in the ACT must establish and keep the account as required by regulation.

    (3)     Subsection (1) does not apply to a law practice in relation to any period during which the practice receives only either or both of the following:

        (a)     controlled money;

        (b)     transit money received in a form other than cash.

    (4)     If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1) or (2), the practitioner or practice commits an offence.

Maximum penalty: 50 penalty units.

    (5)     If a law practice that is a law firm, or a multidisciplinary partnership, contravenes subsection (1) or (2), each principal of the practice commits an offence

Maximum penalty: 50 penalty units.

Note     For this part, a reference to a law practice includes the principals of the law practice (see s 218 (Liability of principals of law practices under pt 3.1)).

    (6)     An offence against subsection (4) or (5) is a strict liability offence.

    (7)     Subject to any regulation, a requirement of this section for a law practice to keep, or establish and keep, a general trust account in the ACT does not prevent the practice from keeping, or establishing and keeping, more than 1 general trust account in the ACT, whether during the same period or during different periods.

    (8)     Without limiting this section, a regulation may provide that a law practice must not close a general trust account except as permitted by regulation.