LEGAL PROFESSION ACT 2007 - SECT 397
Sufficiency of fidelity fund
LEGAL PROFESSION ACT 2007 - SECT 397
Sufficiency of fidelity fund
397 Sufficiency of fidelity fund
(1) If the law society believes that the fidelity fund is likely to be
insufficient to meet the fund’s ascertained and contingent liabilities, it
may do any or all of the following—
(a) postpone all payments relating to
all or any class of claims out of the fund;
(c) make partial payments of the amounts of 1 or more allowed
claims out of the fund with payment of the balance being a charge on the fund;
(d) make partial payments of the amounts of 2 or more allowed claims out of
the fund on a pro rata basis, with payment of the balance ceasing to be a
liability of the fund.
(2) In deciding whether to do any or all of the things
mentioned in subsection (1) , the law society—
(a) must have regard to cases
of hardship if it knows relevant information; and
(b) must endeavour to treat
outstanding claims equally and equitably, but may make special adjustments in
cases of hardship.
(3) If the law society declares that a decision is made
under subsection (1) (d) —
(a) the balance stated in the declaration ceases
to be a liability of the fidelity fund; and
(b) the law society may, but need
not, revoke the declaration in relation to either all or a stated part of the
balance, and the balance or that part of the balance again becomes a liability
of the fund.
(4) A decision of the law society made under this section is
final and not subject to appeal or review.
