Legal Practice Act, 2014 (Act No. 28 of 2014)Chapter 7 : Handling of Trust Monies86. Trust accounts |
| (1) | Every legal practitioner referred to in section 84(1) must operate a trust account. |
| (2) | Every trust account practice must keep a trust account at a bank with which the Fund has made an arrangement as provided for in section 63(1)(g) and must deposit therein, as soon as possible after receipt thereof, money held by such practice on behalf of any person. |
| (3) | A trust account practice may, of its own accord, invest in a separate trust savings account or other interest-bearing account any money which is not immediately required for any particular purpose. |
| (4) | A trust account practice may, on the instructions of any person, open a separate trust savings account or other interest-bearing account for the purpose of investing therein any money deposited in the trust account of that practice, on behalf of such person over which the practice exercises exclusive control as trustee, agent or stakeholder or in any other fiduciary capacity. |
| (5) | Interest accrued on money deposited in terms of this section must, in the case of money deposited in terms of— |
| (a) | subsections (2) and (3), be paid over to the Fund and vests in the Fund; and |
| (b) | subsection (4), be paid over to the person referred to in that subsection: Provided that 5% of the interest accrued on money in terms of this paragraph must be paid over to the Fund and vests in the Fund. |
| (6) | A legal practitioner referred to in section 84(1) may not deposit money in terms of subsection (2), nor invest money in terms of subsections (3) and (4) in accounts held at a bank which is not a party to an arrangement as provided for in section 63(1)(g), unless prior written consent of the Fund has been obtained. |
| (7) | A legal practitioner referred to in section 84(1) must comply with the terms of an arrangement concluded between a bank and the Fund as provided for in section 63(1)(g). |