I received a check that I was to place into my IOLTA account, which I did. The deposit slip indicated the funds would be available the next day. I then made a distribution and the check was returned because, apparently, the funds did not clear the next day, but the day after. Did I do anything wrong?
Samuel C. Stretton.
Any lawyer has to be careful when monies are deposited in escrow and be aware when the funds are actually going to clear. This is particularly true if one is putting monies into their IOLTA/escrow account and then writing checks out almost immediately. If a lawyer bounces a check on the IOLTA account, the Client Security Fund is immediately notified. That fund will then ask the lawyer for an explanation. If the bounce was not because of any bank error, but because of something the lawyer did, then it is usually referred over to the Office of Disciplinary Counsel.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
