Bookkeeping guide for lawyers The Law Society Book

Bookkeeping guide for lawyers The Law Society Book
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    If you require an accessible text version of these materials, please contact supportservices@lsuc.on.caThe Bookkeeping Guide for lawyersOctober 2014Visit For Lawyers at www.lsuc.on.ca or phone 416-947-3315 or 1-800-668-7380 ext 3315

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    1 Table of Contents PREAMBLE....................................................................................................................... 3 INTRODUCTION: WHY KEEP BOOKS AND RECORDS? .......................................................... 3 TYPES OF ACCOUNTING SYSTEMS ...............

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    2 APPENDICES BY-LAW 9 ................................................................................................ 38 FORM 9A ................................................................................................. 58 SAMPLE COMPLETED FORM 9A .......................................

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    3 The Bookkeeping Guide PREAMBLE We have written this Guide to help lawyers of the Law Society of Upper Canada and their staff cope with the more common bookkeeping issues in a law office and also to better understand the Law Society’s By-Law 9 (See pages 34-53). While written especially wi...

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    4 TYPES OF ACCOUNTING SYSTEMS There are several different kinds of accounting systems: manual double entry, one write, spreadsheet software, general accounting software, and law firm accounting software. When choosing an accounting system you should consider what will work best in your practic...

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    5 Whenever you receive money: on behalf of a client for future disbursements for future or unbilled legal services an overpayment of your billed services you are to pay it immediately into a trust account. Once you receive trust funds you should deposit them by the end of the next banking ...

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    6 the date of receipt the person from whom the cash is received the amount of cash received the client for whom the cash is received and any related file number and containing: your signature or the signature of a person authorized by you to accept cash the signature of the person from w...

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    7 Trust accounts are the accounts you use, for purposes related to the provision of legal services, to: deposit money you receive from your clients to be paid to another party deposit money you receive from other parties on behalf of your clients deposit money you receive from clients for ...

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    8 own. However, if you deposit a cheque to your trust account and it is returned “not sufficient funds” or NSF, your financial institution will deduct that amount from your account because your financial institution never received the money. Be careful not to disburse funds from your trust...

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    9 If the client does instruct you to put his or her money in a separate interest bearing account, consider whether the money will be required on short notice since some investments have reduced or no interest on early redemption. Also, decide how interest will be handled and record the client...

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    10 you must transfer the funds deposited to this account for any one transaction back to your regular mixed trust account if you do not register the documents within five days you must complete a separate Form 9B before each Teranet withdrawal from this account (For a sample completed Form ...

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    11 The same precautions that apply to separate interest bearing trust accounts also apply to these types of investments. These kinds of investments are generally not guaranteed, so you will want to be sure your client understands the nature of the investment and whether there will be sufficien...

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    12 While section 21 of By-Law 9 permits you to keep your financial records electronically, you must be able to produce paper copies of your records for the Law Society for the time periods described above. We suggest you print your journals and records monthly to avoid the all too common probl...

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    13 to make a proper payment to or on behalf of the client to reimburse your firm for proper expenses incurred on behalf of the client to pay your firm fees for completed legal services for which you have sent a fee bill to the client to transfer funds to another trust account for a client ...

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    14 If you have any doubts about the validity of a cheque, certified cheque, money order, bank draft, or other receipt to be deposited to your mixed trust account, you might want to consider depositing it to a separate trust account; if the instrument does turn out to be fraudulent, your mixed tru...

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    15 (While this confirmation must be obtained by the end of the next banking day, realistically it may not be available unless it is printed immediately.) no later than the close of the second banking day after the transaction, i. compare the Form 9A with the printed confirmation and verify t...

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    16 Cheques vs Bank Drafts, you might want to consider the LVTS system and/or the Teranet Closure service for time sensitive money transfers. CLIENT IDENTIFICATION AND VERIFICATION REQUIREMENTS - BY-LAW 7.1 PART III As of December 31, 2008, subsection 22(1) of By-Law 7.1 requires that you obta...

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    17 CONCLUSION We hope you find the information provided in this Guide assists you in maintaining the books and records of your practice. Remember it is your responsibility as a Licensee of the Law Society to ensure your law firm is in compliance with the Rules of Professional Conduct and the ...

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    18 SAMPLE BOOKS & RECORDS The following are examples of financial records described in By-law 9, showing how you can manually record the typical kinds of trust transactions that occur in a law office. 1. Trust Receipts Journal - ss 18(1) For each amount you receive in trust for a client,...

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    19 2. Trust Disbursements Journal – ss 18(2) For every payment you make from the trust account, you must record: date you made the payment method you used to make the payment, for example: cheque, certified cheque, bank draft, electronic trust transfer, etc number of the document you us...

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    20 3. Clients’ Trust Ledger – ss 18(3) Every time you record a trust receipt or payment in the trust receipts journal or trust disbursements journal, you must also record the receipt or payment for the specific client in the clients’ trust ledger, and calculate the unexpended balance fo...

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    21 Account: PIPER, Peter re Matrimonial Date 2010 Particulars Receipts Disbursements Balance Jul 16 Retainer re matrimonial 1,500.00 1,500.00 Jul 30 Retainer re matrimonial 250.00 1,750.00 Aug 6 Retainer re matrimonial 250.00 2,000.00 Aug 12 Transfer to general Invoice...

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    22 4. Trust Transfer Record – ss 18(4) Whenever trust funds are moved from one client’s trust ledger account to another client’s trust ledger account you must record the transfer and explain the purpose of the transfer. Leslie Lawyer Barrister & Solicitor TRUST TRANSFER RECORD Date ...

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    23 6. General Disbursements Journal – ss 18(6) For every payment you make in your practice that is not a trust payment, record: date you made the payment method you used to make the payment, for example: cheque, certified cheque, bank draft, electronic trust transfer, etc number of the ...

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    24 7. Clients’ General Ledger By-Law 9 does not require this record, but it is good business practice to do so, since it is useful for keeping track of all the expenses, invoices and payments for each client in one convenient record so you know how much each client owes you. As with the cl...

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    25 Account: SILVER, Susan re Adoption Date 2010 Particulars Expenses (on behalf of client) Fees (billed to client) HST (billed to client) Payments from client Balance owed Aug 10 Fees - Inv #005 600.00 78.00 678.00 Aug 12 Trust transfer re Inv #005 678.00 0 Account: TAYL...

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    26 8. Fees Book – ss 18(7) When you invoice your clients, you can either record the information in a Fees Book or keep a copy of each invoice in chronological (date) order in a billings file. Many law firms keep both records as well as a third copy in the client file. A ringed binder with ta...

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    27 9. Trust Bank Reconciliation, Client Trust Listing, and Trust Comparison – ss 18(8) Each month, for your trust comparison, you must compare: a) your reconciled trust bank balance and b) your client trust listing total These two amounts must be the same. This is one of the most importan...

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    28 Leslie Lawyer Barrister and Solicitor TRUST BANK RECONCILIATION AS AT AUGUST 31, 2010 Mixed Trust Account: Balance Per Bank Statement $40,933.00 Less: Outstanding Cheques 39,476.70 (See list below) Plus: Outstanding Deposits – Aug 31/10 250.00 (Deposited Sep 1/10) Plus bank error ...

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    29 Regardless of who prepares the trust comparison, you should make it a habit to review it and all supporting documentation by the 25th of each month to make sure: the comparison has been completed on time all client trust funds are included: mixed, pass book, GICs, term deposits, e-reg©, ...

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    30 10. a) Detailed Duplicate Trust Account Deposit Slip – ss 18(10) By-Law 9 requires you to deposit any trust money you receive immediately into your trust account. You should record the following information on all your copies of trust deposit slips: date you deposit the funds your firm...

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    31 10. b) Detailed Duplicate General Account Deposit Slip – ss 18(10) You should record the following information on all your copies of general deposit slips: date you deposit the funds your firm’s name if it is not preprinted your bank account number if it is not preprinted source of...

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    32 11. Duplicate Cash Receipts Book – s 19 For each cash receipt you receive in your practice, in addition to recording it in either the trust or general receipts journal and either the client trust or general ledger, prepare a duplicate cash receipt with: the date you received the cash ...

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    33 12a) Client Identification and Verification (individual client) - s 23 By-Law 7.1 Leslie Lawyer Barrister & Solicitor VERIFICATION OF IDENTITY (For use where the client or the third party is an individual) Name: Kim Kirby _____________________________________ Address: 456 Avenue Rd A...

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    34 12b) Client Identification and Verification (organization) - s 23 By-Law 7.1 Leslie Lawyer Barrister & Solicitor VERIFICATION OF IDENTITY (For use where the client or the third party is an organization) Name: Peter Piper Pickles ________________________ Business Address: 456 Avenue Rd...

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    35 Names, Addresses and Occupation(s) of Owners or Shareholders owning a 25% interest or more of the organization or shares in the organization Peter Piper, 456 County Rd Anytown ON Z9Y 4V3, farmer, 51%______________ Peter Piper Jr, 456 County Rd Anytown ON Z9Y 4V3, farmer, 49%____________ ...

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    36 VALUABLE PROPERTY RECORD This record is required by section 18(9) of By-Law 9 to record trust assets other than money. The record should show, as a minimum, the following details: the name of the beneficial owner or owners; a description of the property; the date the property came into...

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    37 VALUABLE PROPERTY RECORD Section 18(9) By-Law 9 made pursuant to the Law Society Act, 1990 as amended: A record showing all property, other than money, held in trust for clients, and describing each property and identifying the date on which the licensee took possession of each property, th...

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    38 BY-LAW 9 Made: May 1, 2007 Amended: June 28, 2007 January 24, 2008 February 21, 2008 March 20, 2009 (editorial changes) September 29, 2009 (editorial changes) April 28, 2011 May 3, 2011 (editorial changes) FINANCIAL TRANSACTIONS AND RECORDS PART I INTERPRETATION Interpretation 1. (1) In th...

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    39 (f) Victoria Day; (g) Canada Day, and where Canada Day falls on a Saturday or Sunday, the following Monday; (h) Civic Holiday; (i) Labour Day; (j) Thanksgiving Day; (k) Remembrance Day, and where Remembrance Day falls on a Saturday or Sunday, the following Monday; (l) Christmas Day, and wher...

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    40 otherwise handle money or other property that is held in trust for a person or group of persons. Exception (2) A licensee who is bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) may receive from or on behalf of a person or group of persons money, (a) in payment of fe...

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    41 Trust account 2.3 (1) A suspended licensee shall, within 30 days of the beginning of the suspension, (a) withdraw from every trust account kept in the name of the suspended licensee, or in the name of the firm of licensees of which the suspended licensee is a partner or by which the suspende...

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    42 Report to Society on compliance (4) A suspended licensee shall, not later than thirty days after the suspension begins, complete and file with the Society, in a form provided by the Society, a report confirming and providing details of the suspended licensee’s compliance with this section....

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    43 Application 5. Section 4 applies when, in respect of a client file, a licensee engages in or gives instructions in respect of the following activities: 1. The licensee receives or pays funds. 2. The licensee purchases or sells securities, real properties or business assets or entities. 3. Th...

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    44 Interpretation (2) For the purposes of subsection (1), a licensee receives money in trust for a client if the licensee receives from a person, (a) money that belongs in whole or in part to a client; (b) money that is to be held on behalf of a client; (c) money that is to be held on a client...

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    45 1. Money that belongs entirely to the licensee or to another licensee of the firm of licensees of which the licensee is a partner, through which the licensee practices law or provides legal services or by which the licensee is employed, including an amount received as a general retainer for ...

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    46 Withdrawal by cheque 11. A cheque drawn on a trust account shall not be, (a) made payable either to cash or to bearer; or (b) signed by a person who is not a licensee except in exceptional circumstances and except when the person has signing authority on the trust account on which a cheque w...

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    47 trust transfer system, an electronic trust transfer requisition must be signed by, i. a licensee, or ii. in exceptional circumstances, a person who is not a licensee if the person has signing authority on the trust account from which the money will be drawn and is bonded in an amount at leas...

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    48 Same (6) In exceptional circumstances, the tasks required by subsection (5) may be performed by a person other than the licensee, if the person has signing authority on the trust account from which the money will be drawn and is bonded in an amount at least equal to the maximum balance on de...

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    49 4. Before the electronic transfer system used by the licensee is accessed to carry out an electronic transfer of funds, an electronic trust transfer requisition must be signed by, i. the licensee, or ii. in exceptional circumstances, a person who is not the licensee if the person has signing...

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    50 AUTOMATIC WITHDRAWALS FROM TRUST ACCOUNTS Authorizing Teranet to withdraw money from trust account 15. (1) Subject to subsection (2), a licensee may authorize Teranet to withdraw from a trust account described in subsection 16 (1) money required to pay the document registration fees and the ...

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    51 withdrawn from the trust account by Teranet as authorized by the licensee; (c) indicate on the paper copy of the confirmation the name of the client and any file number in respect of which money was withdrawn from the trust account, if the confirmation does not already contain such informati...

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    52 Interpretation: counting days (5) In subsection 16 (4), holidays shall not be counted in determining if money has been kept in a trust account described in subsection 16 (1) for more than five days. Application of ss. 9, 11, 12 and 14 17. Sections 9, 11, 12 and 14 apply, with necessary modif...

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    53 the amount of money which is disbursed and the person to whom money is disbursed. 7. A fees book or a chronological file of copies of billings, showing all fees charged and other billings made to clients and the dates on which fees are charged and other billings are made to clients and ident...

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    54 Record keeping requirements if mortgages and other charges held in trust for clients 20. Every licensee who holds in trust mortgages or other charges on real property, either directly or indirectly through a related person or corporation, shall maintain financial records in addition to those...

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    55 Paper copies of financial records (2) If a financial record is entered and posted by mechanical or electronic means, a licensee shall ensure that a paper copy of the record may be produced promptly on the Society’s request. Financial records to be current 22. (1) Subject to subsection (2),...

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    56 subsidiary of any of them, a pension fund, or any other entity that lends money in the ordinary course of its business, (ii) has entered a loan agreement with the borrower and has signed a written commitment setting out the terms of the prospective charge, and (iii) has given the licensee a ...

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    57 New requirement to provide documents to lender (6) Forthwith after completing anew the report on the investment under subsection (4), the licensee shall deliver an original of it to each lender. Requirement to add to file maintained under subs. (1): substitution (7) Each time the licensee or...

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    58 Form 9A ELECTRONIC TRUST TRANSFER REQUISITION Requisition (number) Amount of funds to be transferred: (Specify amount.) Re: (Specify name of client.) (Specify file reference number.) Reason for payment: (Give reason for payment.) Trust account to be debited: Name of financial institu...

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    59 [SAMPLE] FORM 9A ELECTRONIC TRUST TRANSFER REQUISITION Requisition #ET001 Amount of funds to be transferred: $626.30 Re: Noir purchase from Blanc, 123 Main St., Anytown Client: Nicky Noir File No.: 10-43 Reason for payment: Fees ($500) disbursements ($54.25) and HST ($72.05) billed to ...

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    60 FORM 9B AUTHORIZATION OF WITHDRAWAL BY TERANET Authorization (number) Amount of funds to be withdrawn: (Specify amount.) Re: (Specify name of client.) (Specify file reference number.) Reason for withdrawal: (Give reason for withdrawal, e.g., payment of land transfer tax, document regis...

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    61 [SAMPLE] FORM 9B AUTHORIZATION OF WITHDRAWAL BY TERANET Authorization TW001 Amount of funds to be withdrawn: $2,367.60 Re: Noir purchase from Blanc, 456 Route St., Anytown Client: Nicky Noir File No. 10-43 Reason for withdrawal: LTT ($2,225.00), Reg’n fees - Transfer/Charge ($71.30 x ...

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    62 FORM 9C ELECTRONIC TRUST TRANSFER REQUISITION: CLOSING FUNDS Requisition (number) Amount of funds to be transferred: (Specify amount.) Re: (Specify name of client.) (Specify file reference number.) Reason for payment: (Give reason for payment.) Trust account to be debited: Name of fin...

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    63 [SAMPLE] FORM 9C ELECTRONIC TRUST TRANSFER REQUISITION: CLOSING FUNDS Requisition #ETCR001 Amount of funds to be transferred: $134,716.83 Re: Noir purchase from Blanc, 456 Route St., Anytown Client: Nicky Noir File No.: 10-43 Reason for payment: Balance due on closing payable to solicito...

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    64 FORM 9D INVESTMENT AUTHORITY (Note to lawyer: This form is required in a private mortgage transaction whether or not the mortgage was arranged by you. Please have your client complete every point on this form, with “n/a” being noted if the point is not applicable. This f...

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    65 10. The interest rate is (specify interest rate) calculated semi annually, not in advance (or specify how interest rate is calculated). 11. Particulars of amounts and due dates (monthly, quarterly, etc.) of payments of principal and interest: (specify) 12. Particulars and amounts of any bo...

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    66 C. DISCLOSURE: 1. I (or we) acknowledge being advised by you as my (or our) lawyer that you do not have any direct or indirect interest in the borrower (or borrowers). (Specify yes or no and indicate the date on which the lawyer advised you that he or she has no direct or indirect interest...

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    67 [SAMPLE] FORM 9D INVESTMENT AUTHORITY (Note to lawyer: This form is required in a private mortgage transaction whether or not the mortgage was arranged by you. Please have your client complete every point on this form, with “n/a” being noted if the point is not applicable. This form...

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    68 (c) Including my (or our) mortgage amount, the percentage of the value of the property that is mortgaged (or /encumbered) is (specify percentage) 66% (after payout of existing second mortgage) 9. (a) The term of loan is (specify term of loan in months, years, etc.) 1 Year. (b) The due date o...

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    69 2. (Instructions: Each investor to complete and initial clause (a) and, if clause (a) is answered in the affirmative, to complete (if necessary) and initial clause (b) and to initial clause (c).) (a) I (or we) instruct you to obtain a current and independent appraisal of the subject proper...

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    70 *(Pursuant to clause (g) of Part III of the Professional Liability Insurance Policy for Lawyers, the policy does not apply “to any CLAIM directly or indirectly arising as a result of the INSURED acting as a MORTGAGE BROKER or as an intermediary arranging any financial transaction usual to ...

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    71 FORM 9E REPORT ON THE INVESTMENT (Note to lawyer: In all private mortgage transactions, whether or not the mortgage was arranged by you, you must complete this form, or, alternatively, you must complete a reporting letter which includes responses to all numbered items in this form. If yo...

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    72 12. Particulars and amounts of any bonus or holdback or any other special terms: (specify) 13. Details of any existing encumbrances, including rank on title, balances outstanding, mortgagee name and maturity dates: (specify) 14. In those instances in which the mortgage or charge is a col...

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    73 (Warning: You are cautioned that the responsibility for assessing the financial merits of the mortgage investment rests with the investor at all times. The lawyer's responsibility is limited to ensuring the mortgage is legally registered on title in accordance with the investor's instructi...

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    74 [SAMPLE] FORM 9E REPORT ON THE INVESTMENT (Note to lawyer: In all private mortgage transactions, whether or not the mortgage was arranged by you, you must complete this form, or, alternatively, you must complete a reporting letter which includes responses to all numbered items in this for...

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    75 9. (a) The term of loan is (specify term of loan in months, years, etc.). 1 Year (b) The due date of the loan is (specify date). September 1, 2011 (c) The loan is amortized over (specify number of years). 15 Years 10. The interest rate is (specify interest rate) calculated semi annually, n...

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    76 2. In the case of a syndicated mortgage where a prospectus was required, a copy of the prospectus: (Specify yes or no, and if yes, specify date on which prospectus was provided.) No, N/A I advised and you acknowledged that I gave no opinion as to the necessity or validity of a prospectus. ...

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    77 LETTER OF DIRECTION To: The Manager, Name of Bank: (Name of chartered bank, provincial savings office, registered trust company, credit union or caisse populaire) Branch: ______________________________________________________________________ Address: ______________________________________...

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    Form 2: Report on Opening a Mixed Trust Account Version date: February 1, 2008 (effective January 1, 2009) To be completed by all licensees (lawyers and paralegals) responsible for client trust monies in a mixed trust account. I advise that I have directed my bank to pay to The Law Found...

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    Form 3: Report on Closing a Mixed Trust Account Version date: February 1, 2008 (effective January 1, 2009) To be completed by all licensees (lawyers and paralegals) responsible for client trust monies in a mixed trust account. Name of Financial Institution where mixed trust account ...

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    80 PAYMENT OF REGISTRATION FEES AND LAND TRANSFER TAX Background The Teraview Electronic Registration Systems Agreement (“the Teraview agreement”) requires an account holder to designate an account from which Teranet is authorized to withdraw registration fees and land transfer tax which ar...

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    81 Special Trust Account What is a special trust account? The special trust account acts as a clearing account. From a banking perspective, this account resembles the mixed trust account commonly operated by lawyers. All the requirements and restrictions applicable to lawyers’ trust accounts ...

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    82 the lawyer with a confirmation of the withdrawal. The confirmation must be received by the lawyer not later than 5 p.m. on the day immediately after the day on which the withdrawal is authorized by the lawyer - sections 15 (2) and (3), By-Law 9 . (2) The confirmation shall contain the amount...

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    83 (3) Comparison of Form 9B to Confirmation The lawyer prints the confirmation of registration and ensures that the amounts contained in Form 9B match those contained in the confirmation. The time requirement, contained in By-Law 9, for completion of this step must be complied with. (4) Report...

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    84 (Please refer to Appendix 1 - Diagram - Option 2 - Payment From Lawyer’s General Account) Which Option To Select - Trust Account or General Account Both methods of payment are acceptable to the Law Society. A lawyer should select the method that best suits his or her practice. A lawyer may...

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    85 APPENDIX 1 – PAYMENT OF LTT AND REGISTRATION FEES Option 1: Payment from New Mixed Trust Account Receive client funds Deposit to mixed trust Move LTT and regional monies to new client trust account Complete form 9B Register Compare 9B to e-reg summary Report to client...

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    86 INTERNAL CONTROL SELF-ASSESSMENT GUIDE Internal Controls are processes you put in place to help you run your practice more efficiently by reducing the risk of errors and fraud. This guide is designed primarily for sole practitioners and lawyers in small law firms who may not have the resour...

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    87 4. When you review the monthly trust comparisons do you ensure that:  The reconciliations have been prepared by the 25th of the following month?  Reconciling items are listed individually and each one is clearly explained and can be traced to the bank statement?  The deposit book co...

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    88 13. If you make automatic banking machine (ABM) deposits, do you always print out the ABM deposit receipts, attach them to your deposit book, and record the details of the deposit (i.e. source of funds, client reference and amount) in your deposit book? 14. Are credit card and debit card re...

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    89 7. Does a person, other than the person who issues receipts for cash or cheques, verify the numerical sequence of receipts to ensure that all funds receipted are also recorded in the accounting records and deposited in the bank? 8. If you are a partner in a law firm, do you have management ...

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    90 1. Are original copies of invoices stamped "paid" to prevent invoices being paid more than once? 2. Are only original invoices, and not photocopies, required as backup for cheques? 3. Are your trust account cheques clearly marked “trust” and your general account cheques marked ...

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    91  do you print the bank confirmation for each electronic transfer and Teranet withdrawal, compare it to the requisition details for accuracy, then sign and date the confirmation? 3. Do you keep all electronic transfer requisitions (Form 9A), Teranet withdrawal requisitions (Form 9B), and b...

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    92 Recommendations: 1. Do you discuss the fees for legal services and the expected disbursements with your client at the start of a matter? 2. Do you confirm all fee arrangements in writing for all services in easy to understand language? 3. Do you bill work-in-progress within a specified time...

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    93 4. Are all issued cheques numerically accounted for in your trust and general disbursement journals and do you follow up on any missing cheques? 5. Do you print hard copies of your trust and general bank journals on a regular basis, at least monthly, and store them in a secure, fire proof lo...

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    94 SMALL BUSINESS COMPUTER CONTROLS Goal: To ensure financial data is protected and to ensure you will be able to continue to practice in the event of a disruption. Risks:  misappropriation of funds  unauthorized access to your financial records  loss of data  loss of clients and i...

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    95 16. Do you periodically test your business recovery plan to ensure it is effective? And a final word of advice… A system of internal controls will work only if it is understood, accepted and implemented by everyone in your firm. We suggest you use this guide as a basis for discussion wit...

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    96 USE OF CREDIT CARDS IN THE LEGAL PRACTICE Licensees may enter into agreements with financial institutions that offer credit card services subject to certain conditions. The definition of “money” in By-Law 9 includes “credit card sales slips” and provides that credit card sales sli...

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    97 must receive full credit for the face amount of the credit card invoice. The credit card company’s discount or fee is a cost of carrying on practice and is not to be charged to the client. The procedures of some credit card companies place licensees in conflict with provisions in By-Law ...

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    98 clearly set out in the written retainer. In fact we would suggest having the client specifically initial the paragraph of the retainer that would permit this arrangement. Reference should then be made to the paragraph headed “Payment of Retainers” set out above, and the procedure there...

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    99 PRIVATE MORTGAGES – RECORD KEEPING What is a “private” mortgage? A “private” mortgage is any mortgage not excepted by section 24(2) of By-Law 9. These are funds, which are advanced usually from an individual, a corporate client or group of clients, rather than funds advanced by a...

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    100 iii. has given the licensee a copy of the written commitment before the advance of money to or on behalf of the borrower; (Note: all three conditions must apply) b) the lender and borrower are not at arm's length; [Note: "arm's length" is defined in sec.1(1) of By-Law 9 as having...

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    101 a) has executed the Investor/Lender Disclosure Statement for Brokered Transactions, approved by the Superintendent under subsection 54(1) of the Mortgage Brokerages, Lenders and Administrators Act, 2006, and b) has given the licensee written instructions, relating to the particular transa...

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    102 You should convey the above three points to the unrepresented borrower in writing at the first opportunity. iii. You represent the Borrower - subrules 2.04(6), (7), and (8) Where permitted by subule 2.04(12), you may also represent the borrower if you have obtained the written consent of...

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    103 ESTATES – FINANCIAL RECORD KEEPING Record keeping requirements for estates applies to all lawyers who have control of estate assets, whether as estate trustee or as solicitor managing the funds on behalf of the estate trustee. You should decide at the very beginning of the administratio...

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    104 deducted from the calculation and in specie transfers of estate assets are usually compensated at a reduced rate. These amounts are the total compensation for all estate trustees as well as for anyone (e.g. estate solicitor) who claims fees for performing estate trustee duties. Those lawye...

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    105 beneficiaries or the court; distributing estate assets] and the estate solicitor [apply for certificate of appointment for the estate trustee and attend on a passing of accounts if required] are distinct but complementary. The solicitor's client is the trustee, not the estate. Therefore, ...

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    106 An executor’s duty is to carry out the instructions contained in the will ... The executor has no right to hold any portion of the distributable assets until a beneficiary provides an approval or release of the executor's performance of duties as trustee, or the executor's compensation o...