Wednesday, May 27, 2009

Do trust account cheques still have to be pre-printed to pay to order?

Pursuant to section 37(2)(a) of the Legal Profession Regulation 2007 (LPR) a trust account cheque form must be made payable to or to the order of a stated person or persons and not to bearer or cash.

Therefore law practices should ensure that their trust account cheque forms are pre-printed with a direction to pay to order (of a stated person).

Pursuant to subsection 37(2)(b) of the LPR, trust account cheques are also required to be pre-printed with a crossing "not negotiable".

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