Opinion 2196

I. QUESTION PRESENTED:

Do the RPC’s allow client funds to be deposited in a CDARS certificate of deposit system if funds are not immediately available or if early-withdrawal penalties apply?

II. CONCLUSION:

An attorney is not required to, but may take extra precautions to protect client trust funds held under RPC 1.15A. However, to comply with RPC 1.15A, all client trust funds must be capable of withdrawal without delay, unless the delay is caused by regulation or law. The RPC’s do not allow a client to give informed consent to those delays. The CDARS account described by inquirer which carries a two day delay period would, therefore, not be permitted as a depository device for client trust funds under RPC 1.15A.

Advisory Opinions are provided for the education of the Bar and reflect the opinion of the Committee on Professional Ethics (CPE) or its predecessors. Advisory Opinions are provided pursuant to the authorization granted by the Board of Governors, but are not individually approved by the Board and do not reflect the official position of the Bar association. Laws other than the Washington State Rules of Professional Conduct may apply to the inquiry. The Committee's answer does not include or opine about any other applicable law other than the meaning of the Rules of Professional Conduct.