Opinion 969

[Formerly published as Published Informal Opinion 86-3. All Informal Opinions are consolidated in this database.]

It has come to the attention of the Rules of Professional Conduct Committee that some lawyers maintain client trust accounts with brokerage houses or other such institutions that are not "qualified public depositories" as that term is used in Rule 1.14(c) of the Rules of Professional Conduct. That rule requires that a trust account " ... shall be an interest-bearing trust account in any bank, credit union or savings and loan association, selected by a lawyer in the exercise of ordinary prudence, authorized by federal or state law to do business in Washington and insured by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund, the Washington Credit Union Share Guaranty Association, or the Federal Savings and Loan Insurance Corporation, or which is a "qualified public depository" as defined in RCW 39.58.010 (2)." It is the opinion of the Committee that the requirements of RPC 1.14(c) are mandatory and may not be waived by a client. If a lawyer elects to maintain an account at something other than an insured bank, credit union or savings and loan association, the lawyer must have ascertained that the institution is a "qualified public depository" as defined in RCW 39.58.010 (2).

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.