What is the purpose of the rule?
Rule 1.15(h) is based upon the ABA Model Rules for Trust Account Overdraft Notification and is also common nationally.1 At this time, 42 of 50 other jurisdictions (including the District of Columbia) have trust account overdraft notification rules.1 The preface to the ABA Model Rules observes that a bounced check drawn on a client trust account can be an early warning that a lawyer is engaging in conduct that could injure clients. Experience in other states demonstrates that most regulatory action under an overdraft notification rule involves educational intervention, and that prosecutions are not routine. Such a rule can potentially reduce the level of lawyer defalcations because upon first notice of a bounced check a disciplinary agency can intervene before major losses occur and significant numbers of clients are harmed. An effective overdraft notification program should conserve substantial resources for both clients and lawyers’ funds for client protection. The rule also helps ide
