§ 9 After Clause 18, insert the following new clause:
§ "Solicitors' clients' accounts.
§ (a) in section 36(1) (interest on client's money)—
- (i) the word "wither" shall cease to have effect;
- (ii) after paragraph (a) there shall be inserted the following paragrpah be inserted the following paragraph—
("(aa) to keep in—
being in either case an account kept by the solicitor in his own name for a specified client, money so received; or", and
- (i) a deposit or share account with a designated building society; or
- (ii) an account showing sums on loan to a local authority,
(iii) in paragraph (b) after the words "paragraph (a)", there shall be inserted the words "or (aa)";
§ (b) in section 42(3) (exceptions to provisions regarding distribution of sums in client's bank account), at the end there shall be added the words "; nor shall any regard be had for such purposes to any—
- (a) deposit or share account with a designated building society; or
- (b) account showing sums on loan to a local authority,
§ (c) in section 65(1) (interpretation), after the definition of "the Court" there shall be inserted the following definition "'designated building society' means a building society designated for the purposes of section 1 of the House Purchase and Housing Act 1959 (designation of building societies for investment by trustees etc.) by the Chief Registrar of Friendly Societies;'.".
§ The Earl of MANSFIELD
My Lords, I beg to move that this House doth agree with the Commons in their Amendment No. 9. This clause remedies a lacuna in the Solicitors (Scotland) Act 1980 by extending to building society and local authority accounts the same conditions on payment of interest and protection of clients' funds in the event of sequestration et cetera which apply to accounts held in a bank. I beg to move.
§ Moved, That this House doth agree with the Commons in the said amendment.—(The Earl of Mansfield.)