[Table of Contents] [next part] [previous part]
Part 7 out of 11 parts in the Legal Profession Act


PART 7 – LAW FOUNDATION

Definitions

57 In this Part:

"board" means the board of governors of the foundation;

"governor" means a member of the board.


Law Foundation of British Columbia

58 (1) The Law Foundation is continued as a corporation with the name "Law Foundation of British Columbia" consisting of the members of the board appointed under section 59(1).

(2) The foundation may acquire, dispose of and otherwise deal with its property for the purposes of the foundation.


Board of governors

59 (1) The foundation is administered by a board of governors consisting of 18 governors as follows:

(a) the Attorney General or his or her appointee;

(b) 3 persons, not lawyers, appointed to the board by the Attorney General;

(c) 12 lawyers or judges appointed by the executive committee, of whom at least one must be from each county referred to in the County Boundary Act;

(d) 2 lawyers appointed by the executive committee of the British Columbia Branch of the Canadian Bar Association.

(2) Governors, other than the Attorney General, hold office for a term of 3 years or until their successors are appointed, and they may be re-appointed.

(3) The Attorney General may revoke the appointment of a governor appointed by the Attorney General, during that governor's term of office.

(4) The benchers may revoke the appointment of a governor appointed by the executive committee, during that governor's term of office.

(5) The Provincial Council of the British Columbia Branch of the Canadian Bar Association may revoke the appointment of a governor appointed by the executive committee of the branch, during that governor's term of office.

(6) The board must elect one governor to be chair of the board.

(7) If a vacancy occurs in the office of a governor, the person or body by whom the governor was appointed may appoint to the vacant office a person eligible to be appointed to that office by that person or body under subsection (1), and the person so appointed holds office for the balance of the term for which the governor was appointed, or until a successor is appointed.

(8) The continuing governors may act despite a vacancy in the board.

(9) An act of the board is not invalid because of a defect that is afterwards discovered in the appointment of one or more governors.

(10) An appointed governor may resign from office on giving one month's notice in writing to the board of an intention to do so, and the resignation takes effect on the expiration of the notice or on its earlier acceptance by the board.

(11) A governor ceases to hold office if the governor

(a) ceases to hold the qualifications necessary for appointment,

(b) becomes a mentally disordered person,

(c) becomes bankrupt, or

(d) contravenes a provision of this Act or the rules, and a majority of the other governors considers that the contravention is sufficiently serious to justify the governor's removal from the board.

(12) A quorum of the board is 8 governors.


Bylaws

60 The board may make bylaws for purposes relating to the affairs, business, property and objects of the foundation including bylaws respecting the

(a) number and designation of officers of the foundation,

(b) appointment and terms of office of officers of the foundation and all matters relating to their offices,

(c) establishment of an executive committee and the delegation of powers to it,

(d) resignation or removal from office of officers of the foundation,

(e) number, designations and conditions of employment of employees of the foundation, other than officers,

(f) remuneration, if any, of officers of the foundation, and

(g) operation of the foundation's account.


Application of fund

61 (1) The purpose of the foundation is to establish and maintain a fund to be used for the following purposes:

(a) legal education;

(b) legal research;

(c) legal aid;

(d) law reform;

(e) establishing, operating and maintaining law libraries in British Columbia.

(2) The board may apply the funds of the foundation for the purposes of the foundation in the manner that the board may decide and may grant loans of the funds on terms and conditions the board determines.

(3) The foundation may employ or retain lawyers to advance the purposes of the foundation.

(4) The funds of the foundation consist of the following:

(a) all money remitted to the foundation by or on behalf of lawyers under section 62(2)or held in trust under section 63(12);

(b) interest accruing from investment of the funds of the foundation;

(c) other money received by the foundation.

 

Section 61(4)(a) is amended as follows (unproclaimed):

61 (4) The funds of the foundation consist of the following:

(a) all money remitted to the foundation by or on behalf of lawyers and law firms under section 62(2)or held in trust under section 63(12); ...

[2012-16-38]

 

(5) The board may pay out of the funds of the foundation the costs, charges and expenses

(a) involved in the administration of the foundation, and

(b) incurred by the board in carrying out the purposes of the foundation.

(6) All money of the foundation must be paid into a savings institution designated under section 33 (3) (b) until invested or applied in accordance with this section, and that money must be used for the purposes of the foundation.

(7) Money that is not immediately required for the purposes of the foundation may be invested in the name of the foundation by the board in any manner in which trustees are authorized to invest trust funds.

(8) The accounts of the foundation must be audited annually by a chartered professional accountant appointed for that purpose by the board. 

[2012-16-38; 2015-1-96]


Interest on trust accounts

62 (1) A lawyer must deposit money received or held in trust in an interest bearing trust account at a savings institution designated under section 33 (3) (b).

(2) Subject to subsection (5), a lawyer who is credited by a savings institution with interest on money received or held in trust,

(a) holds the interest in trust for the foundation, and

(b) must remit the interest to the foundation in accordance with the rules.

(3) The benchers may make rules

(a) permitting a lawyer to hold money in trust for more than one beneficiary in the same trust account, and

(b) respecting payment to the foundation of interest on trust accounts.

(4) A relationship between a lawyer and client or a trust relationship between a lawyer, as trustee, and the beneficiary of the trust does not make the lawyer liable to account to the client or beneficiary for interest received by the lawyer on money received or held in an account established under subsection (1).

(5) On instruction from his or her client, a lawyer may place money held on behalf of the client in a separate trust account, in which case

(a) this section and the rules made under it do not apply, and

(b) interest paid on money in the account is the property of the client.

 

Section 62 is amended as follows (unproclaimed):

62 (1) A lawyer or law firm must deposit money received or held in trust in an interest bearing trust account at a savings institution designated under section 33 (3) (b).

(2) Subject to subsection (5), a lawyer or law firm who is credited by a savings institution with interest on money received or held in trust,

(a) holds the interest in trust for the foundation, and

(b) must remit the interest to the foundation in accordance with the rules.

(3) The benchers may make rules

(a) permitting a lawyer or law firm to hold money in trust for more than one beneficiary in the same trust account, and

(b) respecting payment to the foundation of interest on trust accounts.

(4) A relationship between a lawyer or law firm and client or a trust relationship between a lawyer or law firm, as trustee, and the beneficiary of the trust does not make the lawyer or law firm liable to account to the client or beneficiary for interest received by the lawyer or law firm on money received or held in an account established under subsection (1).

(5) On instruction from a client, a lawyer or law firm may place money held on behalf of the client in a separate trust account, in which case

(a) this section and the rules made under it do not apply, and

(b) interest paid on money in the account is the property of the client.

[2012-16-39]

 

Security and investment of trust funds

63 (1) In this section:

"pooled trust funds" means money that has been received by a lawyer in trust and that is not the subject of instructions under section 62 (5);

"society trust account" means a Law Society Pooled Trust Account established under subsection (5).

(2) The benchers may make rules requiring that a lawyer do any or all of the following:

(a) use an approved form of agreement respecting the terms and conditions under which pooled trust funds will be held at designated savings institutions;

(b) tender the agreement, prepared and approved under paragraph (a), at a designated savings institution before the lawyer deposits pooled trust funds at that savings institution;

(c) report annually to any savings institution into which the lawyer has deposited pooled trust funds the information required under the Canada Deposit Insurance Corporation Act.

(3) The society may enter into an agreement with a savings institution with whom lawyers have deposited pooled trust funds, respecting the investment and security of pooled trust funds on deposit at all branches of that savings institution.

(4) Without limiting subsection (3), an agreement under that subsection may provide that

(a) pooled trust funds be transferred to the society, in trust, to be held in the account referred to in subsection (5) and to be invested in the manner permitted by subsection (6), and

(b) the society obtain a line of credit, either secured or unsecured, from the savings institution for the purpose of ensuring that there is always sufficient money on deposit to guarantee that lawyers' trust cheques on their pooled trust fund accounts will be honoured.

Sections 63 (1) to (4) are amended as follows (unproclaimed):

63 (1) In this section:

"pooled trust funds" means money that has been received by a lawyer or law firm in trust and that is not the subject of instructions under section 62 (5);

"society trust account" means a Law Society Pooled Trust Account established under subsection (5).

(2) The benchers may make rules requiring that a lawyer or law firm do any or all of the following:

(a) use an approved form of agreement respecting the terms and conditions under which pooled trust funds will be held at designated savings institutions;

(b) tender the agreement, prepared and approved under paragraph (a), at a designated savings institution before the lawyer or law firm deposits pooled trust funds at that savings institution;

(c) report annually to any savings institution into which the lawyer or law firm has deposited pooled trust funds the information required under the Canada Deposit Insurance Corporation Act.

(3) The society may enter into an agreement with a savings institution with whom lawyers or law firms have deposited pooled trust funds, respecting the investment and security of pooled trust funds on deposit at all branches of that savings institution.

(4) Without limiting subsection (3), an agreement under that subsection may provide that

(a) pooled trust funds be transferred to the society, in trust, to be held in the account referred to in subsection (5) and to be invested in the manner permitted by subsection (6), and

(b) the society obtain a line of credit, either secured or unsecured, from the savings institution for the purpose of ensuring that there is always sufficient money on deposit to guarantee that lawyers' and law firms' trust cheques on their pooled trust fund accounts will be honoured.

[2012-16-40]

 

(5) The society may establish and operate an account, to be known as a Law Society Pooled Trust Account, at any branch of the savings institution into which pooled trust funds may be deposited in accordance with an agreement under subsection (3).

(6) Money in a society trust account may be invested in

(a) securities of Canada or a province,

(b) securities, the payment of the principal and interest of which is guaranteed by Canada or a province, or

(c) guaranteed trust or investment certificates of the savings institution that has the pooled trust account.

(7) Money earned on investments under subsection (6) may be used to

(a) purchase insurance in an amount that the society considers necessary to ensure that all lawyers' trust cheques drawn on their pooled trust fund accounts will be honoured, and

(b) pay service and other similar charges in respect of services provided by the savings institution at which the society operates an account under subsection (5).

(8) The society may pay money out of a society trust account to a person who has suffered a loss directly resulting from the inability or refusal of the savings institution to honour a lawyer's trust cheque drawn on a pooled trust fund account, up to a maximum, in any year, set by the benchers.

 

Sections 63 (7) and (8) are amended as follows (unproclaimed):

63 (7) Money earned on investments under subsection (6) may be used to

(a) purchase insurance in an amount that the society considers necessary to ensure that all lawyers' and law firms' trust cheques drawn on their pooled trust fund accounts will be honoured, and

(b) pay service and other similar charges in respect of services provided by the savings institution at which the society operates an account under subsection (5).

(8) The society may pay money out of a society trust account to a person who has suffered a loss directly resulting from the inability or refusal of the savings institution to honour a lawyer's or law firm's trust cheque drawn on a pooled trust fund account, up to a maximum, in any year, set by the benchers.

[2012-16-40]

 

(9) The benchers must not pay out any money under subsection (8) unless they are satisfied that they will be reimbursed or indemnified, through agreements referred to in subsection (10) or the insurance purchased under subsection (7), for any money that has been paid out.

(10) The society may enter into agreements with the Canada Deposit Insurance Corporation and the Credit Union Deposit Insurance Corporation of British Columbia respecting reimbursement or indemnity by those corporations of money that has been paid out under subsection (8).

(11) The society may retain or employ a person to manage society trust accounts and may pay that person fees or remuneration out of interest earned on money in society trust accounts.

(12) Subject to subsections (7), (8) and (11), all interest earned on money deposited into a society trust account is held in trust by the society for the benefit of the foundation, and the society is not liable to account to any client of any lawyer in respect of that interest.

(13) Despite any agreement between a lawyer and a savings institution, if the lawyer's pooled trust fund account is overdrawn by an amount exceeding $1 000, the savings institution must, as soon as practicable, inform the society of the particulars.

 

Sections 63 (12) and (13) are amended as follows (unproclaimed):

63 (12) Subject to subsections (7), (8) and (11), all interest earned on money deposited into a society trust account is held in trust by the society for the benefit of the foundation, and the society is not liable to account to any client of any lawyer or law firm in respect of that interest.

(13) Despite any agreement between a lawyer or law firm and a savings institution, if the pooled trust fund account of the lawyer or law firm is overdrawn by an amount exceeding $1 000, the savings institution must, as soon as practicable, inform the society of the particulars.

[2012-16-40]


(14) Subsection (13) and the failure of a savings institution to comply with it has no effect on the civil liability of that savings institution to any person, and that liability, if any, must be determined as though that subsection were not in force.

 


[Table of Contents] [next part] [previous part]
Part 7 out of 11 parts in the Legal Profession Act