Checklist for Disbursing Against Uncollected Funds

Checklist for Disbursing Against Uncollected Funds

Another helpful tool in managing your trust account is this checklist for disbursing against uncollected funds.

A lawyer may disburse against uncollected funds if the deposit is a limited-risk uncollected deposit, the lawyer has personal funds available to cover the deposit in the event the deposit is returned or fails for any reason, and such correction can occur within 3 business days of the lawyer learning of the failed deposit.

1. Does the deposit meet the criteria of a "limited-risk uncollected deposit?"  Is it a:

Certified check

Cashier's check

Bank check

Official check

Treasurer's check

Money order

Other instrument in which the payor is a bank, savings and loan association, or credit union

Check issued by United States or Arizona or any agency or political subdivision of the state

Check or draft issued by insurance company, title insurance company, or a licensed title insurance agency authorized to do business in this state.

2.  Do I have personal funds available to cover the deposit if, for any reason, the limited-risk deposit is returned against the trust account?

3.  Will the personal funds be available to be deposited into the trust account within three (3) business days of learning of the deposit failure?

4. Is my bank going to place a hold on the deposit? If so, when will the deposit hold be released?

This is simply a tool to assist the lawyer in the proper trust account usage, however, the lawyer should ALWAYS refer to Rules 42, ER1.15 and 43, Ariz. R. S. Ct, for complete instruction when conducting trust account transactions.