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RULE 19-604. POWERS AND DUTIES OF TRUSTEES; TREASURER

West's Annotated Code of MarylandMaryland RulesEffective: April 1, 2022

West's Annotated Code of Maryland
Maryland Rules
Title 19. Attorneys
Chapter 600. Client Protection Fund
Effective: April 1, 2022
MD Rules Attorneys, Rule 19-604
RULE 19-604. POWERS AND DUTIES OF TRUSTEES; TREASURER
(a) Trustees. The trustees have the following powers and duties:
(1) To elect, from among their membership, a chair, a treasurer, and such other officers as they deem necessary or appropriate.
(2) To receive, hold, manage, and distribute, pursuant to the Rules in this Chapter, the funds raised hereunder, and any other monies that may be received by the Fund through voluntary contributions or otherwise.
Committee note: The power of the trustees under subsection (a)(2) of this Rule to receive and distribute funds received through “voluntary contributions or otherwise” does not include receiving or distributing abandoned attorney trust funds, except for the distribution of funds required by Rule 19-414.
(3) To authorize payment of claims in accordance with the Rules in this Chapter.
(4) To adopt regulations for the administration of the Fund and the procedures for the presentation, consideration, recognition, rejection and payment of claims, and to adopt procedures for conducting business. A copy of the regulations shall be filed with the Clerk of the Court of Appeals, who shall mail a copy of them to the clerk of the circuit court for each county and to all Registers of Wills. The regulations shall be posted on the Judiciary website.
(5) To enforce claims for restitution arising by subrogation, assignment, or otherwise.
(6) To deposit funds in any bank or other savings institution (A) that is chartered and whose financial activities are regulated under federal or Maryland law, and (B) whose deposits are insured by an instrumentality of the federal government.
(7) To invest funds not needed for current use in such investments as they deem appropriate, consistent with an investment policy specified in regulations adopted by the trustees and approved by the Court of Appeals.
(8) To employ and compensate consultants, agents, attorneys, and employees.
(9) To delegate the power to perform routine acts which may be necessary or desirable for the operation of the Fund, including the power to authorize disbursements for routine operating expenses of the Fund, but authorization for payments of claims shall be made only as provided in Rule 19-609.
(10) To sue or be sued in the name of the Fund without joining any or all individual trustees.
(11) To comply with the requirements of Rules 19-704 (e), 19-705 (c), 19-708 (a), and 19-723 and all other applicable laws.
(12) To designate an employee to perform the duties set forth in Rules 19-708 (a) and 19-723 and notify Bar Counsel of that designation.
(13) To file with the Court of Appeals an annual report of the management and operation of the Fund and to arrange for an annual audit of the accounts of the Fund by state or private auditors. The cost of the audit shall be paid by the Fund if no other source of funds is available.
(14) To file additional reports and arrange for additional audits as the Court of Appeals or the Chief Judge of that Court may order.
(15) To perform all other acts authorized by these Rules or necessary or proper for the fulfillment of the purposes of the Fund and its efficient administration.
(b) Treasurer. The treasurer shall:
(1) maintain the Fund in a separate account;
(2) disburse monies from the Fund only upon the action of the trustees pursuant to these Rules;
(3) file annually with the trustees a bond for the proper execution of the duties of the office of treasurer of the Fund in an amount established by the trustees and with one or more sureties approved by the trustees; and
(4) comply with the requirements of Rule 19-705 (b).
Source: This Rule is derived from former Rule 16-811.4 (2016).

Credits

[Adopted June 6, 2016, eff. July 1, 2016. Amended Feb. 9, 2022, eff. April 1, 2022.]
MD R Attorneys, Rule 19-604, MD R ATTORNEYS Rule 19-604
Current with amendments received through May 15, 2022. Some sections may be more current, see credits for details.
End of Document