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Lawyers and Conveyancers Act 2006

Lawyers and Conveyancers Special Fund

300: Money required to be held in nominated trust account

You could also call this:

"Money held in trust for someone else"

Illustration for Lawyers and Conveyancers Act 2006

You must hold some money in a special trust account. This money is held for someone else. It is money you are required to hold in a trust account and it is not reasonable to invest it to earn interest for the person it belongs to, for reasons mentioned in section 114(b). You can hold other money in this account too. This rule does not stop you from doing that. It only talks about the money that you must hold in the trust account, as mentioned in section 299(1).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM367363.

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299: Nominated trust accounts, or

"Lawyers must have a special trust account, called a nominated trust account, for certain purposes."

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"Banks must pay interest on money in trust accounts"

Part 9Lawyers and Conveyancers Special Fund

300Money required to be held in nominated trust account

  1. A practitioner to whom, and an incorporated firm to which, section 299(1) applies must hold in a nominated trust account any money that—

  2. is held by the practitioner or incorporated firm on behalf of any person; and
    1. is money that the practitioner or incorporated firm is required to hold in a trust account; and
      1. is money that it is not reasonable or practicable, for any of the reasons referred to in section 114(b), for the practitioner or incorporated firm to invest so that interest is payable on it for the benefit of the person for whom the money is held.

        1. Subsection (1) does not limit the circumstances in which money that is not money to which that subsection applies may be held in a nominated trust account.

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