Could bank counsel mention possible criminal liability in a collateral demand and tell a debtor about federal reporting?

Plain-English summary

Bank counsel asked whether a collateral demand could say failure to deliver collateral might be criminal, and whether an alleged perpetrator could be told the bank was legally required to notify federal officials of criminal activity.

The opinion allowed the first statement if counsel had a good-faith belief the conduct would be criminal and made no actual threat to prosecute. It allowed notice of the bank's federal reporting obligation unless law prohibited notice, and said counsel should not advise a client to ignore federal law to gain an advantage in a civil matter.

Currency note

This 1994 opinion predates Missouri's 2007 amendments to its Rules of Professional Conduct. An official reference note identifies July 1, 2007 amendments to Rules 4-1.9 and 4-1.10. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context and verify current rules before relying on it.

Common questions

Q: What limited the collateral-demand statement?

A: A good-faith belief in criminal conduct and absence of an actual threat to prosecute.

Q: Could counsel tell the person about the bank's federal notice duty?

A: Yes, unless law prohibited doing so.

Q: Did the opinion allow ignoring federal law for civil leverage?

A: No. It said counsel should not advise that course.

Background and rules framework

The opinion addressed bank counsel's two proposed notices in a collateral matter and cited no numbered rule or statute.

See also

• Missouri Informal Op. 990042: Criminal report threat
• Missouri Informal Op. 2019-02: Criminal or disciplinary threats

Source

• Landing page: https://mo-legal-ethics.org/informal-opinion/940025/

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

QUESTION: Question 1. In representing a bank, is it a violation of the Rules of Professional Conduct to inform the debtor that failure to deliver the collateral may be a criminal violation at the same time the demand for the collateral is made? Question 2. If a client bank is required by law to notify federal officials of criminal activity, may Attorney also give notice to the alleged perpetrator that the bank is required to notify the federal officials? ANSWER: Question 1. No, if there is good faith belief that the conduct would be criminal and if there is no actual threat to prosecute. Question 2. Yes, unless prohibited by law. Attorney should not counsel clients to ignore a federal law to gain an advantage in a civil matter.