I elected not to put client funds in an interest-bearing account. Do I have to renew that election every year, or does one notice to the court cover me going forward?

Plain-English summary

An attorney asked the panel whether DR 9-102(F) requires a lawyer who elects not to deposit client funds in an interest-bearing account to renew that election with notice every year, or whether a single notice suffices.

The panel explained that DR 9-102(F) allows a lawyer or law firm to elect not to deposit client funds in an interest-bearing account, as otherwise contemplated by DR 9-102(C), by notifying the Clerk of the Supreme Court in writing within ninety days of January 1, 1985, or during the month of January in each succeeding year. The panel took the position that once a lawyer makes that election, it remains in effect until the lawyer gives notice of a change during January of a subsequent year, meaning the lawyer does not need to file a fresh notice every year to maintain an existing election.

Currency note

This opinion was issued in 1988, before the Rhode Island Supreme Court's adoption of the 2007 revisions to the Rules of Professional Conduct, and it applies the ABA Model Code of Professional Responsibility's Disciplinary Rules then in effect. Subsequent rule amendments or later opinions may have changed the analysis, including Rhode Island's trust-account and IOLTA requirements. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: I already told the Clerk of the Supreme Court I'm opting out of an interest-bearing client trust account. Do I need to notify the court again next January?

A: No, according to this opinion. The panel held the election remains good until the lawyer gives notice of a change during January of a later year; a single notice suffices.

Q: What deadline does DR 9-102(F) set for making this election?

A: Per the opinion, notice must be given to the Clerk of the Supreme Court in writing within ninety days of January 1, 1985, or during the month of January in each succeeding year.

Background and rules framework

The opinion applies DR 9-102(F) and DR 9-102(C) of the ABA Model Code of Professional Responsibility, then in force in Rhode Island, governing a lawyer's election not to place client funds in an interest-bearing account and the notice mechanics for that election.

Citations and references

Rules of Professional Conduct:

• RI DR 9-102(F) (election not to deposit client funds in an interest-bearing account; notice mechanics)
• RI DR 9-102(C) (deposit of client funds in an interest-bearing account)

Statutes:

• None cited.

Cases:

• None cited.

Other opinions cited:

• None cited.

See also

No sibling opinions yet indexed.

Source

• Landing page: https://www.courts.ri.gov/attorney-resources/Pages/Ethics-Advisory-Panel-default.aspx
• Original PDF: https://www.courts.ri.gov/Opinions/EAP%2088-02.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.

DIGEST OF ETHICS ADVISORY PANEL
OPINION #88-2
Request #3

An attorney seeks Panel advice as to whether DR 9-102(F) requires a lawyer who elects not to deposit clients' funds in an interest bearing account to give notice of his or her election every year or whether a single notice is sufficient.

Ethics Advisory Panel advice is protective in nature. There is no requirement that an attorney abide by a Panel opinion, but if he or she does, he or she is fully protected from any charge of impropriety.

Disciplinary Rule 9-102(F) provides that a lawyer or law firm may elect not to deposit clients' funds in an interest bearing account as set forth in DR 9-102(C) "by notifying the Clerk of the Supreme Court in writing within (90) days of January 1, 1985 or during the month of January in each succeeding year." The Panel takes the position that once an election has been made, that election is good until the attorney gives notice of a change in election during January of a subsequent year.