Talk about this subject. Talk about what is taking place in your office, so that everyone understands why a client's money must be placed in a separate account. Discuss why physical items belonging to a client should not be placed in your office filing cabinet, whether locked or not, and why moneys belonging to a client must not be placed in a firm's regular checking or savings account. At every given moment there must be an ability to identify all moneys that are in an attorney's trust fund. No moneys may be removed for use by the attorney, for however short a period of time.
Borrowing is conversion.
An attorney may not draw a trust account check to pay a debt he owes. He must first draw a trust account check in the amount to which he is entitled, deposit it in his office account, and then pay his debt from his own account. If securities such as bearer bonds are given to the attorney to hold and are merely placed in a locked filing cabinet in the office and not identified or placed in a safe deposit box, the attorney has committed a disciplinable violation. Under the provisions of the Code, any funds given to the attorney for anticipated costs and expenses are exempt from the trust fund requirement. Occasionally, there is a dispute as to trust funds.