NY Jud L § 468-B (2021)
2021 New York Laws JUD - Judiciary Article 15 - Attorneys and Counsellors 468-B - Clients' Security Fund of the State of New York.

§ 468-b. Clients' security fund of the state of New York. 1. The court   of  appeals shall appoint a board of trustees to administer the lawyers'   fund for client protection of the state of New York established pursuant   to section ninety-seven-t of the state finance  law.  Such  board  shall   consist  of  seven members. Of the trustees first appointed, three shall   be appointed for a term of three years; two for a term of two years; and   two for a term of  one  year.  As  each  such  term  expires,  each  new   appointment shall be for a term of three years. The court of appeals may   require  such  reports  or  audits of the board as it shall from time to   time deem to be necessary or desirable.2. The board shall  have  the  power  to  receive,  hold,  manage  and   distribute  the funds collected hereunder for the purpose of maintaining   the integrity and protecting the good name of the  legal  profession  by   reimbursing,  in  the  discretion of the trustees to the extent they may   deem proper and reasonable, losses caused by the  dishonest  conduct  of   attorneys  admitted  to  practice  in  this  state. For purposes of this   section, the term "dishonest conduct"  shall  mean  misappropriation  or   wilful  misapplication of clients' money, securities, or other property,   by an attorney admitted to practice in this state.3.  The  board  of  trustees   shall   adopt   regulations   for   the   administration  of  the lawyers' fund for client protection of the state   of  New  York  and  the  procedures  for  presentation,   consideration,   allowance  and  payment  of  claims,  including  the  establishment of a   maximum limitation for awards to claimants.4. The board of trustees shall have the sole discretion  to  determine   the  merits  of  claims  presented for reimbursement, the amount of such   reimbursement and the terms under  which  such  reimbursement  shall  be   made.  Such  terms  of  reimbursement  shall  require  that the claimant   execute such instruments, take such action or enter into such agreements   as  the  board  of  trustees  shall  require,   including   assignments,   subrogation  agreements  and  promises  to  cooperate  with the board of   trustees in making claims against the attorney whose  dishonest  conduct   resulted in the claim.5. The board of trustees shall serve without compensation but shall be   entitled  to receive their actual and necessary expenses incurred in the   discharge of their duties.6. The board of trustees  may  employ  and  at  pleasure  remove  such   personnel  as it may deem necessary for the performance of its functions   and fix their compensation within the amounts made available therefor.7. The board of trustees shall be considered employees  of  the  state   for the purpose of section seventeen of the public officers law.8.  All  payments  from the lawyers' fund for client protection of the   state  of  New  York  shall  be  made  by  the  state  comptroller  upon   certification and authorization of the board of trustees of said fund.9.  Acceptance of an award of reimbursement from the lawyers' fund for   client protection shall, to the extent of such award, (a) subrogate  the   fund  to  any right or cause of action that accrued to the claimant as a   consequence of the dishonest conduct that  resulted  in  the  claimant's   award  and  (b)  create a lien in favor of the fund that shall attach to   any money asset that is designated to be paid to the claimant  from,  or   on  behalf  of, the attorney who caused the claimant's loss. If the fund   fully reimburses the claimant's loss, as  determined  by  the  board  of   trustees,  the  lien  shall be in the amount of the fund's award. If the   claimant's loss exceeds the fund's award, the lien shall not  extend  to   the claimant's right to recover additional restitution from the attorney   for  the claimant's unreimbursed loss. In the event of a recovery by the   fund, a claimant shall be entitled to any money recovered in  excess  of   the fund's award of reimbursement to the claimant.