Rule 4 - Fund
All monies or other assets of the Fund shall constitute a trust and shall be held in the name of the Fund, subject to the direction of the Board.
Comment
Under Rule 3, the fees assessed by the Court against the jurisdiction’s lawyers are to be used for a stated purpose, the Fund.
Matters and expenses for which the Fund may be used should be considered and delineated by the Board in written policies to ensure that claimants receive the maximum benefit possible from available sources. Segregating any accounts in the name of the Fund is fundamental in preventing the use of monies by other entities for purposes unrelated to reimbursement and client protection.
Administrative expenses will be incurred by operating a Fund even though trustees traditionally serve on the Board without compensation. The cost of administering the Fund, e.g., expenses of Trustees, hearing of claims, record keeping, and salaries for staff and other overhead, should be paid out from the Fund.
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