Podcast
Questions and Answers
What is the minimum number of nonlawyer members required on the Committee on Character and Fitness?
What is the minimum number of nonlawyer members required on the Committee on Character and Fitness?
- Five or more nonlawyer members
- Four or more nonlawyer members (correct)
- Three nonlawyer members
- Two or more nonlawyer members
How are the chairs of the Committees appointed?
How are the chairs of the Committees appointed?
- By a public nomination process
- By the Court (correct)
- By a vote among Committee members
- By the State Bar of Arizona
What is the duration of the term for members of the Committees?
What is the duration of the term for members of the Committees?
- Two years
- Four years (correct)
- Five years
- Three years
What happens when a member's term has expired?
What happens when a member's term has expired?
Who has the authority to remove members from the Committees?
Who has the authority to remove members from the Committees?
What is one of the primary responsibilities of the Committee on Examinations?
What is one of the primary responsibilities of the Committee on Examinations?
What should the Committee on Character and Fitness provide to the Court regarding applicants?
What should the Committee on Character and Fitness provide to the Court regarding applicants?
How many members are required on the Committee on Examinations?
How many members are required on the Committee on Examinations?
What must a lawyer do when a dispute arises regarding their right to withdraw funds from a trust account?
What must a lawyer do when a dispute arises regarding their right to withdraw funds from a trust account?
Which of the following is a requirement for maintaining trust account records?
Which of the following is a requirement for maintaining trust account records?
What defines 'collected funds' in the context of trust account disbursements?
What defines 'collected funds' in the context of trust account disbursements?
What must a lawyer do if they receive notice of a credit card chargeback within three business days?
What must a lawyer do if they receive notice of a credit card chargeback within three business days?
According to trust account requirements, who must supervise and properly train employees handling trust funds?
According to trust account requirements, who must supervise and properly train employees handling trust funds?
What type of records must be maintained for property held for clients or third persons?
What type of records must be maintained for property held for clients or third persons?
Which of the following conditions allows a lawyer to deposit credit card transaction funds into a client trust account?
Which of the following conditions allows a lawyer to deposit credit card transaction funds into a client trust account?
What must a lawyer do before making a disbursement against uncollected funds held in trust?
What must a lawyer do before making a disbursement against uncollected funds held in trust?
What is required if a lawyer's office must establish internal controls over trust funds?
What is required if a lawyer's office must establish internal controls over trust funds?
Which of the following must be included in the account ledger maintained by a lawyer?
Which of the following must be included in the account ledger maintained by a lawyer?
After how long must a lawyer preserve trust account records following the termination of representation?
After how long must a lawyer preserve trust account records following the termination of representation?
What is the consequence of failing to comply with trust account regulations?
What is the consequence of failing to comply with trust account regulations?
When can a lawyer legally withdraw funds from a trust account?
When can a lawyer legally withdraw funds from a trust account?
Which of the following is not a necessary record for trust account maintenance?
Which of the following is not a necessary record for trust account maintenance?
Under which circumstance is a lawyer allowed to disburse funds from a trust account based on an uncollected deposit?
Under which circumstance is a lawyer allowed to disburse funds from a trust account based on an uncollected deposit?
What is required when a lawyer disburses funds from a trust account?
What is required when a lawyer disburses funds from a trust account?
What happens if a lawyer makes a disbursement from a trust account and the deposit fails?
What happens if a lawyer makes a disbursement from a trust account and the deposit fails?
Which of the following checks does NOT qualify for disbursement under the circumstances outlined?
Which of the following checks does NOT qualify for disbursement under the circumstances outlined?
When must lawyers file their annual Certificate of Compliance?
When must lawyers file their annual Certificate of Compliance?
What is the consequence for failing to maintain required trust account records?
What is the consequence for failing to maintain required trust account records?
What type of deposits allows a legal professional to disburse funds without facing professional misconduct if the deposit fails?
What type of deposits allows a legal professional to disburse funds without facing professional misconduct if the deposit fails?
Which entity evaluates possible violations of trust account rules?
Which entity evaluates possible violations of trust account rules?
In what scenario can a lawyer legally use funds from a trust account?
In what scenario can a lawyer legally use funds from a trust account?
What is true regarding costs associated with trust account examinations?
What is true regarding costs associated with trust account examinations?
Which of the following is considered a trusted source for deposits in trust accounts?
Which of the following is considered a trusted source for deposits in trust accounts?
What documentation is appropriate for verifying transactions in trust accounts?
What documentation is appropriate for verifying transactions in trust accounts?
What might happen if a lawyer disburses funds improperly from a trust account?
What might happen if a lawyer disburses funds improperly from a trust account?
What happens to a member who fails to comply with the continuing legal education requirements for an educational year?
What happens to a member who fails to comply with the continuing legal education requirements for an educational year?
How is the confidentiality of records regarding failures to satisfy compliance requirements described?
How is the confidentiality of records regarding failures to satisfy compliance requirements described?
What condition must a member fulfill for reinstatement after a suspension due to noncompliance?
What condition must a member fulfill for reinstatement after a suspension due to noncompliance?
What is established by the board to regulate compliance with continuing legal education requirements?
What is established by the board to regulate compliance with continuing legal education requirements?
Which statement about immunity from civil suits in relation to compliance communications is correct?
Which statement about immunity from civil suits in relation to compliance communications is correct?
What type of notice must be sent to a member prior to suspension for failing to comply?
What type of notice must be sent to a member prior to suspension for failing to comply?
What is the purpose of the random selection of active members for auditing compliance?
What is the purpose of the random selection of active members for auditing compliance?
In compliance proceedings, which of the following is NOT a role of the board?
In compliance proceedings, which of the following is NOT a role of the board?
What action does the Court take if a financial institution fails to cure noncompliance?
What action does the Court take if a financial institution fails to cure noncompliance?
How long do members have to transfer their accounts after notification of de-authorization?
How long do members have to transfer their accounts after notification of de-authorization?
Which account type must a lawyer use to hold client funds, if the interest does not cover the maintenance costs of a separate account?
Which account type must a lawyer use to hold client funds, if the interest does not cover the maintenance costs of a separate account?
What is required for an attorney to legally practice law in the State of Arizona?
What is required for an attorney to legally practice law in the State of Arizona?
To what entity should interest or dividends generated on specific accounts be paid?
To what entity should interest or dividends generated on specific accounts be paid?
What is the requirement for the financial institutions holding client trust accounts?
What is the requirement for the financial institutions holding client trust accounts?
What should lawyers consider when determining which account to use for trust funds?
What should lawyers consider when determining which account to use for trust funds?
Under what circumstances can the Court revoke or suspend an attorney's license?
Under what circumstances can the Court revoke or suspend an attorney's license?
What happens to an active member who fails to comply with the requirements of the rule?
What happens to an active member who fails to comply with the requirements of the rule?
What does the Model Rules of Professional Conduct govern?
What does the Model Rules of Professional Conduct govern?
What is the minimum number of continuing legal education hours required each educational year?
What is the minimum number of continuing legal education hours required each educational year?
Which of the following is NOT a condition for a regulated financial institution managing client trust accounts?
Which of the following is NOT a condition for a regulated financial institution managing client trust accounts?
What is one responsibility of lawyers regarding client funds?
What is one responsibility of lawyers regarding client funds?
What characterization does the State Bar apply when a lawyer chooses an account type in good faith?
What characterization does the State Bar apply when a lawyer chooses an account type in good faith?
How many hours of professional responsibility education are required each year?
How many hours of professional responsibility education are required each year?
What is the maximum credit for pro bono service that can be applied toward continuing legal education?
What is the maximum credit for pro bono service that can be applied toward continuing legal education?
What constitutes a conflict of interest under the rules of professional conduct?
What constitutes a conflict of interest under the rules of professional conduct?
What type of trust account must maintain the capability for withdrawals or transfers on demand?
What type of trust account must maintain the capability for withdrawals or transfers on demand?
What must be assured regarding the financial institution if it is de-authorized?
What must be assured regarding the financial institution if it is de-authorized?
Which of the following factors does NOT influence the decision of which type of trust account to establish?
Which of the following factors does NOT influence the decision of which type of trust account to establish?
Which of the following actions is permissible for an attorney regarding trust accounts?
Which of the following actions is permissible for an attorney regarding trust accounts?
What is required of lawyers regarding trust accounts on their annual dues statement?
What is required of lawyers regarding trust accounts on their annual dues statement?
What action must a financial institution take when an instrument is presented for payment against a client trust account with insufficient funds?
What action must a financial institution take when an instrument is presented for payment against a client trust account with insufficient funds?
What does 'pro hac vice' allow an attorney to do?
What does 'pro hac vice' allow an attorney to do?
What is one duty lawyers have towards prospective clients?
What is one duty lawyers have towards prospective clients?
What type of trust account is established to ensure specific subaccounting for each client's funds?
What type of trust account is established to ensure specific subaccounting for each client's funds?
What is the penalty for a member who continues to maintain trust accounts at a de-authorized institution beyond the grace period?
What is the penalty for a member who continues to maintain trust accounts at a de-authorized institution beyond the grace period?
What should the Foundation use the interest or dividends for?
What should the Foundation use the interest or dividends for?
Which of the following is a requirement for the interest-bearing accounts used for client funds?
Which of the following is a requirement for the interest-bearing accounts used for client funds?
Which of the following best describes 'meritorious claims and contentions'?
Which of the following best describes 'meritorious claims and contentions'?
What is a key aspect of the client-lawyer relationship under the rules?
What is a key aspect of the client-lawyer relationship under the rules?
Who benefits from the interest accrued in a pooled interest-bearing trust account (IOLTA)?
Who benefits from the interest accrued in a pooled interest-bearing trust account (IOLTA)?
What is one of the responsibilities of the Foundation?
What is one of the responsibilities of the Foundation?
What type of account requires the funds to be invested in U.S. Government Securities?
What type of account requires the funds to be invested in U.S. Government Securities?
Under which rule must funds belonging to a client be handled?
Under which rule must funds belonging to a client be handled?
Under Rule 73, who is eligible for continuing legal education activity credit?
Under Rule 73, who is eligible for continuing legal education activity credit?
In which scenario would an attorney likely face disciplinary action?
In which scenario would an attorney likely face disciplinary action?
What requirement is imposed on legal paraprofessionals in relation to trust accounts?
What requirement is imposed on legal paraprofessionals in relation to trust accounts?
What is NOT a characteristic of a client trust account that is subject to the State Bar's regulations?
What is NOT a characteristic of a client trust account that is subject to the State Bar's regulations?
What determines the need for a lawyer to establish a separate interest-bearing account instead of an IOLTA account?
What determines the need for a lawyer to establish a separate interest-bearing account instead of an IOLTA account?
To whom does the duty to report professional misconduct apply?
To whom does the duty to report professional misconduct apply?
What should an attorney do if a conflict of interest arises with a current client?
What should an attorney do if a conflict of interest arises with a current client?
What is the function of the subaccounting provided in a pooled interest-bearing trust account?
What is the function of the subaccounting provided in a pooled interest-bearing trust account?
Which responsibility is applicable to subordinate lawyers?
Which responsibility is applicable to subordinate lawyers?
What must a lawyer do when a financial institution ceases operations as a regulated financial institution?
What must a lawyer do when a financial institution ceases operations as a regulated financial institution?
Which of the following is NOT a requirement for a regulated financial institution to be authorized for IOLTA accounts?
Which of the following is NOT a requirement for a regulated financial institution to be authorized for IOLTA accounts?
What action should a financial institution take upon receiving a subpoena duces tecum regarding a lawyer's IOLTA account?
What action should a financial institution take upon receiving a subpoena duces tecum regarding a lawyer's IOLTA account?
How long does an authorized regulated financial institution have to notify the State Bar before canceling the participation certification?
How long does an authorized regulated financial institution have to notify the State Bar before canceling the participation certification?
What triggers the State Bar to notify a regulated financial institution of noncompliance?
What triggers the State Bar to notify a regulated financial institution of noncompliance?
What must a regulated financial institution include with each remittance to the Foundation?
What must a regulated financial institution include with each remittance to the Foundation?
What happens if a financial institution does not rectify its noncompliance within 90 days?
What happens if a financial institution does not rectify its noncompliance within 90 days?
What is the consequence of failing to sign the participation certification for the next fiscal year?
What is the consequence of failing to sign the participation certification for the next fiscal year?
What is one of the reports the financial institution must send concerning IOLTA accounts?
What is one of the reports the financial institution must send concerning IOLTA accounts?
What must happen if the financial institution does not comply within 45 days after being notified?
What must happen if the financial institution does not comply within 45 days after being notified?
What must a lawyer do if they learn about a change in status of their financial institution?
What must a lawyer do if they learn about a change in status of their financial institution?
What is the maximum number of continuing legal education hours credit that an active member can receive per educational year from the mentor program?
What is the maximum number of continuing legal education hours credit that an active member can receive per educational year from the mentor program?
Under what condition is the participation certification considered to be continuing?
Under what condition is the participation certification considered to be continuing?
What is required for the financial institution to manage IOLTA accounts appropriately?
What is required for the financial institution to manage IOLTA accounts appropriately?
Which of the following members is exempt from the educational requirements for an entire educational year?
Which of the following members is exempt from the educational requirements for an entire educational year?
What is required for a member who was active during the educational year and is not exempted to confirm compliance?
What is required for a member who was active during the educational year and is not exempted to confirm compliance?
What happens if an active member fails to obtain the required continuing legal education credits by the June 30 deadline?
What happens if an active member fails to obtain the required continuing legal education credits by the June 30 deadline?
Which group of individuals must file an affidavit to ensure compliance with educational requirements?
Which group of individuals must file an affidavit to ensure compliance with educational requirements?
What conditions must an active member meet to change from inactive or retired status to active status?
What conditions must an active member meet to change from inactive or retired status to active status?
What is the deadline for an active member to file their affidavit of compliance?
What is the deadline for an active member to file their affidavit of compliance?
What must an active member provide if applying for an exemption due to undue hardship?
What must an active member provide if applying for an exemption due to undue hardship?
What happens if an affidavit is filed after the deadline of September 15?
What happens if an affidavit is filed after the deadline of September 15?
What role does the CEO/ED of the state bar play in the compliance for continuing legal education?
What role does the CEO/ED of the state bar play in the compliance for continuing legal education?
Which of the following statements regarding court personnel is true?
Which of the following statements regarding court personnel is true?
What is the consequence for failing to file the affidavit by December 15?
What is the consequence for failing to file the affidavit by December 15?
What must members do with their records regarding continuing legal education activity?
What must members do with their records regarding continuing legal education activity?
What is the condition for new admittees who join the bar between January 1 and June 30 regarding educational compliance?
What is the condition for new admittees who join the bar between January 1 and June 30 regarding educational compliance?
Flashcards
Committee on Examinations
Committee on Examinations
A committee that assesses applicants for bar admission and advises on their examination results.
Committee on Character and Fitness
Committee on Character and Fitness
A committee that evaluates the character and fitness of applicants for bar admission.
Minimum Committee Members
Minimum Committee Members
The required number of members on each committee: Examinations (12), Character & Fitness (15+4 non-lawyers).
Committee Chair Role
Committee Chair Role
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Member Appointment Criteria
Member Appointment Criteria
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Member Appointment Process
Member Appointment Process
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Member Terms
Member Terms
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Court's Admission Decision
Court's Admission Decision
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License Revocation/Suspension
License Revocation/Suspension
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Bar Admission Requirements
Bar Admission Requirements
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Pro Hac Vice
Pro Hac Vice
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Lawyer Competence
Lawyer Competence
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Communication (Client-Lawyer)
Communication (Client-Lawyer)
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Trust Account Regulation
Trust Account Regulation
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Trust Account Record Keeping
Trust Account Record Keeping
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Trust Account Examination
Trust Account Examination
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IOLTA Account
IOLTA Account
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CLE Requirements
CLE Requirements
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CLE Hours Minimum
CLE Hours Minimum
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CLE Exemptions
CLE Exemptions
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Affidavit of Compliance
Affidavit of Compliance
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Delinquency Fees
Delinquency Fees
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Summary Suspension
Summary Suspension
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Study Notes
Composition of Committees
- Two main committees: Committee on Examinations and Committee on Character and Fitness.
- Committee on Examinations has a minimum of twelve members; Committee on Character and Fitness has a minimum of fifteen members, including four nonlawyer public members.
- Chairs of both committees serve as liaisons.
Appointment of Members
- Members appointed based on diversity (geographical, gender, ethnic) considerations.
- Chairs chosen by the Court; other members recommended by the State Bar Board of Governors.
- Terms last four years, with members serving until replaced or matters concluded.
Powers and Duties of Committees
- Committee on Examinations assesses applicants and advises on their examination results.
- Committee on Character and Fitness evaluates character and fitness for bar admission.
- Court decides on admission based on committee recommendations.
Revocation or Suspension of License
- Court retains power to revoke or suspend attorney licenses for fraud or misrepresentation in the admission process.
Practice in Courts
- Law practice in Arizona requires bar admission; exceptions exist for attorneys from other jurisdictions via pro hac vice.
Client-Lawyer Relationship
- Guidelines cover multiple aspects such as competence, diligence, communication, fees, confidentiality, conflict of interest, and duties to clients and former clients.
Counselor Role
- Lawyers serve as advisors and evaluators, including roles as third-party neutrals.
Advocate Role
- Lawyers must advocate for meritorious claims, maintain candor to the tribunal, and uphold fairness in trial processes.
Transactions with Non-Clients
- Rules address truthfulness in statements, communication standards with represented persons, and respect for unrepresented individuals.
Law Firms and Associations
- Responsibilities outlined for lawyers in ownership or supervisory roles, including managing non-lawyer associates and unauthorized practice issues.
Public Service
- Encouragement for voluntary pro bono work and participating in legal services organizations.
Information about Legal Services
- Regulations on communications about lawyer services and client solicitation.
Maintaining Professional Integrity
- Rules enforce reporting obligations on misconduct and cover bar admission processes.
Trust Account Regulations
- Lawyers must keep client and third-party funds in separate trust accounts, prohibiting personal fund intermingling.
- Trust account records must be maintained for five years post-representation, detailing all financial transactions.
Trust Account Compliance and Examination
- Annual compliance certificates required from state bar members regarding trust regulations.
- State bar evaluates possible violations and conducts random examinations of trust accounts.
- Confidentiality is upheld for non-disciplinary examinations.
Trust Account Disbursement Protocol
- Strict rules govern how and when funds may be disbursed from trust accounts; deposits from credit card transactions must adhere to specific conditions.
- Disbursements generally require that funds be collected unless under defined exceptions.
Methods and Documentation of Disbursement
- All disbursements must be conducted via pre-numbered checks or electronic transfers, with a record maintained for accountability.
Trust Account Establishment
- Mandatory oversight by state bar for lawyers handling client funds, ensuring funds are held in appropriate trust accounts.### IOLTA Account Types
- IOLTA accounts can be pooled for the benefit of a legal foundation, kept separate for a client, or pooled with subaccounting for individual client's interest calculations.
- Lawyers must consider factors like the amount of funds, expected duration, interest rates, costs of separate accounts, financial institution capabilities, and any other circumstances when choosing account types.
Client Trust Accounts Regulations
- Clients’ funds must be held only at regulated financial institutions authorized to conduct transactions in Arizona, and insured by relevant government agencies.
- Withdrawals from accounts should be on demand, and funds must be invested in higher-earning options like interest-bearing checking accounts or money-market funds.
Participation Certification
- Financial institutions must sign a participation certification to manage IOLTA accounts, outlining reasonable fees, remittance protocols, and reporting obligations.
- Institutions failing to sign the certification during the fiscal year face mediation and potential de-authorization by the State Bar.
Compliance Monitoring
- The State Bar will notify financial institutions of compliance failures, giving 90 days to rectify issues.
- If unresolved, the institution will be de-authorized, with a timeframe for lawyers to transfer their accounts to compliant institutions.
Use of IOLTA Funds
- Interest from IOLTA accounts supports legal services for the poor, funds justice administration studies, maintains reserves, and covers rule administration costs.
Continuing Legal Education (CLE) Requirements
- Active bar members must complete a minimum of fifteen hours of CLE each year, including at least three hours in professional responsibility.
- Pro bono work or arbitrator roles can translate to CLE credit, with specific limits on hours earned.
Exemptions from Continuing Education
- Inactive/retired members, certain court personnel, members over 70 years old, and new admittees within their first year have exemptions from CLE requirements.
- Active members complying with another jurisdiction's CLE requirements may also be exempt.
Affidavit of Compliance
- Lawyers must submit an affidavit regarding compliance with these educational requirements, ensuring accountability in continuing education participation.### Filing Requirements
- Active members must file an affidavit of compliance with the board by September 15 each year.
- Filing can be done through a written certificate or electronically as approved by the board.
- Submissions are timely if postmarked or date-stamped by the deadline of September 15.
Delinquency Fees
- Failure to meet educational requirements by June 30 results in a delinquent compliance fee.
- Delinquent Affidavit Filing Fee applies to those who do not submit their affidavit on time.
- A member's non-compliance by September 15 may lead to a motion for summary suspension.
Status Changes
- Members changing from inactive or retired status to active must complete required continuing legal education hours for the two previous years.
- New active members from inactive, retired, or judicial status must comply with current educational requirements.
Record Maintenance
- Members must keep records of continuing legal education participation for two years after affidavit submission.
- Records must meet the definition outlined in Regulation 101(j).
Compliance Audits
- The board conducts annual random audits to check compliance among active members, excluding certain exemptions.
Regulatory Authority
- The board establishes regulations governing the administration and audits of continuing legal education requirements.
Summary Suspension
- Failure to comply with educational requirements can lead to summary suspension, following a 30-day notice period.
- Reinstatement is contingent on fulfilling the education requirements, payment of reinstatement fees, and any delinquency fees.
Confidentiality of Records
- Noncompliance records are confidential, akin to disciplinary proceedings, accessible only as needed.
- Disclosure is limited to situations promoting the board's duties or at the affected member's request.
Immunity from Civil Suit
- Communications regarding compliance are absolutely privileged, ensuring immunity for witnesses and board members in related activities.
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