Schedule 1Law Society of Scotland

Part 2Regulation of legal businesses

Distribution of sums in client bank account

21

(1)

Section 42 of the 1980 Act (distribution of sums in client bank account) is amended as follows.

(2)

In subsection (1), for “incorporated practice” in both places it occurs substitute “authorised legal business”.

(3)

In subsection (2)—

(a)

in paragraph (b), for “behoof” substitute “the benefit”,

(b)

after paragraph (c) insert—

“(d)

the entering by the solicitor into a debt arrangement scheme within the meaning of Part 1 of the Debt Arrangement and Attachment (Scotland) Act 2002.”.

(4)

In subsection (2A)—

(a)

in the opening words, for “incorporated practice” substitute “authorised legal business”,

(b)

before paragraph (a), insert—

“(za)

the sequestration of its estate,

(zb)

the granting by it of a trust deed for the benefit of creditors,

(zc)

the entering by it into a debt arrangement scheme within the meaning of Part 1 of the Debt Arrangement and Attachment (Scotland) Act 2002,”,

(c)

in paragraph (b), for “incorporated practice” substitute “authorised legal business”.

(5)

In subsection (3), for “incorporated practice” in each place it occurs substitute “authorised legal business”.