PART VI Miscellaneous And General

Miscellaneous

61 Protection of banks.

(1)

Subject to the provisions of this section, no bank F1or building society shall, in connection with any transaction on any account of a solicitor F2or an F3incorporated practice F3authorised legal business kept with it or with any other bank F1or building society—

(a)

incur any liability, or

(b)

be under any obligation to make any enquiry, or

(c)

be deemed to have any knowledge of any right of any person to any money paid or credited to the account,

which it would not incur, or be under, or be deemed to have (as the case may be) in the case of an account kept by a person entitled absolutely to all money paid or credited to it; but nothing in this subsection shall relieve a bank F1or building society from any liability or obligation under which it would be apart from this Act.

(2)

In subsection (1) “account” does not include an account kept by a solicitor F2or an F4incorporated practice F4authorised legal business as trustee for a specified beneficiary.

(3)

Notwithstanding anything in the preceding provisions of this section a bank F1or building society at which a solicitor F5or an F6incorporated practice F6authorised legal business keeps a special account for clients’ money shall not, in respect of any liability of the solicitor F5or, as the case may be, the F6incorporated practice F6authorised legal business to the bank F1or building society (not being a liability in connection with that account) have or obtain any recourse or right, whether by way of set-off, counter-claim, charge or otherwise, against money standing to the credit of that account.