Rule 45.4 - Pooled interest-bearing trust account(1)Deposits of nominal or short-term funds. A lawyer who receives a client's or third person's funds must maintain a pooled interest-bearing trust account for deposits of funds that are nominal in amount or reasonably expected to be held for a short period of time. A lawyer must inform the client or third person that the interest accruing on this account, net of any allowable monthly service charges, will be paid to the Lawyer Trust Account Commission established by the supreme court.(2)Exceptions to using pooled interest-bearing trust accounts. All client or third person funds must be deposited in an account specified in rule 45.4(1) unless they are deposited in:a. A separate interest-bearing trust account for the particular third person, client, or client's matter on which the interest, net of any transaction costs, will be paid to the client or third person; orb. A pooled interest-bearing trust account with subaccountings that will provide for computation of interest earned by each client's or third person's funds and the payment thereof, net of any transaction costs, to the client or third person.(3)Accounts generating positive net earnings. If the client's or the third person's funds could generate positive net earnings for the client or third person, the lawyer must deposit the funds in an account described in rule 45.4(2). In determining whether the funds would generate positive net earnings, the lawyer must consider the following factors: a. The amount of the funds to be deposited.b. The expected duration of the deposit, including the likelihood of delay in the matter for which the funds are held.c. The rates of interest or yield at the financial institution in which the funds are to be deposited.d. The cost of establishing and administering the account, including service charges, the cost of the lawyer's services, and the cost of preparing any tax reports required for interest accruing to a client's benefit.e. The capability of financial institutions described in rule 45.3 to calculate and pay interest to individual clients.f. Any other circumstances that affect the ability of the client's funds to earn a net return for the client.(4)Directions to depository institutions. As to accounts created under rule 45.4(1), a lawyer or law firm must direct the depository institution: a. To remit interest or dividends, net of any allowable monthly service charges, as computed in accordance with the depository institution's standard accounting practice, at least quarterly, to the Lawyer Trust Account Commission.b. To transmit with each remittance to the Lawyer Trust Account Commission a copy of the depositor's statement showing the name of the lawyer or law firm for whom the remittance is sent, the rate of interest applied, the amount of allowable monthly service charges deducted, if any, and the account balance(s) for the period covered by the report.c. To report to the Client Security Commission in the event any properly payable instrument is presented against a lawyer trust account containing insufficient funds. In the case of a dishonored instrument, the report must be identical to the overdraft notice customarily forwarded to the depositor, and must include a copy of the dishonored instrument, if such a copy is normally provided to depositors. In the case of instruments that are honored when presented against insufficient funds, the report must identify the financial institution, the lawyer or law firm, the account number, the date of presentation for payment and the date paid, and the amount of overdraft. If an instrument presented against insufficient funds is not honored, the report must be made simultaneously with, and within the time provided by law for, any notice of dishonor. If the instrument is honored, the report must be made within five banking days of the date of presentation for payment against insufficient funds. Court Orders April 20, 2005, and July 1, 2005, effective 7/1/2005; 12/13/2017, effective 1/1/2018.