Rule 217 - Creation and Maintenance of Interest-bearing Trust Accounts A member of the state bar or the member's law firm shall create or maintain an interest-bearing trust account for clients' funds that are nominal in amount or to be held for a short period of time in any banking, credit union, or savings and loan association that is in compliance with the following provisions:
1. An interest-bearing trust account established pursuant to this rule may be established with any state bar-approved bank, credit union, or savings and loan association authorized by federal or state law to do business in Nevada, located in Nevada and insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation or other financial institution approved by the state bar pursuant to Rule 78.5 of these rules. Funds in each interest-bearing account shall be subject to withdrawal upon request and without delay. 2. Interest minimum standards. The Nevada Supreme Court Access to Justice Commission shall review and set twice annually the rate(s) of interest payable upon anv interest-bearing trust account and make the ratefs) public at least 30 davs prior to the effective date. (a) The minimum rate shall be 0.70 percent. [SeeADKT 0537, filed September 25, 2020, temporarily amends Supreme Court Rule 217(2)(a) and reads as follows: "Supreme Court Rule 217 provides for the creation and maintenance of interest-bearing trust accounts. Subsection 2(a) of that rule sets a minimum rate of interest payable upon any interest-bearing trust account at 0.70 percent. In light of the COVID-19 pandemic, this court entered an order on May 27, 2020, temporarily amending SCR 217(2)(a) to provide a minimum interest rate of 0.65 percent until November 1, 2020. Considering the ongoing pandemic, we extend the temporary amendment of SCR 217(2)(a) to provide a minimum interest rate of 0.65 percent to June 1, 2021."
The temporary amendment of SCR 217(2)(a) to provide a minimum interest rate of 0.65 percent was further extended, by Order dated April 21, 2022, to December 1, 2022.
(b) Higher rates offered bv the institution are permissible so long as there is no impairment of the right to withdraw or transfer principal immediately without penalty. 3. Fees prohibited. Accounts under this rule shall be exempt from service charges and fees. 4. Reporting. A member of the state bar or the member's law firm establishing such account shall: (a) Direct the depository institution to: (1) remit interest or dividends, as the case may be, on the average monthly balance in the account or as otherwise computed in accordance with an institution's standard accounting practice at least monthly, to the designated tax-exempt foundation pursuant to Rule 216; (2) transmit with each remittance in an electronic format to be specified by the designated tax-exempt foundation a statement that shall include: (i) the name of the member of the state bar or the member's law firm for whom the remittance is sent; (ii) the rate of interest applied; (iii) the account number for each account; (iv) the average amount on deposit for each account; (v) the rate and type of interest or dividends remitted;(vi) the average account balance for the monthly period for which the report is made; and (3) transmit to the depositing member of the state bar or the member's law firm at the same time a report showing the amount paid to the designated tax-exempt foundation; and(b) Establish and follow reasonably prudent procedures to verify, at least annually, that each account maintained under this rule is on deposit with an institution currently listed by the designated tax-exempt foundation as operating in compliance with the Interest Minimum Standards set forth in subsection 2 above. Member verification shall be reported to the state bar, by completing and submitting a form provided with the annual membership fee statements. 5. Exceptions. If the member or the member's law firm does not maintain an office within 20 miles of a complying financial institution pursuant to subsection 6: (a) The minimum interest standards set forth in subsection 2(a)-(c) are waived; and(b) The reporting requirements of subsection 4(a)(ii) are partially waived such that the member must direct the depositing institution to report at least quarterly, electronically if possible, to include at a minimum the name of the member of the state bar or the member's law firm for whom the remittance is sent and the rate of interest applied. Notice of waiver shall be reported by the member or member's law firm annually on a form to be provided by the state bar with annual membership fee statements. 6. List of complying financial institutions. The designated tax-exempt foundation shall maintain an accurate and up-to-date list of all financial institutions as defined in subsection 1 above, which are in compliance with the Interest Minimum Standards set forth in subsection 2 above. This list shall be provided to the state bar by the designated tax-exempt foundation, posted on the state bar's website and published in other media from time to time to facilitate members' compliance with this rule. 7. Non-compliance; assessment/suspension. Active members who fail to meet the requirements of this rule shall be notified of their non-compliance, in writing, by the state bar. Upon the expiration of 30 days from the date the state bar sends the member notice of non-compliance, said non-compliant member shall be: (a) Assessed $200, payable within 30 days to the designated tax-exempt foundation pursuant to Rule 216; and(b) Suspended from membership in the state bar, but may be reinstated upon filing verification of compliance on a form to be provided by the state bar. Supplying false information in response to the requirements of this rule shall subject the member to appropriate disciplinary action.Added; effective 5/27/1983; amended effective 10/4/2010; amended effective 7/5/2011; amended effective 10/5/2019.