May 23, 2019

Colo. RPC 1.15 Concerning Fees and Trust Accounts Repealed and Reenacted as Five New Rules

On Wednesday, June 18, 2014, the Colorado Supreme Court released Rule Change 2014(07), which repealed Colo. RPC 1.15 and reenacted it as Colo. RPC 1.15A, 1.15B, 1.15C, 1.15D, and 1.15E. The rule change was signed on June 17, 2014 and is effective immediately.

Colo. RPC 1.15A, “General Duties of Lawyers Regarding Property of Clients and Third Parties,” sets forth rules regarding client property and accountings. Rule 1.15A mostly tracks the language of subsections (a) through (c) of former Rule 1.15, and adds that the provisions of 1.15B through 1.15E apply to all funds or property held or maintained by the lawyer.

Colo. RPC 1.15B, “Account Requirements,” makes significant changes to subsections (d) through (h) of former Rule 1.15. Rule 1.15B sets forth requirements for COLTAF and other accounts in which to maintain client funds, and specifies practical procedures for paying account fees and dispersing interest.

Colo. RPC 1.15C, “Use of Trust Accounts,” rearranges the management provisions previously contained in 1.15(i) and increases the rule’s readability.

Colo. RPC 1.15D, “Required Records,” establishes recordkeeping requirements for client property. Some of the provisions from former 1.15(d) through (h) regarding recordkeeping procedures were moved to Rule 1.15D, and the language of former 1.15(j) through (m) is also incorporated where appropriate.

Colo. 1.15E, “Approved Institutions,” lists requirements for financial institutions housing trust accounts and defines acceptable forms of accounts. Rule 1.15E is expanded from former 1.15(e)(3), and many provisions were added regarding the financial institutions.

For the full text of new Rules 1.15A through 1.15E, click here. For all of the Colorado Supreme Court’s rules changes, click here.

SB 13-171: Sunset Review of Licensing of Money Transmitters

On Friday, February 8, 2013, Sen. Andy Kerr introduced SB 13-171 – Concerning the Continuation of the Licensing of Money Transmitters, and, in Connection Therewith, Continuing the Authority of the Banking Board and the State Bank Commissioner over Money Transmitters. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill implements the recommendations of the sunset review and report on the licensing of money transmitters by the banking board and the state bank commissioner by:

  • Extending the repeal date of the licensing of money transmitters until Sept. 1, 2024;
  • Specifying that the board may investigate any person believed to be engaging in money transmission without a license;
  • Extending the amount of time money transmitters have to notify the board of any increase in the number of locations at which they conduct business from 10 days to the next regularly scheduled periodic report;
  • Adopting some language from the “Uniform Money Services Act;”
  • Requiring securities that are used in lieu of a surety bond to be rated in one of the highest grades as defined by a nationally recognized organization that rates securities;
  • Requiring money transmitters to notify, and obtain written approval from, the commissioner to exchange securities used in lieu of a surety bond;
  • Requiring applicants to pay for prelicense on-site investigations;
  • Expanding the deadline to post a surety bond and pay the licensing fee from 90 days after approval of the application to 6 months after approval; and
  • Directing the board to hold a hearing after denial of a license application only if the applicant requests it.
  • On March 6, the Business, Labor, & Technology Committee approved the bill and sent if to the full Senate for consideration on 2nd Reading.

    Since this summary, the bill passed the Senate on Second and Third Readings.

    SB 13-156: Continuing the Board of Mortgage Loan Originators and Implementing the Recommendations of the 2012 Sunset Report

    On Monday, February 4, 2013, Sen. Lois Tochtrop introduced SB 13-156 – Concerning Continuation of the Board of Mortgage Loan Originators in the Division of Real Estate, and, in Connection Therewith, Implementing the Recommendations of the 2012 Sunset Report by the Department of Regulatory Agencies. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

    As introduced, the bill implements the recommendations of the sunset review and report on the board of mortgage loan originators (board) by:

    • Extending the repeal date of the board for five years, until Sept. 1, 2018;
    • Requiring the board to deny, refuse to renew, or revoke the licenses of persons who commit specified offenses, bringing Colorado’s statutes in line with federal law;
    • Allowing the board to deny, refuse to renew, or revoke the licenses of, or to discipline, persons who commit specified offenses and receive a deferred judgment;
    • Eliminating a self-contradictory provision from current law; and
    • Clarifying that a mortgage company may act only through individuals who are licensed or in the process of becoming licensed.

    On Feb. 20, the Business, Labor, & Technology Committee amended the bill and sent it to the Appropriations Committee for consideration of the fiscal impact.

    Legal Community Credit Union of Colorado Offers Discounts, Services, and More

    Does your bank offer you discounts on auto, home, and life insurance? Do you get discounts on vacations from your bank? What about identity theft protection discounts? If the answer is no, you need to consider opening an account with the Legal Community Credit Union of Colorado.

    Membership in the Legal Community Credit Union of Colorado is open to all Colorado Bar Association members, as well as to their family members and employees. Legal Community Credit Union offers traditional banking services and auto loans, and the benefits do not stop there. Partnerships with Balance Financial ServicesTrustage Insurance CompanyInvest in America, and Get Away Today vacations provide Legal Community Credit Union members with benefits far beyond traditional banking.

    Legal Community Credit Union of Colorado also offers counseling services to its members. Money management, identity theft protection, credit report review, and housing counseling are some of the financial education services provided by the Legal Community Credit Union through its partners.

    For more information on how to make your money work for you, visit the Legal Community Credit Union of Colorado website.