R.I. Sup. Ct. R. Art. V, R. 1.15

(a) A lawyer shall hold property of clients or

third persons that is in a lawyer's possession in connection with a representation

separate from the lawyer's own property. Funds shall be kept in a separate account

maintained in the state where the lawyer's office is situated, or elsewhere with the

consent of the client or third person. Other property shall be identified as such and

appropriately safeguarded. Complete records of such account funds and other

property shall be kept by the lawyer and shall be preserved for a period of seven years

after termination of the representation.

(b) A lawyer may deposit the lawyer's own funds in a client trust account for the

sole purpose of paying bank service charges on that account, but only in an amount

necessary for that purpose.

(c) A lawyer shall deposit into a client trust account legal fees and expenses that

have been paid in advance, to be withdrawn by the lawyer only as fees are earned or

expenses incurred.

(d) Upon receiving funds or other property in which a client or third person has an

interest, a lawyer shall promptly notify the client or third person. Except as stated in

this rule or otherwise permitted by law or by agreement with the client, a lawyer shall

promptly deliver to the client or third person any funds or other property that the

client or third person is entitled to receive and, upon request by the client or third

person, shall promptly render a full accounting regarding such property.

(e) When in the course of representation a lawyer is in possession of property in

which two or more persons (one of whom may be the lawyer) claim interests, the

property shall be kept separate by the lawyer until the dispute is resolved. The lawyer

shall promptly distribute all portions of the property as to which the interests are not

in dispute.

(f) A lawyer or law firm shall deposit clients' funds, which are nominal in amount or

to be held for a short period of time, in one or more interest bearing trust accounts in

accordance with the following provisions. For purposes of this rule, such accounts are

referred to as Interest on Lawyers' Trust Accounts (IOLTA):

(1) Earnings from such IOLTA accounts shall not be available to a lawyer or law

firm.

(2) Whether clients' funds are nominal in amount or to be held for a short period of

time shall be determined solely by each attorney or law firm.

(3) Notification to clients whose funds are deposited in IOLTA accounts shall not

be necessary.

(4) Such IOLTA accounts may be established with any financial institution

authorized by federal or state law to do business in Rhode Island, the deposits in

which are insured by insurance entities regulated by the United States and/or the State

of Rhode Island or any agency or instrumentality thereof. Funds deposited in such

accounts shall be available for withdrawal immediately upon demand.

(5) The rate of interest payable on any IOLTA account shall not be less than the

highest interest rate or dividend available from the financial institution to its non-IOLTA customers when the IOLTA account meets the same minimum balance or

other eligibility qualifications. Lawyers or law firms making such deposits shall

direct the depository institution:

(i) To remit interest or dividends on such deposits, net of any service or fees, at

least quarterly, to the Rhode Island Bar Foundation (the "Foundation").

(ii) To transmit to the Foundation and the depositor with each remittance

statements showing the name of the depositor, the amount remitted, and the rate(s) at

which the interest was computed.

(g1) If, after the exercise of reasonable diligence, a lawyer is unable to identify or

locate the owner(s) of funds deposited in that lawyer's IOLTA account, the lawyer

shall remit those funds to the Foundation to be used consistent with the purposes

listed in Rule 1.15(h). Provided the lawyer has exercised reasonable diligence, the

lawyer's act of remitting IOLTA account funds that have remained unclaimed or the

owner(s) unidentified shall not be deemed a violation of the Rules of Professional

Conduct. Upon remission of such funds, the lawyer shall provide to the Foundation a

statement of the last known address of the owner(s) of the funds, if known to the

lawyer; the amount remitted; a description of the efforts taken by the lawyer to find

the owner(s) of the remitted funds; and, if the lawyer is unable to determine and

identify the owner of the funds, a description of the efforts taken by the lawyer to

identify the owner of the remitted funds.

(2) In the event an attorney is suspended, disbarred, or deceased and another

attorney or Disciplinary Counsel is appointed pursuant to Supreme Court Rules, Art.

III, Rule 18, as substitute counsel or other similar designation to inventory the files

and accounts of the suspended or disbarred attorney, and such substitute counsel

discovers an existing IOLTA account in the name of the suspended or disbarred

attorney, the substitute counsel shall exercise reasonable diligence to identify or

locate the owner(s) of funds deposited in the suspended or disbarred attorney's

IOLTA account. If, after the exercise of reasonable diligence, the substitute counsel is

unable to identify or locate the owner(s) of funds deposited in the suspended or

disbarred lawyer's IOLTA account, the substitute counsel shall remit those funds to

the Foundation to be used consistent with the purposes listed in Rule 1.15(h). With

the remission of the funds to the Foundation, the substitute counsel shall provide the

information set forth in (g)(l), to the extent such information is known to the

substitute counsel.

(3) If the personal representative (executor, administrator, trustee, guardian) of the

estate or trust of a deceased attorney or the attorney for the personal representative,

discovers an open IOLTA trust account in the name of the deceased attorney:

(i) The personal representative of the deceased lawyer or the attorney for the

personal representative shall hold the account in the personal representative's name

and capacity or in the name of the attorney for the personal representative for the

purposes of this rule only and only for such time as the personal representative shall

reasonably take to comply with this rule. The funds in such account are not the

property of the estate or trust of the deceased lawyer.

(ii) The personal representative of the deceased lawyer or the attorney for the

personal representative shall exercise reasonable diligence to identify the owner(s) of

the funds held in the IOLTA account. If, after the exercise of reasonable diligence,

the personal representative or the attorney is unable to identify the owner(s) of the

funds held in the IOLTA account, those funds shall be remitted to the Foundation by

the personal representative or the attorney to be used consistent with the purposes

listed in Rule 1.15(h). With the remission of the funds to the Foundation, the personal

representative or the attorney shall provide the information set forth in (g)(l), to the

extent such information is known to the personal representative.

(4) The Foundation shall maintain a record of each remittance received pursuant to

this rule for at least three years.

(i) If, within three years of the remission of the funds to the Foundation, the lawyer

who remitted the funds learns of the original owner of the funds or a claim to the

funds is made to the lawyer, and the lawyer believes the claimant is the original

owner of the funds, the lawyer shall notify the Foundation and shall provide to the

Foundation the name of such claimant and the amount being claimed. The lawyer

shall notify the claimant that the funds have been remitted to the Foundation and the

claimant's right to seek repayment from the Foundation. The lawyer, on behalf of the

claimant, or the claimant may make a claim for return of the amount of the remitted

funds.

(ii) If, within three years of the remission of the funds to the Foundation, the

personal representative of a deceased lawyer or the attorney representing the personal

representative learns of the original owner of the funds or a claim to the funds is

made to the personal representative or the attorney, and the personal representative or

the attorney believes the claimant is the original owner of the funds, the personal

representative or the attorney shall notify the Foundation and shall provide to the

Foundation the name of such claimant and the amount being claimed. The personal

representative shall also notify the claimant that the funds have been remitted to the

Foundation and the claimant's right to seek repayment from the Foundation. The

personal representative or the attorney, on behalf of the claimant, or the claimant may

make a claim for return of the amount of the remitted funds.

(iii) If, within three years of the remission of the funds to the Foundation, the

substitute counsel who remitted the funds learns of the original owner of the funds or

a claim to the funds is made to the substitute counsel, and the substitute counsel

believes the claimant is the original owner of the funds, the substitute counsel shall

notify the Foundation and shall provide to the Foundation the name of such claimant

and the amount being claimed. The substitute counsel shall also notify the claimant

that the funds have been remitted to the Foundation and the claimant's right to seek

repayment from the Foundation. The substitute counsel, on behalf of the claimant, or

the claimant may make a claim for return of the amount of the remitted funds.

(iv) Within three years of the remission of the funds to the Foundation, a putative

owner may make a direct claim against the Foundation for return of the amount of the

remitted funds.

(5) Upon receipt of a claim from the lawyer, substitute counsel, the personal

representative or the attorney for the personal representative, or a direct-claimant:

(i) The President of the Board of Directors of the Foundation shall appoint one or

more members of the Board of Directors of the Foundation to review the claim and

report to the board whether the claim should be accepted or rejected, in whole or in

part. Upon receiving the report, the board shall consider the report and determine

whether to accept or reject the claim, in whole or in part.

(A) If the claim is accepted, the lawyer, substitute counsel, the personal

representative or the personal representative’s attorney, or a direct-claimant shall be

notified and, unless the lawyer, substitute counsel, the personal representative or the

attorney, or a direct-claimant rejects the Foundation’s proposal for resolution, within

a reasonable period of time not to exceed 45 days, the Foundation shall pay over to

the lawyer, substitute counsel, the personal representative or the attorney, or a direct-claimant the amount so determined.

(B) If the claim is rejected or the lawyer, substitute counsel, the personal

representative, or a direct-claimant disputes the amount of the claim proposed by the

Foundation, the lawyer, substitute counsel, personal representative, or direct-claimant

may make a request to initiate an arbitration.

(ii) If the lawyer, substitute counsel, the personal representative or attorney, or a

direct-claimant requests to arbitrate the claim, the President shall appoint an arbitrator

to hold a hearing, evaluate the claim, and determine whether the lawyer, substitute

counsel, the personal representative or attorney, or a direct-claimant has adequately

established the owner(s) of the funds. The lawyer, substitute counsel, the personal

representative or attorney, or a direct-claimant shall bear the burden of establishing

entitlement to the remitted funds. If the lawyer, substitute counsel, the personal

representative or attorney, or a direct-claimant establishes to the satisfaction of the

arbitrator that the lawyer, substitute counsel, the personal representative or attorney,

or a direct-claimant is the owner of the funds and the amount of the funds belonging

to that lawyer, substitute counsel, the personal representative or the attorney, or a

direct-claimant, the Foundation shall pay over to the lawyer, substitute counsel, the

personal representative or the attorney, or a direct-claimant the amount of such funds,

without interest or attorney fees, within a reasonable period of time not to exceed 45

days.

(6) If no claim is made to the remitted funds within three years of the funds having

been remitted to the Foundation, the Foundation may treat the remission as final and

shall not be obligated to arbitrate such claim or to pay over any amount to any

claimant.

(h) Interest paid to the Foundation shall be used for any of the following purposes:

providing legal services to the poor of Rhode Island; improving the delivery of legal

services; promoting knowledge and awareness of the law; improving the

administration of justice; and for the reasonable costs of administration of IOLTA

accounts under this Rule.

(i) Nothing in this Rule shall preclude a lawyer or law firm from depositing any

funds of a client other than those funds described in paragraph (f) of this Rule in an

interest bearing account and accounting for the interest to such client.