(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 incorporated practice] 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 incorporated practice] 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 [F3or an incorporated practice] keeps a special account for clients’ money shall not, in respect of any liability of the solicitor [F3or, as the case may be, the incorporated practice] 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.
Textual Amendments
F1Words inserted by Solicitors (Scotland) Act 1988 (c. 42, SIF 76:2), s. 6(1), Sch. 1 para. 19
F2Words inserted by Law Reform (Miscellaneous Provisions) (Scotland) Act 1985 (c. 73, SIF 76:2), s. 56, Sch. 1 Pt. I para. 31(a)
F3Words inserted by Law Reform (Miscellaneous Provisions) (Scotland) Act 1985 (c. 73, SIF 76:2), s. 56, Sch. 1 Pt. I para. 31(b)
Modifications etc. (not altering text)
C1S. 61 applied (with modifications) (1.10.2004) by The Solicitors (Scotland) Act 1980 (Foreign Lawyers and Multi-national Practices) Regulations (S.S.I. 2004/383), {reg. 13}