Ch. 791                                          LAWS OF MARYLAND

attorney commingle any such funds with such attorney's funds or
use any such funds for any purpose other than the purpose for
which they were entrusted to the attorney.

(2)  Each attorney shall have discretion to determine
whether such trust moneys are to be deposited in a noninterest
bearing checking account, in an interest bearing checking
account, in one or more savings accounts, in one or more accounts
subject to negotiable orders of withdrawal ("NOW accounts"), or
in any combination thereof with any bank or savings and loan
association authorized by federal or State law to do business in
this State. If in the judgment of the attorney any trust moneys
received from any client or beneficial owner are too small in
amount or are reasonably expected to be held for too short a
period of time to generate at least $50 of interest or such
larger amount of interest as in the judgment of the attorney may
be equivalent to the cost of administering an account for the
benefit of the client or beneficial owner, such moneys may be
pooled and commingled by the attorney with other such moneys held
for other clients or beneficial owners, and the aggregate
interest earned on such commingled account shall be paid at least
quarterly, net of any service charges, by the depository bank or
savings and loan association, to the Maryland Legal Services
Corporation exclusively for the charitable purposes defined in
its statutory charter.

(3)  The implementation of programs for the generation
of interest on attorneys' trust accounts for charitable purposes
pursuant to subsection (a)(2) of this section shall be optional,
not mandatory, and no attorney shall be liable in damages if such
attorney continues to maintain such trust moneys in noninterest
bearing checking accounts separate and apart from such attorney's
own funds as required by subsection (a)(1) of this section and in
accordance with law and the Code of Professional Responsibility.

(4)  Except for trust moneys placed by the attorney in
a commingled account for charitable purposes pursuant to
subsection (a)(2) of this section, trust moneys in the hands of
attorneys may be invested in any other investment vehicle
specified by the client or beneficial owner or as they and the
attorney may agree upon.

(5)  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AN
ATTORNEY MAY, AT SETTLEMENT, DISBURSE FUNDS RECEIVED IN A REAL
ESTATE SETTLEMENT TRANSACTION, WHETHER RECEIVED IN THE FORM OF A
CHECK OR OTHERWISE, IMMEDIATELY AFTER DEPOSITING THE FUNDS IN AN

ACCOUNT.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1988.

Approved May 27, 1988.

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