The following terms when used in this subchapter shall have the meanings given to them in this section:

   Eligible Institution. An Eligible Institution is a Financial Institution which has been approved as a depository of Trust Accounts pursuant to section (h), infra.

   Financial Institution. A Financial Institution is an entity which is authorized by federal or state law and licensed to do business in the Commonwealth of Pennsylvania as one of the following: a bank, bank and trust company, trust company, credit union, savings bank, savings and loan association or foreign banking corporation, the deposits of which are insured by an agency of the Federal government, or as an investment adviser registered under the Investment Advisers Act of 1940 or with the Pennsylvania Securities Commission, an investment company registered under the Investment Company Act of 1940, or a broker dealer registered under the Securities Exchange Act of 1934.

   Fiduciary Funds. Fiduciary Funds are Rule 1.15 Funds which an attorney holds as a Fiduciary, as defined in Rule 1.15(a)(2) of the Pennsylvania Rules of Professional Conduct. Fiduciary Funds may be either Qualified Funds or Non-Qualified Funds.

   Rule 1.15 Funds. Rule 1.15 Funds are funds which an attorney receives from a client or third person in connection with a client-lawyer relationship, or as an escrow agent, settlement agent or representative payee, or as a Fiduciary, or receives as an agent, having been designated as such by a client or having been so selected as a result of a client-lawyer relationship or the attorney’s status as such. When the term ‘‘property’’ appears with ‘‘Rule 1.15 Funds,’’ it means property of a client or third person which the attorney receives in any of the foregoing capacities.

   Trust Account. A Trust Account is an account in an Eligible Institution in which an attorney holds Rule 1.15 Funds. A Trust Account must be maintained either as an IOLTA Account or as a Non-IOLTA Account, as defined in Rule 1.15(a)(5) and (7) of the Pennsylvania Rules of Professional Conduct.

 Enforcement Rule 221(b) provides that a Trust Account may be maintained only in an Eligible Institution approved by the Supreme Court of Pennsylvania for the maintenance of such accounts.

 (a)  Approval. Enforcement Rule 221 (h) provides that an Eligible Institution shall be approved as a depository for Trust Accounts if it shall file with the Board an agreement (in a form provided by the Board) in which the Eligible Institution agrees to make a prompt report to the Lawyers Fund for Client Security Board under the circumstances described in §  91.174 (relating to reports of overdrafts). Upon receiving a signed agreement from an Eligible Institution as required by this subsection, the Board shall report that fact to the Supreme Court with a recommendation that the Court enter an order approving the Eligible Institution as a depository for Trust Accounts.

 (b)  Termination of approval. Enforcement Rule 221 (k) provides that a failure on the part of an Eligible Institution to make a report called for by this subchapter may be cause for termination of its approval by the Supreme Court, but such failure shall not, absent gross negligence, give rise to a cause of action by any person who is proximately caused harm thereby. Upon learning that a financial institution has failed to make a report called for by this subchapter, the Board shall report that fact to the Supreme Court with a recommendation that the Court enter an order terminating the approval of the financial institution as a depository for Trust Accounts.

 (c)  List of approved Eligible Institutions. The Board will periodically publish in the Pennsylvania Bulletin a list of Eligible Institutions that are approved at the time as depositories for Trust Accounts under this subchapter. The current list shall also be published in the Pennsylvania Code as an appendix to this section.

   The provisions of this §  91.173 amended August 5, 2005, effective immediately, 35 Pa.B. 4301; amended May 29, 2009, effective May 30, 2009, 39 Pa.B. 2687. Immediately preceding text appears at serial page (312774).

APPENDIX A

List of Approved PA Financial Institutions Who Have Been Approved as Depositories for Fiduciary Accounts of Attorneys

Bank Code	A.
595	Abacus Federal Savings Bank
374	Abington Savings Bank
2	Adams County National Bank
572	Affinity Bank of Pennsylvania
302	Allegheny Valley Bank of Pittsburgh
548	Allegiance Bank of North America
579	Alliance Bank
375	Altoona First Savings Bank
376	Ambler Savings and Loan Association
532	American Bank of Lehigh Valley
502	American Eagle Savings Bank
581	American Home Bank, N.A.
116	Ameriserv Financial
377	Apollo Trust Company
568	Arc Federal Credit Union
Bank Code	B.
558	Bancorp Bank (The)
485	Bank of America
138	Bank of Canton
155	Bank of Hanover & Trust Company
3	Bank of Lancaster County, N.A.
415	Bank of Landisburg (The)
519	Beaver Valley Federal Credit Union
501	BELCO Community Credit Union
397	Beneficial Savings Bank
582	Berkshire Bank
391	Blue Ball Bank
392	Brentwood Savings Bank
495	Brown Brothers Harriman & Co.
161	Bryn Mawr Trust Company
156	Bucks County Bank
Bank Code	C.
480	Cambria County Federal Savings & Loan Assoc.
540	C & G Savings Bank
459	Centra Bank
394	Charleroi Federal Savings Bank
599	Citibank N.A.
238	Citizens and Northern Bank
561	Citizens Bank of Pennsylvania
420	Citizens National Bank—Myersdale
206	Citizens Savings Bank
353	Citizens Trust Company
602	City National Bank of New Jersey
576	Clarion County Community Bank
16	Clearfield Bank & Trust Co.
591	Clearview Federal Credit Union
354	Coatesville Savings Bank
603	Colonial American Bank
17	Columbia County Farmers National Bank
250	Commerce Bank, PA, NA
18	Commerce Bank/Harrisburg, NA
223	Commercial Bank & Trust of Pennsylvania
310	Community Bank & Trust Company
21	Community Bank
204	Community Banks
533	Community First Bank, N.A.
430	Community National Bank of Northwestern PA
132	Community State Bank of Orbisonia
590	Continental Bank
23	County National Bank
380	County Savings Bank
382	CSB Bank
Bank Code	D.
339	Dime Bank (The)
239	DNB First, N.A.
27	Dollar Bank
423	Dwelling House Savings & Loan Association
Bank Code	E.
357	Eagle National Bank
569	Earthstar Bank
424	East Penn Bank
358	East Prospect State Bank
597	East River Bank
340	East Stroudsburg Savings Association
500	Elderton State Bank
567	Embassy Bank
541	Enterprise Bank
28	Ephrata National Bank (The)
383	ESB Bank, F.S.B.
601	Esquire Bank
552	Eureka Bank
Bank Code	F.
31	Farmers & Merchants Trust Company
205	Farmers National Bank of Emlenton
436	Farmers National Bank of Kittanning
311	Fidelity Bank
34	Fidelity Deposit & Discount Bank
343	Fidelity Savings and Loan of Bucks County
583	Fifth Third Bank
174	First Citizens National Bank
191	First Columbia Bank & Trust Co.
539	First Commonwealth Bank
551	First Cornerstone Bank
369	First Federal Savings & Loan Assoc. of Bucks County
504	First Federal Savings & Loan Assoc. of Greene County
388	First Federal Savings Bank
525	First Heritage Federal Credit Union
228	First Keystone Bank
371	First Liberty Bank & Trust
263	First Merit Bank, N.A.
51	First National Bank & Trust Co. of Newtown (The)
42	First National Bank of Berwick (The)
52	First National Bank of Chester County
416	First National Bank of Fleetwood (The)
421	First National Bank of Fredericksburg
322	First National Bank of Greencastle
418	First National Bank of Liverpool (The)
43	First National Bank of Marysville
46	First National Bank of Mercersburg (The)
419	First National Bank of Mifflintown (The)
198	First National Bank of Minersville (The)
47	First National Bank of Newport (The)
426	First National Bank of Palmerton (The)
48	First National Bank of Pennsylvania
427	First National Bank of Port Alleghany (The)
175	First National Community Bank
549	First National Community Bank—Midland
170	First Penn Bank
592	First Resource Bank
40	First Savings Bank of Perkasie
349	First Star Savings Bank
158	First Summit Bank
408	First United National Bank
151	Firstrust Bank
493	FNB Bank, N.A.
291	Fox Chase Bank
241	Franklin Mint Federal Credit Union
58	Fulton Bank
Bank Code	G.
588	Gateway Bank of Pennsylvania
499	Gratz National Bank (The)
593	Graystone Bank
498	Greenville Savings Bank
Bank Code	H.
402	Halifax National Bank
244	Hamlin Bank and Trust Company
64	Harleysville National Bank and Trust Company
362	Harleysville Savings Bank
363	Hatboro Federal Savings
410	Herndon National Bank (The)
559	Home Savings & Loan Company
68	Honesdale National Bank (The)
350	HSBC Bank of USA
364	Huntingdon Valley Bank
Bank Code	I.
365	Indiana First Savings Bank
575	Integrity Bank
557	Investment Savings Bank
200	Iron and Glass Bank
526	Iron Workers Bank
366	Irwin Bank & Trust Company
Bank Code	J.
70	Jersey Shore State Bank
127	Jim Thorpe National Bank
488	Jonestown Bank and Trust Company
72	Juniata Valley Bank (The)
Bank Code	K.
403	Keystone Nazareth Bank and Trust
414	Kish Bank
Bank Code	L.
74	Lafayette Ambassador Bank
554	Landmark Community Bank
187	Lebanon Valley Farmers Bank
182	Leesport Bank
78	Luzerne National Bank
Bank Code	M.
386	Malvern Federal Savings Bank
361	M & T Bank
510	Marion Center National Bank
81	Mars National Bank (The)
367	Mauch Chunk Trust Company
5	Mellon Bank, N.A.
555	Mercer County State Bank
192	Merchants National Bank of Bangor (The)
478	Merchants National Bank of Kittanning
294	Mid Penn Bank
511	Mifflin County Savings Bank
276	Mifflinburg Bank & Trust Company
457	Milton Savings Bank
345	Minersville Safe Deposit Bank and Trust  Company
596	MoreBank
346	Morton Savings Bank
484	Muncy Bank & Trust Company (The)
Bank Code	N.
337	National City Bank of Pennsylvania
88	National Penn Bank
347	Neffs National Bank (The)
372	Nesquehoning Savings Bank
536	New Century Bank
434	New Tripoli Bank (The)
15	NexTier Bank
545	Nittany Bank
492	North Penn Bank
439	Northumberland National Bank
93	Northwest Savings Bank
546	Nova Savings Bank
Bank Code	O.
348	Old Forge Bank
323	Omega Bank, NA
489	OMEGA Federal Credit Union
94	Orrstown Bank
Bank Code	P.
598	Parke Bank
267	Parkvale Bank
584	Parkview Community Federal Credit Union
580	Penn Liberty Bank
97	Penn Security Bank & Trust Company
168	Pennstar Bank
544	Pennsylvania Business Bank
445	Pennsylvania State Bank
99	PeoplesBank, A Codorus Valley Company
447	Peoples National Bank of Susquehanna County
491	Peoples State Bank (The)
556	Philadelphia Federal Credit Union
448	Phoenixville Federal Bank & Trust
79	PNC Bank, N.A.
534	Pocono Community Bank
528	Polonia Bank
449	Port Richmond Savings
454	Portage National Bank
451	Progressive Home Federal
456	Prudential Savings Bank
Bank Code	Q.
107	Quakertown National Bank (The)
560	Quaint Oak Savings Bank
Bank Code	R.
452	Reliance Savings Bank
220	Republic First Bank
208	Royal Bank America
Bank Code	S.
153	S&T Bank
464	Scottdale Bank & Trust Company (The)
460	Second Federal Savings & Loan Assoc. of  Philadelphia
516	Sentry Federal Credit Union
458	Sharon Savings Bank
312	Sky Bank
462	Slovenian Savings & Loan Assoc. of Franklin—Conemaugh
486	Somerset Trust Company
316	Sovereign Bank, FSB
518	Standard Bank, PASB
542	Stonebridge Bank
517	Sun National Bank
440	SunTrust
385	Susquehanna Bank
30	Susquehanna Bank PA
282	Susquehanna Patriot Bank
236	Swineford National Bank
Bank Code	T.
143	TD Banknorth
594	Team Capital Bank
463	The Haverford Trust Company
26	Third Federal Savings Bank
467	Turbotville National Bank (The)
Bank Code	U.
113	Union Bank and Trust Company
481	Union Building and Loan Savings Bank
483	Union National Bank of Mount Carmel (The)
133	Union National Community Bank
472	United Bank of Philadelphia
475	United Savings Bank
600	Unity Bank
232	Univest National Bank & Trust Company
Bank Code	V.
589	Valley Green Bank
136	Vartan National Bank
Bank Code	W.
338	Wachovia
119	Washington Federal Savings Bank
121	Wayne Bank
553	Wesbanco Bank
122	West Milton State Bank
494	West View Savings Bank
473	Westmoreland Federal Savings
476	William Penn Bank
370	Willow Financial Bank
160	Wilmington Trust of PA
272	Woodlands Bank
573	Woori America Bank
Bank Code	X.
Bank Code	Y.
571	Yardville National Bank
577	York Traditions Bank
Bank Code	Z.

 (a)  General rule. Enforcement Rule 221(h) provides that an Eligible Institution shall report to the Lawyers Fund for Client Security Board whenever any check or similar instrument is presented against a Trust Account when such account contains insufficient funds to pay the instrument, regardless of:

   (1)  whether the instrument is honored; or

   (2)  whether funds are subsequently deposited that cover the overdraft or the dishonored instrument is made good.

 (b)  Timing of report. Enforcement Rule 221(p) provides that the report required to be made under this subchapter shall be made by the Eligible Institution to the Lawyers Fund for Client Security Board within five business days of the presentation of the instrument.

 (c)  Handling of report. Enforcement Rule 22 (o) provides that a designated representative of the Lawyers Fund for Client Security Board shall conduct a preliminary inquiry regarding the report and shall, where appropriate, refer the matter to the Office of Disciplinary Counsel for further investigation.

 (d)  Effect of report or referral. Enforcement Rule 221(o) also provides that neither a report filed with the Lawyers Fund for Client Security Board pursuant to this subchapter nor a referral of such report to the Office of Disciplinary Counsel shall, in and of itself, be considered a disciplinary complaint.

 (e)  Immunity. Enforcement Rule 221(l) provides that Eligible Institutions shall be immune from suit for the filing of any reports required by this subchapter or believed in good faith to be required by this subchapter. See §  91.173(b) (relating to termination of approval).

 (a)  Identification. Enforcement Rule 221(d) provides that the responsibility for identifying an account as a Trust Account shall be that of the attorney in whose name the account is held.

 (b)  Service charge. Enforcement Rule 221(m) provides that an Eligible Institution shall be free to impose a reasonable service charge upon the attorney in whose name the account is held for the filing of the report required by this subchapter.

 For purposes of this subchapter:

   (1)  Enforcement Rule 221(i)(1) provides that a Trust Account shall not be deemed to contain insufficient funds to pay a check or similar instrument solely because it contains insufficient collected funds to pay the instrument, and no report shall be required in the case of an instrument presented against uncollected or partially uncollected funds. This provision shall not be deemed an endorsement of the practice of drawing checks against uncollected funds.

   (2)  Enforcement Rule 221(i)(2) provides that funds deposited in an account prior to the close of business on the calendar date of presentation of an instrument shall be considered to be in the account at the close of business on that date notwithstanding the Eligible Institution’s treatment of such funds, for other purposes, as being received at the opening of the next banking day pursuant to 13 Pa.C.S. §  4108(b) (relating to items or deposits received after cutoff hour).

   (3)  Enforcement Rule 221(i)(3) provides that a check or draft against a Trust Account shall be deemed to be presented at the close of business on the date of presentation.

   (4)  Enforcement Rule 221(j) provides that no report need be made when the Eligible Institution determines that an instrument presented against insufficient funds had been issued in reliance on a deposited instrument that was ultimately dishonored. This provision shall not be deemed an endorsement of the practice of drawing checks against uncollected funds.

 (a)  In general. Enforcement Rule 221(e) provides that an attorney shall maintain the following books and records for each Trust Account and for any other account in which Rule 1.15 Funds are held:

   (1)  all transaction records provided to the attorney by the Eligible Institution, such as periodic statements, canceled checks in whatever form, deposited items and records of electronic transactions; and

   (2)  check register or separately maintained ledger, which shall include the payee, date and amount of each check, withdrawal and transfer, the payor, date, and amount of each deposit, and the matter involved for each transaction.

 (b)  Form. Enforcement Rule 221(f) provides that the records required by this rule may be maintained in electronic or hard copy form. If records are kept only in electronic form, then such records shall be backed up at least monthly on a separate electronic storage device.

 (c)  Availability. Enforcement Rule 221(g) provides that the records required by this rule may be subject to subpoena and must be produced in connection with an investigation or hearing pursuant to these rules; and that failure to produce such records may result in the initiation of proceedings pursuant to §  91.151 (relating to emergency temporary suspension orders and related relief), which permits disciplinary counsel to commence a proceeding for the temporary suspension of a respondent-attorney who refuses to comply with a valid subpoena.

   The provisions of this Rule 91.177 adopted August 5, 2005, effective immediately, 35 Pa.B. 4301; amended May 29, 2009, effective May 30, 2009, 39 Pa.B. 2687. Immediately preceding text appears at serial page (326996).