The Appellate Division amends the Rules of Professional Conduct to Address Overdraft Protection on Escrow Accounts

By Joint Order dated April 7, 2021, Parts 1200 (Rules of Professional Conduct) and 1300 (Dishonored Check Reporting Rules) of the Appellate Division rules were amended to address the use of overdraft protection. The amendments serve to prohibit overdraft protection on special and trust accounts, as well as to require the reporting of overdrafts, “irrespective of whether the instrument is honored,” in the same manner as the reporting of dishonored checks is required. Read the Order here.