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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-5-35 SO AS TO PROVIDE THAT ONE-HALF OF THE INTEREST ON FUNDS OF A CLIENT ON DEPOSIT IN A TRUST OR ESCROW ACCOUNT OF AN ATTORNEY LICENSED TO PRACTICE LAW IN THIS STATE MUST BE RETURNED TO THE CLIENT AND ONE-HALF MAY BE REMITTED TO THE SOUTH CAROLINA BAR PURSUANT TO THE RULE OF THE SUPREME COURT FOR USE IN PRO BONO BAR ACTIVITIES, TO PROVIDE THAT NOTHING IN THIS SECTION REQUIRES THE PLACING OF CLIENT FUNDS IN AN INTEREST-BEARING TRUST OR ESCROW ACCOUNT, AND TO PROVIDE THAT IF THE CLIENT AND ATTORNEY AGREE, ALL INTEREST ACCRUING FROM SUCH AN ACCOUNT SHALL BELONG TO THE CLIENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 5, Title 40 of the 1976 Code is amended by adding:
"Section 40-5-35. (A) One-half of the interest on funds of a client on deposit in a trust or escrow account of an attorney licensed to practice law in this State must be returned to the client and one-half may be remitted to the South Carolina Bar pursuant to the rule of the Supreme Court for use in pro bono bar activities.
(B) Nothing in this section requires the placing of client funds in an interest-bearing trust or escrow account. If the client and attorney agree, all interest accruing from such an account shall belong to the client."
SECTION 2. This act takes effect upon approval by the Governor.
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