secpal40 said:
i am in miami, florida and was in a auto accident and hired an attorney, he recovered 50,000 dollars for personal injury for me. i indorsed the check eight days ago but he told me by florida law they have to put it into a trust account or something regulated by the florida bar to the check clears and the interset it accurs goes the bar in some fund. by question is should i me worried or is this the normal procedures and it takes ten to fourteen days to clear, he seems to be a great attorney. thank you
My response:
It's perfectly normal. The insurance draft must, by law, be deposited into his Attorney / Client Trust Account until it "clears" the Federal Reserve System. The interest goes to the States' "Indigent Criminal Defense Fund" for those criminal defendant who don't have enough money to afford an attorney. 10 to 14 banking days is just about right.
Remember, your settlement is NOT a "check" - - it is a "draft". A "documentary draft" or "documentary demand for payment" is a draft or demand whose honor is conditioned on the presentation of a document or documents. "Document" means any paper including documents of title, securities, invoices, certificates, notices of default, and the like. [UCC §5103(1)(b)] In this case, it would be the insurance company's receipt of your signed and dated "Release of All Claims" form.
Ask your attorney about the significance.
Congratulations.
IAAL
[Edited by I AM ALWAYS LIABLE on 04-07-2001 at 12:50 AM]