N.Y. Judiciary Law Section 468-B
Clients’ security fund of the state of New York


1.

The court of appeals shall appoint a board of trustees to administer the lawyers’ fund for client protection of the state of New York established pursuant to State Finance Law § 97-T (Lawyers’ fund for client protection of the state of New York)section ninety-seven-t of the state finance law. Such board shall consist of seven members. Of the trustees first appointed, three shall be appointed for a term of three years; two for a term of two years; and two for a term of one year. As each such term expires, each new appointment shall be for a term of three years. The court of appeals may require such reports or audits of the board as it shall from time to time deem to be necessary or desirable.

2.

The board shall have the power to receive, hold, manage and distribute the funds collected hereunder for the purpose of maintaining the integrity and protecting the good name of the legal profession by reimbursing, in the discretion of the trustees to the extent they may deem proper and reasonable, losses caused by the dishonest conduct of attorneys admitted to practice in this state. For purposes of this section, the term “dishonest conduct” shall mean misappropriation or wilful misapplication of clients’ money, securities, or other property, by an attorney admitted to practice in this state.

3.

The board of trustees shall adopt regulations for the administration of the lawyers’ fund for client protection of the state of New York and the procedures for presentation, consideration, allowance and payment of claims, including the establishment of a maximum limitation for awards to claimants.

4.

The board of trustees shall have the sole discretion to determine the merits of claims presented for reimbursement, the amount of such reimbursement and the terms under which such reimbursement shall be made. Such terms of reimbursement shall require that the claimant execute such instruments, take such action or enter into such agreements as the board of trustees shall require, including assignments, subrogation agreements and promises to cooperate with the board of trustees in making claims against the attorney whose dishonest conduct resulted in the claim.

5.

The board of trustees shall serve without compensation but shall be entitled to receive their actual and necessary expenses incurred in the discharge of their duties.

6.

The board of trustees may employ and at pleasure remove such personnel as it may deem necessary for the performance of its functions and fix their compensation within the amounts made available therefor.

7.

The board of trustees shall be considered employees of the state for the purpose of Public Officers Law § 17 (Defense and indemnification of state officers and employees)section seventeen of the public officers law.

8.

All payments from the lawyers’ fund for client protection of the state of New York shall be made by the state comptroller upon certification and authorization of the board of trustees of said fund.

9.

Acceptance of an award of reimbursement from the lawyers’ fund for client protection shall, to the extent of such award, (a) subrogate the fund to any right or cause of action that accrued to the claimant as a consequence of the dishonest conduct that resulted in the claimant’s award and (b) create a lien in favor of the fund that shall attach to any money asset that is designated to be paid to the claimant from, or on behalf of, the attorney who caused the claimant’s loss. If the fund fully reimburses the claimant’s loss, as determined by the board of trustees, the lien shall be in the amount of the fund’s award. If the claimant’s loss exceeds the fund’s award, the lien shall not extend to the claimant’s right to recover additional restitution from the attorney for the claimant’s unreimbursed loss. In the event of a recovery by the fund, a claimant shall be entitled to any money recovered in excess of the fund’s award of reimbursement to the claimant.

Source: Section 468-B — Clients' security fund of the state of New York, https://www.­nysenate.­gov/legislation/laws/JUD/468-B (updated Sep. 22, 2014; accessed Jun. 15, 2024).

460
Examination and admission of attorneys
460‑B
Applications for special arrangements
461
Compensation of state board of law examiners
462
Annual account by state board of law examiners
463
Times and places of examinations
464
Certification by state board of successful candidates
465
Fee for examinations and for credential review for admission on motion
466
Attorney’s oath of office
467
Registration of attorneys
468
Official registration of attorneys to be kept by the chief administrator of the courts
468‑A
Biennial registration of attorneys
468‑B
Clients’ security fund of the state of New York
469
Continuance where attorney is member of legislature
470
Attorneys having offices in this state may reside in adjoining state
471
Attorney who is judge’s partner or clerk prohibited from practicing before him or in his court
472
Attorney who is surrogate’s parent or child prohibited from practicing berfore him
473
Constables, coroners, criers and attendants prohibited from practicing during term of office
474
Compensation of attorney or counsellor
474‑A
Contingent fees for attorneys in claims or actions for medical, dental or podiatric malpractice
474‑B
Attorney retainer statements
475
Attorney’s lien in action, special or other proceeding
475‑A
Notice of lien
476
Action against attorney for lending his name in suits and against person using name
476‑A
Action for unlawful practice of the law
476‑B
Injunction to restrain defendant from unlawful practice of the law
476‑C
Investigation by the attorney-general
477
Settlement of actions for personal injury
478
Practicing or appearing as attorney-at-law without being admitted and registered
479
Soliciting business on behalf of an attorney
480
Entering hospital to negotiate settlement or obtain release or statement
481
Aiding, assisting or abetting the solicitation of persons or the procurement of a retainer for or on behalf of an attorney
482
Employment by attorney of person to aid, assist or abet in the solicitation of business or the procurement through solicitation of a reta...
483
Signs advertising services as attorney at law
484
None but attorneys to practice in the state
485
Violation of certain preceding sections a misdemeanor
485‑A
Violation of certain sections a class E felony
486
Practice of law by attorney who has been disbarred, suspended, or convicted of a felony
486‑A
Conviction for felony of person who is an attorney and counselor at law
487
Misconduct by attorneys
488
Buying demands on which to bring an action
489
Purchase of claims by corporations or collection agencies
490
Limitation
491
Sharing of compensation by attorneys prohibited
492
Use of attorney’s name by another
493
Attorneys forbidden to defend criminal prosecutions carried on by their partners, or formerly by themselves
494
Attorneys may defend themselves
495
Corporations and voluntary associations not to practice law
496
An organization described in subdivision seven of section four hundred ninety-five of this article shall file with the appellate division...
497
Attorneys fiduciary funds
498
Professional referrals
499
Lawyer assistance committees

Accessed:
Jun. 15, 2024

Last modified:
Sep. 22, 2014

§ 468-B’s source at nysenate​.gov

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