Section 42 Distribution of sums in client bank account.C1

Subject to the provisions of this section, where, in any of the events mentioned in subsection (2) F1or (2A), the sum at the credit of any client account kept by a solicitor or an F2incorporated practice authorised legal business (or where several such accounts are kept by him or, as the case may be, by it the total of the sums at the credit of those accounts) is less than the total of the sums received by him in the course of his practice on behalf of his clients or, as the case may be, by it on behalf of its clients and remaining due by him or, as the case may be, by it to them, then, notwithstanding any rule of law to the contrary, the sum at the credit of the client account (or where several such accounts are kept, the total of the sums at the credit of those accounts) shall be divisible proportionately among the clients of the solicitor or, as the case may be, the incorporated practice authorised legal business according to the respective sums received by him in the course of his practice on their behalf or, as the case may be, by it on their behalf and remaining due by him or, as the case may be, by it to them.

The events to which subsection (1) applies are in relation to any solicitor—

The events to which subsection (1) applies are in relation to any F6incorporated practice authorised legal business—

Where a solicitor F9or an F10incorporated practice authorised legal business keeps an account at a bank in his or, as the case may be, its own name or, as the case may be, by the incorporated practice authorised legal business in its own name for a specified client no regard shall be had for the purposes of this section to the sum at the credit of that account or to any sums received by the solicitor in the course of his practice on behalf of that client or, as the case may be, by the incorporated practice authorised legal business on that behalf and remaining due by him or, as the case may be, by it to that client, so far as these are represented by the sum at the credit of that bank account F11; nor shall any regard be had for such purposes to any—

being in either case an account kept by the solicitor in his own name or, as the case may be, by the incorporated practice authorised legal business in its own name for a specified client.

For the purposes of this section any reference to an account at a bank includes a reference to a deposit receipt at a bank.