’WPCI ¹+žšzN£’¼ļ Ė«* ōć[É8ˆLĘŖ]Ū^GÉķčŒ-ų0śgŠņFe·«¹üŚOžŒø=jh֍@”źź‡ńEx?}—¶›H)TFb@Ÿ’*×ā“ž¬ éG‰µŅÄķń¦ˆū¹Åić…Mvŗu#¼Õ5Ų×ćĢėP&­ąXčśA”œvŠF–MF;g0{N ®ņ4ź9—¹ĮŹłDg¾5<«äøHˆŠ¤Æ¬ćᣘGµŻ—j$<ĄūLt‰Ņ©oZ?aŖ£†3<Äh³.jkmĖ”?ŻöUßM ĖĮˆÆ} å86‚ ‚ź* „ Ÿ³ÖåA]1Ā«…ņ­t±L<ƒTŠ3Āé÷frž†Į“§o3k’ŲBмŠń!{^ś~8Š43č#Ń|š4Vź¼H®M>ŲC ]ÖŖWU„OrŸeŌī—ÄĘFJ÷\¬ķż|ä”4Jśƒ£ś(PēYk YT"įrŻÄHG›ŠŽžœóµOjB .Ü}»&Ņ­Cg‹š1µ“|vccæl_-„p÷æoƒé½Öē©&’r”6_½iąEŠ †­ r¶A3ĢIśLąŲ‹ĻÆid“@_R`ÄĒ䊽AŲHÆ>—›˜—0ü#ĮąUN” %ļ 0:õ^ /w;4?Sb mdb{U8ƒUF»NUF˜HP LaserJet 4000 Series PCL$,,,,$0(ÖĆ9 Z‹6Times New Roman RegularX(üœ$””ŌUSUS.,Ōfk8s peƒ7+7 nBackup3|x’U‹’ĄĄĄ- ł-<4šŪ 9Z+‹ Courier New <4šŪ 9Z+‹.Courier New Regular<4šŪ 9Z+.Courier New RegularŻ ƒüœ!ŻŌUSUS.,ŌŻ  ŻŌ_ŌŃX°ŃŌ€ X.žXXXŌŃ  ŃŃ€ ŃŃ8€ž,XXdģdČ8Ńą@| | ģąCOURT€OF€APPEALS€STANDING€COMMITTEE€ˆŠ ° Šą@ō ō ģąņņON€RULES€OF€PRACTICE€AND€PROCEDUREóóˆŠ †Ö ŠĢĢŅ„°ŅÓÓą  ąMinutes€of€a€meeting€of€the€Rules€Committee€held€in€TrainingŠ X ŠRooms€5€and€6€of€the€Judiciary€Education€and€Conference€Center,Š “  Š2011€C„D€Commerce€Park€Drive,€Annapolis,€Maryland,€on€September€7,Š ` ° Š2007.Š  \  ŠÓÓĢą  ąMembers€present:Š ŽŽ  ŠŅ°„ŅĢHon.€Joseph€F.€Murphy,€ChairpersonŠ :Š  ŠLinda€M.€Ō_ŌSchuettŌ_Ō,€Esq.,€Vice€ChairpersonŠ `  ŠĢF.€Vernon€Boozer,€Esq.ą0 h ąą0Ąh(#h(#ąą0Ą(#Ą(#ąJ.€Brooks€Leahy,€Esq.м (#(# ŠLowell€R.€Bowen,€Esq.ą0 h ąą0Ąh(#h(#ąą0Ą(#Ą(#ąŌ_ŌZakiaŌ_Ō€Ō_ŌMahasaŌ_Ō,€Esq.Š’ā(#(# ŠAlbert€D.€Ō_ŌBraultŌ_Ō,€Esq.ą0 h ąą0Ąh(#h(#ąą0Ą(#Ą(#ąHon.€Albert€J.€Ō_ŌMatriccianiŌ_ŌŠhø(#(# ŠHon.€Michele€D.€Ō_ŌHottenŌ_Ōą0 h ąą0Ąh(#h(#ąą0Ą(#Ą(#ąRobert€R.€Michael,€Esq.Š>Ž(#(# ŠHarry€S.€Johnson,€Esq.ą0 h ąą0Ąh(#h(#ąą0Ą(#Ą(#ąHon.€John€L.€Norton,€IIIŠd(#(# ŠHon.€Joseph€H.€H.€Kaplaną0 h ąą0Ąh(#h(#ąą0Ą(#Ą(#ąDebbie€L.€Potter,€Esq.Šź:(#(# ŠRichard€M.€Ō_ŌKarceskiŌ_Ō,€Esq.ą0 Ą ąą0Ą(#Ą(#ąKathy€P.€Smith,€ClerkŠĄ(#(# ŠRobert€D.€Klein,€Esq.ą0 h ąą0Ąh(#h(#ąą0Ą(#Ą(#ąMelvin€J.€Sykes,€Esq.Š–ę(#(# ŠFrank€M.€Ō_ŌKratovilŌ_Ō,€Jr.,€Esq.ą0 Ą ąą0Ą(#Ą(#ąRobert€A.€Ō_ŌZarnochŌ_Ō,€Esq.Šl¼(#(# ŠĢĢą  ąIn€attendance:Š ī> ŠĢSandra€F.€Haines,€Esq.,€ReporterŠ šź ŠŌ_ŌSherieŌ_Ō€B.€Libber,€Esq.,€Assistant€ReporterŠ pĄ  ŠCheryl€Lyons„Schmidt,€Rules€Committee€InternŠ F –! ŠŅī°ŅPaul€H.€Ō_ŌEthridgeŌ_Ō,€Esq.,€Chair,€Rules€of€Practice€Committee,€Ō_ŌM.S.B.A.Ō_ŌŠ !l" ŠVeronica€P.€Jones,€Esq.,€Legal€Officer,€Court€of€AppealsŠ ņ!B# ŠWilhelm€Joseph,€Esq.,€Legal€Aid€Bureau,€Inc.Š Č"$ ŠŅ°īŅSteven€H.€Ō_ŌBrownleeŌ_Ō,€Esq.,€Chevy€Chase€BankŠ ž#ī% ŠHarriet€RobinsonŠ t$Ä& ŠHerbert€S.€Ō_ŌGartenŌ_Ō,€Esq.Š J%š ' ŠMelvin€Ō_ŌHirshmanŌ_Ō,€Esq.,€Bar€Counsel,€Attorney€Grievance€CommissionŠ  &p!( ŠGlenn€Grossman,€Esq.,€Assistant€Bar€Counsel,€Attorney€GrievanceŠ ö&F") Š€€CommissionŠ Ģ'#* ŠDavid€D.€Ō_ŌDownesŌ_Ō,€Esq.,€Chair,€Attorney€Grievance€CommissionŠ ¢(ņ#+ ŠD.€Robert€Ō_ŌEntenŌ_Ō,€Esq.,€Gordon,€Ō_ŌFeinblattŌ_Ō,€et€al.Š x)Č$, ŠKathleen€M.€Murphy,€Executive,€Maryland€Bankers€AssociationŠ N*ž%- ŠSusan€M.€Ō_ŌErlichmanŌ_Ō,€Esq.,€Director,€Maryland€Legal€ServicesŠ $+t&. Š€€CorporationŠ ś+J'/ ŠSteven€P.€Ō_ŌLemmeyŌ_Ō,€Esq.,€Investigative€Counsel,€Commission€onŠ Š, (0 Š€€Judicial€DisabilitiesŠ ¦-ö(1 ŠĢĢÓÓŠ  (0x+4 ŠŌ_Ōą  ąThe€Chair€convened€the€meeting.€€He€told€the€Committee€thatŠ ° Šseveral€guests€were€in€attendance.€€The€Reporter€introducedŠ \¬ ŠCheryl€Lyons„Schmidt,€a€third„year€law€student€from€theŠ X ŠUniversity€of€Baltimore,€who€also€has€a€degree€in€paralegalŠ “  Šstudies€from€Anne€Arundel€Community€College€and€who€will€be€theŠ ` ° Šintern€for€the€Rules€Committee€for€the€fall€semester.€€Ms.€Lyons„Š  \  ŠSchmidt€will€be€available€to€help€Committee€members€with€anyŠ ø  Šresearch€that€they€may€need.€€The€Chair€welcomed€Ms.€Lyons„Š d“  ŠSchmidt.Š `  ŠÓÓĢAgenda€Item€1.€€Reconsideration€of€proposed€amendments€to€RuleŠ ’ā Š€€16„610€(Approval€of€Financial€Institutions),€concerningŠ hø Š€€Interest€on€Lawyersšš€Trust€Accounts€(IOLTA)Š >Ž Š_________________________________________________________________Š d ŠĢĢÓÓą  ąMr.€Brault€presented€Rule€16„610,€Approval€of€FinancialŠ –ę ŠInstitutions,€for€the€Committeeššs€consideration.Š B’ ŠÓÓĢŅ` °ŅŅ` °Ņą@˜ ˜ ģąMARYLAND€RULES€OF€PROCEDUREˆŠ Ä ŠĢą@Œ Œ ģąTITLE€16€„€COURTS,€JUDGES,€AND€ATTORNEYSˆŠ pĄ  ŠĢą@@ @ ģąCHAPTER€600€„€ATTORNEY€TRUST€ACCOUNTSˆŠ !l" ŠĢĢą ø ąAMEND€Rule€16„610€by€adding€a€referenceŠ ž#ī% Što€the€Maryland€Legal€Services€CorporationŠ t$Ä& Š(MLSC)€in€section€a,€by€deleting€languageŠ J%š ' Šfrom€and€adding€language€to€subsection€b€1Š  &p!( Š(D)€explaining€how€to€determine€the€rate€ofŠ ö&F") Šinterest€on€IOLTA€accounts,€by€addingŠ Ģ'#* Šlanguage€to€subsection€c€3€referring€to€theŠ ¢(ņ#+ ŠMLSC€and€requiring€notification€to€aŠ x)Č$, Šfinancial€institution€of€termination€of€anŠ N*ž%- ŠIOLTA€agreement,€and€by€adding€a€section€dŠ $+t&. Šreferring€to€filing€exceptions,€as€follows:Š ś+J'/ ŠĢŠ  ¦-ö(1 ŠRule€16-610.€€APPROVAL€OF€FINANCIALŠ ° ŠINSTITUTIONS€Š †Ö ŠĢĢ€€a.€€Written€Agreement€to€be€Filed€withŠ X ŠCommission.Š Ž. ŠĢ€€The€Commission€shall€approve€a€financialŠ Š Ś Šinstitution€upon€the€filing€with€theŠ ` ° ŠCommission€of€a€written€agreement€ņņwith€theŠ 6 †  ŠMaryland€Legal€Services€Corporation€(MLSC)óó,Š  \  Šcomplying€with€this€Rule€and€in€a€formŠ ā 2  Šprovided€by€the€Commission,€applicable€to€allŠ ø  Šbranches€of€the€institution€located€in€thisŠ ŽŽ  ŠState.€€Š d“  ŠĢ€€b.€€Contents€of€Agreement.Š `  ŠĢ€€€€1.€Duties€to€be€Performed.Š ¼  ŠĢą ø ą€€The€agreement€shall€provide€that€theŠ hø Šfinancial€institution,€as€a€condition€ofŠ >Ž Šaccepting€the€deposit€of€any€funds€into€anŠ d Šattorney€trust€account,€shall:€€Š ź: ŠĢ€€€€€€(A)€Notify€the€attorney€or€law€firmŠ –ę Špromptly€of€any€overdraft€in€the€account€orŠ l¼ Šthe€dishonor€for€insufficient€funds€of€anyŠ B’ Šinstrument€drawn€on€the€account.€€Š h ŠĢ€€€€€€(B)€Report€the€overdraft€or€dishonor€toŠ Ä ŠBar€Counsel€as€set€forth€in€subsection€b€1Š šź Š(C)€of€this€Rule.€€Š pĄ  ŠĢ€€€€€€(C)€Use€the€following€procedure€forŠ !l" Šreports€to€Bar€Counsel€required€underŠ ņ!B# Šsubsection€b€1€(B)€of€this€Rule:€€Š Č"$ ŠĢ€€€€€€€€(i)€In€the€case€of€a€dishonoredŠ t$Ä& Šinstrument,€the€report€shall€be€identical€toŠ J%š ' Šthe€overdraft€notice€customarily€forwarded€toŠ  &p!( Šthe€institution's€other€regular€accountŠ ö&F") Šholders.€€The€report€shall€be€mailed€to€BarŠ Ģ'#* ŠCounsel€within€the€time€provided€by€law€forŠ ¢(ņ#+ Šnotice€of€dishonor€to€the€depositor€andŠ x)Č$, Šsimultaneously€with€the€sending€of€thatŠ N*ž%- Šnotice.€€Š $+t&. ŠĢ€€€€€€€€(ii)€If€an€instrument€is€honored€butŠ Š, (0 Šat€the€time€of€presentation€the€total€fundsŠ ¦-ö(1 Šin€the€account,€both€collected€andŠ |.Ģ)2 Šuncollected,€do€not€equal€or€exceed€theŠ ° Šamount€of€the€instrument,€the€report€shallŠ †Ö Šidentify€the€financial€institution,€theŠ \¬ Šattorney€or€law€firm€maintaining€the€account,Š 2‚ Šthe€account€name,€the€account€number,€theŠ X Šdate€of€presentation€for€payment,€and€theŠ Ž. Špayment€date€of€the€instrument,€as€well€asŠ “  Šthe€amount€of€the€overdraft€created.€TheŠ Š Ś Šreport€shall€be€mailed€to€Bar€Counsel€withinŠ ` ° Šfive€banking€days€after€the€date€ofŠ 6 †  Špresentation,€notwithstanding€any€overdraftŠ  \  Šprivileges€that€may€attach€to€the€account.€€Š ā 2  ŠĢ€€€€€€(D)€ņ ņNot€deduct€from€interest€on€theŠ ŽŽ  Šaccount€that€otherwise€would€be€payable€toŠ d“  Šthe€Maryland€Legal€Services€Corporation€FundŠ :Š  Šany€fees€for€wire€transfers,€presentationsŠ `  Šagainst€insufficient€funds,€certified€checks,Š ę6 Šoverdrafts,€deposits€of€dishonored€items,€andŠ ¼  Šaccount€reconciliation€services.ó ó€€ņņPay€no€lessŠ ’ā Šon€its€IOLTA€accounts€than€the€highest€non„Š hø Špromotional€interest€rate€generally€availableŠ >Ž Šfrom€the€institution€to€its€non„IOLTAŠ d Šcustomers€at€the€same€branch€when€the€IOLTAŠ ź: Šaccount€meets€or€exceeds€the€same€minimumŠ Ą Šbalance€or€other€eligibility€qualificationsŠ –ę Šfor€its€non„IOLTA€accounts€at€that€branch.€Š l¼ ŠIn€determining€the€highest€interest€rateŠ B’ Šgenerally€available€from€the€institution€toŠ h Šits€IOLTA€customers€at€a€particular€branch,Š ī> Šan€approved€institution€may€consider,€inŠ Ä Šaddition€to€the€balance€in€the€IOLTA€account,Š šź Šfactors€customarily€considered€by€theŠ pĄ  Šinstitution€at€that€branch€when€settingŠ F –! Šinterest€rates€for€its€non„IOLTA€customers;Š !l" Šprovided,€however,€that€these€factors€shallŠ ņ!B# Šnot€discriminate€between€IOLTA€accounts€andŠ Č"$ Šnon„IOLTA€accounts,€nor€shall€the€factorsŠ ž#ī% Šinclude€or€consider€the€fact€that€the€accountŠ t$Ä& Šis€an€IOLTA€account.ó󀀩 J%š ' ŠĢ€€€€€€€€ņņ(i)€An€approved€institution€mayŠ ö&F") Šsatisfy€the€requirement€described€inŠ Ģ'#* Šsubsection€b€1€(D)€by€establishing€the€IOLTAŠ ¢(ņ#+ Šaccount€in€an€account€paying€the€highest€rateŠ x)Č$, Šfor€which€the€IOLTA€account€qualifies.€€TheŠ N*ž%- Šapproved€institution€may€deduct€from€interestŠ $+t&. Šearned€on€the€IOLTA€account€allowableŠ ś+J'/ Šreasonable€fees€as€provided€hereinŠ Š, (0 Š(š šAllowable€Reasonable€Feesšš).€€This€accountŠ ¦-ö(1 Šmay€be€any€one€of€the€following€productŠ |.Ģ)2 Šoption€types,€assuming€the€particularŠ ° Šfinancial€institution€offers€these€accountŠ †Ö Štypes€to€its€non„IOLTA€customers,€and€theŠ \¬ Šparticular€IOLTA€account€qualifies€to€beŠ 2‚ Šestablished€as€this€type€of€account€at€theŠ X Šparticular€branch:óóŠ Ž. ŠĢ€€€€€€€€€€ņņ(a)€€a€business€checking€accountŠ Š Ś Šwith€an€automated€investment€feature,€whichŠ ` ° Šis€an€overnight€sweep€and€investment€inŠ 6 †  Šrepurchase€agreements€fully€collateralized€byŠ  \  ŠU.S.€Government€securities,€includingŠ ā 2  ŠGovernment„Sponsored€Entities;óóŠ ø  ŠĢ€€€€€€€€€€ņņ(b)€€checking€accounts€payingŠ d“  Šinterest€rates€in€excess€of€the€lowest„payingŠ :Š  Šinterest„bearing€checking€account;óóŠ `  ŠĢ€€€€€€€€€€ņņ(c)€€any€other€suitable€interest„Š ¼  Šbearing€checking€account€offered€by€theŠ ’ā Šapproved€institution€to€its€non„IOLTAŠ hø Šcustomers.óóŠ >Ž ŠĢ€€€€€€€€ņņ(ii)€€In€lieu€of€the€options€providedŠ ź: Šin€subsection€b€1€(D)(i),€an€approvedŠ Ą Šfinancial€institution€may:€(a)€retain€theŠ –ę Šexisting€IOLTA€account€and€pay€the€equivalentŠ l¼ Šapplicable€rate€that€would€be€paid€at€thatŠ B’ Šbranch€on€the€highest„yield€product€for€whichŠ h Šthe€IOLTA€account€qualifies€and€deduct€fromŠ ī> Šinterest€earned€on€the€IOLTA€accountŠ Ä ŠAllowable€Reasonable€Fees;€(b)€offer€a€š šsafeŠ šź Šharboršš€rate€that€is€equal€to€55%€of€theŠ pĄ  ŠFederal€Funds€Target€Rate€as€reported€in€theŠ F –! ŠWall€Street€Journal€on€the€first€calendar€dayŠ !l" Šof€the€month€on€high„balance€IOLTA€accountsŠ ņ!B# Što€satisfy€the€requirements€described€inŠ Č"$ Šsubsection€b€1€(D),€however,€no€fees€areŠ ž#ī% Šallowed€to€be€deducted€from€the€interest€onŠ t$Ä& Šthis€š šsafe€harboršš€rate€account,€because€theŠ J%š ' Šrate€is€deemed€already€to€be€net€of€AllowableŠ  &p!( ŠReasonable€Fees;€or€(c)€pay€a€rate€specifiedŠ ö&F") Šby€the€MLSC,€if€it€chooses€to€specify€a€rate,Š Ģ'#* Šwhich€is€agreed€to€by€the€financialŠ ¢(ņ#+ Šinstitution€and€would€be€in€effect€for€andŠ x)Č$, Šremain€unchanged€during€a€period€of€twelveŠ N*ž%- Šmonths€from€the€agreement€between€theŠ $+t&. Šfinancial€institution€and€MLSC€to€pay€theŠ ś+J'/ Šspecified€rate.€€Allowable€Reasonable€FeesŠ Š, (0 Šmay€be€deducted€from€the€interest€on€thisŠ ¦-ö(1 Šš šspecified€ratešš€account€as€agreed€betweenŠ |.Ģ)2 ŠMLSC€and€the€financial€institution.óóŠ ° ŠĢ€€€€€€€€ņņ(iii)€€š šAllowable€Reasonable€FeesššŠ \¬ Šmeans€fees€and€service€charges€in€amountsŠ 2‚ Šcustomarily€charged€to€non„IOLTA€customersŠ X Šwith€the€same€type€of€account€and€balance€atŠ Ž. Šthe€same€branch,€including€per„check€charges,Š “  Šper„deposit€charges,€a€fee€in€lieu€of€aŠ Š Ś Šminimum€balance,€federal€deposit€insuranceŠ ` ° Šfees,€and€sweep€fees,€plus€a€reasonable€IOLTAŠ 6 †  Šaccount€administrative€fee.€€AllowableŠ  \  ŠReasonable€Fees€may€be€deducted€from€interestŠ ā 2  Šearned€on€an€IOLTA€account€only€in€amountsŠ ø  Šand€in€accordance€with€the€customaryŠ ŽŽ  Špractices€of€the€approved€institution€forŠ d“  Šnon„IOLTA€customers€at€the€particular€branch.€Š :Š  ŠFees€or€service€charges€are€not€AllowableŠ `  ŠReasonable€Fees€if€they€are€charged€for€theŠ ę6 Šconvenience€of€or€arise€due€to€errors€orŠ ¼  Šomissions€by€the€attorney€or€law€firmŠ ’ā Šmaintaining€the€IOLTA€account€or€thatŠ hø Šattorneyššs€or€law€firmššs€clients,€includingŠ >Ž Šfees€for€wire€transfers,€certified€checks,Š d Šaccount€reconciliation€services,Š ź: Špresentations€against€insufficient€funds,Š Ą Šoverdrafts,€or€deposits€of€dishonored€items.óóŠ –ę ŠĢ€€€€€€€€ņņ(iv)€€Nothing€in€this€Rule€shallŠ B’ Špreclude€an€approved€institution€from€payingŠ h Ša€higher€interest€rate€than€described€hereinŠ ī> Šor€electing€to€waive€any€fees€and€serviceŠ Ä Šcharges€on€an€IOLTA€account.óóŠ šź ŠĢ€€€€€€€€ņņ(v)€Fees€that€are€not€AllowableŠ F –! ŠReasonable€Fees€are€the€responsibility€of,Š !l" Šand€may€be€charged€to,€the€attorney€or€lawŠ ņ!B# Šfirm€maintaining€the€IOLTA€account.óóŠ Č"$ ŠĢCross€reference:€€Rule€16-607€b€1.€€Š t$Ä& ŠĢ€€€€€€(E)€Allow€reasonable€access€to€allŠ  &p!( Šrecords€of€an€attorney€trust€account€if€anŠ ö&F") Šaudit€of€the€account€is€ordered€pursuant€toŠ Ģ'#* ŠRule€16-722€(Audit€of€Attorney€Accounts€andŠ ¢(ņ#+ ŠRecords).Š x)Č$, ŠĢ€€€€2.€Service€Charges€for€Performing€DutiesŠ $+t&. ŠUnder€Agreement.Š ś+J'/ ŠĢą ø ą€€Nothing€in€the€agreement€shallŠ ¦-ö(1 Špreclude€an€approved€financial€institutionŠ |.Ģ)2 Šfrom€charging€the€attorney€or€law€firmŠ ° Šmaintaining€an€attorney€trust€account€(1)€aŠ †Ö Šreasonable€fee€for€providing€any€notice€orŠ \¬ Šrecord€pursuant€to€the€agreement€or€(2)€ņ ņtheó óŠ 2‚ Šfees€ņņand€service€charges€other€than€theŠ X Šš šAllowable€Reasonable€Feesššóó€listed€inŠ Ž. Šsubsection€b€1€(D)ņņ(iii)óó€of€this€Rule.€€Š “  ŠĢ€€c.€€Termination€of€Agreement.Š ` ° ŠĢą ø ą€The€agreement€shall€terminate€only€if:€€Š  \  ŠĢ€€€€1.€the€financial€institution€files€aŠ ø  Špetition€under€any€applicable€insolvency€lawŠ ŽŽ  Šor€makes€an€assignment€for€the€benefit€ofŠ d“  Šcreditors;€or€€Š :Š  ŠĢ€€€€2.€the€financial€institution€gives€thirtyŠ ę6 Šdays'€notice€in€writing€to€Bar€Counsel€thatŠ ¼  Šthe€institution€intends€to€terminate€theŠ ’ā Šagreement€on€a€stated€date€and€that€copies€ofŠ hø Šthe€termination€notice€have€been€mailed€toŠ >Ž Šall€attorneys€and€law€firms€that€maintainŠ d Štrust€accounts€with€any€branch€of€thatŠ ź: Šinstitution;€or€€Š Ą ŠĢ€€€€3.€ņņafter€a€complaint€is€filed€by€theŠ l¼ ŠMLSC,óó€ņ ņTheó ó€ņņtheóó€Commission€finds,€after€priorŠ B’ Šwritten€notice€to€the€institution€andŠ h Šadequate€opportunity€to€be€heard,€that€theŠ ī> Šinstitution€has€failed€or€refused€withoutŠ Ä Šjustification€to€perform€a€duty€required€byŠ šź Šthe€agreement.€€ņņThe€Commission€shall€notifyŠ pĄ  Šthe€institution€that€the€agreement€isŠ F –! Šterminated.óóŠ !l" ŠĢ€€ņņd.€€Exceptionsó󀀩 Č"$ ŠĢ€€ņņWithin€15€days€after€service€of€the€noticeŠ t$Ä& Šof€termination€pursuant€to€subsection€c€3€ofŠ J%š ' Šthis€Rule,€the€institution€may€file€with€theŠ  &p!( ŠCourt€of€Appeals€exceptions€to€the€decisionŠ ö&F") Šof€the€Attorney€Grievance€Commission.€€TheŠ Ģ'#* Šinstitution€shall€file€eight€copies€of€theŠ ¢(ņ#+ Šexceptions€which€shall€conform€to€theŠ x)Č$, Šrequirements€of€Rule€8„112.€€The€Court€shallŠ N*ž%- Šset€a€date€for€oral€argument,€unless€oralŠ $+t&. Šargument€is€waived€by€the€parties.€€OralŠ ś+J'/ Šargument€shall€be€conducted€in€accordanceŠ Š, (0 Šwith€Rule€8„522.€€The€decision€of€the€CourtŠ ¦-ö(1 Šof€Appeals€is€final€and€shall€be€evidenced€byŠ |.Ģ)2 Šan€order€which€the€clerk€shall€certify€underŠ ° Šthe€seal€of€the€Court.óóŠ †Ö ŠĢSource:€€This€Rule€is€former€Rule€BU10.€€Š 2‚ ŠĢĢҰ` ŅҰ` Ņą  ąRule€16„610€was€accompanied€by€the€following€ReporterššsŠ “  ŠĢNote.Š ` ° ŠĢŅ` °ŅŅ` °Ņą ø ąThe€Maryland€Legal€Services€CorporationŠ  \  Š(MLSC)€has€been€concerned€that€some€financialŠ ā 2  Šinstitutions€in€Maryland€have€not€beenŠ ø  Šoffering€IOLTA€(Interest€on€Lawyers€TrustŠ ŽŽ  ŠAccounts)€account„€holders€the€same€rate€ofŠ d“  Šinterest€as€comparable€non„IOLTA€account„Š :Š  Šholders.€€After€meeting€with€representativesŠ `  Šof€the€Maryland€Bankersšš€Association,€theŠ ę6 Šinterested€parties€drafted€amendments€to€RuleŠ ¼  Š16„610€to€work€towards€an€even€playing€fieldŠ ’ā Šfor€both€IOLTA€and€non„IOLTA€accounts.€€TheŠ hø ŠAttorneys€Subcommittee€is€in€agreement€withŠ >Ž Šthe€changes€to€section€a€and€subsection€b€1Š d ŠD.€€The€Subcommittee€proposed€the€addition€ofŠ ź: Ša€sentence€to€subsection€c€3€providing€forŠ Ą Šnotification€to€a€financial€institution€ofŠ –ę Štermination€of€an€IOLTA€agreement€if€theŠ l¼ ŠAttorney€Grievance€Commission€finds€that€theŠ B’ Šinstitution€has€failed€or€refused€to€performŠ h Ša€duty€required€by€the€agreement.€€It€alsoŠ ī> Šproposes€the€addition€of€a€new€section€dŠ Ä Šproviding€a€mechanism€for€the€financialŠ šź Šinstitution€to€file€exceptions€to€a€decisionŠ pĄ  Šby€the€Attorney€Grievance€Commission€toŠ F –! Šterminate€a€written€agreement€between€aŠ !l" Šfinancial€institution€and€the€MLSC€setting€upŠ ņ!B# Šan€IOLTA€account.Š Č"$ ŠĢĢҰ` ŅҰ` ŅÓÓą  ąMr.€Brault€said€that€since€the€meeting€of€the€Committee€onŠ J%š ' ŠJune€22,€2007€at€which€the€issue€of€possible€changes€to€Rule€16„Š ö&F") Š610€pertaining€to€Interest€on€Lawyersšš€Trust€Accounts€(IOLTA)€wasŠ ¢(ņ#+ Šconsidered,€the€issue€of€comparability€of€interest€rates€wasŠ N*ž%- Šdiscussed€at€a€series€of€informal€meetings€by€telephone€withŠ ś+J'/ Šrepresentatives€of€the€Maryland€Legal€Services€Corporation€(MLSC)Š ¦-ö(1 Šand€the€banking€industry€in€an€effort€to€create€a€rule€that€isŠ ° Šacceptable€and€fair€to€all€interested€parties.€€This€morningŠ \¬ ŠMelvin€Hirshman,€Esq.,€Bar€Counsel,€told€Mr.€Brault€that€he€had€aŠ X Šfew€more€changes€to€suggest€to€the€Rule.€€The€changes€are€mostlyŠ “  Štechnical€and€not€substantive.Š ` ° Šą  ąMr.€Brault€commented€under€the€current€Rule,€the€writtenŠ  \  Šagreement€for€approval€of€a€financial€institution€to€offerŠ ø  Šattorney€trust€accounts€must€be€approved€by€the€AttorneyŠ d“  ŠGrievance€Commission.€€However,€the€Rule€does€not€provide€who€theŠ `  Šother€party€to€the€agreement€is.€€The€statute€that€created€theŠ ¼  ŠMLSC,€Code,€Article€10,€šš45C€et€seq.,€which€has€been€replaced€byŠ hø ŠCode,€Human€Services€Article,€šš11„101€et€seq.,€gives€MLSC€theŠ d Šauthority€and€obligates€it€to€provide€monitoring€and€dispensingŠ Ą Šof€IOLTA€funds€to€grantees€who€provide€legal€assistance€toŠ l¼ Šclients€in€civil€matters.€€Logically,€the€agreement€is€going€toŠ h Šbe€with€the€MLSC.€€In€section€a.€of€the€Rule,€language€has€beenŠ Ä Šinserted€after€the€word€š šagreementšš€as€follows:€š šwith€theŠ pĄ  ŠMaryland€Legal€Services€Corporation€(MLSC)...šš.€€Š !l" Šą  ąMr.€Brault€commented€that€although€he€is€not€knowledgeableŠ Č"$ Šabout€banking€practices,€the€computation€of€a€comparable€rate€ofŠ t$Ä& Šinterest€does€not€seem€to€him€to€be€a€simple€matter,€due€to€theŠ  &p!( Švarious€charges€and€different€types€of€accounts.€€There€are€many€Š Ģ'#* Šareas€of€possible€disagreement€as€to€what€is€or€should€be€aŠ x)Č$, Šcomparable€account€and€many€ways€for€a€dispute€to€arise€as€toŠ $+t&. Šwhether€there€has€been€a€violation€of€an€agreement€that€wouldŠ Š, (0 Šresult€in€a€bankššs€termination€from€the€IOLTA€program.€€TheŠ |.Ģ)2 ŠSubcommittee€has€added€a€provision€that€the€MLSC€may€file€aŠ ° Šcomplaint€with€the€Attorney€Grievance€Commission€alleging€aŠ \¬ Štermination€because€of€a€breach.€€After€the€bank€has€been€givenŠ X Šan€opportunity€to€be€heard,€if€the€Commission€determines€that€theŠ “  Šbank€failed€or€refused€without€justification€to€perform€a€dutyŠ ` ° Šrequired€by€the€agreement,€the€Commission€notifies€the€bank€thatŠ  \  Šthe€agreement€is€terminated.€€The€Subcommittee€also€added€a€newŠ ø  Šsection€d.,€providing€a€mechanism€for€the€bank€to€file€with€theŠ d“  ŠCourt€of€Appeals€exceptions€to€the€decision€of€the€AttorneyŠ `  ŠGrievance€Commission€to€terminate€the€agreement.€€This€was€basedŠ ¼  Šon€some€of€the€language€in€Rules€16„758,€Post„HearingŠ hø ŠProceedings,€and€16„759,€Disposition,€of€the€Rules€pertaining€toŠ d Šthe€discipline€of€attorneys.€€This€is€not€a€complicated€appealsŠ Ą Šprocess;€it€is€a€direct€exception€filed€with€the€Court€ofŠ l¼ ŠAppeals.€Š h Šą  ąMr.€Brault€told€the€Committee€that€he€would€go€through€theŠ Ä ŠRule,€explaining€the€changes.€€While€he€does€not€fully€understandŠ pĄ  Šall€of€the€banking€terminology,€he€noted€that€the€draftersŠ !l" Šconsidered€rules€from€other€states.€€The€predominant€rule€beingŠ Č"$ Šfollowed€is€that€of€Texas.€€Section€a.€has€the€language€addedŠ t$Ä& Šproviding€for€agreement€with€the€MLSC,€which€was€alreadyŠ  &p!( Šdiscussed.€€Mr.€Hirshman€asked€whether€the€language€š šand€with€theŠ Ģ'#* ŠCommissionšš€should€be€added.€€Mr.€Brault€responded€that€it€shouldŠ x)Č$, Šnot€be€added,€explaining€that€the€agreement€is€not€with€theŠ $+t&. ŠCommission€but€with€the€MLSC.€€It€is€approved€by€the€Commission,Š Š, (0 Šwhich€can€terminate€it.€€Previously,€it€must€have€been€assumedŠ |.Ģ)2 Šthat€the€agreement€was€with€the€Commission.€€Mr.€HirshmanŠ ° Šcommented€that€the€agreement€is€with€the€Commission,€because€theŠ \¬ Šagreement€includes€the€requirement€of€overdraft€notification,Š X Šwhich€is€not€a€concern€of€the€MSLC.€€Mr.€Brault€noted€that€if€theŠ “  Šagreement€is€with€the€Commission€and€the€Commission€determinesŠ ` ° Šthat€there€has€been€a€breach€requiring€termination€of€theŠ  \  Šagreement,€then€a€party€to€the€agreement€is€the€judge€of€whetherŠ ø  Šthe€agreement€has€been€violated.€€The€fact€that€one€of€theŠ d“  Šparties€to€the€agreement€is€also€the€judge€would€be€an€unusualŠ `  Šfeature.€€This€would€neutralize€the€Commission€as€a€hearing€bodyŠ ¼  Šwhen€there€is€an€allegation€that€there€has€been€a€breach.€€UnderŠ hø Šthe€Rules€proposed€by€the€Attorneys€Subcommittee,€the€allegationŠ d Šis€going€to€come€from€the€MLSC,€because€MLSC€is€the€entity€thatŠ Ą Šis€monitoring€compliance€with€the€comparability€provision€of€theŠ l¼ Šagreement.€€The€comparability€provision€is€the€provision€in€theŠ h Šagreement€most€likely€to€generate€a€dispute€as€to€whether€theŠ Ä Šbank€is€in€compliance.€€Whether€any€of€the€provisions€thatŠ pĄ  Šcurrently€are€in€the€agreement€have€been€violated€is€less€subjectŠ !l" Što€dispute.€€For€example,€Bar€Counsel€may€learn€from€a€routineŠ Č"$ Šaudit€that€a€lawyer€with€a€trust€account€bounced€a€check.€€If€theŠ t$Ä& Šbank€had€not€previously€informed€Bar€Counsel€about€the€overdraft,Š  &p!( Šit€is€clear€that€the€bank€is€not€in€compliance.€€Under€theŠ Ģ'#* Šproposed€scheme,€the€Commission€would€have€to€work€with€the€MLSC,Š x)Č$, Šand€that€does€not€seem€to€be€a€problem.€€Š $+t&. Šą  ąMr.€Brault€inquired€as€to€whether€the€Commission€is€willingŠ Š, (0 Što€monitor€the€interest€rates.€€Mr.€Hirshman€remarked€thatŠ |.Ģ)2 Šcurrently€the€agreement€is€with€the€Commission,€and€the€change€toŠ ° Šthe€Rule€adds€the€MLSC€as€a€party.€€Mr.€Brault€questioned€as€toŠ \¬ Šwhere€in€the€Rule€it€is€stated€that€the€agreement€is€with€theŠ X ŠCommission.€€The€Chair€pointed€out€that€as€a€practical€matter,Š “  ŠMLSC€would€not€approve€the€agreement€unless€it€contained€languageŠ ` ° Šsatisfactory€to€the€Commission.€€Mr.€Downes€said€that€it€is€theŠ  \  ŠCommissionššs€own€agreement,€and€the€Commission€sends€out€a€formŠ ø  Šwith€the€language€in€it€when€a€bank€asks€for€one.€€Mr.€BraultŠ d“  Šcommented€that€this€is€the€proposal€of€the€AttorneysŠ `  ŠSubcommittee,€and€if€it€is€not€acceptable,€it€would€mean€that€theŠ ¼  ŠCommission€would€have€to€complain€to€itself€about€a€breach.€€Mr.Š hø ŠHirshman€observed€that€current€procedure€works€this€way.€€Mr.Š d ŠBrault€noted€that€there€is€no€right€of€appeal€now.€€TheŠ Ą ŠCommission€is€the€party€to€the€agreement,€it€hears€the€complaint,Š l¼ Šit€makes€a€ruling,€and€the€bank€is€terminated.€€The€Chair€saidŠ h Šthat€the€required€contents€of€the€agreement€that€are€stated€inŠ Ä Šthe€Rules€protect€the€interests€of€the€Commission.€€The€agreementŠ pĄ  Šrequires€the€bank€to€report€any€overdraft€to€Bar€Counsel.€€ThisŠ !l" Štakes€care€of€the€problem.€Š Č"$ Šą  ąMr.€Brault€pointed€out€that€one€of€the€problems€that€wasŠ t$Ä& Šbrought€to€his€attention€by€Mr.€Downes,€Mr.€Hirshman,€and€Mr.Š  &p!( ŠGrossman€is€the€language€at€the€end€of€section€a.€that€reads:Š Ģ'#* Šš š...complying€with€this€Rule€and€in€a€form€provided€by€theŠ x)Č$, ŠCommission,€applicable€to€all€branches€of€the€institution€locatedŠ $+t&. Šin€this€State.šš€€Section€g.€of€Rule€16„602,€Definitions,€definesŠ Š, (0 Šš šfinancial€institutionšš€as€€š š...€a€bank,€trust€company,€savingsŠ |.Ģ)2 Šbank,€or€savings€and€loan€association€authorized€by€law€to€doŠ ° Šbusiness€in€this€State,€in€the€District€of€Columbia,€or€in€aŠ \¬ Šstate€contiguous€to€this€State...šš.€€Branches€could€be€in€D.C.,Š X ŠVirginia,€West€Virginia,€Pennsylvania,€or€Delaware€but€would€notŠ “  Šbe€š šlocated€in€this€Statešš€as€section€a.€of€Rule€16„610€provides.Š ` ° ŠTherefore,€this€language€should€be€deleted€to€conform€to€Rule€16„Š  \  Š602.€€Mr.€Brault€suggested€replacing€the€language,€š šlocated€inŠ ø  Šthis€State,šš€with€the€language,€š šthat€are€subject€to€this€Rule.šš€Š d“  ŠBy€consensus,€the€Committee€approved€this€change.Š `  Šą  ąMr.€Brault€said€that€another€request€by€Mr.€Downes,€Mr.Š ¼  ŠHirshman,€and€Mr.€Grossman€was€to€add€to€subsection€b.€1€(C)Š hø Š(ii),€the€name€and€address€of€the€attorney€or€law€firmŠ d Šmaintaining€the€account.€€The€Commission€receives€bank€noticesŠ Ą Šthat€have€an€attorneyššs€name,€but€no€address,€or€have€only€partŠ l¼ Šof€a€name,€and€the€attorney€cannot€be€identified.€€By€consensus,Š h Šthe€Committee€agreed€to€this€addition.€Š Ä Šą  ąMr.€Brault€pointed€out€that€in€subsection€b.€1€(D),€some€ofŠ pĄ  Šthe€language€was€added€by€the€banks,€including€š šat€the€sameŠ !l" Šbranch€when€the€IOLTA€account€meets€or€exceeds€the€same€minimumŠ Č"$ Šbalance€or€other€eligibility€qualifications€for€its€non„IOLTAŠ t$Ä& Šaccounts€at€that€branch.šš€€This€language€is€in€the€Texas€rule€andŠ  &p!( Šis€appropriate€because€before€a€higher€interest€rate€is€paid,€theŠ Ģ'#* Šbanks€require€eligibility€requirements,€such€as€a€minimumŠ x)Č$, Šbalance.€€In€the€next€sentence,€the€banks€added€the€phrase€š šat€aŠ $+t&. Šparticular€branch.šš€€The€language€of€this€sentence€was€created€byŠ Š, (0 Šthe€representatives€of€the€MLSC€and€the€bankers.€€TheŠ |.Ģ)2 ŠSubcommittee€believes€that€this€language€is€appropriate.€€It€hasŠ ° Šbeen€used€successfully€in€other€states,€and€the€banks€understandŠ \¬ Šit.€Š X Šą  ąMr.€Brault€noted€that€provisions€in€subsection€b.€1.€(D)Š “  Špertain€to€allowable€reasonable€fees,€which€had€caused€aŠ ` ° Šsignificant€discussion€several€years€ago.€€The€fees€must€beŠ  \  Šadequately€defined€so€that€they€are€fair€to€the€banks,€and€soŠ ø  Šthat€the€benefits€of€the€comparability€rule€are€not€destroyed€byŠ d“  Šfees€being€tacked€on€by€the€banks.€€Language€on€this€topic€is€nowŠ `  Šincluded€in€a€new€definition€of€š šAllowable€Reasonable€Fees,ššŠ ¼  Šwhich€is€subsection€b.€1.€(D)(iii).€€Š hø Šą  ąMr.€Brault€pointed€out€that€the€language€in€subsection€b.€1Š d Š(D)(i)€describing€the€types€of€bank€accounts€is€very€specificŠ Ą Šbanking€language.€€Subsection€b.€1€(D)(i)(a)€describes€sweepŠ l¼ Šaccounts,€where€the€money€in€the€account€is€swept€out€andŠ h Šinvested€overnight.€€The€bank€can€make€money€on€the€money€in€theŠ Ä Šaccount€on€an€hourly€basis.€€The€Chair€asked€if€those€funds€thatŠ pĄ  Šare€swept€out€are€at€risk€of€loss.€€Mr.€Brault€responded€that€theŠ !l" Šfunds€are€protected€by€U.S.€government€securities.€€Š Č"$ Šą  ąMr.€Brault€commented€that€subsection€b.€1.€(D)(i)(b)Š t$Ä& Špertains€to€checking€accounts€paying€interest€rates€in€excess€ofŠ  &p!( Šthe€lowest„paying€interest„bearing€accounts,€and€he€remarked€thatŠ Ģ'#* Šthe€rate€hopefully€will€be€more€than€1%.€€Mr.€Sykes€inquired€asŠ x)Č$, Što€the€meaning€of€a€š šGovernment„Sponsored€Entityšš€referred€to€inŠ $+t&. Šsubsection€(D)(i)(a).€€If€the€money€is€invested€in€š šFannie€MaeššŠ Š, (0 Šor€mortgages,€it€could€affect€the€risk.€€This€is€not€the€same€asŠ |.Ģ)2 Ša€government€security.€€Mr.€Enten€commented€that€there€are€sweepŠ ° Šfunds€invested€in€U.S.€government€obligations,€such€as€TreasuryŠ \¬ Šbills,€which€are€the€safest€investments.€€Others€are€invested€inŠ X Šš šFannie€Mae,šš€š šFreddie€Mac,šš€and€š šGinnie€Mae,šš€which€areŠ “  Šgovernment„sponsored€entities.€€State€or€local€governments€canŠ ` ° Šinvest€in€mutual€funds€that€are€made€up€of€U.S.€governmentŠ  \  Šobligations€and€those€of€government„sponsored€entities.€€TheŠ ø  Šlatter€are€not€direct€obligations€of€the€U.S.€government,€but€areŠ d“  Šsponsored€by€the€government.€€Mr.€Enten€said€that€although€he€wasŠ `  Šnot€aware€of€defaults€in€those€obligations,€they€are€probably€notŠ ¼  Šas€secure€as€funds€that€are€direct€obligations€of€the€U.S.Š hø Šgovernment,€but€more€secure€than€those€of€private€corporations.Š d Šą  ąMr.€Garten€pointed€out€that€unlike€in€Texas,€the€Rule€doesŠ Ą Šnot€provide€for€investments€in€mutual€funds.€€It€is€hisŠ l¼ Šunderstanding€that€government„sponsored€entities€are€entitiesŠ h Šwhose€debt€is€guaranteed,€subject€to€the€full€faith€and€credit€ofŠ Ä Šthe€United€States.€€He€asked€Mr.€Enten€to€confirm€this,€and€Mr.Š pĄ  ŠEnten€answered€that€he€would€have€to€check€as€to€whether€theŠ !l" Šgovernment„sponsored€entities€are€backed€by€the€Federal€DepositŠ Č"$ ŠInsurance€Corporation€(FDIC)€or€are€otherwise€guaranteed€by€theŠ t$Ä& Šfederal€government.€€Mr.€Brault€observed€that€the€SubcommitteeŠ  &p!( Šwas€under€the€impression€that€all€were€guaranteed€by€the€U.S.Š Ģ'#* Šgovernment.€€If€this€is€not€the€case,€then€subsection€(D)(i)(a)Š x)Č$, Šmay€need€to€be€changed.€€Escrow€accounts€should€not€be€in€riskyŠ $+t&. Šinvestments.Š Š, (0 Šą  ąMr.€Brault€drew€the€Committeeššs€attention€to€subsection€b.Š |.Ģ)2 Š1.€(D)(i)(c).€€The€question€is€how€the€money€in€the€IOLTA€accountŠ ° Šis€protected.€€The€answer€often€is€that€the€account€is€protectedŠ \¬ Šby€FDIC€insurance,€but€this€has€a€limit€of€$100,000.€€Many€of€theŠ X ŠIOLTA€accounts€are€enormous.€€Most€of€the€money€is€not€insured€byŠ “  Šthe€FDIC.€€Many€people€believe€that€bank€accounts€are€federallyŠ ` ° Šinsured,€but€they€are€only€insured€up€to€$100,000€per€customer.Š  \  Šą  ąMr.€Leahy€noted€that€if€a€bank€fails,€an€account„holder€withŠ ø  Šmore€than€$100,000€in€the€failed€bank€risks€losing€the€funds€thatŠ d“  Šexceed€that€amount.€€Regardless€of€whether€the€bank€has€placedŠ `  Šthe€sweep€account€money€in€a€U.S.€government€obligation,€theŠ ¼  Šaccount„holder€has€no€protection€above€the€$100,000€FDIC€limit.€Š hø ŠUnless€the€funds€are€earmarked€as€to€a€particular€owner,€theŠ d Šaccount„holder€is€an€unsecured€creditor€of€the€bank€with€respectŠ Ą Što€the€account„holderššs€funds€that€exceed€$100,000.€€Mr.€GartenŠ l¼ Šsaid€that€he€wanted€to€clarify€that€the€$100,000€limit€in€anŠ h Šescrow€account€applies€to€each€individual€client.€€Mr.€BraultŠ Ä Šresponded€that€even€with€the€current€real€estate€market€downturn,Š pĄ  Šthere€will€still€be€many€clients€with€escrowed€funds€in€excess€ofŠ !l" Š$100,000.€€Š Č"$ Šą  ąMr.€Brault€pointed€out€that€subsection€b.€1.€(D)(ii)Š t$Ä& Šprovides€for€other€options€for€the€bank€instead€of€the€onesŠ  &p!( Šlisted€in€subsection€b.€1.€(D)(i).€€These€include€retaining€theŠ Ģ'#* Šexisting€IOLTA€account€and€paying€the€equivalent€applicable€rateŠ x)Č$, Šthat€would€be€paid€at€that€branch€on€the€highest„yield€productŠ $+t&. Šfor€which€the€account€qualifies,€offering€a€š šsafe€harboršš€rateŠ Š, (0 Šthat€is€equal€to€55%€of€the€Federal€Funds€Target€Rate,€or€payingŠ |.Ģ)2 Ša€rate€specified€by€the€MLSC€that€is€agreed€to€by€the€financialŠ ° Šinstitution€for€12€months€from€the€date€of€the€agreement€betweenŠ \¬ Šthe€financial€institution€and€the€MLSC.€€The€Chair€asked€why€theŠ X Šphrase€š šbecause€the€rate€is€deemed€already€to€be€net€of€AllowableŠ “  ŠReasonable€Feesšš€was€added.€€Mr.€Brault€responded€that€thisŠ ` ° Šlanguage€was€taken€from€the€rule€of€another€state.€€Ms.€ErlichmanŠ  \  Šnoted€that€many€states€have€higher€safe€harbor€rates,€but€theŠ ø  Šbanks€can€charge€fees€against€them.€€The€rate€set€out€in€thisŠ d“  ŠRule€negotiated€with€the€bankers€is€the€lowest€š šsafe€harboršš€rateŠ `  Šin€the€country.€€Š ¼  Šą  ąThe€Chair€stated€that€explanatory€phrases€generally€are€notŠ hø Šput€into€rules.€€As€an€example,€in€Rule€5„404,€Character€EvidenceŠ d ŠNot€Admissible€to€Prove€Conduct;€Exceptions;€Other€Crimes,€theŠ Ą ŠRule€does€not€allow€evidence€of€other€crimes€to€prove€theŠ l¼ Šcharacter€of€a€person,€but€the€Rule€does€not€explain€that€this€isŠ h Šnot€allowed€because€it€is€prejudicial€to€the€criminal€defendant.€Š Ä ŠMs.€Erlichman€said€that€in€other€instances,€the€bank€is€allowedŠ pĄ  Što€deduct€fees€from€the€interest.€€This€is€the€only€exception.€Š !l" ŠThe€Chair€suggested€that€the€phrase€be€taken€out€of€the€Rule.€Š Č"$ ŠMr.€Bowen€commented€that€this€language€may€make€the€RuleŠ t$Ä& Špolitically€acceptable.€€Š  &p!( Šą  ąThe€Reporter€asked€if€this€concept€should€be€put€into€aŠ Ģ'#* ŠCommittee€note.€€Ms.€Erlichman€replied€affirmatively.€€Mr.€EntenŠ x)Č$, Šcommented€that€the€Rule€states€that€fees€cannot€be€deducted€fromŠ $+t&. Šinterest€if€the€š šsafe€harboršš€is€elected.€€No€Committee€note€isŠ Š, (0 Šneeded.€€Mr.€Brault€suggested€that€a€Committee€note€could€beŠ |.Ģ)2 Šadded€to€explain€why€this€is€being€done.€€Mr.€Bowen€proposed€thatŠ ° Šthe€explanation€be€put€into€a€Reporterššs€note,€and€the€CommitteeŠ \¬ Šagreed€by€consensus€to€this.€€Mr.€Bowen€pointed€out€aŠ X Štypographical€error€in€the€sixth€line€of€the€Reporterššs€note€š!š„Š “  Šthe€word€š šBackeršš€should€be€š šBanker.šš€Š ` ° Šą  ąMr.€Brault€noted€that€subsection€b.1.(D)(iii)€explains€theŠ  \  Šterm€š šAllowable€Reasonable€Fees.šš€€Mr.€Sykes€referred€to€theŠ ø  Šlanguage€in€subsection€(iii)€that€reads€š šplus€a€reasonable€IOLTAŠ d“  Šaccount€administrative€fee,šš€pointing€out€that€the€language€atŠ `  Šthe€end€of€the€subsection€seems€to€indicate€that€IOLTA€accountsŠ ¼  Šhave€charges€that€other€accounts€do€not€have.€€Is€this€justified?€Š hø ŠMs.€Erlichman€replied€that€with€regard€to€the€administrativeŠ d Šfees,€40%€of€financial€institutions€charge€an€administrative€feeŠ Ą Šfor€IOLTA€accounts,€because€those€accounts€require€reports€to€BarŠ l¼ ŠCounsel€that€are€not€required€for€other€accounts.€€Most€banks€doŠ h Šnot€charge€an€administrative€fee.€€Š Ä Šą  ąMr.€Sykes€asked€whether€there€are€any€disagreements€as€toŠ pĄ  Šwhat€is€a€reasonable€administrative€fee.€€Ms.€Erlichman€answeredŠ !l" Šthat€some€banks€charge€more€than€others,€and€the€MLSC€hasŠ Č"$ Šencouraged€them€to€charge€less,€but€most€banks€do€not€chargeŠ t$Ä& Šadministrative€fees.€€Mr.€Brownlee€said€that€the€bank€for€whichŠ  &p!( Šhe€works,€Chevy€Chase€Bank,€does€not€charge€an€IOLTAŠ Ģ'#* Šadministrative€fee,€but€it€may€have€to€start€charging€one.€€TheŠ x)Č$, Šbank€uses€a€manual€process€where€the€accounts€are€looked€at€on€aŠ $+t&. Šmonthly€basis,€and€the€interest€is€sent€to€the€MLSC.€€ThisŠ Š, (0 Šrequires€some€work.€€The€Chair€commented€that€the€Rule€authorizesŠ |.Ģ)2 Šthe€bank€to€do€this.€€Š ° Šą  ąMr.€Brault€said€that€in€subsection€b.€2,€language€has€beenŠ \¬ Šadded€to€exclude€Allowable€Reasonable€Fees.€€Section€c.€pertainsŠ X Što€enforcement.€€Mr.€Brault€expressed€the€view€that€monitoringŠ “  Šthe€interest€rates€is€going€to€be€a€significant€amount€of€workŠ ` ° Šfor€the€MLSC.€€Disagreements€may€arise.€€He€noted€that€inŠ  \  Šsubsection€c.€3,€language€has€been€added€providing€that€theŠ ø  ŠCommission€finding€takes€place€after€a€complaint€is€filed€by€theŠ d“  ŠMLSC€and€providing€for€notice€by€the€Commission€to€theŠ `  Šinstitution€that€an€agreement€is€terminated.€€Section€d.€pertainsŠ ¼  Što€exceptions€and€is€taken€primarily€from€Rules€16„758€and€16„Š hø Š759,€the€parallel€provisions€for€attorney€discipline€proceedings.€Š d ŠMr.€Leahy€pointed€out€that€since€subsection€c.€3€has€beenŠ Ą Šchanged,€a€new€subsection€c.€4.€may€be€needed,€so€that€theŠ l¼ ŠCommission€can€act€on€its€own€initiative,€as€the€Rule€nowŠ h Šprovides.€€The€Chair€suggested€that€the€new€language€at€theŠ Ä Šbeginning€of€subsection€c.€3€could€read:€š šafter€a€complaint€isŠ pĄ  Šfiled€by€the€MLSC€or€on€its€own€initiative...šš.€€By€consensus,Š !l" Šthe€Committee€approved€this€change.Š Č"$ Šą  ąMaster€Mahasa€asked€if€the€language€in€subsection€c.€3Š t$Ä& Šshould€be€š šright€to€be€heardšš€instead€of€š šopportunity€to€beŠ  &p!( Šheard.šš€€The€Chair€responded€that€the€language€should€not€beŠ Ģ'#* Šchanged,€because€it€has€been€in€use€for€some€time€and€has€causedŠ x)Č$, Šno€problems.€€Mr.€Brault€said€that€one€aspect€not€mentioned€isŠ $+t&. Šwhether€a€hearing€can€be€held€that€is€not€oral€and€is€on€theŠ Š, (0 Šrecord.€€An€opportunity€to€be€heard€suggests€that€the€hearing€isŠ |.Ģ)2 Šoral.€€Master€Mahasa€explained€that€she€brought€this€issue€upŠ ° Šbecause€of€recently€enacted€federal€law€in€the€area€of€family€lawŠ \¬ Šthat€uses€the€language€š šright€to€be€heard,šš€instead€ofŠ X Šš šopportunity€to€be€heard.šš€€This€is€more€than€just€a€chance€of€aŠ “  Šhearing€and€is€stronger.€€The€Reporter€pointed€out€that€thisŠ ` ° Šchange€would€involve€changes€to€the€same€language€in€many€otherŠ  \  ŠRules.€€The€Vice€Chair€suggested€that€it€might€be€necessary€toŠ ø  Šchange€this€language€if€the€federal€language€has€been€changed.€Š d“  ŠThe€Maryland€Rules€are€falling€behind€as€far€as€consistency€withŠ `  Šthe€federal€rules.€€Mr.€Brault€responded€that€the€federal€rulesŠ ¼  Šare€different.€€They€are€legislatively€approved€by€Congress,€soŠ hø Šthey€have€a€much€broader€authority€to€create€substantive€law.€Š d ŠThis€authority€is€not€applicable€in€Maryland.€€Master€MahasaŠ Ą Šremarked€that€this€change€in€federal€law€is€being€reflected€inŠ l¼ Šrecent€family€law€legislation€in€Maryland.€€Mr.€Brault€said€thatŠ h Šif€a€right€is€created€by€statute,€then€the€corresponding€RuleŠ Ä Šwould€have€to€conform,€but€if€there€is€no€applicable€statute,Š pĄ  Šthere€is€no€requirement€that€the€Rule€conform.€Š !l" Šą  ąMr.€Enten€expressed€his€concern€as€to€the€language€added€toŠ Č"$ Šsection€a.,€which€provides€that€the€agreement€is€with€the€MLSC.Š t$Ä& ŠMr.€Hirshman€stated€that€the€current€agreements€in€place€are€withŠ  &p!( Šthe€Attorney€Grievance€Commission.€€Practically,€when€this€RuleŠ Ģ'#* Šgoes€into€effect,€there€will€be€a€period€of€time€during€whichŠ x)Č$, Šdiscussions€between€the€MLSC€and€the€banks€take€place.€€TheŠ $+t&. Šņņstatus€quoóó€should€be€maintained€until€any€dispute€as€to€interestŠ Š, (0 Šrates€is€resolved.€€The€change€in€the€wording€of€the€RuleŠ ˆ.Ų)2 Šcontemplates€an€agreement€that€does€not€exist€today.€€Initially,Š ° Šthe€old€agreement€would€be€subject€to€termination,€because€thereŠ \¬ Šis€no€new€agreement.€€The€language€should€be€carefully€reviewedŠ X Što€make€sure€that€it€complies€with€the€intended€meaning.€€Š “  Šą  ąThe€Chair€stated€that€the€Rule€will€be€effective€on€aŠ ` ° Šcertain€date€to€make€sure€that€there€is€no€gap€between€anŠ  \  Šagreement€under€the€current€Rule€and€one€under€the€revised€Rule.€Š ø  ŠThis€has€been€done€with€other€rules.€€The€current€Rule€andŠ d“  Šagreements€under€it€remain€in€place€until€the€revised€Rule€andŠ `  Šagreements€under€it€become€effective.€€Mr.€Brault€inquired€as€toŠ ¼  Šwhether€this€is€effected€by€language€in€the€Rules€Order.€€TheŠ hø ŠReporter€answered€that€this€is€the€usual€practice.€€The€ChairŠ d Šobserved€that€it€can€also€be€put€into€the€Rule€itself€by€adding€aŠ Ą Šprovision€that€allows€the€Commission€to€extend€its€approval€of€anŠ l¼ Šexisting€agreement€for€a€reasonable€period€to€allow€the€bank€andŠ h Šthe€MLSC€the€opportunity€to€enter€into€a€revised€agreement€thatŠ Ä Šcomplies€with€the€revised€Rule.€Š pĄ  Šą  ąMr.€Enten€suggested€that€section€a.€end€after€the€wordŠ !l" Šš šCommission.šš€€The€account€of€an€attorney€in€a€branch€of€a€bankŠ Č"$ Šlocated€in€Centreville€is€subject€to€different€competitive€forcesŠ t$Ä& Šthan€a€branch€in€Baltimore€City.€€Subsection€b.€1.€(D)€of€theŠ  &p!( ŠRule€provides€that€the€bank€must€pay€a€rate€comparable€to€theŠ Ģ'#* Šrate€being€paid€at€the€branch€where€the€account€is€located.€€InŠ x)Č$, Štodayššs€banking€world,€there€are€differences€from€one€branch€of€aŠ $+t&. Šbank€to€another€branch€of€the€same€bank.€€The€goal€isŠ Š, (0 Šcomparability€at€the€same€branch.€€The€rate€may€or€may€not€Ō_ŌbeŠ |.Ģ)2 Šapplicable€to€all€branches.€€It€is€important€that€section€a.€doesŠ ° Šnot€conflict€with€subsection€b.€1.€(D).€€The€Reporter€commentedŠ \¬ Šthat,€subject€to€stylistic€changes,€section€a.€of€the€Rule€readsŠ X Šproperly,€because€it€refers€to€the€overall€agreement.€€The€rateŠ “  Šcan€be€different€at€each€branch,€and€that€can€be€incorporatedŠ ` ° Šinto€the€agreement.€€The€Chair€suggested€that€the€language,Š  \  Šš šapplicable€to€all€branches€of€the€institution€that€are€subjectŠ ø  Što€this€Rule,šš€which€was€approved€by€the€Committee€earlier€duringŠ d“  Štodayššs€discussion,€does€not€prohibit€different€rates€atŠ `  Šdifferent€branches€because€it€is€the€agreement,€rather€than€aŠ ¼  Šspecific€interest€rate,€that€must€be€applicable€to€all€branches.Š hø Šą  ąJudge€Ō_ŌMatriccianiŌ_Ō€moved€to€approve€the€Rule€subject€to€theŠ d Šamendments€made€at€todayššs€meeting.€€The€motion€was€seconded,€andŠ Ą Šit€passed€unanimously.€€The€Chair€thanked€all€of€the€people€whoŠ l¼ Šworked€on€the€Rule,€including€the€Subcommittee€and€theŠ h Šconsultants.€€He€asked€that€the€consultants€come€to€the€Court€ofŠ Ä ŠAppeals€when€the€Rule€is€presented.€€One€of€the€issues€for€theŠ pĄ  ŠCourt€to€consider€is€the€June€11,€2007€letter€from€the€HonorableŠ !l" ŠThomas€V.€Mike€Miller,€Jr.,€Senate€President€and€the€HonorableŠ Č"$ ŠMichael€E.€Busch,€Speaker€of€the€House,€asking€that€this€matterŠ t$Ä& Šbe€handled€by€the€legislature.€€Ms.€Ō_ŌErlichmanŌ_Ō€thanked€Mr.€Ō_ŌBraultŌ_Ō,Š  &p!( Šnoting€that€he€had€participated€in€a€conference€call€discussionŠ Ģ'#* Šof€the€Rule€while€he€was€on€vacation,€and€she€also€thanked€all€ofŠ x)Č$, Šthe€other€members€of€the€Committee.Š $+t&. ŠÓÓĢŠ  ¦-ö(1 ŠAgenda€Item€2.€€Consideration€of€two€Reports€pertaining€to€theŠ ° Š€€May€30,€2007€Revised€Final€Report€and€Recommendations€of€theŠ †Ö Š€€Maryland€Judicial€Commission€on€Professionalism€ą x ąŠ \¬ Š€€€€šš€Report€of€the€Combined€Attorneys/General€ProvisionsŠ 2‚ Š€€€€€€SubcommitteesŠ X Š€€€€šš€Report€of€the€General€Court€Administration€SubcommitteeŠ Ž. Š_________________________________________________________________Š “  ŠĢÓÓą  ąThe€Chair€told€the€Committee€that€Mr.€Ō_ŌLemmeyŌ_Ō€would€speakŠ ` ° Šabout€this€agenda€item.€€Mr.€Ō_ŌLemmeyŌ_Ō€said€that€he€is€a€member€ofŠ  \  Šthe€Professionalism€Commission.€€He€thought€that€the€HonorableŠ ø  ŠLynne€Ō_ŌBattagliaŌ_Ō,€the€Chair€of€the€Commission,€and€Norman€Smith,Š d“  ŠEsq.,€Reporter€to€the€Commission,€would€attend€todayššs€meeting.€Š `  ŠHe€was€surprised€to€see€that€Judge€Ō_ŌBattagliaŌ_Ō€was€not€present.€Š ¼  ŠThe€Chair€explained€that€members€of€the€Court€of€AppealsŠ hø Šgenerally€are€not€invited€to€meetings€of€the€Committee,€althoughŠ d Šthey€are,€of€course,€welcome€to€attend€if€they€wish.€€TheŠ Ą Šfollowing€persons€were€notified€about€the€meeting:€€Mr.€Ō_ŌLemmeyŌ_Ō,Š l¼ ŠMr.€Smith,€Tom€Lynch,€the€Honorable€Dennis€Sweeney,€ClaireŠ h ŠŌ_ŌMcSpadenŌ_Ō,€the€Honorable€Patrick€Woodward,€the€Honorable€JohnŠ Ä ŠTisdale,€and€the€Honorable€Jeannie€Hong.€€Š pĄ  Šą  ąMr.€Ō_ŌLemmeyŌ_Ō€commented€that€he€has€been€on€the€Commission€forŠ !l" Šthree€years.€€Judge€Ō_ŌBattagliaŌ_Ō€has€attended€every€CommissionŠ Č"$ Šmeeting,€including€evening€meetings,€around€the€State.€€Mr.Š t$Ä& ŠŌ_ŌLemmeyŌ_Ō€called€her€this€morning,€and€she€requested€that€the€issueŠ  &p!( Šbe€tabled,€because€she€would€like€to€be€present€when€it€isŠ Ģ'#* Šdiscussed.€€She€did€not€receive€notice€of€the€meeting,€andŠ x)Č$, Šbecause€the€Court€of€Appeals€is€in€session,€she€is€unable€toŠ $+t&. Šattend€today.€€The€Court€has€not€referred€this€matter€to€theŠ Š, (0 ŠRules€Committee,€so€she€was€surprised€that€it€was€on€the€agenda.€€Š |.Ģ)2 ŠThe€Chair€asked€if€tabling€this€was€acceptable€to€the€Committee,Š ° Šand€by€consensus€the€Committee€agreed€to€table€it.Š \¬ Šą  ąThe€Chair€announced€that€he€had€to€leave,€so€the€meetingŠ X Šwould€be€run€by€the€Vice€Chair.€Š “  ŠÓÓĢAgenda€Item€3.€€Ō‡ X.žXX X.žŌConsideration€of€proposed€amendments€to:€€Rule€9„Š 6 †  Š€€206€(Child€Support€Guidelines)€and€Rule€9„210€(Attachment,Š  \  Š€€Seizure,€and€Sequestration)Ō#† X.žXX X.žpŲ#ŌŠ ā 2  Š_________________________________________________________________Š ø  ŠĢÓÓą  ąThe€Vice€Chair€said€that€this€item€was€to€be€presented€byŠ d“  ŠMs.€Ō_ŌOgletreeŌ_Ō,€Chair€of€the€Family€and€Domestic€Subcommittee,€butŠ `  Šshe€was€unable€to€attend.€€The€Reporter€added€that€no€one€else€isŠ ¼  Šprepared€to€present€this.€€The€item€was€tabled.Š hø ŠÓÓĢAgenda€Item€4.€€Ō‡ X.žXX X.žŌConsideration€of€a€proposed€amendment€to€Rule€Š ź: Š€€13„102€(Scope)Ō#† X.žXX X.žpŪ#ŌŠ Ą Š_________________________________________________________________Š –ę ŠĢÓÓą  ąThe€Reporter€presented€Rule€13„102,€Scope,€for€theŠ B’ ŠCommitteeššs€consideration.Š ī> ŠŅ` °ŅŅ` °ŅÓÓŌ‡X fXX X.žŌĢą@˜ ˜ ģąMARYLAND€RULES€OF€PROCEDUREˆŠ pĄ  ŠĢą@ō ō ģąTITLE€13€„€RECEIVERS€AND€ASSIGNEESˆŠ !l" ŠĢą@l l ģąCHAPTER€100€„€GENERAL€PROVISIONSˆŠ Č"$ ŠĢĢą ø ąAMEND€Rule€13„102€by€expanding€the€crossŠ J%š ' Šreference€at€the€end€of€the€Rule€to€refer€toŠ  &p!( Štwo€statutes,€as€follows:Š ö&F") ŠĢĢRule€13-102.€€SCOPE€Š x)Č$, ŠĢĢ€€(a)€€GenerallyŠ ś+J'/ ŠĢą ø ą€€Except€as€provided€in€section€(b),€theŠ ¦-ö(1 Šrules€in€this€Title€apply€in€the€circuitŠ |.Ģ)2 Šcourt€to€the€estate€of:€€Š ° ŠĢ€€€€(1)€an€assignee;€€Š \¬ ŠĢ€€€€(2)€a€receiver€appointed€under€theŠ X Šgeneral€equitable€power€of€a€court€to€takeŠ Ž. Šcharge€of€an€estate;€€Š “  ŠĢ€€€€(3)€a€receiver€appointed€under€anyŠ ` ° Šstatutory€provision€that€specificallyŠ 6 †  Šprovides€that€these€rules€apply€to€theŠ  \  Šproceeding;€and€€Š ā 2  ŠĢ€€€€(4)€any€other€statutory€receiver€to€theŠ ŽŽ  Šextent€that€(A)€the€rules€in€this€Chapter€areŠ d“  Šnot€inconsistent€with€the€statutoryŠ :Š  Šprovisions€authorizing€the€appointment€of€theŠ `  Šreceiver,€and€(B)€the€court€orders€that€theŠ ę6 Šrules€apply.€€Š ¼  ŠĢ€€(b)€€No€ApplicationŠ hø ŠĢą ø ą€€The€rules€in€this€Title€do€not€applyŠ d Što€the€estate€of:€€Š ź: ŠĢ€€€€(1)€a€receiver€appointed€pursuant€to€theŠ –ę Šterms€of€a€mortgage€or€deed€of€trust€pendingŠ l¼ Šforeclosure€who€takes€charge€of€only€theŠ B’ Šproperty€subject€to€that€mortgage€or€deed€ofŠ h Štrust;€€Š ī> ŠĢ€€€€(2)€a€receiver€appointed€pursuant€to€theŠ šź Šterms€of€a€security€agreement€who€takesŠ pĄ  Šcharge€of€only€the€property€subject€to€thatŠ F –! Šagreement;€or€€Š !l" ŠĢ€€€€(3)€a€person€appointed€for€purposes€ofŠ Č"$ Šenforcement€of€health,€housing,€fire,Š ž#ī% Šbuilding,€electric,€licenses€and€permits,Š t$Ä& Šplumbing,€animal€control,€or€zoning€codes€orŠ J%š ' Šfor€the€purpose€of€abating€a€public€nuisance.€Š  &p!( ŠĢCross€reference:€€For€an€example€of€a€statuteŠ Ģ'#* Šspecifically€providing€that€these€rulesŠ ¢(ņ#+ Šapply,€see€Code,€Financial€InstitutionsŠ x)Č$, ŠArticle,€šš9-708.€€For€examples€of€statutesŠ N*ž%- Šauthorizing€the€appointment€of€a€receiver,Š $+t&. Šsee€Code,€Corporations€and€AssociationsŠ ś+J'/ ŠArticle,€šššš3-411,€3-414,€3-415,€and€3-514;Š Š, (0 ŠFinancial€Institutions€Article,€šššš5-605€andŠ ¦-ö(1 Š6-307;€Commercial€Law€Article,€šššš6-106€andŠ |.Ģ)2 Š15-210;€ņ ņandó ó€Health-General€Article,€šš19-334ņņ;Š ° Šand€Real€Property€Article,€šššš11„109.3€andŠ †Ö Š11B„111.5óó.€This€list€is€illustrative€only.€€Š \¬ ŠĢSource:€€This€Rule€is€derived€in€part€fromŠ X Šformer€Rule€BP1€b.€€Š Ž. ŠĢĢҰ` ŅҰ` Ņą  ąRule€13„102€was€accompanied€by€the€following€ReporterššsŠ ` ° ŠĢNote.Š  \  ŠĢŅ` °ŅŅ` °Ņą ø ąThe€General€Assembly€enacted€ChapterŠ ø  Š321,€Acts€of€2007€€€€(SB€287)€which€added€aŠ ŽŽ  Šprocedure€for€appointment€by€a€court€of€aŠ d“  Šreceiver€when€a€council€of€unit€owners€of€aŠ :Š  Šcondominium€or€a€homeowners€association€failsŠ `  Što€fill€vacancies€on€the€board€of€directors.€Š ę6 ŠThe€Property€Subcommittee€recommends€addingŠ ¼  Što€the€list€of€cross€references€after€RuleŠ ’ā Š13„102€a€reference€to€the€new€statutes.Š hø ŠŌ#† X.žXXX f6Ż#ŌĢĢҰ` ŅҰ` ŅÓÓą  ąThe€Vice€Chair€asked€if€this€should€be€tabled,€for€the€sameŠ ź: Šreason€the€previous€item€was€tabled€š!š„€the€absence€of€the€ChairŠ –ę Šof€the€Property€Subcommittee.€€The€Reporter€noted€that€thisŠ B’ Šchange€is€only€the€addition€of€a€cross€reference€to€Rule€13„102,Š ī> ŠScope.€€Mr.€Boozer,€a€member€of€the€Property€Subcommittee,€statedŠ šź Šthat€he€agrees€with€this€added€cross€reference.€€The€AssistantŠ F –! ŠReporter€asked€whether€the€cross€reference€is€necessary,€and€Mr.Š ņ!B# ŠŌ_ŌBraultŌ_Ō€answered€that€it€is€helpful€to€practitioners€to€have€crossŠ ž#ī% Šreferences€to€applicable€statutes€in€the€Rules.€€By€consensus,Š J%š ' Šthe€Committee€approved€the€amendment€to€Rule€13„102.Š ö&F") ŠÓÓĢAgenda€Item€5.€€Consideration€of€proposed€š šhousekeepingššŠ x)Č$, Š€€amendments€to:€€Rule€10„213€(Order)€and€Rule€16„1006€(RequiredŠ N*ž%- Š€€Denial€of€Inspection€„€Certain€Categories€of€Case€Records)Š $+t&. Š_________________________________________________________________Š ś+J'/ ŠĢÓÓą  ąThe€Reporter€presented€Rules€10„213,€Order€and€16„1006,Š ¦-ö(1 ŠRequired€Denial€of€Inspection€„€Certain€Categories€of€CaseŠ ° ŠRecords,€for€the€Committeeššs€consideration.Š \¬ ŠÓÓŅ` °ŅŅ` °ŅĢą@˜ ˜ ģąMARYLAND€RULES€OF€PROCEDUREˆŠ Ž. Šą ø ąą  ąą h ąą Ą ąĢą@  ģąTITLE€10€„€GUARDIANS€AND€OTHER€FIDUCIARIESˆŠ Š Ś ŠĢą@l l ģąCHAPTER€200€„€GUARDIAN€OF€PERSONˆŠ 6 †  ŠĢĢą ø ąAMEND€Rule€10„213€to€revise€a€crossŠ ø  Šreference,€as€follows:Š ŽŽ  ŠĢĢRule€10-213.€€ORDER€Š `  ŠĢĢ€€(a)€€GenerallyŠ ’ā ŠĢą ø ą€€The€court€may€issue€an€orderŠ >Ž Šauthorizing€the€provision€of€protectiveŠ d Šservices€on€an€emergency€basis€after€aŠ ź: Šfinding€on€the€record€that€the€allegationsŠ Ą Šrequired€by€Rule€10-210€(c)(6)€areŠ –ę Šestablished€by€clear€and€convincing€evidence.€Š l¼ ŠAn€order€shall€either€be€in€writing€or,€ifŠ B’ Šdictated€into€the€record,€transcribed€by€theŠ h Šcourt€reporter€immediately€and€placed€intoŠ ī> Šthe€record.€€Š Ä ŠĢ€€(b)€€Appointment€of€Temporary€GuardianŠ pĄ  ŠĢą ø ą€€In€its€order€the€court€shall€appoint€aŠ !l" Štemporary€guardian€who€can€give€consent€onŠ ņ!B# Šbehalf€of€the€disabled€person€for€theŠ Č"$ Šapproved€protective€services€until€theŠ ž#ī% Šexpiration€of€the€order.€€Š t$Ä& ŠĢ€€(c)€€Duration€of€OrderŠ  &p!( ŠĢą ø ą€€The€order€shall€expire€144€hours€afterŠ Ģ'#* Šit€is€issued,€unless€extended€pursuant€toŠ ¢(ņ#+ Šsection€(d)€of€this€Rule.€€Š x)Č$, ŠĢ€€(d)€€Extension€of€OrderŠ $+t&. ŠĢą ø ą€€The€court€may€further€extend€theŠ Š, (0 Šemergency€order€and€the€appointment€of€theŠ ¦-ö(1 Štemporary€guardian€until€appointment€of€aŠ |.Ģ)2 Šguardian€of€the€person€upon€(1)€a€petition€ofŠ ° Šthe€temporary€guardian€filed€before€theŠ †Ö Šexpiration€of€the€emergency€order,Š \¬ Šaccompanied€by€a€petition€for€the€appointmentŠ 2‚ Šof€a€guardian€of€the€person,€and€(2)€aŠ X Šshowing€that€the€situation€described€in€RuleŠ Ž. Š10-210€(c)(6)€will€probably€continue€or€recurŠ “  Šif€the€emergency€order€is€not€furtherŠ Š Ś Šextended.€€The€petition€for€appointment€of€aŠ ` ° Šguardian€shall€be€heard€on€an€expedited€basisŠ 6 †  Šnot€later€than€60€days€after€it€is€filed.€€Š  \  ŠĢ€€(e)€€Report€of€Temporary€GuardianŠ ø  ŠĢą ø ą€€When€protective€services€are€renderedŠ d“  Šon€the€basis€of€an€emergency€order,€theŠ :Š  Štemporary€guardian€shall€submit€a€report€toŠ `  Šthe€court€describing€the€services€and€outcomeŠ ę6 Šand€any€forcible€entry€used€to€obtain€custodyŠ ¼  Šof€the€person.€€The€report€shall€become€aŠ ’ā Špart€of€the€court€record.€€The€temporaryŠ hø Šguardian€shall€also€send€a€copy€of€the€reportŠ >Ž Što€€Š d ŠĢ€€€€(1)€the€disabled€person€and€the€attorneyŠ Ą Šfor€the€disabled€person,€and€€Š –ę ŠĢ€€€€(2)€the€director€of€the€local€departmentŠ B’ Šof€social€services€if€the€disabled€person€isŠ h Šunder€65,€or€€Š ī> ŠĢ€€€€(3)€the€director€of€the€local€office€onŠ šź Šaging€if€the€disabled€person€is€65€or€older,Š pĄ  Šand€€Š F –! ŠĢ€€€€(4)€any€other€person€or€entity€asŠ ņ!B# Šrequired€by€the€court€or€by€law.€€Š Č"$ ŠĢCross€reference:€€Code,€ņ ņArticle€70Bó ó€ņņHumanŠ t$Ä& ŠServices€Article,€Title€10óó.€€Š J%š ' ŠĢSource:€€This€Rule€is€derived€from€Code,Š ö&F") ŠEstates€and€Trusts€Article,€šš13-709.€€Š Ģ'#* ŠĢĢҰ` ŅҰ` Ņą  ąRule€10„213€was€accompanied€by€the€following€ReporterššsŠ N*ž%- ŠĢNote.Š ś+J'/ ŠĢŅ` °ŅŅ` °Ņą ø ąA€proposed€amendment€to€the€crossŠ ¦-ö(1 Šreference€that€follows€Rule€10„213€conformsŠ |.Ģ)2 Šit€to€Chapter€3,€Acts€of€2007€(SB€6)€by€whichŠ ° Šthe€General€Assembly€added€the€new€HumanŠ †Ö ŠServices€Article€to€the€Code.Š \¬ ŠĢĢĢĢĢĢĢą@˜ ˜ ģąMARYLAND€RULES€OF€PROCEDUREˆŠ  \  ŠĢą@Œ Œ ģąTITLE€16€„€COURTS,€JUDGES,€AND€ATTORNEYSˆŠ ø  ŠĢą@Ų Ų ģąCHAPTER€300€„€CIRCUIT€COURT€CLERKSšš€OFFICESˆŠ d“  ŠĢĢą ø ąAMEND€Rule€16„1006€to€revise€a€CommitteeŠ ę6 Šnote,€as€follows:Š ¼  ŠĢĢRule€16-1006.€€REQUIRED€DENIAL€OF€INSPECTIONŠ >Ž Š„€CERTAIN€CATEGORIES€OF€CASE€RECORDS€Š d ŠĢĢą ø ąExcept€as€otherwise€provided€by€law,Š –ę Šcourt€order,€or€the€Rules€in€this€Chapter,Š l¼ Šthe€custodian€shall€deny€inspection€of:€€Š B’ ŠĢ€€(a)€€All€case€records€filed€in€theŠ ī> Šfollowing€actions€involving€children:€€Š Ä ŠĢ€€€€(1)€Actions€filed€under€Title€9,€ChapterŠ pĄ  Š100€of€the€Maryland€Rules€for:€€Š F –! ŠĢą ø ą€(A)€Adoption;€€Š ņ!B# ŠĢą ø ą€(B)€Guardianship;€or€€Š ž#ī% ŠĢą ø ą€(C)€To€revoke€a€consent€to€adoption€or€Š J%š ' Šguardianship€for€which€there€is€no€pendingŠ  &p!( Šadoption€or€guardianship€proceeding€in€thatŠ ö&F") Šcounty.€€Š Ģ'#* ŠĢ€€€€(2)€Delinquency,€child€in€need€ofŠ x)Č$, Šassistance,€and€child€in€need€of€supervisionŠ N*ž%- Šactions€in€Juvenile€Court,€except€that,€if€aŠ $+t&. Šhearing€is€open€to€the€public€pursuant€toŠ ś+J'/ ŠCode,€Courts€Article,€šš3-8A-13€(f),€the€nameŠ Š, (0 Šof€the€respondent€and€the€date,€time,€andŠ ¦-ö(1 Šlocation€of€the€hearing€are€open€toŠ |.Ģ)2 Šinspection.€€Š ° ŠĢ€€(b)€€The€following€case€records€pertainingŠ \¬ Što€a€marriage€license:€€Š 2‚ ŠĢ€€€€(1)€A€physician's€certificate€filedŠ Ž. Špursuant€to€Code,€Family€Law€Article,€šš2-301,Š “  Šattesting€to€the€pregnancy€of€a€child€underŠ Š Ś Š18€years€of€age€who€has€applied€for€aŠ ` ° Šmarriage€license.€€Š 6 †  ŠĢ€€€€(2)€Until€a€license€is€issued,€the€factŠ ā 2  Šthat€an€application€for€a€license€has€beenŠ ø  Šmade,€except€to€the€parent€or€guardian€of€aŠ ŽŽ  Šparty€to€be€married.€€Š d“  ŠĢ€€(c)€€In€any€action€or€proceeding,€a€recordŠ `  Šcreated€or€maintained€by€an€agency€concerningŠ ę6 Šchild€abuse€or€neglect€that€is€required€byŠ ¼  Šstatute€to€be€kept€confidential.€€Š ’ā ŠĢCommittee€note:€€Statutes€that€require€childŠ >Ž Šabuse€or€neglect€records€to€be€keptŠ d Šconfidential€include€Code,€ņ ņArticle€88A,€šššš6Š ź: Š(b)€and€6Aó ó€ņņHuman€Services€Article,€šššš1„202Š Ą Šand€1„203óó€and€Code,€Family€Law€Article,Š –ę Ššš5-707.€€Š l¼ ŠĢ€€€.€.€.Š h ŠĢĢҰ` ŅҰ` Ņą  ąRule€16„1006€was€accompanied€by€the€following€ReporterššsŠ šź ŠĢNote.Š F –! ŠĢŅ` °ŅŅ` °Ņą ø ąThe€proposed€amendment€to€the€CommitteeŠ ņ!B# Šnote€that€follows€section€(c)€of€Rule€16„1006Š Č"$ Šconforms€it€to€Chapter€3,€Acts€of€2007€(SBŠ ž#ī% Š6),€by€which€the€General€Assembly€added€theŠ t$Ä& Šnew€Human€Services€Article€to€the€Code.Š J%š ' ŠĢĢҰ` ŅҰ` ŅÓÓą  ąThe€Reporter€said€that€these€were€two€minor€š šhousekeepingššŠ Ģ'#* Šamendments€to€these€Rules.€€The€changes€conform€to€Chapter€3,Š x)Č$, ŠActs€of€2007€(SB€6),€the€new€Human€Services€Article.€€TheŠ $+t&. ŠReporter€expressed€her€gratitude€to€Cathy€Cox,€AdministrativeŠ Š, (0 ŠAssistant€to€the€Rules€Committee,€who€carefully€went€through€the€Š  |.Ģ)2 Šnew€law€to€determine€the€corresponding€changes€to€the€Rules.€€ByŠ ° Šconsensus,€the€Committee€approved€the€changes.Š \¬ Šą  ąThe€Vice€Chair€adjourned€the€meeting.Š X Š