Mission & Purpose
The Client Protection Fund (formerly The
Clients' Security Trust Fund) was established by the Maryland Legislature in
1965 (Chapter 779). The statute, now codified as Business Occupations and Professions
Article, § 10-310, et seq., empowers the Court of Appeals to provide by
rule for the operation of the Fund and to require from each lawyer an annual
assessment as a condition precedent to the practice of law in the State of Maryland.
Rules of the Court of Appeals that now are in effect are set forth in Maryland
The Fund is administered by nine trustees,
eight of whom are lawyers.
The purpose of the Client Protection Fund
shall be to maintain the integrity and protect the good name of
the legal profession by reimbursing clients for losses caused by
defalcation bylawyers, to the extent authorized by rule and deemed
proper and reasonable by the trustees of the Fund. Reimbursement
covers losses caused by misappropriation of funds by members of
the Maryland Bar acting either as attorneys or as fiduciaries (except
to the extent to which they are bonded) and by out-of-state attorneys
who have been authorized to practice in Maryland.