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Business, 25.12.2019 04:31 SundaeSunday

An attorney practices law in a state that has experienced a business recession and where several banks have failed and others are severely pressed to preserve their solvency. attorney maintains a clients' trust account in bank and that account is insured by the federal deposit insurance corporation against losses up to $100,000. attorney also maintains his regular office account in the same bank and that account is insured to $100,000. during a particularly busy time, attorney's bookkeeper told attorney that the balance in the clients' trust account had increased to $150,000. the bookkeeper noted that the office account had a balance of $30,000. which of the following courses of action by attorney would be proper? i. leave the clients' trust account as is if the balance is likely to decrease to less than $100,000 within the next ten days. ii. open another clients' trust account in another bank and transfer some funds to the second clients' trust account to maintain a fully insured balance in both accounts. iii. temporarily transfer $50,000 from the clients' trust account to the office account so the balance in both accounts is fully within insured limits.
a) i only
b) ii and/ii, but not i
c) ii only
d) i and ii, but not iii

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