Order of the Bar Association (Securities for a Foreign Lawyer),

Transcription

1 Order of the Bar Association (Securities for a Foreign Lawyer), By virtue of my authority according to section 198 (a)(4) of the Bar Association Law, (hereinafter: the "Law"), at the consent of the Ministry of Justice, after consulting with the Bar Association and with the approval of the Constitution, Law and Justice Committee of the Knesset, I order as follows: Definitions 1. In this order "Insurer" as defined in the Law of Supervision over Financial Services (Insurance), "Harmed Party" whoever was harmed as a result of an action or omission of a foreign lawyer regarding legal services in respect to foreign law that was rendered, all or in part, in Israel; "Deposit" a monetary deposit that is deposited in a Banking Corporation; "Banking Corporation" as defined in the Banking Law (Licensing), Guarantee 2. (a) An autonomous guarantee that a foreign lawyer gives as a security according to section 98 F (a) (4) (a) (1) of the Law shall be according to the version in the first addendum and it fulfill all the following conditions: (1) It shall be given by a Banking Corporation or Insurer; (2) It shall be in an amount that shall not be less than two million new shekels; (3) It shall be unconditional and it may not be transferred or pledged; it may be cancelled only according to a written demand of the Bar Association; (4) It shall be in favor of the Bar Association and it shall be held by the Bar Association in trust for harmed parties. The applicant wishing to be registered in the registry as a foreign lawyer, shall present before the Bar Association a copy of the autonomous guarantee signed by a banking guarantee or Insurer, according to the form in the first addendum. By the end of each year after issuing the guarantee, the foreign lawyer shall present an updated confirmation in respect to the validity of the guarantee according to section 5.

2 Insurance 3. (a) All of the following conditions shall be met in respect to insurance taken out by a foreign lawyer as a security according to section 98F (a) (4) (a) (2) of the law; (1) The insurance shall be taken out at an Insurer in a manner that shall cover the claims that shall were first filed during the insurance period according to the policy; (2) The policy shall include a disclosure period which shall not be less than seven years, so that coverage shall be given to claims first filed during the disclosure period due to his engagement as an lawyer in Israel; (3) The insurance amount in the insurance policy shall not be less than two million new shekels; (4) The deductible amount for an insurance event according to the terms of the insurance policy shall not exceed then thousand New Shekels; (5) The policy shall be pledged in favor of the Bar Association in trust for harmed parties; The applicant wishing to register in the registry as a foreign lawyer shall present before the Bar Association an insurance certificate signed by the Insurer, according to the form in the second addendum. By the end of each year after taking out the insurance policy, the foreign lawyer shall present an updated certificate of the validity of the policy according to sub-section (a) (2). Deposit 4. (a) In a deposit that a foreign lawyer deposits as a security according to section 98F (a)(4)(a)(3) of the law, all the following conditions shall be fulfilled: (1) It shall be in an amount that shall not be less than 2 million new shekels; (2) It shall be free from any pledge or lien at all times; (3) It shall not be able to be withdrawn unless such withdrawal is under the provisions in section 9; (4) It shall be deposited in a separate trust account for each foreign lawyer in a Banking Corporation in the name of the Bar Association in favor of harmed parties;

3 The applicant wishing to register in the registry as a foreign lawyer shall present before the Bar Association a certificate of the existence of a deposit signed by him and by a Banking Corporation, according to the form in the third addendum. Validity of the Guarantee or the Deposit 5. A guarantee according to section 2 or according to section 4, respectively, shall be in force for seven years after the foreign lawyer ceased to be registered in the registry; after that the Bar Association shall return the guarantee or the deposit money, respectively, to the foreign lawyer. Terms for Realizing the Guarantee or the Deposit 6. The Bar Association shall act for realizing the guarantee or withdraw the deposit, respectively, in favor of the Harmed Party as early as possible, and in any event not no less than thirty days after the day on which (1) A final judgment was presented before it of a court in Israel that orders payment of money to the Harmed Party, and in accordance with the terms and amounts set forth in the judgment, and it is one of the following: (a) (d) A judgment of a court in a lawsuit of the Harmed Party against the foreign lawyer; A judgment that declares a foreign judgment as an enforceable judgment according to the Enforcement of Foreign Judgments Law, ; In this respect a "foreign judgment- as defined in section 1 of that law; A judgment that renders valid a settlement agreement between a foreign lawyer and the Harmed Party; A judgment that ratifies an arbitration judgment, according to the Arbitration Law, (2) If a year has passed from the day of issuing the guarantee, and the lawyer did not extend it for the period stipulated in section 5, unless the foreign lawyer ceased to be registered in the registry; if the Bar Association realized the guarantee as mentioned, the Bar Association shall deposit the money in the Banking Corporation in a separate trust account for each foreign lawyer in the name of the Bar Association in favor of harmed parties, and sections 4, 5, and 7 shall apply to the deposit mutatis mutandis. Reinstatement of a Security that was Realized 7. If the guarantee has been realized, if the deposit has been withdrawn or if the insurance payments have been paid, all or in part, the foreign lawyer shall present before the Bar Association, as soon as possible and not later than thirty

4 days after the date of realization, withdrawal or payment, respectively, a certificate that the security as set forth in sections 2, 3 or 4, was reinstated according to the terms stipulated in them, respectively. Applicant or Foreign Lawyer who is an Israeli Resident 8. (a) In respect to an applicant who is a resident of Israel or respect to a foreign lawyer who is an Israeli resident sections 2 to 5 shall apply with the following changes: (1) The guarantee or the deposit shall be in an amount that shall not be less than one hundred thousand new shekels, and they shall be in force for one year after the foreign lawyer ceased to be registered in the registry; (2) The insurance amount in the insurance policy shall not be less than one million and a half new shekels, and the policy shall include a runoff period which shall no less than a year; (3) The version of the guarantee in the first addendum, a version of the certification of insurance in the second addendum and the version of the certificate of deposit in the third addendum shall be adjusted to the changes set forth in paragraphs (1) and (2). A foreign lawyer who is an Israeli resident, requesting that sub- section (a) apply to him, shall present before the Bar Association, every three years after he has been registered, details and certificates, to the Bar Association's satisfaction, that he falls under the definition of "Resident of Israel" as mentioned in sub- section. In this respect, "Resident of Israel" an Israeli citizen, or whoever was given an immigrant visa, an immigrant certificate or a permanent resident license, who lives permanently lives in Israel in the three years prior to submitting the application. Applicability 9. This order shall come into force 30 days after it is published.

5 First Addendum (sections 2 (a) and and 8 (a) (3)) Autonomous Guarantee no.... (Guarantee No.) Attn: The Bar Association in Israel We the undersigned... (name of the Banking Corporation or the Insurer) whose address is... (address of the Banking Corporation or of the Insurer), hereby guarantee you the payment of any amount up to the total amount of two million new shekels (2,000,000 new shekels) (hereinafter: the "Guarantee Amount") which shall be due to you from... (hereinafter: the "Debtor"). According to your first written demand, not later than seven days after the day on which we received such demand as mentioned, we shall pay to you any amount stipulated in the demand provided that it shall not exceed the guaranteed amount, without imposing on you an obligation to prove your demand and without you being required to first demand the payment from the debtor. Any amount that we shall pay you according to this guarantee shall be paid according to the instruction of the Bar Association in Israel. This guarantee shall remain in force only up to the... day in the month of... year... (inclusive) and after this date it shall be null and void. Any demand according to this guarantee must be received by use in writing not later than this date at our address set forth in this guarantee during opening hours. A written demand that shall arrive by facsimile or by any other electronic means shall not be considered a demand in accordance with this guarantee. This guarantee, whose number is... (guarantee number) may not be transferred or pledged; it may be cancelled only according to a written demand from you. Date... (year/ month/ day)... The Banking Corporation/ the Insurer... Signature of the Banking Corporation/ the Insurer... Stamp of the Banking Corporation/ the Insurer...

6 Second Addendum (sections 3 and 8 (a) (3)) Certificate of Insurance Attn: The Bar Association in Israel We the undersigned... (name of the Insurer) whose address is... (address of the Insurer) hereby confirm that the insured party... (name of the insured party) whose address is... (address of the insured party) is insured by use by a professional liability insurance policy whose number is... (number of the policy), which begins on the... (year/ month/ day) up to the... (year/ month/ day) (hereinafter: the Insurance Period). This policy covers claims that were first submitted during the insurance period, due to the activities of the foreign lawyer in Israel and claims that were first submitted during seven runoff years at least after the end of the insurance period, due to activities of the foreign lawyer in Israel. The policy shall cover only the insured party's liability according to any law for compensation of anyone that was harmed as a result of an action or omission of the insured party regarding legal services in respect to foreign law that was provided all or in part in Israel. The insurance amount is two million new shekels at least (2,000,000 new shekels) (and coverage for reasonable legal costs that the insured party must bear due his liability, even beyond the insured amount). The amount of the deductible does not exceed ten thousand new shekels (10,000 new shekels) for an insurance event. The Israeli law shall apply to this policy and all of its terms, and the competent courts to hear any matter concerning this policy shall be the courts in Israel only. Date... (year/ month/ day)... The Insurer... Signature of the Insurer... Stamp of the Insurer...

7 Third Addendum (sections 4 and 8 (a)(3)) Certificate of Deposit Attn: The Bar Association in Israel 1. We the undersigned... (name of the Banking Corporation) whose address is... (address of the Banking Corporation) hereby confirm that... (name of the depositor) whose address is... (address of the depositor) deposited an amount of two million new shekels (2,000,000 new shekels) in a deposit in a separate trust account the number of which is... (number of deposit), in the name of the Bar Association in Israel. Date... (year/ month/ day)... The Banking Corporation... Signature of the Banking Corporation... Stamp of the Banking Corporation I the undersigned... (name of the foreign lawyer), passport number... (passport number of the foreign lawyer) hereby confirms that on the date... (year/ month/ day), I deposited a deposit in the amount of two million new shekels (2,000,000 new shekels) at least, in a separate trust account in the name of the Bar Association in Israel in favor of whoever is harmed as a result of an action or omission of the undersigned regarding legal services in respect to foreign law provided all or in part in Israel. This deposit is free and it shall be free from any pledge, encumbrance or lien at any time, and it may not be withdrawn without the approval of the Bar Association in Israel. Date... (year/ month/ day )... Name of the foreign lawyer... License no./ Passport no.... Signature and stamp of the foreign lawyer... 7 in Sivan, 5772 (28 th of May 2012) Yuval Steinetz Minister of Finance