122I   Substitution of lender or contributor under run-out mortgage

(1)  A solicitor may, despite section 122H, accept money from a client, and do any other work that is necessary, solely for the purpose of substituting a lender or contributor under a run-out mortgage.

(2)  Section 120 does not apply in respect of such action. Accordingly, the solicitor is not required to obtain fidelity insurance for the purpose of compensating the substitute lender or contributor for any pecuniary loss.

(3)  If a client entrusts or proposes to entrust money to a solicitor for the purpose of substituting a lender or contributor under a run-out mortgage, the solicitor must give the client a notice in writing that advises the client:

(a)  of the effect of section 122J, and

(b)  that the solicitor is not required to have fidelity insurance in respect of the run-out mortgage.

(4)  The solicitor must not advance the money to a borrower for a run-out mortgage unless the solicitor has given the client the notice referred to in subsection (3).

(5)  A solicitor who contravenes this section commits professional misconduct.