AMENDMENTS TO THE RULES AND REGULATIONS OF THE NORTH

CAROLINA STATE BAR

8 OCTOBER 1998

IN RE CLIENT SECURITY FUND

29 JULY 1998

CONCERNING ADMISSON TO PRACTICE LAW

CONCERNING PROFESSIONAL CONDUCT

CONCERNING LEGAL SPECIALIZATION

5 MARCH 1998

CONCERNING PROCEDURES FOR RULING ON QUESTIONS OF LEGAL ETHICS

CONCERNING ORGANIZATIONS PRACTICING LAW

CONCERNING DISCIPLINE AND DISABILITY

CONCERNING MEMBERSHIP

CONCERNING CONTINUING LEGAL EDUCATION

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ORDER

IN RE CLIENT SECURITY FUND OF THE NORTH CAROLINA STATE BAR

This matter coming on to be considered before the North Carolina Supreme Court in conference duly assembled on 8 October 1998, upon request of the North Carolina State Bar, and it appearing from information submitted by the Council of the North Carolina State Bar that a $50.00 assessment of the active members of the North Carolina State Bar will be needed in 1999 in order to support and maintain properly the Client Security Fund;

Now, therefore, it is hereby ordered that there be a $50.00 assessment of the active members of the North Carolina State Bar to support the Client Security Fund in 1999.

This the 8th day of October, 1998.

s/Wynn, J.

For the Court

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AMENDMENTS TO THE RULES GOVERNING ADMISSION TO PRACTICE

LAW IN THE STATE OF NORTH CAROLINA

The following amendments to the Rules Governing Admission to Practice Law in the State of North Carolina were approved by the Council of the North Carolina State Bar upon the recommendation of the Board of Law Examiners of the State of North Carolina at the Council's quarterly meeting on April 17, 1998.

BE IT RESOLVED by the Council of the North Carolina State Bar that the Rules Governing Admission to Practice Law in the State of North Carolina be amended as follows (additions underlined, deletions interlined):

Board of Law Examiner.

of

The State of North Carolina

RESOLUTION

WHEREAS, the Board of Law Examiners of the State of North Carolina held a meeting in Charleston, South Carolina, on March 22, 1998; and

WHEREAS, at this meeting, the Board considered the amendments to Rules .0202, .0403, .0502, and .1203 of the Rules Governing Admission to the Practice of Law in the State of North Carolina; and,

WHEREAS, on motion duly made and seconded, it was RESOLVED that Rules .0202, .0403, .0502(1)(b)i, 2 and 3, and .1203 be amended to read as follows:



Rule.0202 Definitions

(3) (3) . . . Mailings which are postmarked after a deadline or which if postmarked on or before a deadline and do not include required fees or which include a check in payment of required fees which is not honored due to insufficient funds will not be considered as timely filed. Applications which are not properly signed and notarized; or which do not include the properly executed Authorization and Release forms; or which are illegible; or which answers to the questions are not complete will not be considered filed and will be returned.

Rule .0403 Filing Deadlines

(1) Applications shall be filed and received by the secretary at the offices of the Board on or before the second first Tuesday in January immediately preceding the date of the July written bar examination and on or before the second first Tuesday in October immediately preceding the date of the February written bar examination.

(2) Upon payment of a late filing fee of $200 (in addition to all other fees required by these rules), an applicant may file a late application with the Board on or before the second first Tuesday in March immediately preceding the July written bar examination and or before the first Tuesday in November immediately preceding the February written bar examination.

(3) Applicants who fail to timely file their application will not be allowed to take the Bar Examination designated on the application.

(4) Any applicant who has aptly filed an application to stand the February written bar examination may make application to take the immediately following July bar examination by filing a Supplemental Application with the secretary of the Board at the offices of the Board on or before the first Tuesday in May immediately preceding the July written bar examination.

Rule .0502 Requirements for Comity Applicants

(l)(b)i Certificates of Moral Character from four (4) attorneys

individuals who know the applicant;

(2) Pay to the Board with each typewritten application, a fee of $1250.00 $1500.00, no part of which may be refunded to the applicant whose application is denied;

(3) Prove to the satisfaction of the Board that the applicant is duly licensed to practice law in a state, or territory of the United States, or the District of Columbia having comity with North Carolina and that in such state, or territory of the United States, or the District of Columbia, while so licensed therein, the applicant has been for at least four out of the last six years, immediately preceding the filing of this application with the Secretary, actively and substantially engaged in the full-time practice of law....

Rule .1203 Conduct of Hearings

(2) The Panel will make a determination as to the applicant's eligibility to stand the written bar examination or to be licensed by comity. The panel may grant the application, deny the application, or refer it to the full Board for a de novo hearing. The applicant will be notified in writing of the Panel's determination. In the event of an adverse determination by the Panel, the applicant may request a hearing de novo before the full Board by giving written notice to the secretary at the offices of the Board within ten (10) days following receipt of the Panel's determination. Failure to file such notice in the manner and within the time stated shall operate as a waiver of the right of the applicant to request a hearing de novo before the full Board and shall result in the determination of the Panel becoming final.

NOW, THEREFORE, BE IT RESOLVED by unanimous vote of the Board of Law Examiners of the State of North Carolina that Rules .0202, .0403, .0502, .1203 of the Rules Governing Admission to the Practice of Law in the State of North Carolina be amended to read as set out above; and that the action of this Board be certified to the Council of the North Carolina State Bar and to the North Carolina Supreme Court for approval.

Enacted at a regularly scheduled meeting of the Board of Law Examiners of the State of North Carolina on March 22, 1998.

Given over my hand and seal of the Board of Law Examiners this the 31st day of March, 1998.

s/Fred P. Parker III

Executive Director

NORTH CAROLINA

WAKE COUNTY

I, L. Thomas Lunsford, II, Secretary-Treasurer of the North Carolina State Bar, do hereby certify that the foregoing amendments to the Rules Governing Admission to Practice Law in the State of North Carolina were duly approved by the Council of the North Carolina State Bar at a regularly called meeting on April 17, 1998.

Given over my hand and the Seal of the North Carolina State Bar, this the 18th day of May, 1998.

s/L. Thomas Lunsford, II

L. Thomas Lunsford, II

Secretary

After examining the foregoing amendments to the Rules Governing Admission to Practice Law in the State of North Carolina as approved by the Council of the North Carolina State Bar, it is my opinion that the same are not inconsistent with Article 4, Chapter 84, of the General Statutes.

This the 29th day of July, 1998.

s/Burley B. Mitchell, Jr.

Burley B. Mitchell, Jr.

Chief Justice

Upon the foregoing certificate, it is ordered that the foregoing amendments to the Rules Governing Admission to Practice Law in the State of North Carolina be spread upon the minutes of the Supreme Court and that they be published in the forthcoming volume of the Reports as provided by the Act incorporating the North Carolina State Bar.

This the 29th day July, 1998.

s/Orr, J.

For the Court

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AMENDMENT TO THE REVISED RULES OF PROFESSIONAL CONDUCT

OF THE NORTH CAROLINA STATE BAR

The following amendment to the Revised Rules of Professional Conduct of the North Carolina State Bar was duly adopted by the Council of the North Carolina State Bar at its quarterly meeting on April 17, 1998.

BE IT RESOLVED by the Council of the North Carolina State Bar that the Revised Rules of Professional Conduct of the North Carolina State Bar, as particularly set forth in 27 N.C.A.C. 2, Rule 7.5(c) regarding the listing of a lawyer licensed in another jurisdiction, be amended as follows (additions are in bold type, deletions are interlined):

Revised Rules of Professional Conduct

27 N.C.A.C. 2 Revised Rule 7.5(c)

Revised rule 7.5 (c) - A law firm maintaining offices only in North Carolina may not list any person not licensed to practice law in North Carolina as a lawyer affiliated with the firm unless the listing properly identifies the jurisdiction in which the lawyer is licensed and states that the lawyer is not licensed in North Carolina.

Comment [3] - This rule does not prohibit the employment by a law firm of a lawyer who is licensed to practice in another jurisdiction, but not in North Carolina, provided the lawyer's practice is limited to areas that do not require a North Carolina law license such as immigration law, federal tort claims, military law, and the like. The lawyer's name may not be included in the firm letterhead, and provided all communications by such on behalf of the firm must indicate the jurisdiction in which the lawyer is licensed as well as the fact that the lawyer is not licensed in North Carolina.

NORTH CAROLINA

WAKE COUNTY

I, L. Thomas Lunsford, II, Secretary-Treasurer of the North Carolina State Bar, do hereby certify that the foregoing amendment to the Rules and Regulations of the North Carolina State Bar was duly adopted by the Council of the North Carolina State Bar at a regularly called meeting on April 17, 1998.

Given over my hand and the Seal of the North Carolina State Bar, this the 18th day of May, 1998.

s/L. Thomas Lunsford II

L. Thomas Lunsford II

Secretary

After examining the foregoing amendment to the Rules and Regulations of the North Carolina State Bar as adopted by the Council of the North Carolina State Bar, it is my opinion that the same is not inconsistent with Article 4, Chapter 84, of the General Statutes.

This the 29th day of July, 1998.

s/Burley B. Mitchell, Jr.

Burley B. Mitchell, Jr.

Chief Justice

Upon the foregoing certificate, it is ordered that the foregoing amendment to the Rules and Regulations of the North Carolina State Bar be spread upon the minutes of the Supreme Court and that they be published in the forthcoming volume of the Reports as provided by the Act incorporating the North Carolina State Bar.

This the 29th day July, 1998.

s/Orr, J.

Fort he Court

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AMENDMENT TO THE RULES AND REGULATIONS OF THE NORTH

CAROLINA STATE BAR CONCERNING LEGAL SPECIALIZATION

The following amendment to the Rules, Regulations, and the Certificate of Organization of the North Carolina State Bar was duly adopted by the Council of the North Carolina State Bar at its quarterly meeting on April 17, 1998.

BE IT RESOLVED by the Council of the North Carolina State Bar that the Rules and Regulations of the North Carolina State Bar concerning legal specialization, as particularly set forth in 27 N.C.A.C. 1D .1725, be amended by adding the following additional specialty designation as approved by the Supreme Court on March 6, 1997, (addition is in bold type):

27 NCAC 1D, Section .1700

Rule .1725

There are hereby recognized the following specialties:

(1) bankruptcy law

(a) consumer bankruptcy law

(b) business bankruptcy law

(2) estate planning and probate law

(3) real property law

(a) real property - residential

(b) real property - business, commercial, and industrial

(4) family law

(5) criminal law

(a) criminal appellate practice

(b) state criminal law

(6) immigration law.

NORTH CAROLINA

WAKE COUNTY

I, L. Thomas Lunsford, II, Secretary-Treasurer of the North Carolina State Bar, do hereby certify that the foregoing amendment to the Rules and Regulations of the North Carolina State Bar was duly adopted by the Council of the North Carolina State Bar at a regularly called meeting on April 17, 1998.

Given over my hand and the Seal of the North Carolina State Bar, this the 18th day of May, 1998.

s/L. Thomas Lunsford, II

L. Thomas Lunsford, II

Secretary

After examining the foregoing amendment to the Rules and Regulations of the North Carolina State Bar as adopted by the Council of the North Carolina State Bar, it is my opinion that the same is not inconsistent with Article 4, Chapter 84, of the General Statutes.

This the 29th day of July, 1998.

s/Burley B. Mitchell, Jr.

Burley B. Mitchell, Jr.

Chief Justice

Upon the foregoing certificate, it is ordered that the foregoing amendment to the Rules and Regulations of the North Carolina State Bar be spread upon the minutes of the Supreme Court and that it be published in the forthcoming volume of the Reports as provided by the Act incorporating the North Carolina State Bar.

This the 29th day July, 1998.

s/Orr, J.

For the Court

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AMENDMENTS TO THE RULES AND REGULATIONS OF THE NORTH

CAROLINA STATE BAR CONCERNING PROCEDURES FOR RULING ON QUESTIONS OF LEGAL ETHICS

The following amendments to the Rules, Regulations, and the Certificate of Organization of the North Carolina State Bar were duly adopted by the Council of the North Carolina State Bar at its quarterly meeting on January 16, 1998.

BE IT RESOLVED by the Council of the North Carolina State Bar that the Rules and Regulations of the North Carolina State Bar concerning procedures for ruling on questions of legal ethics of the ethics committee, as particularly set forth in 27 NCAC 1D, Section .0100 be amended as follows (additions in bold type, deletions interlined):

Procedures for Ruling on Questions of Legal Ethics

27 NCAC 1D, Section .0100

Rule .0101 Definitions

(1) "Assistant executive director" shall mean the assistant executive director of the Bar.

(2) "Attorney" shall mean any active member of the Bar.

(3) "Bar" shall mean the North Carolina State Bar.

(1) "Chairperson" shall mean the chairperson or, in his or her absence, the vice-chairperson of the Ethics Committee of the Bar.

(5) "Citizen" shall mean any person, firm, or corporation residing in North Carolina who is not an attorney as above defined.

(5)(6) "Committee" shall mean the Ethics Committee of the Bar.

(6)(7) "Council" shall mean the council of the Bar.

(7)(8) "Ethics advisory" shall mean an informal legal ethics ruling opinion issued in writing by the executive director, or the assistant executive director, or a designated member of the Bar's staff counsel. All ethics advisories shall be subsequently reviewed and approved, withdrawn or modified by under the supervision of the committee. The Ethics advisories shall be designated by the letters "EA", numbered by year and order of issuance, and kept on file at the Bar's headquarters.

(8)(9) "Ethics decision" shall mean a written ruling ethics opinion issued by the council in response to a request for an legal ethics opinion which, because of its special facts or for other reasons, does not warrant issuance of a published opinion formal ethics opinion. The Ethics decisions shall be designated by the letters "ED", numbered by year and order of issuance, and kept on file at the Bar's headquarters.

(9)(10) "Executive director" shall mean the executive director of the Bar.

(11) "Grievance Committee" shall mean the Grievance Committee of the Bar.

(10)(12) "Formal Legal ethics opinion" shall mean an published opinion issued by the council to provide ethical guidance for attorneys and to establish a principle of ethical conduct. A formal ethics opinion adopted under the Revised Rules of Professional Conduct (effective July 24, 1997) shall be designated as a "Formal Ethics Opinion" and numbered by year and order of issuance. Such opinions are published and Formal ethics opinions adopted under the repealed Rules of Professional Conduct (effective October 7, 1985 to July 23, 1997) are designated by the letters "RPC" and numbered serially with a number to identify them as interpretations of the Rules of Professional Conduct. Formal ethics opinions adopted under the repealed Code of Professional Conduct (effective January 1, 1974 to October 6, 1985) are designated by the letters "CPR" and numbered serially. Formal ethics opinions adopted under the repealed Rules of Professional Conduct and the repealed Code of Professional Conduct are binding unless overruled by a provision of the Bar's current code of ethics, a revision of the rule of ethics upon which the opinion is based, or a subsequent formal ethics opinion on point.

(11) "Grievance Committee" shall mean the Grievance Committee of the Bar.

(12) "Informal ethics advisory" shall mean an informal ethics opinion communicated orally or via electronic mail by the executive director, the assistant executive director, or a designated member of the Bar's legal staff counsel. A written record documenting the name of the inquiring attorney, the date of the informal ethics advisory, and the substance of the advice given shall be kept on file at the Bar. An informal ethics advisory is not binding upon the Bar in a subsequent disciplinary proceeding.

(13) "President" shall mean the president of the Bar or, in his or her absence, the presiding officer of the council.

(14) "Published" shall mean published for comment in the North Carolina State Bar Newsletter (prior to fall 1996), the North Carolina State Bar Journal (fall 1996 and thereafter) or other appropriate publication of the North Carolina State Bar..

(15) "Revised Rules of Professional Conduct" shall mean the code of ethics of the Bar effective July 24, 1997.

Rule .0102  Requests for Legal Ethics Opinions and Ethics Advisories (General Provisions)

(a) Any attorney or citizen may request ask the Bar to rule on actual or contemplated professional conduct of an attorney in the form and manner as provided hereinafter in Section .0100 of this subchapter. In special circumstances, a ruling on the contemplated professional conduct of an attorney may be provided in response to the request of a person who is not a member of the Bar. The grant or denial of the a request rests within the discretion of the executive director, assistant executive director, designated staff counsel, the chairperson, the committee, or the council, as appropriate.

(b) An Aattorneys may initiate a request for an informal ethics advisory by either in writing letter, electronic mail, by telephone, or in personal meeting with an appropriate member of the Bar staff. The executive director, assistant executive director, or designated staff counsel may provide an informal ethics advisory to guide the inquiring attorney's own prospective conduct if the inquiry regarding conduct which they contemplate and in good faith believe is either a is routine, the responsive advice is readily ascertained from the Revised Rules of Professional Conduct and formal ethics opinions, matter or the inquiry requires urgent action in order to protect some legal right, privilege, or interest. If the request is initiated verbally, the requesting attorney must promptly confirm the request in writing.

(c) An attorney may request an ethics advisory or formal ethics opinion by sending a written inquiry to the Bar. The executive director, assistant executive director, or designated staff counsel may issue an ethics advisory to guide the inquiring attorney's own prospective conduct if the inquiry is routine, the responsive advice is readily ascertained from the Revised Rules of Professional Conduct and formal ethics opinions, or the inquiry requires urgent action to protect some legal right, privilege, or interest. An inquiry requesting an opinion about the professional conduct of another attorney, past conduct, or that presents a matter of first impression or of general interest to the Bar shall be referred to the committee for response by ethics decision or formal ethics opinion.

(d)(c) A request for an ethics advisory, ethics decision, or legal ethics opinion All ethics inquiries, whether written or oral, shall present in detail to the executive director or assistant executive director all operative facts upon which the request is based. Inquiries should not disclose client confidences or other sensitive information not necessary to the resolution of the ethical question presented. All requests for either a legal ethics opinion or an ethics decision shall be made in writing.

(d) Any citizen may request either a legal ethics opinion or an ethics decision through any councilor of the judicial district of his or her residence or principal place of business except when the request is regarding the propriety of said councilor's conduct, in which case the citizen may make the request through another councilor in the district or a councilor in an adjoining judicial district.

(a) Any attorney, including a councilor acting pursuant to paragraph(d) hereinabove, who requests either a legal an ethics opinion or an ethics decision concerning on the acts or contemplated professional conduct of another attorney, shall state, in the written inquiry, the name of that the attorney and identify all persons whom the requesting attorney has reason to believe would may be substantially affected by the question or questions advanced a response to the inquiry. The inquiry shall also provide evidence that the attorney whose conduct is at issue and all other identified interested persons have received copies of the inquiry from the requesting attorney. The councilor shall exercise good faith in preparing the request on behalf of the citizen.

(b) If an attorney willfully fails to identify an attorney who the requesting attorney has reason to believe would be substantially affected by the requested ethics advisory, legal ethics opinion, or ethics decision, his or her willful failure may be treated as misconduct. The requesting attorney shall receive no right, benefit, or immunity under any opinion which has been issued under such circumstances, and the opinion shall be reexamined de novo under the procedures delineated in Rule .0104 of this subchapter.

(f) When a written ethics inquiry discloses conduct which may be actionable as a violation of the Revised Rules of Professional Conduct, the executive director, the assistant executive director, chairperson or the committee may refer the matter to the Grievance Committee for investigation.

(a) In general, no response shall be provided to an ethics inquiry that seeks an opinion on an issue of law.

(h) A decision not to issue a response to an ethics inquiry, whether by the executive director, assistant executive director, designated staff counsel, chairperson or the committee, shall not be appealable.

(i) Except as provided in Rule .0103(b) of this subchapter, the information contained in a request for an ethics opinion shall not be confidential.

Rule .0103  Informal Ethics Advisories and Ethics Advisories

(a) An ethics advisory answers an inquiry by an attorney regarding his or her own contemplated conduct when the attorney needs an expeditious ethics ruling on either a routine matter or under exigent circumstances and has complied with Rule .0l02 of this subchapter.

(a) The executive director, assistant executive director, or designated staff counsel may honor or deny a request for an informal ethics advisory. Except as provided in Rule .0102(b), an attorney requesting an opinion concerning another attorney's professional conduct, past conduct, or matters of first impression shall be asked to submit a written inquiry for referral to the committee. An attorney requesting an opinion involving matters of widespread interest to the Bar or particularly complex factual circumstances may also be asked to submit a written inquiry for referral to the committee.

(b) The Bar's program for providing informal ethics advisories to inquiring attorneys is a designated lawyers' assistance program approved by the Bar and information received by the executive director, assistant executive director, or designated staff counsel from an attorney seeking an informal ethics advisory shall be confidential information as defined in Rule 1.6(a) and (b) of the Revised Rules of Professional Conduct; provided, however, such confidential information may be disclosed as allowed by Rule 1.6(d) and as necessary to respond to a false or misleading statement made about an informal ethics advisory. Further, if an attorney's response to a grievance proceeding relies in whole or in part upon the receipt of an informal ethics advisory, confidential information may be disclosed to Bar counsel, the Grievance Committee or other appropriate disciplinary authority.

(b) Upon receipt of either a written or verbal request from an attorney for an ethics advisory, the executive director or the assistant executive director, acting under the supervision and direction of the committee, may either honor the request, or deny it. If the executive director or assistant executive director honors the request, he or she shall communicate the ruling to the inquirer. The action on the request shall be either written or verbal with prompt confirmation in writing. Action on the request shall be taken within a reasonable time. Neither the denial nor issuance of an advisory nor the ruling itself shall be appealable.

(c) An ethics advisory issued by the executive director, or assistant executive director, or designated staff counsel shall be promulgated under the authority of the committee and in accordance with such guidelines as the committee may establish and prescribe from time to time.

(a) An ethics advisory shall sanction or disapprove only the matter in issue, shall not otherwise serve as precedent and shall not be published.

(e) Ethics advisories shall be reviewed periodically by the committee. If, upon review, a majority of the committee present and voting decides that an ethics advisory should be withdrawn or modified, the requesting attorney shall be notified in writing of the committee's decision by the executive director or assistant executive director. Until such notification, the attorney shall be deemed to have acted ethically and in good faith if he or she acts pursuant to the ethics advisory which is later withdrawn or modified.

(f) An attorney requesting a legal ethics opinion or ethics decision, subsequent to requesting an ethics advisory on the same question, shall state that an advisory was sought, specify the nature of the advisory provided, and attach copies of all relevant correspondence between the attorney and the Bar.

(g) If the executive director or the assistant executive director declines to issue an ethics advisory, or the requesting attorney disagrees with the issued advisory, or the advisory is withdrawn by the committee, an attorney has the right to proceed de novo under the procedures delineated in Rule .0l04 of this subchapter.

(f) If an inquiring attorney disagrees with the ethics advisory issued to him or her, the attorney may request reconsideration of the ethics advisory by writing to the committee prior to the next regularly scheduled meeting of the committee.

Rule .0104  Legal Formal Ethics Opinions and Ethics Decisions

(a) Requests for legal formal ethics opinions or ethics decisions shall be made in writing and submitted to the executive director or assistant executive director who, after determining that the a request is in compliance with Rule .0102 of this subchapter, shall transmit the requests to the chairperson of the committee.

(b) If a legal formal ethics opinion or ethics decision is requested concerning contemplated or actual conduct of another attorney, the chairperson shall notify that attorney and provide him or her that attorney shall be given with the an opportunity to be heard by the committee, along with the person who requested the opinion, under such guidelines as may be established by the committee. The chairperson shall notify At the discretion of the chairperson and the committee, any additional persons or groups he or she deems appropriate shall be notified by the method deemed most appropriate by the chairperson and provided them an opportunity to be heard by the committee.

(a) The committee shall prepare a written proposed legal formal ethics opinion or ethics decision which shall state its conclusion in respect to the question asked and the reasons therefor.

(d) The committee shall determine whether to issue an ethics decision or a formal ethics opinion in response to an inquiry.

(e)(d) The A proposed legal formal ethics opinion or ethics decision shall be provided to the interested persons by the method deemed most appropriate by the chairperson and shall also be transmitted to the president for consideration by the council. All proposed formal ethics opinions shall be published.

(f)(e) At least 30 days Prior to the next regularly scheduled meeting of the council committee, any interested person or group may submit a written request to be heard on reconsider the a proposed or final formal ethics opinion or ethics decision and may ask to be heard by the committee. The council committee, under such guidelines as it may adopt, may, in its discretion, allow or deny such request. If a proposed or final ethics decision is withdrawn or revised, interested persons shall be notified by the method deemed most appropriate by the chairperson. If a proposed or final formal ethics opinion is withdrawn or revised, notice of the action and any proposed revised formal ethics opinion shall be published.

(g) If the committee declines to revise a proposed formal ethics opinion or ethics decision in response to a written request, any interested person or group may request to be heard by the council prior to a vote on the adoption of the proposed formal ethics opinion or ethics decision. Any attorney, Whether permitted to appear before the council or not, the person or group has the right to file a written brief with the council under such rules as may be fixed established by the council. The president may, in his or her discretion, permit any additional person or group to file a written brief.

(h)(f) The council's action on the proposed formal ethics opinion or ethics decision shall be determined by vote of the majority of the council present and voting. Notice of such action shall be provided to the interested persons by the method deemed most appropriate by the chairperson.

(g) The committee may on its own motion submit a proposed legal ethics opinion to the council for its consideration. Prior to action by the council, the proposed opinion shall be published and an opportunity shall be provided for interested persons to request to be heard before the council when the opinion is considered, subject to the provisions of Rule .0104(e) above.

(i)(h) A legal formal ethics opinion or ethics decision may be reconsidered or withdrawn by the council pursuant to rules which it may establish from time to time. Those persons who participated in the original proceedings shall be given an opportunity to request to be heard in connection with the reconsideration in accordance with Rule .0104(e) above.

(i) When an ethics inquiry may amount to the statement of a grievance, the executive director, the assistant executive director, the chairperson, or the president may either consider the request as seeking an ethics ruling or refer the matter to the Grievance Committee.

NORTH CAROLINA

WAKE COUNTY

I, L. Thomas Lunsford, II, Secretary-Treasurer of the North Carolina State Bar, do hereby certify that the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning ruling on questions of legal ethics were duly adopted by the Council of the North Carolina State Bar at a regularly called meeting on January 16, 1998.

Given over my hand and the Seal of the North Carolina State Bar, this the 9th day of February, 1998.

s/L. Thomas Lunsford

L. Thomas Lunsford, II, Secretary

After examining the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning ruling on questions of legal ethics as adopted by the Council of the North Carolina State Bar, it is my opinion that the same are not inconsistent with Article 4, Chapter 84 of the General Statutes.

This the 5th day of March, 1998.

s/Burley B. Mitchell, Jr.

Burley B. Mitchell, Jr., Chief Justice

Upon the foregoing certificate, it is ordered that the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning ruling on questions of legal ethics be spread upon the minutes of the Supreme Court and that they be published in the forthcoming volume of the reports as provided by the Act incorporating the North Carolina State Bar.

This the 5th day of March, 1998.

s/ Orr, J.

For the Court

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AMENDMENTS TO THE RULES AND REGULATIONS OF

THE NORTH CAROLINA STATE BAR

CONCERNING ORGANIZATIONS PRACTICING LAW

The following amendments to the Rules and Regulations, and the Certificate of Organization of the North Carolina State Bar were duly adopted by the Council of the North Carolina State Bar at its quarterly meeting on January 16, 1998.

BE IT RESOLVED by the Council of the North Carolina State Bar that the Rules and Regulations of the North Carolina State Bar concerning regulations for organizations practicing law, as particularly set forth in 27 NCAC 1E, Section .0200 be amended as follows (additions in bold type and deletions interlined):

27 NCAC 1E, Section .0200

Registration of Interstate and International Law Firms

.0201 Registration Requirement

No law firm or professional organization which maintains an offices in North Carolina and one or more other jurisdictions may do business in North Carolina without first obtaining a certificate of registration from the North Carolina State Bar provided, however, that no law firm or professional organization shall be required to obtain a certificate of registration if all attorneys associated with the law firm or professional organization, or any law firm or professional organization that is in partnership with said law firm or professional organization, are licensed to practice law in North Carolina. and has among its constituent partners, shareholders, members, or employees attorneys who are not licensed to practice law in North Carolina or has as its partner, shareholder, or member a law firm or professional organization which has among its constituent partners, shareholders, members, or employees attorneys who are not licensed to practice law in North Carolina may do business in North Carolina without first having obtained a certificate of registration.

.0202 Conditions of Registration

The secretary of the North Carolina State Bar shall issue such a certificate of registration upon satisfaction of the following conditions precedent:

(1) There shall be filed with the secretary of the North Carolina State Bar a registration statement disclosing:

a. all names used to identify the filing law firm or professional organization;

b. addresses of all offices maintained by the filing law firm or professional organization;

c. the name and address of any law firm or professional organization with which the filing law firm or professional organization is in partnership and the name and address of such partnership;

d. the name and address of each attorney who is a partner, shareholder, member or employee of the filing law firm or professional organization or who is a partner, shareholder, member or employee of a law firm or professional organization with which the filing law firm or professional organization is in partnership;

e. the relationship of each attorney identified in Rule .0202(1)(d) above to the filing law firm or professional organization;

f. the states jurisdictions to which each attorney identified in Rule .0202(1)(d) above is admitted to practice law.

(2) There shall be filed with the registration statement a notarized statement of the filing law firm or professional organization executed by a member responsible attorney associated with the filing law firm or professional organization who is licensed in North Carolina certifying that each attorney identified in Rule .0202(1)(d) above who is not licensed to practice law in North Carolina is a member in good standing of each state the bar of each jurisdiction to which the attorney has been admitted.

(3) There shall be filed with the registration statement a notarized statement of the filing law firm or professional organization executed by a responsible attorney associated with the filing law firm or professional organization who is licensed in North Carolina affirming that each attorney identified in Rule .0202(1)(d) above who is not licensed to practice law in North Carolina will govern his or her personal and professional conduct with respect to legal matters arising from North Carolina in accordance with the Revised Rules of Professional Conduct of the North Carolina State Bar.

. . .

NORTH CAROLINA

WAKE COUNTY

I, L. Thomas Lunsford, II, Secretary-Treasurer of the North Carolina State Bar, do hereby certify that the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning the registration of interstate and international law firms were duly adopted by the Council of the North Carolina State Bar at a regularly called meeting on January 16, 1998.

Given over my hand and the Seal of the North Carolina State Bar, this the 9th day of February, 1998.

s/L. Thomas Lunsford

L. Thomas Lunsford, II, Secretary

After examining the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning ruling on questions of legal ethics as adopted by the Council of the North Carolina State Bar, it is my opinion that the same are not inconsistent with Article 4, Chapter 84 of the General Statutes.

This the 5th day of March, 1998.

s/Burley B. Mitchell, Jr.

Burley B. Mitchell, Jr., Chief Justice

Upon the foregoing certificate, it is ordered that the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning ruling on questions of legal ethics be spread upon the minutes of the Supreme Court and that they be published in the forthcoming volume of the reports as provided by the Act incorporating the North Carolina State Bar.

This the 5th day of March, 1998.

s/ Orr, J.

For the Court

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RETURN TO INDEX

AMENDMENT TO THE RULES AND REGULATIONS OF THE NORTH

CAROLINA STATE BAR CONCERNING DISCIPLINE AND DISABILITY

The following amendment to the Rules, Regulations, and the Certificate of Organization of the North Carolina State Bar was duly adopted by the Council of the North Carolina State Bar at its quarterly meeting on April 4, 1997.

BE IT RESOLVED by the Council of the North Carolina State Bar that the Rules and Regulations of the North Carolina State Bar concerning discipline and disability, as particularly set forth in 27 N.C.A.C. 1B .0118, be amended by adding a new subsection (g) as follows (new language is in bold type):

Title 27, Chapter 1

Subchapter B

Rule .0118 Disability Hearings

. . .

(g) A member of the North Carolina State Bar may be transferred to disability inactive status with the consent of the member, the counsel and the Chairperson of the Grievance Committee.

NORTH CAROLINA

WAKE COUNTY

I, L. Thomas Lunsford, II, Secretary-Treasurer of the North Carolina State Bar, do hereby certify that the foregoing amendment to the Rules and Regulations of the North Carolina State Bar was duly adopted by the Council of the North Carolina State Bar at a regularly called meeting on April 4, 1997.

Given over my hand and the Seal of the North Carolina State Bar, this the ____ day of May, 1997.

s/L. Thomas Lunsford

L. Thomas Lunsford, II, Secretary

After examining the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning ruling on questions of legal ethics as adopted by the Council of the North Carolina State Bar, it is my opinion that the same are not inconsistent with Article 4, Chapter 84 of the General Statutes.

This the 5th day of March, 1998.

s/Burley B. Mitchell, Jr.

Burley B. Mitchell, Jr., Chief Justice

Upon the foregoing certificate, it is ordered that the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning ruling on questions of legal ethics be spread upon the minutes of the Supreme Court and that they be published in the forthcoming volume of the reports as provided by the Act incorporating the North Carolina State Bar.

This the 5th day of March, 1998.

s/ Orr, J.

For the Court

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RETURN TO INDEX

AMENDMENTS TO THE RULES AND REGULATIONS OF THE NORTH

CAROLINA STATE BAR CONCERNING MEMBERSHIP

The following amendments to the Rules and Regulations, and the Certificate of Organization of the North Carolina State Bar were duly adopted by the Council of the North Carolina State Bar at its quarterly meeting on January 16, 1998.

BE IT RESOLVED by the Council of the North Carolina State Bar that the Rules and Regulations of the North Carolina State Bar concerning membership procedures, as particularly set forth in 27 NCAC 1D, Section .0900 and Section .1000 be amended as follows (additions in bold type and deletions interlined):

Procedures for the Membership and Fees Committee

27 NCAC 1D, Section .0900

Rule .0902 Reinstatement from Inactive Status

. . .

(b) Contents of Reinstatement Petition

The petition shall set out facts showing the following:

. . .

(4) [this provision shall be effective for all members who are transferred to inactive status on or after January 1, 1996] if 2 or more years have elapsed between the date of the entry of the order transferring the member to inactive status and the date the petition is filed with the secretary of the State Bar, that during the period of inactive status, the member has completed 15 hours of continuing legal education (CLE) approved by the Board of Continuing Legal Education pursuant to Rule .1519 of this subchapter; and, of the required 15 CLE hours, 12 hours must be earned attending practical skills courses and 3 hours must be earned by attending a 3-hour block course of instruction devoted exclusively to the area of professional responsibility; and

(5) that the member has paid all of the following:

(A) a $125.00 reinstatement fee;

(B) the membership fee and Client Security Fund assessment for the year in which the application is filed;

(C) the annual membership fee, if any, of the member's district bar for the year in which the application is filed and any past due annual membership fees for any district bar with which the member was affiliated prior to transferring to inactive status;

(D)(C) all attendee fees owed the Board of Continuing Legal Education for CLE courses taken to satisfy the requirements of Rule .0902(b)(2) and (4) above;

(E)(D) all past due any costs previously assessed against the member by the chairperson of the Grievance Committee, the Disciplinary Hearing Commission, and/or the secretary or council of the North Carolina State Bar; and

(F)(E) all costs incurred by the North Carolina State Bar in investigating and processing the application for reinstatement.

The reinstatement fee, and costs, and any past due district bar annual membership fees shall be retained by the North Carolina State Bar but the State Bar and district bar membership fees assessed for the year in which the application is filed shall be refunded if the petition is denied.

. . .

Rule .0903 Suspension for Nonpayment of Membership Fees, Late Fee, or

Client Security Fund Assessment, or Assessed Costs

(a) Notice of Overdue Fees or Costs

Whenever it appears that a member has failed to comply, in a timely fashion, with the rules regarding payment of the annual membership fee, late fee, and/or the Client Security Fund assessment, and/or any district bar annual membership fee, in a timely fashion, or that the member has failed to pay, in a timely fashion, the costs of a disciplinary, disability, reinstatement, show cause, or other proceeding of the North Carolina State Bar as required by a notice of the chairperson of the Grievance Committee, an order of the Disciplinary Hearing Commission, or a notice of the secretary or the council of the North Carolina State Bar, the secretary shall prepare a written notice

(1) directing the member to show cause, in writing, within 30 days of the date of service of the notice why he or she should not be suspended from the practice of law, and

(2) demanding payment of a $30 late fee for the failure to pay the annual membership fee to the North Carolina State Bar and/or Client Security Fund assessment in a timely fashion.

(b) Service of the Notice

The notice shall be served on the member pursuant to Rule 4 of the North Carolina Rules of Civil Procedure and may be served by a State Bar investigator or any other person authorized by Rule 4 of the North Carolina Rules of Civil Procedure to serve process.

(c) Entry of Order of Suspension Upon Failure to Respond to Notice to Show Cause

Whenever a member fails to respond in writing within 30 days of the service of the notice to show cause upon the member, and it appears that the member has failed to comply with the rules regarding payment of the annual membership fee, any late fees imposed pursuant to Rule .0203(b) of Subchapter A, and/or the Client Security Fund assessment, and/or any district bar annual membership fee, and/or it appears that the member has failed to pay any costs assessed against the member as required by a notice of the chairperson of the Grievance Committee, an order of the Disciplinary Hearing Commission, and/or a notice of the secretary or council of the North Carolina State Bar, the council may enter an order suspending the member from the practice of law. The order shall be effective when entered by the council. A copy of the order shall be served on the member pursuant to Rule 4 of the North Carolina Rules of Civil Procedure and may be served by a State Bar investigator or any other person authorized by Rule 4 of the North Carolina Rules of Civil Procedure to serve process.

(d) Procedure Upon Submission of a Timely Response to a Notice to Show Cause

(1) Consideration by Membership and Fees Committee

If a member submits a written response to a notice to show cause within 30 days of the service of the notice upon the member, the Membership and Fees Committee shall consider the matter at its next regularly scheduled meeting. The member may personally appear at the meeting and be heard, may be represented by counsel, and may offer witnesses and documents. The counsel may appear at the meeting on behalf of the State Bar and be heard, and may offer witnesses and documents. The burden of proof shall be upon the member to show cause by clear, cogent and convincing evidence why the member should not be suspended from the practice of law for the apparent failure to comply with the rules regarding payment of the annual membership fee, late fee, and/or Client Security Fund assessment, and/or any district bar annual membership fee, and/or the apparent failure to pay costs assessed against the member as required by a notice of the chairperson of the Grievance Committee, an order of the Disciplinary Hearing Commission, and/or a notice of the secretary or council of the North Carolina State Bar.

(2) Recommendation of Membership and Fees Committee

The Membership and Fees Committee shall determine whether the member has shown cause why the member should not be suspended. If the committee determines that the member has failed to show cause, the committee shall make a written recommendation to the council that the member be suspended.

(3) Order of Suspension

Upon the recommendation of the Membership and Fees Committee, the council may enter an order suspending the member from the practice of law. The order shall be effective when entered by the council. A copy of the order shall be served on the member pursuant to Rule 4 of the North Carolina Rules of Civil Procedure and may be served by a State Bar investigator or any other person authorized by Rule 4 of the North Carolina Rules of Civil Procedure to serve process.

(e) Late Tender of Membership Fees or Assessed Costs

If a member tenders to the North Carolina State Bar the annual membership fee, the $30 late fee, required Client Security Fund assessment, any district bar annual membership fee, and the $30 late fee to the North Carolina State Bar on or after July 1 of a given year, and/or the member tenders any costs assessed against the member by the chairperson of the Grievance Committee, the Disciplinary Hearing Commission, and/or the secretary or council of the North Carolina State Bar but before a suspension order is entered by the council, no order of suspension will be entered.

Rule .0904 Reinstatement After Suspension for Failure to Pay Fees or Assessed Costs

(a) Reinstatement Within 30 Days of Service of Suspension Order

A member who has been suspended for nonpayment of the annual membership fee, any late fee, and/or Client Security Fund assessment, district bar annual membership fee, and/or costs assessed against the member by the chairperson of the Grievance Committee, the Disciplinary Hearing Commission, and/or the secretary or council of the North Carolina State Bar, may petition the secretary for an order of reinstatement of the member's license at any time up to 30 days after service of the suspension order upon the member. The secretary shall enter an order reinstating the member to active status upon receipt of a timely written request and satisfactory showing by the member of payment of the membership fee, late fee, Client Security Fund assessment, any late fee, district bar annual membership fee, assessed costs, and the costs of the suspension and reinstatement procedure, including the costs of service. Such member shall not be required to file a formal reinstatement petition or pay a $125 reinstatement fee.

(b) Reinstatement More than 30 Days After Service of Suspension Order

At any time more than 30 days after service of an order of suspension on a member, a member who has been suspended for nonpayment of the membership fee, late fee, Client Security Fund assessment, and/or any late fee, district bar annual membership fee, and/or costs assessed against the member by the chairperson of the Grievance Committee, the Disciplinary Hearing Commission, and/or the secretary or council of the North Carolina State Bar, may petition the council for an order of reinstatement.

(c) Contents of Reinstatement Petition

The petition shall set out facts showing the following:

. . .

(4) that the member has paid all of the following:

(A) a $125.00 reinstatement fee;

(B) all past and current membership fees and late fees;

(C) all annual Client Security Fund assessments;

(D) all past and current district bar annual membership fees;

(E)(D) all attendee fees, fines and penalties owed the Board of Continuing Legal Education, including attendee fees for CLE courses taken to satisfy the requirements of Rule .0904(c)(2) above;

(F)(E) all past due any costs assessed against the member by the chairperson of the Grievance Committee, the Disciplinary Hearing Commission, and/or the secretary or council of the North Carolina State Bar; and

(G)(F) all costs incurred by the North Carolina State Bar in suspending the member, including the costs of service, and in investigating and processing the application for reinstatement.

(d) Procedure for Review of Reinstatement Petition

The procedure for review of the reinstatement petition shall be as set forth in Rule .0902(c)-(f) above.

Rule .1001 Reinstatement Hearings Before Panel of Membership and Fees Committee

. . .

(c) Burden of Proof

. . .

(2) Reinstatement from Suspension for Nonpayment of Membership Fees, Late Fee, or Client Security Fund Assessment, District Bar Membership Fees, or Assessed Costs

The burden of proof shall be upon the member to show by clear, cogent and convincing evidence that he or she has satisfied the requirements for reinstatement as set forth in Rule .0904(c) of this subchapter.

. . .

NORTH CAROLINA

WAKE COUNTY

I, L. Thomas Lunsford, II, Secretary-Treasurer of the North Carolina State Bar, do hereby certify that the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning membership procedures were duly adopted by the Council of the North Carolina State Bar at a regularly called meeting on January 16, 1998.

Given over my hand and the Seal of the North Carolina State Bar, this the 9th day of February, 1998.

s/L. Thomas Lunsford

L. Thomas Lunsford, II, Secretary

After examining the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning ruling on questions of legal ethics as adopted by the Council of the North Carolina State Bar, it is my opinion that the same are not inconsistent with Article 4, Chapter 84 of the General Statutes.

This the 5th day of March, 1998.

s/Burley B. Mitchell, Jr.

Burley B. Mitchell, Jr., Chief Justice

Upon the foregoing certificate, it is ordered that the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning ruling on questions of legal ethics be spread upon the minutes of the Supreme Court and that they be published in the forthcoming volume of the reports as provided by the Act incorporating the North Carolina State Bar.

This the 5th day of March, 1998.

s/ Orr, J.

For the Court

==================================

RETURN TO INDEX

AMENDMENTS TO THE RULES AND REGULATIONS OF THE NORTH

CAROLINA STATE BAR CONCERNING CONTINUING LEGAL EDUCATION

The following amendments to the Rules, Regulations, and the Certificate of Organization of the North Carolina State Bar were duly adopted by the Council of the North Carolina State Bar at its quarterly meeting on January 16, 1998.

BE IT RESOLVED by the Council of the North Carolina State Bar that the Rules and Regulations of the North Carolina State Bar concerning continuing legal education, as particularly set forth in 27 NCAC 1D, Section .1600, be amended as follows (additions in bold type, deletions interlined):

Regulations Governing the Administration of the Continuing Legal Education Program

27 NCAC 1D, Section .1600

Rule .1602, General Course Approval

. . . .

(a) Nonlegal Educational Activities - A course or segment of a course presented by a bar organization may be granted up to three hours of credit if the bar organization's course trains volunteer attorneys in service to the profession, and if such course or course segment meets the requirements of Rule .1519 (2)-(7) and Rule .1602(e), (h)-(j) of this subchapter; if appropriate, up to three hours of professional responsibility credit may be granted for such course or course segment. Except as noted in the preceding sentence or in extraordinary circumstances, approval will not be given for general and personal educational activities. For example, the following types of courses will not receive approval:

. . . .

(4) courses designed primarily to sell services or products or to generate greater revenue, such as marketing or advertising ( as distinguished from courses dealing with development of law office procedures and management designed to raise the level of service provided to clients). A course or segment may be granted credit by the board when a bar organization's course trains volunteer attorneys in service to the profession if all segments of the course are devoted to CLE or professional responsibility, as such terms are defined in Rule .1501(b) of this subchapter, if such course or segment meets the standards of Section .1500 and Section .1600 of this subchapter, and if the sponsor represents that such course or segment meets these standards. No more than three hours of professional responsibility will be credited per training course.

NORTH CAROLINA

WAKE COUNTY

I, L. Thomas Lunsford, II, Secretary-Treasurer of the North Carolina State Bar, do hereby certify that the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning continuing legal education were duly adopted by the Council of the North Carolina State Bar at a regularly called meeting on January 16, 1998.

Given over my hand and the Seal of the North Carolina State Bar, this the 9th day of February, 1998.

s/L. Thomas Lunsford

L. Thomas Lunsford, II, Secretary

After examining the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning ruling on questions of legal ethics as adopted by the Council of the North Carolina State Bar, it is my opinion that the same are not inconsistent with Article 4, Chapter 84 of the General Statutes.

This the 5th day of March, 1998.

s/Burley B. Mitchell, Jr.

Burley B. Mitchell, Jr., Chief Justice

Upon the foregoing certificate, it is ordered that the foregoing amendments to the Rules and Regulations of the North Carolina State Bar concerning ruling on questions of legal ethics be spread upon the minutes of the Supreme Court and that they be published in the forthcoming volume of the reports as provided by the Act incorporating the North Carolina State Bar.

This the 5th day of March, 1998.

s/ Orr, J.

For the Court