Question

A lawyer may refer a client seeking funds to a financing institution or bank as long as the lawyer does not make or guarantee the loan. What is the rule regarding financial assistance according to MRPC 1.8(e)?

1) A lawyer can make or guarantee a loan for a client seeking funds.
2) A lawyer cannot refer a client seeking funds to a financing institution or bank.
3) A lawyer can refer a client seeking funds to a financing institution or bank, but cannot make or guarantee the loan.
4) A lawyer can refer a client seeking funds to a financing institution or bank and can also make or guarantee the loan.

Answer 1

Answer: 3

Step-by-step explanation:

According to MRPC 1.8(e), a lawyer shall not provide financial assistance to a client in connection with pending or contemplated litigation, except that a lawyer may advance court costs and expenses of litigation, the repayment of which may be contingent on the outcome of the matter

Answer 2

According to MRPC 1.8(e), a lawyer can refer a client seeking funds to a financing institution or bank, but cannot make or guarantee the loan.

Step-by-step explanation:

According to MRPC 1.8(e), a lawyer can refer a client seeking funds to a financing institution or bank, but cannot make or guarantee the loan. This means that the lawyer can provide information and guidance to the client about potential lenders or financing options, but they cannot be involved in the actual lending process or personally guarantee the loan.

For example, if a client needs funds for a business venture, the lawyer can recommend specific banks or financing institutions that may be able to assist, but they cannot directly handle the loan or take on any financial responsibility for it.

Therefore, the correct rule regarding financial assistance according to MRPC 1.8(e) is option 3) A lawyer can refer a client seeking funds to a financing institution or bank, but cannot make or guarantee the loan.