What is the rule regarding financial advances to clients according to California law?

Under California law, a lawyer is permitted to lend money to a client if there is written assurance that the client will repay the loan. This rule is rooted in the understanding that while attorneys must be cautious in their financial dealings with clients to avoid conflicts of interest and maintain the integrity of the attorney-client relationship, some financial support through loans can be justified.

This provision allows for flexibility in legal representation, especially in situations where clients may face financial difficulties that could impede their ability to pursue legal action. Written assurance serves as a safeguard, ensuring that both parties acknowledge the terms of the loan and the expectation of repayment, helping to avoid potential misunderstandings or disputes later on.

Other options present different limitations that are not supported by the rules. For instance, the idea that attorneys cannot lend money at all disregards the provision for responsible financial assistance. Limiting loans strictly to litigation expenses overlooks the general applicability of loans in varied contexts where clients may require financial help. Similarly, restricting loans solely for emergencies would be overly restrictive and not reflective of the broader range of assistance that may be necessary in a legal representation context. Thus, the option allowing for loans with written repayment assurance is the most aligned with the legal framework governing attorney-client financial transactions in California.