Although it’s unclear as to what the implications are at this time, the top lawyer from Bank of America (NYSE: BAC), Brian T. Moynihan, wasn’t legally allowed to practice law during the period the Merrill Lynch deal was going down.

Moynihan was named the head lawyer for Bank of America in December, he didn’t upgrade his inactive status until December 18, a full eight days after his appointment at BofA. This could result in potential problems for the bank concerning any type of legal transactions connected to Moynihan during his “inactive” period. If some things weren’t to the satisfaction of those the deals were transacted with, it’s possible, but unsure, whether they are legally binding.

As it relates to Merrill Lynch, a number of legal issues connected to the acquisition of them by Bank of America were under consideration during that period, along with decisions on more taxpayer money being asked for concerning the losses that would need to be covered if BofA acquired them. Moynihan was also a major part of the potentially controversial meeting with Federal Reserve Bank chairman Ben Bernanke and Treasury Secretary at that time, Henry Paulson, where talk about canceling the deal with Merrill Lynch was being discussed. That occurred on December 17, while Moynihan was still on inactive status.

New York Democrat Edolphus Towns, who is chairman of the House Committee on Oversight and Government Reform, had this to say about the situation: “In light of all the facts we now know, this is certainly worth a closer look. What was the rush to fire the old lawyer and replace him with someone who apparently wasn’t even licensed to practice law?”

He was referring to the removal on December 10 of Bank of America’s existing general counsel at that time, Timothy J. Mayopoulos, with Moynihan.

Moynihan had been on inactive status in Massachusetts since 2005. What that means is anyone on inactive status isn’t allowed to practice law in the state unless it’s pro bono cases.

It’s possible that Moynihan could be prosecuted for offering legal services while being an inactive member of the Massachusetts bar.

This does cast some doubt on his being considered as a replacement for Ken Lewis as CEO of the company, as they need someone with a completely clean slate to come on board.

Moynihan was only the general counsel for Bank of America for six weeks before being named as had of the consumer banking division of the company; seemingly an obvious move to position himself for a run at the CEO spot, which now could be in jeopardy.