6-834

6-834. Deposit of monies; definition

A. Unless all of the parties to the escrow otherwise instruct the escrow agent in
writing, the escrow agent shall deposit and maintain all monies deposited in escrow to be
delivered on the close of the escrow or on any other contingency in a bank, savings bank
or savings and loan association doing business in this state and the escrow agent shall
keep all of the escrow monies separate, distinct and apart from monies belonging to the
escrow agent. Notwithstanding the parties' instructions to the escrow agent, the escrow
agent shall not deposit the escrow monies in an institution outside the United
States. When deposited, the monies shall be designated as "escrow accounts" or given
some other appropriate designation indicating that the monies are not the monies of the
escrow agent. These monies shall be deposited immediately on receipt or as soon
thereafter as is reasonably practicable.

B. A person shall not knowingly keep or cause to be kept any monies in any bank or
savings and loan association under the heading of "escrow accounts" or any other name
designating the monies as belonging to the clients of any escrow agent, except actual
escrow monies deposited with such escrow agent.

C. Escrow property is not subject to execution or attachment on any claim against
the escrow agent.

D. Not later than three business days after receipt of any escrow monies, the
escrow agent shall provide to each depositing buyer or seller, adequate notice of his
right to earn interest on all deposited monies. The notice shall accurately set forth
the following information with respect to this right:

1. A brief description of the depositor's right to earn interest on escrowed monies
through an interest-bearing deposit account.

2. The dollar charge that may be imposed by the escrow agent solely to set up the
interest-bearing account.

3. A good faith estimate of the amount of interest that may be earned during the
life of the escrow account, or an example of a typical transaction calculated on a one
thousand dollar deposit, using the prevailing savings account interest rate for a thirty
day period.

4. A brief description of how the interest-bearing account can be established,
including the name, address and telephone number of the escrow agent to be contacted.

E. An escrow agent shall not receive from any depository institution any interest
earned or other benefit from monies deposited with an escrow agent in connection with any
escrow. Nothing in this subsection prohibits the escrow agent from receiving accounting,
data processing or other services directly related to the administration of escrow
accounts.

F. For the purposes of this article, "adequate notice" means a printed notice to
the depositing buyer or seller that sets forth the pertinent facts clearly and
conspicuously. The notice shall be printed on the escrow instructions or on an
independent document and given to the depositing customer in a manner reasonably assuring
the customer's receipt of the notice.