IC 27-7-3.7
    Chapter 3.7. Escrow Transactions in Real Estate Transactions

IC 27-7-3.7-1
"Closing agent"
    Sec. 1. (a) As used in this chapter, "closing agent" means a personthat:
        (1) closes an escrow transaction in connection with thepurchase, sale, or financing of an interest in real estate; and
        (2) is required to be licensed as an insurance producer underIC 27-1-15.6.
    (b) The term does not include a lender or an employee of a lenderthat conducts a settlement or closing of a real estate secured loanprovided by the lender in the office of the lender.
As added by P.L.92-2009, SEC.1.

IC 27-7-3.7-2
"Escrow account"
    Sec. 2. As used in this chapter, "escrow account" means achecking account established by a closing agent with a:
        (1) bank;
        (2) savings and loan association;
        (3) credit union; or
        (4) savings bank;
that is chartered under the laws of a state or the United States andused exclusively for the deposit and disbursement of funds for anescrow transaction.
As added by P.L.92-2009, SEC.1.

IC 27-7-3.7-3
"Escrow transaction"
    Sec. 3. (a) As used in this chapter, "escrow transaction" means atransaction in which a person deposits with a closing agent funds thatare to be held until:
        (1) a specified event occurs; or
        (2) the performance of a prescribed condition;
in connection with the purchase, sale, or financing of an interest inreal estate.
    (b) The term does not include a loan financing if:
        (1) the only parties to the loan transaction are the lender and theborrower; and
        (2) the lender is responsible for disbursing all of the funds tothe borrower or to a third party in order to pay fees and chargesassociated with the loan transaction.
As added by P.L.92-2009, SEC.1.

IC 27-7-3.7-4
"Good funds"
    Sec. 4. As used in this chapter, "good funds" means funds in anyof the following forms:        (1) United States currency.
        (2) Wired funds unconditionally held by and irrevocablycredited to the escrow account of the closing agent.
        (3) Certified or cashier's checks that are drawn on an existingaccount at a:
            (A) bank;
            (B) savings and loan association;
            (C) credit union; or
            (D) savings bank;
        chartered under the laws of a state or the United States.
        (4) A check drawn on the trust account of a real estate brokerlicensed under IC 25-34.1, if the closing agent has reasonableand prudent grounds to believe that sufficient funds will beavailable for withdrawal from the account on which the checkis drawn at the time of disbursement of funds from the closingagent's escrow account.
        (5) A personal check not to exceed five hundred dollars ($500)per closing.
        (6) A check issued by the state, the United States, or a politicalsubdivision of the state or the United States.
        (7) A check drawn on the escrow account of another closingagent, if the closing agent in the escrow transaction hasreasonable and prudent grounds to believe that sufficient fundswill be available for withdrawal from the account upon whichthe check is drawn at the time of disbursement of funds fromthe escrow account of the closing agent in the escrowtransaction.
        (8) A check issued by a farm credit service authorized under theFarm Credit Act of 1971 (12 U.S.C. 2001 et seq.).
As added by P.L.92-2009, SEC.1.

IC 27-7-3.7-5
"Real estate transaction"
    Sec. 5. (a) As used in this section, "real estate transaction" refersto any:
        (1) escrow transaction;
        (2) settlement; or
        (3) closing;
conducted in connection with the purchase, sale, or financing of aninterest in real estate.
    (b) The term does not include a real estate secured loan financingif:
        (1) the only parties to the loan transaction are the lender and theborrower; and
        (2) the lender is responsible for disbursing all of the funds tothe borrower or to a third party in order to pay fees and chargesassociated with the loan transaction.
As added by P.L.92-2009, SEC.1.

IC 27-7-3.7-6 Funds received in escrow transaction to be deposited in escrowaccount; exception
    Sec. 6. Funds received in connection with an escrow transactionmust be deposited in an escrow account unless the parties to theescrow transaction agree in writing to another arrangement.
As added by P.L.92-2009, SEC.1.

IC 27-7-3.7-7
Disbursements; requirements for funds of at least $10,000 receivedfrom single party
    Sec. 7. A closing agent may not make disbursements from anescrow account in connection with a real estate transaction unlessany funds that:
        (1) are received from any single party to the real estatetransaction; and
        (2) in the aggregate are at least ten thousand dollars ($10,000);
are wired funds that are unconditionally held by and irrevocablycredited to the escrow account of the closing agent.
As added by P.L.92-2009, SEC.1.

IC 27-7-3.7-8
Disbursements; requirements for funds less than $10,000 receivedfrom single party
    Sec. 8. A closing agent may not make disbursements from anescrow account in connection with a real estate transaction unlessany funds that:
        (1) are received from any single party to the real estatetransaction; and
        (2) in the aggregate are less than ten thousand dollars ($10,000);
are good funds.
As added by P.L.92-2009, SEC.1.

IC 27-7-3.7-9
Mortgage holder's right to receive proceeds from real estatetransaction through funds electronically transferred to specifiedaccount
    Sec. 9. If:
        (1) the closing agent in a real estate transaction receives wiredfunds unconditionally held and irrevocably credited to theescrow account of the closing agent; and
        (2) a holder of a mortgage lien encumbering real estate sorequests, as part of written closing instructions or a writtenpayoff statement in advance of closing;
the holder of the mortgage lien is entitled to receive its proceedsfrom the real estate transaction through funds electronicallytransferred to an account specified by the holder of the mortgagelien.
As added by P.L.92-2009, SEC.1.

IC 27-7-3.7-10 Advance of fees from escrow account to pay incidental fees
    Sec. 10. A closing agent may advance an amount not to exceedfive hundred dollars ($500) from an escrow account on behalf of aparty to an escrow transaction for the purpose of paying incidentalfees, including conveyance and recording fees. Incidental fees maybe paid in order to:
        (1) effect and close the sale of;
        (2) purchase;
        (3) exchange;
        (4) transfer;
        (5) encumber; or
        (6) lease;
real property that is the subject of the escrow transaction.
As added by P.L.92-2009, SEC.1.