Title insurer, agency or agent not affiliated with a title agency mayoperate as an escrow, security, settlement or closing agent,when, penalty for violations.
381.022. 1. As used in sections 381.011 to 381.412, the followingterms mean:
(1) "Escrow", written instruments, money or other items deposited byone party with a depository, escrow agent, or escrowee for delivery toanother party upon the performance of a specified condition or thehappening of a certain event;
(2) "Qualified depository institution", an institution that is:
(a) Organized or, in the case of a United States branch or agencyoffice of a foreign banking organization, licensed under the laws of theUnited States or any state and has been granted authority to operate withfiduciary powers;
(b) Regulated, supervised, and examined by federal or stateauthorities having regulatory authority over banks and trust companies;
(c) Insured by the appropriate federal entity; and
(d) Qualified under any additional rules established by the director;
(3) "Security" or "security deposit", funds or other propertyreceived by the title insurer as collateral to secure an indemnitor'sobligation under an indemnity agreement under which the insurer is granteda perfected security interest in the collateral in exchange for agreeing toprovide coverage in a title insurance policy for a specific title exceptionto coverage.
2. A title insurer, title agency, or title agent not affiliated witha title agency may operate as an escrow, security, settlement, or closingagent, provided that all funds deposited with the title insurer, titleagency, or title agent not affiliated with a title agency, pursuant towritten instructions in connection with any escrow, settlement, closing, orsecurity deposit shall be submitted for collection to or deposited in aseparate fiduciary trust account or accounts in a qualified depositoryinstitution no later than the close of the second business day afterreceipt, in accordance with the following requirements:
(1) The funds regulated under this section shall be the property ofthe person or persons entitled to them under the provisions of the escrow,settlement, security deposit, or closing agreement and shall be segregatedfor each depository by escrow, settlement, security deposit, or closing inthe records of the title insurer, title agency, or title agent notaffiliated with a title agency, in a manner that permits the funds to beidentified on an individual basis and in accordance with the terms of theindividual written instructions or agreements under which the funds wereaccepted; and
(2) The funds shall be applied only in accordance with the terms ofthe individual written instructions or agreements under which the fundswere accepted.
3. It is unlawful for any person to:
(1) Commingle personal or any other moneys with escrow fundsregulated under this section;
(2) Use such escrow funds to pay or indemnify against debts of thetitle insurance agent or of any other person;
(3) Use such escrow funds for any purpose other than to fulfill theterms of the individual written escrow instructions after the necessaryconditions of the written escrow instructions have been met;
(4) Disburse any funds held in an escrow account unless thedisbursement is made under a written instruction or agreement specifyingunder what conditions and to whom such funds may be disbursed or under anorder of a court of competent jurisdiction; or
(5) Disburse any funds held in a security deposit account unless thedisbursement is made under a written agreement specifying:
(a) What actions the indemnitor shall take to satisfy his or herobligation under the agreement;
(b) The duties of the title insurer, title agency, or title agent notaffiliated with a title agency with respect to disposition of the fundsheld, including a requirement to maintain evidence of the disposition ofthe title exception before any balance may be paid over to the depositingparty or his or her designee; and
(c) Any other provisions the director may require by rule or order.
4. Notwithstanding the provisions of subsection 3 of this section,any bank credits, bank services, interest, or similar considerationreceived on funds deposited in connection with any escrow, settlement,security deposit, or closing may be retained by the title insurer, titleagency, or title agent not affiliated with a title agency as compensationfor administration of the escrow or security deposit, unless the specificwritten instructions for the funds or a governing statute providesotherwise.
5. Notwithstanding the provisions of subsection 2 of this section, atitle insurer, title agency, or title agent is not authorized to providesuch services as an escrow, security, settlement, or closing agent in aresidential real estate transaction unless as part of the same transactionthe title insurer, title agency, or title agent issues a commitment,binder, or title insurance policy and closing protection letters have beenissued protecting the buyer's and the seller's interests, or the titleagency or agent has given written notice to the affected person in a titleinsurance commitment or on a form approved by rule promulgated by thedirector that the person's interest in the closing or settlement is notprotected by the title insurer, title agency, or title agent.
6. It is unlawful for any title agency or agent to engage in thehandling of an escrow, settlement or closing of a residential real estatetransaction unless the escrow handling, settlement or closing is conductedor performed in contemplation of and in conjunction with the issuance of atitle insurance policy or a closing protection letter, or prior to thereceipt of any funds, the title agency or agent clearly discloses to theseller, buyer or lender involved in such escrow, settlement or closing,that no title insurer is providing any protection for closing or settlementfunds received by the title agency or agent.
7. A violation of any provision under this section is a level threeviolation under section 374.049, RSMo.
Title insurer, agency or agent not affiliated with a title agency mayoperate as an escrow, security, settlement or closing agent,when, penalty for violations.
381.022. 1. As used in sections 381.011 to 381.412, the followingterms mean:
(1) "Escrow", written instruments, money or other items deposited byone party with a depository, escrow agent, or escrowee for delivery toanother party upon the performance of a specified condition or thehappening of a certain event;
(2) "Qualified depository institution", an institution that is:
(a) Organized or, in the case of a United States branch or agencyoffice of a foreign banking organization, licensed under the laws of theUnited States or any state and has been granted authority to operate withfiduciary powers;
(b) Regulated, supervised, and examined by federal or stateauthorities having regulatory authority over banks and trust companies;
(c) Insured by the appropriate federal entity; and
(d) Qualified under any additional rules established by the director;
(3) "Security" or "security deposit", funds or other propertyreceived by the title insurer as collateral to secure an indemnitor'sobligation under an indemnity agreement under which the insurer is granteda perfected security interest in the collateral in exchange for agreeing toprovide coverage in a title insurance policy for a specific title exceptionto coverage.
2. A title insurer, title agency, or title agent not affiliated witha title agency may operate as an escrow, security, settlement, or closingagent, provided that all funds deposited with the title insurer, titleagency, or title agent not affiliated with a title agency, pursuant towritten instructions in connection with any escrow, settlement, closing, orsecurity deposit shall be submitted for collection to or deposited in aseparate fiduciary trust account or accounts in a qualified depositoryinstitution no later than the close of the second business day afterreceipt, in accordance with the following requirements:
(1) The funds regulated under this section shall be the property ofthe person or persons entitled to them under the provisions of the escrow,settlement, security deposit, or closing agreement and shall be segregatedfor each depository by escrow, settlement, security deposit, or closing inthe records of the title insurer, title agency, or title agent notaffiliated with a title agency, in a manner that permits the funds to beidentified on an individual basis and in accordance with the terms of theindividual written instructions or agreements under which the funds wereaccepted; and
(2) The funds shall be applied only in accordance with the terms ofthe individual written instructions or agreements under which the fundswere accepted.
3. It is unlawful for any person to:
(1) Commingle personal or any other moneys with escrow fundsregulated under this section;
(2) Use such escrow funds to pay or indemnify against debts of thetitle insurance agent or of any other person;
(3) Use such escrow funds for any purpose other than to fulfill theterms of the individual written escrow instructions after the necessaryconditions of the written escrow instructions have been met;
(4) Disburse any funds held in an escrow account unless thedisbursement is made under a written instruction or agreement specifyingunder what conditions and to whom such funds may be disbursed or under anorder of a court of competent jurisdiction; or
(5) Disburse any funds held in a security deposit account unless thedisbursement is made under a written agreement specifying:
(a) What actions the indemnitor shall take to satisfy his or herobligation under the agreement;
(b) The duties of the title insurer, title agency, or title agent notaffiliated with a title agency with respect to disposition of the fundsheld, including a requirement to maintain evidence of the disposition ofthe title exception before any balance may be paid over to the depositingparty or his or her designee; and
(c) Any other provisions the director may require by rule or order.
4. Notwithstanding the provisions of subsection 3 of this section,any bank credits, bank services, interest, or similar considerationreceived on funds deposited in connection with any escrow, settlement,security deposit, or closing may be retained by the title insurer, titleagency, or title agent not affiliated with a title agency as compensationfor administration of the escrow or security deposit, unless the specificwritten instructions for the funds or a governing statute providesotherwise.
5. Notwithstanding the provisions of subsection 2 of this section, atitle insurer, title agency, or title agent is not authorized to providesuch services as an escrow, security, settlement, or closing agent in aresidential real estate transaction unless as part of the same transactionthe title insurer, title agency, or title agent issues a commitment,binder, or title insurance policy and closing protection letters have beenissued protecting the buyer's and the seller's interests, or the titleagency or agent has given written notice to the affected person in a titleinsurance commitment or on a form approved by rule promulgated by thedirector that the person's interest in the closing or settlement is notprotected by the title insurer, title agency, or title agent.
6. It is unlawful for any title agency or agent to engage in thehandling of an escrow, settlement or closing of a residential real estatetransaction unless the escrow handling, settlement or closing is conductedor performed in contemplation of and in conjunction with the issuance of atitle insurance policy or a closing protection letter, or prior to thereceipt of any funds, the title agency or agent clearly discloses to theseller, buyer or lender involved in such escrow, settlement or closing,that no title insurer is providing any protection for closing or settlementfunds received by the title agency or agent.
7. A violation of any provision under this section is a level threeviolation under section 374.049, RSMo.
Title insurer, agency or agent not affiliated with a title agency mayoperate as an escrow, security, settlement or closing agent,when, penalty for violations.
381.022. 1. As used in sections 381.011 to 381.412, the followingterms mean:
(1) "Escrow", written instruments, money or other items deposited byone party with a depository, escrow agent, or escrowee for delivery toanother party upon the performance of a specified condition or thehappening of a certain event;
(2) "Qualified depository institution", an institution that is:
(a) Organized or, in the case of a United States branch or agencyoffice of a foreign banking organization, licensed under the laws of theUnited States or any state and has been granted authority to operate withfiduciary powers;
(b) Regulated, supervised, and examined by federal or stateauthorities having regulatory authority over banks and trust companies;
(c) Insured by the appropriate federal entity; and
(d) Qualified under any additional rules established by the director;
(3) "Security" or "security deposit", funds or other propertyreceived by the title insurer as collateral to secure an indemnitor'sobligation under an indemnity agreement under which the insurer is granteda perfected security interest in the collateral in exchange for agreeing toprovide coverage in a title insurance policy for a specific title exceptionto coverage.
2. A title insurer, title agency, or title agent not affiliated witha title agency may operate as an escrow, security, settlement, or closingagent, provided that all funds deposited with the title insurer, titleagency, or title agent not affiliated with a title agency, pursuant towritten instructions in connection with any escrow, settlement, closing, orsecurity deposit shall be submitted for collection to or deposited in aseparate fiduciary trust account or accounts in a qualified depositoryinstitution no later than the close of the second business day afterreceipt, in accordance with the following requirements:
(1) The funds regulated under this section shall be the property ofthe person or persons entitled to them under the provisions of the escrow,settlement, security deposit, or closing agreement and shall be segregatedfor each depository by escrow, settlement, security deposit, or closing inthe records of the title insurer, title agency, or title agent notaffiliated with a title agency, in a manner that permits the funds to beidentified on an individual basis and in accordance with the terms of theindividual written instructions or agreements under which the funds wereaccepted; and
(2) The funds shall be applied only in accordance with the terms ofthe individual written instructions or agreements under which the fundswere accepted.
3. It is unlawful for any person to:
(1) Commingle personal or any other moneys with escrow fundsregulated under this section;
(2) Use such escrow funds to pay or indemnify against debts of thetitle insurance agent or of any other person;
(3) Use such escrow funds for any purpose other than to fulfill theterms of the individual written escrow instructions after the necessaryconditions of the written escrow instructions have been met;
(4) Disburse any funds held in an escrow account unless thedisbursement is made under a written instruction or agreement specifyingunder what conditions and to whom such funds may be disbursed or under anorder of a court of competent jurisdiction; or
(5) Disburse any funds held in a security deposit account unless thedisbursement is made under a written agreement specifying:
(a) What actions the indemnitor shall take to satisfy his or herobligation under the agreement;
(b) The duties of the title insurer, title agency, or title agent notaffiliated with a title agency with respect to disposition of the fundsheld, including a requirement to maintain evidence of the disposition ofthe title exception before any balance may be paid over to the depositingparty or his or her designee; and
(c) Any other provisions the director may require by rule or order.
4. Notwithstanding the provisions of subsection 3 of this section,any bank credits, bank services, interest, or similar considerationreceived on funds deposited in connection with any escrow, settlement,security deposit, or closing may be retained by the title insurer, titleagency, or title agent not affiliated with a title agency as compensationfor administration of the escrow or security deposit, unless the specificwritten instructions for the funds or a governing statute providesotherwise.
5. Notwithstanding the provisions of subsection 2 of this section, atitle insurer, title agency, or title agent is not authorized to providesuch services as an escrow, security, settlement, or closing agent in aresidential real estate transaction unless as part of the same transactionthe title insurer, title agency, or title agent issues a commitment,binder, or title insurance policy and closing protection letters have beenissued protecting the buyer's and the seller's interests, or the titleagency or agent has given written notice to the affected person in a titleinsurance commitment or on a form approved by rule promulgated by thedirector that the person's interest in the closing or settlement is notprotected by the title insurer, title agency, or title agent.
6. It is unlawful for any title agency or agent to engage in thehandling of an escrow, settlement or closing of a residential real estatetransaction unless the escrow handling, settlement or closing is conductedor performed in contemplation of and in conjunction with the issuance of atitle insurance policy or a closing protection letter, or prior to thereceipt of any funds, the title agency or agent clearly discloses to theseller, buyer or lender involved in such escrow, settlement or closing,that no title insurer is providing any protection for closing or settlementfunds received by the title agency or agent.
7. A violation of any provision under this section is a level threeviolation under section 374.049, RSMo.
