State Codes and Statutes
Statutes > Utah > Title-13 > Chapter-42 > 13-42-12213-42-122. Trust account.
(1) All money paid to a provider by or on behalf of an individual for distribution tocreditors pursuant to a plan is held in trust. Within two business days after receipt, the providershall deposit the money in a trust account established for the benefit of individuals to whom theprovider is furnishing debt-management services.
(2) Money held in trust by a provider is not property of the provider or its designee. Themoney is not available to creditors of the provider or designee, except an individual from whomor on whose behalf the provider received money, to the extent that the money has not beendisbursed to creditors of the individual.
(3) A provider shall:
(a) maintain separate records of account for each individual to whom the provider isfurnishing debt-management services;
(b) disburse money paid by or on behalf of the individual to creditors of the individual asdisclosed in the agreement, except that:
(i) the provider may delay payment to the extent that a payment by the individual is notfinal; and
(ii) if a plan provides for regular periodic payments to creditors, the disbursement shallcomply with the due dates established by each creditor; and
(c) promptly correct any payments that are not made or that are misdirected as a result ofan error by the provider or other person in control of the trust account and reimburse theindividual for any costs or fees imposed by a creditor as a result of the failure to pay ormisdirection.
(4) A provider may not commingle money in a trust account established for the benefit ofindividuals to whom the provider is furnishing debt-management services with money of otherpersons.
(5) A trust account shall at all times have a cash balance equal to the sum of the balancesof each individual's account.
(6) If a provider has established a trust account pursuant to Subsection (1), the providershall reconcile the trust account at least once a month. The reconciliation shall compare the cashbalance in the trust account with the sum of the balances in each individual's account. If theprovider or its designee has more than one trust account, each trust account shall be individuallyreconciled.
(7) If a provider discovers, or has a reasonable suspicion of, embezzlement or otherunlawful appropriation of money held in trust, the provider immediately shall notify theadministrator by a method approved by the administrator. Unless the administrator by ruleprovides otherwise, within five days thereafter, the provider shall give notice to the administratordescribing the remedial action taken or to be taken.
(8) If an individual terminates an agreement or it becomes reasonably apparent to aprovider that a plan has failed, the provider shall promptly refund to the individual all moneypaid by or on behalf of the individual which has not been paid to creditors, less fees that arepayable to the provider under Section 13-42-123.
(9) Before relocating a trust account from one bank to another, a provider shall informthe administrator of the name, business address, and telephone number of the new bank. As soonas practicable, the provider shall inform the administrator of the account number of the trustaccount at the new bank.
Amended by Chapter 378, 2010 General Session
