Reference Title: escrow agents; deposit of monies

AN ACT
AMENDING SECTION 6-834, ARIZONA REVISED STATUTES; RELATING TO ESCROW AGENTS.

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 6-834, Arizona Revised Statutes, is amended to read:

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 money MONIES deposited in escrow to be delivered upon ON the close of the escrow or upon ON any other contingency shall be deposited and maintained in a bank, savings bank or savings and loan association doing business in this state and THE ESCROW AGENT shall be kept KEEP ALL OF THE ESCROW MONIES separate, distinct , and apart from funds 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. Such funds, When deposited, THE MONIES shall be designated as "escrow accounts" or given some other appropriate designation indicating that the funds MONIES are not the funds MONIES of the escrow agent. These funds MONIES shall be deposited immediately on receipt or as soon thereafter as is reasonably practicable.

B. No A person shall NOT knowingly keep or cause to be kept any funds or money MONIES in any bank or savings and loan association under the heading of "escrow accounts" or any other name designating such funds or money 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 funds MONIES . Such 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 funds MONIES through an interest-bearing deposit account.

2. The dollar charge which THAT may be imposed by the escrow agent solely to set up such 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 such an 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 funds MONIES deposited with an escrow agent in connection with any escrow. Nothing in this subsection shall prohibit 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" as used in this article means a printed notice to the depositing buyer or seller , which THAT sets forth the pertinent facts clearly and conspicuously. Such 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 his THE CUSTOMER'S receipt thereof OF THE NOTICE .

APPROVED BY THE GOVERNOR APRIL 26, 1999.

FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 26, 1999.