Chapters

CHAPTER 449 ESCROW DEPOSITORIES

Contents 449-1 Definitions 449-1.5 Applicability of chapter 449-1.6 Name of escrow depository 449-1.7 Indicia of escrow depository prohibited 449-1.8 Confidential portion of application or records 449-1.9 Powers of commissioner 449-2 Rules 449-3 Excepted from this chapter 449-4 Administrative penalty 449-5 License required to act as escrow depository 449-5.5 Net capital 449-6 Application for license 449-7 Investigation and ruling 449-7.4 Grant of approval 449-7.5 Licensing requirements 449-8 Issuance and renewal of license 449-8.5 Denial of license 449-8.6 Sale or transfer of license or change in control 449-9 Escrow depository's bond 449-10 Suit on bond 449-11 Fidelity bonds; deposit 449-12 Errors and omissions insurance; deposit 449-13 Cancellation of bonds or insurance; withdrawal of deposits 449-14 Fees 449-15 Audited statements 449-16 Accounting for moneys, property, etc. 449-16.5 Earnings on funds 449-17 Revocation and suspension of licenses 449-18 Repealed 449-19 Relocation of office 449-20 Branch offices 449-20.5 Closing branch office 449-21 Maintenance of books and records 449-22 Examinations 449-23 Removal of officers or directors 449-24 Termination of escrow depository operations

     §449-24  Termination of escrow depository operations.  (a)  A solvent escrow depository whose capital is not impaired and that has not received a notice of charges and proposed suspension or revocation order pursuant to section 449-17 may cease its business and surrender its license in the following manner:

     (1)  The board of directors shall adopt a resolution approving a plan to cease activity for which a license to operate as an escrow depository is required.  If applicable, the plan shall include provisions for the sale, exchange, or disposition of all outstanding escrow accounts or other business for which an escrow depository license is required by this chapter;

     (2)  The escrow depository shall:

         (A)  Notify in writing all buyers and sellers whose accounts still contain outstanding balances of the termination of the escrow depository's operations and the specific arrangements to handle the particular transaction; and

         (B)  Submit to the commissioner, in writing, the name, address, and telephone number of a contact person who shall be responsible for answering questions and providing documents on closed accounts.  This individual or the successor thereof shall continue to perform this task, and shall notify the commissioner of any changes in the information concerning the contact person, until the applicable statutes of limitations have lapsed;

     (3)  The escrow depository shall file an application with the commissioner in the prescribed form for approval to cease activity for which a license to operate as an escrow depository is required.  The application shall be accompanied by:

         (A)  A copy of the plan to cease activity for which a license to operate as an escrow depository is required, certified by two executive officers of the escrow depository as having been duly adopted by the board;

         (B)  Any application that may be required pursuant to section 449-8.6, if applicable;

         (C)  A copy of the notice sent by the escrow depository to all buyers and sellers whose accounts still contain outstanding balances; and

         (D)  Any other information that the commissioner may require;

     (4)  The commissioner may require that an audit report, prepared by a certified public accountant at the expense of the escrow depository, be submitted showing the final accounting of the company's operations, should circumstances so warrant;

     (5)  The commissioner shall approve the application to cease activity for which a license to operate as an escrow depository is required if:

         (A)  The commissioner is satisfied with the plan;

         (B)  The conditions for approval contained in section 449-8.6 have been met, if applicable; and

         (C)  No other reason exists to deny the application; provided that the commissioner may impose any restrictions and conditions that the commissioner deems appropriate; and

     (6)  Upon receipt of the commissioner's approval, an escrow depository that has filed:

         (A)  A plan attesting that the company does not retain any outstanding escrow accounts or other business for which an escrow depository license is required by this chapter, shall forthwith surrender to the commissioner all of its escrow depository licenses; or

         (B)  A plan that includes provisions for the sale, exchange, or disposition of outstanding escrow accounts or other business, upon receipt of the commissioner's approval, shall proceed with its plan to cease activity for which a license to operate as an escrow depository is required.  Upon completion of its plan, the escrow depository shall file a written notification with the commissioner, signed by its president and secretary, certifying that there are no outstanding escrow liabilities.  Filing of the written notification shall be accompanied by the surrender of all escrow depository licenses.

     (b)  Nothing in this section shall preclude the commissioner at any time from seeking any relief or sanction from the courts that may otherwise be permitted by law. [L 2001, c 184, pt of §1; am L 2002, c 21, §1]