California Health and Safety Code

§ 1781

HSC § 1781 Effective Jan 1, 2001Div. 2 · Ch. 10 · Art. 3

Statute text

(a)All deposits, excluding processing fees, shall be placed in an escrow account. All terms governing the deposit escrow account shall be approved in advance by the department.

(b)The deposit escrow account shall be established by an escrow agent and all deposits shall be deposited in a depository located in California and approved by the department. The department’s approval of the depository shall be based, in part, upon its ability to ensure the safety of funds and properties entrusted to it and its qualifications to perform the obligations of the depository pursuant to the deposit escrow account agreement and this chapter. The depository may be the same entity as the escrow agent. All deposits shall be kept and maintained in a segregated account without any commingling with other funds, including any funds or accounts owned by the applicant.

(c)If the escrow agent is a title company, it shall meet the following requirements:

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Legislative history

Amended by Stats. 2000, Ch. 820, Sec. 34. Effective January 1, 2001.