7-22-108 - Segregation of accounts -- Duties specified by agreement -- Duties generally.
7-22-108. Segregation of accounts -- Duties specified by agreement -- Dutiesgenerally.
(1) Each escrow agent shall place all funds received in escrow into separate federallyinsured depository accounts specifically denominated as trust accounts and shall allow no otherfunds to be placed into a trust account for any purpose. Funds may be paid from trust accountsonly in accordance with the terms and conditions of the escrow agreement. An agent maymaintain a general trust account and individual accounts for specific escrows in the agent'sdiscretion, subject to any specific terms and conditions of an escrow agreement. Earnings onfunds held in an escrow trust account may be periodically dispersed to the escrow agent if theescrow contract specifically provides for such disbursements. Otherwise, earnings on funds heldin escrow may be paid out of the escrow account to any other party in accordance with theprovisions of the escrow agreement if the agreement does not otherwise provide for payment ofthe earnings or any portion of the earnings on the escrow funds.
(2) All other assets or property received by an escrow agent in accordance with anescrow agreement shall be maintained in a manner which will reasonably preserve and protect theproperty from loss, theft, or damage, and which will otherwise comply with all duties andresponsibilities of a fiduciary or bailee generally.
Enacted by Chapter 133, 1991 General Session