Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a)
An escrow agent shall preserve for at least five years from the close of
escrow:
(1) All bank statements of the
"trust" or "escrow" account;
(2)
All canceled checks drawn upon the "trust" or "escrow" account;
(3) Copies of bank deposit slips with
reference to the "trust" or "escrow" account;
(4) All additional records reflecting banking
transactions with reference to the "trust" or "escrow" account, including
copies of all receipts for funds transferred from interest-bearing accounts
into the "trust" or "escrow" account;
(5) The Statement of Account;
(6) Escrow instructions and amendments
thereto;
(7) All additional records
pertinent to the escrow transaction.
(b) The records referred to in paragraph (a)
may be retained and provided to the Commissioner in electronic format provided
that:
(1) The electronic records are
maintained and provided in a format that allows the Commissioner or his or her
authorized representatives complete access to all of the books, accounts and
records. The electronic records must be provided to the Commissioner in a
software format that is acceptable to the Commissioner and that the
Commissioner has in his or her possession. The escrow agent shall ensure that
the Commissioner and his or her authorized representatives have the ability to
download and print any or all of the records that are stored and maintained
electronically.
(2) The escrow
agent shall provide any or all of the records maintained in electronic format
in printed form if the electronic records are not in a format that enables the
Commissioner or his or her authorized representatives to determine if the
licensee is complying with the Escrow Law or rules, or upon the request of the
Commissioner or his or her authorized representatives.
(3) The electronic records shall be
maintained in a media that is (A) non-erasable "write once, read many" ("WORM")
that does not allow changes to the stored document, (B) consistent with the
minimum standards of quality approved by either the National Institute of
Standards and Technology or the Association for Information and Image
Management, and (C) contain written authentication identifying the electronic
record as an exact unaltered copy of the document.
1.
Renumbering of former section
1737.1 to new section
1737.3, including repealer of
subsection (b), new subsections (b)-(b)(3) and amendment of NOTE, filed
7-21-2003; operative 7-21-2003 pursuant to Government Code section
11343.4
(Register 2003, No. 30).
Note: Authority cited: Section
17400,
Financial Code. Reference: Sections
17403.5 and
17404,
Financial Code.
