Current through Register Vol. 63, No. 9, September 1, 2024
(1) An escrow agent
must keep at least the following records:
(a)
Copies of all receipt records, including voided receipts;
(b) All cancelled checks or bank-supplied
images provided pursuant to ORS
696.243, which must be filed
with all numbered check forms accounted for, including voided checks;
(c) All vouchers and check stubs, including
voided vouchers and check stubs;
(d) Copies of all transfer forms used in
making transfers of funds between escrow accounts;
(e) An escrow log, with entries entered in
logical sequence based on the escrow number assigned, containing an entry for
each escrow that includes the escrow number, the date of opening, and the names
of the principals;
(f) Copies of
the escrow closing statements required by OAR 863-050-0025;
(g) The books and other records required by
OAR 863-050-0050; and
(h) Any other
required records, as that term is defined in OAR 863-050-0000.
(2) An escrow agent may use
electronic image storage media to retain and store copies of deposit receipts,
canceled checks, and other documents executed or obtained by the agent in
connection with any escrow activity and transaction, provided the agent
satisfies the following requirements:
(a) The
electronic image storage must be non-erasable "write once, read many" ("WORM")
that does not allow changes to the stored document or record;
(b) The stored document or record was made or
preserved as part of and in the regular course of business;
(c) The original record from which the stored
document or record was copied was made or prepared by the escrow agent or
escrow agent employees at or near the time of the act, condition, or event
reflected in the record;
(d) The
custodian of the record is able to identify the stored document or record, the
mode of its preparation, and the mode of storing it on the electronic image
storage; and
(e) The electronic
image storage media contains a reliable indexing system that provides ready
access to a desired document or record, appropriate quality control of the
storage process to ensure the quality of imaged documents or records, and
date-ordered arrangement of stored documents or records to assure a consistent
and logical flow of paperwork to preclude unnecessary search time.
(3) For any lost or missing
checks, an escrow agent must maintain a signed, dated statement explaining why
the check is missing.
(4) Except as
provided in this rule, an escrow agent may not receive trust funds without
issuing a receipt and my not disburse trust funds without issuing a check. An
escrow agent must issue an appropriate receipt as soon as practicable after
receiving cash in a collection escrow or receiving cash or checks in a closing
escrow.
(5) An escrow agent must
send an annual written statement to a principal in a collection escrow to show
all receipts and disbursements in the collection escrow during the year covered
in the report.
(6) For wire and
electronic transfers, the following requirements apply:
(a) An escrow agent may not disburse funds
from an individual escrow account based upon a wire or electronic transfer
deposited into the escrow trust account until the escrow agent has verified the
deposit;
(b) An escrow agent must
arrange with the escrow depository and other entities for an immediate
follow-up hard copy credit memo or a hard copy debit memo when funds are
received or disbursed by wire or electronic transfer;
(c) An escrow agent must post the receipt of
funds by wire or electronic in the same manner as other receipts and include a
traceable identifying name or number supplied by the escrow depository
receiving the funds or by the transferring entity; and
(d) The escrow agent disbursing funds by wire
or electronic transfer must retain in the individual escrow transaction file a
copy of the written authorization from the principals to use wire or electronic
transfer for disbursement or funds.
(7) Check forms used by an escrow agent must
be pre-numbered with consecutive numbers. If a computer fills in or generates
checks and any check copies, all check stock and check copies must be
consecutively pre-numbered. If a computer generates checks using unnumbered
check stock, the computer must continually and consecutively number the checks
as generated. The account number must appear in the magnetic coding on the bank
check face to identify the account number for reading by the bank's
computerized accounting system.
(8)
An escrow agent must produce the records required under this rule for
inspection by the Agency as follows:
(a) When
the Agency makes a request for production of escrow records, the escrow agent
must provide such records within no less than five banking days; and
(b) If the Agency informs an escrow agent
that the Agency has reasonable grounds to believe that escrow funds may be
missing or misappropriated or that the escrow agent has engaged in fraudulent
activity, the escrow agent must produce any records demanded or requested by
the Agency immediately.
Stat. Auth.: ORS
696.385 &
696.541
Stats. Implemented: ORS
696.243,
696.534,
696.578 &
696.581
