Utah Admin. Code R592-17-4 - Account Requirements
(1) A title
insurance company, an agency title insurance producer, and an individual title
insurance producer shall retain adequate records of each deposit in a trust
account or a sweep account to establish individual account balances for each
person whose funds are held in trust.
(2) Funds subject to this rule must be
deposited in:
(a) a deposit account insured by
the Federal Deposit Insurance Corporation or the National Credit Union Share
Insurance Fund or any successor federal deposit insurance; or
(b) a sweep account that meets the following
qualifications:
(i) funds are initially
deposited into a federally insured demand deposit account;
(ii) the depository institution purchases:
(A) U.S. Government securities held in a
segregated account, subject to a repurchase agreement between the depositor and
the depository institution; or
(B)
shares in a money market mutual fund that only holds obligations of the U.S.
Treasury or agencies of the U.S. Government; and
(iii) the depository institution can
repurchase the securities or sell or redeem the shares or interest, at any
time, at par and deposit the funds in the demand deposit account to maintain a
minimum balance and pay withdrawals.
(3) A depositor may only deposit funds into a
sweep account if it agrees to reimburse a trust beneficiary for any decline in
value below par of the funds deposited, regardless of the cause of the decline
in value.
(4) A depositor who uses
an account described in Subsection R592-17-4(2)(b) must:
(a) receive written authorization from each
trust beneficiary stating that the depositor may receive any earnings that are
realized from the trust fund deposit; and
(b) provide full written disclosure to each
trust beneficiary explaining the characteristics of a sweep account deposit as
described in Subsection R592-17-4(2)(b).
Notes
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