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REAL ESTATE AGENCY

 

DIVISION 50

RULES AND REGULATIONS
ESCROWS AND ESCROW AGENTS

General Rules

 

863-050-0000

Definitions

As used in OAR chapter 863, division 50, unless the context requires otherwise, the following definitions apply:

(1) “Agency” means the Oregon Real Estate Agency.

(2) “Bank” has the meaning given that term in ORS 706.008. As used in ORS 696.578, “a bank authorized to do business within this state” means a banking business, as that term is defined in 706.005, that has either a bank charter or a certificate of authority issued by the Oregon Department of Consumer and Business Services pursuant to Chapters 706 to 716.

(3) “Banking Day” means each day a bank is required to be open for the normal conduct of its business but does not include Saturday, Sunday, or any legal holiday under ORS 187.010.

(4) "Bank services" are any monetary benefits received directly or indirectly from an escrow agent’s bank as services to the escrow agent in consideration for the escrow agent’s depositing and maintaining its clients' trust funds in such bank.

(5) "Closed Escrow" means that all property titles have been transferred and all monies and documents have been disbursed or distributed in accordance with the instructions of the principals to the escrow transaction.

(6) “Escrow” is defined in ORS 696.505.

(7) "Escrow Activity" means any activity subject to regulation under ORS 696.505 to 696.590.

(8) “Escrow Agent” is defined in ORS 696.505.

(9) “Escrow Number” means a unique identifying number assigned to each escrow in logical sequence.

(10) “Escrow Trust Account” means a bank account established pursuant to ORS 696.578.

(11) "Holdback escrow" means a separate escrow, derived from a closing escrow, wherein funds are held after closing for the purpose of paying obligations related to the closing or to the financing of real or personal property therein after the closing has occurred.

(12) "Net worth," as used in ORS 696.535, means is the remaining balance after subtracting total liabilities from total assets.

(13) "One-sided escrow" as used in ORS 696.581 means an escrow that is opened by, or on behalf of, one party to a written, proposed agreement between two or more parties, for the purpose of depositing any written instrument, money, evidence of title to real or personal property, or other thing of value into the escrow account before execution of the agreement by the other party(s).

(14) “Owner” means an individual who has more than five percent ownership interest in the escrow agent.

(15) "Principal" is defined in ORS 696.505 and

(a) In a collection escrow, means the seller or buyer, lender or borrower, vendor or vendee.

(b) In a holdback escrow, means those parties directing the holdback.

(c) In a one sided escrow, means the depositing party.

(16) “Required Records” means all records required by OAR 863-050-0000 to 863-050-0150 and the Oregon Escrow Law, ORS 696.505 to 696.590.

(17) “Subservicer” is defined in ORS 696.505.

Stat. Auth.: ORS 696.385, 696.541
Stats. Implemented: ORS 696.505 & 696.590
Hist.: REA 5-2003, f. 12-24-03, cert. ef. 1-1-04; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0015

Documents or Property Held in Escrow

Except as otherwise provided in ORS 696.581, an escrow agent must use documents or other property deposited in escrow only in accordance with the dated written instructions of the principals to the escrow transactions or pursuant to court order.

Stat. Auth.: ORS 696.385, 696.541
Stats. Implemented: ORS 696.581
Hist.: REC 29, f. 12-9-70, ef. 1-10-71; REC 2-1981, f. 10-30-81, ef. 11-1-81; REA 5-1992, f. 8-4-92, cert. ef. 9-1-92; REA 1-1993, f. 12-1-93, cert. ef. 1-1-94; REA 5-2003, f. 12-24-03, cert. ef. 1-1-04; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0020

Disclosure of Interest

(1) An escrow agent must act as a disinterested, neutral third party with regard to any of the principals to an escrow transaction.

(2) An escrow agent must provide the disclosure required by this rule if the escrow agent, its owners, officers, management staff in the office of the escrow agent handling the escrow transaction, or the escrow officer handling the escrow transaction knows of any interest or relationship described in section (5) of this rule.

(3) An escrow agent must disclose to the principals in an escrow transaction, in a separate written notice:

(a) The specific interest the agent or the agent’s employees have in the transaction described in section (5) of this rule; and

(b) The statement described in section (6) of this rule.

(4) An escrow agent must deliver the notice required by this rule to the principals:

(a) When the escrow agent accepts the escrow and before any of the principals becomes liable for any costs or signs any written escrow instruction; or

(b) If the interest is discovered after any of the principals becomes liable for costs or signs written escrow instructions, upon discovery of the interest.

(5) An escrow agent must disclose any interest that the agent or the agent’s employees have in the escrow transaction, other than as escrow agent, title insurer, or title insurance agent. Such interests include but are not limited to the following:

(a) A family relationship by blood, domestic partnership, or marriage with the escrow officer or such other staff member who may be assigned responsibility for the administration of the escrow agent's transaction file, with respect to any principal in the transaction, real estate licensee, lender, mortgage or loan broker, builder, or subdivider with an interest in the transaction;

(b) Any pecuniary business interest in the transaction other than as escrow agent, title insurer, or title insurance agent; and

(c) Any financial interest of the escrow agent, escrow officer or such other staff member assigned responsibility for the administration of the escrow agent's file when that interest is more than five percent ownership interest in:

(A) A principal in the transaction; or

(B) A real estate licensee, lender, mortgage or loan broker, developer, builder or subdivider interest in the transaction.

(6) An escrow agent must include the following statement in a disclosure made under this rule:

"We call this interest to your attention in order to be open and fair with you. In our opinion this interest will not prevent us from being a fair and impartial escrow agent in this transaction. Nevertheless, you may request that this transaction be closed by some other licensed escrow agent if you so desire."

(7) An escrow agent making any disclosure required by this rule must take a written receipt for the disclosure statement or document the disclosure and its delivery to a principal. The escrow agent must maintain such receipts or documentation as a required record.

(8) For the purposes of this rule, if an escrow agent gives any services, property, or anything of value as a marketing tool to induce the recipient to bring or refer escrow business to the escrow agent, such giving is not a pecuniary business interest or financial interest for which disclosure must be made under this rule.

(9) The receipt by an escrow agent of bank services and interest earned on clients’ trust funds under ORS 696.578(2) are not subject to the disclosure requirements of this rule.

Stat. Auth.: ORS 696.385, 696.541
Stats. Implemented: ORS 696.581
Hist.: REC 29, f. 12-9-70, ef. 1-10-71; REC 5-1978, f. 11-15-78, ef. 1-1-79; REC 6-1984, f. 6-18-84, ef. 7-1-84; REA 2-1990, f. 4-18-90, cert. ef. 7-1-90; REA 5-1992, f. 8-4-92, cert. ef. 9-1-92; REA 5-2003, f. 12-24-03, cert. ef. 1-1-04; REA 4-2004, f. 4-28-04 cert. ef. 5-3-04; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0025

Closing Statement

(1) When an escrow closes, an escrow agent must prepare, sign, and date a closing statement of each principal’s escrow account that includes the following:

(a) The funds received and disbursed on the principal’s behalf for the principal’s benefit; and

(b) Third party expenses paid by the escrow agent in connection with the escrow transaction, which must be clearly designated and separate from the escrow agent’s otwn fees.

(2) If payments or credits are made outside of escrow, the escrow agent may show such payments or credits on the closing statement if they are designated as payments or credits outside of escrow and are set forth separately from payments or credits made by or to the escrow agent.

(3) The escrow agent must deliver a copy of the signed and dated closing statement of the applicable escrow account to:

(a) Each principal to the escrow or the principal’s designee;

(b) A real estate broker who represents a principal to the transaction, upon the broker’s request, but only the closing statement for the principal that the broker represents; and

(c) A seller who has financed some or the entire sales price, a copy of the buyer/borrower statement, at the seller’s request.

Stat. Auth.: ORS 696.385 & 696.581
Stats. Implemented: ORS 696.535
Hist.: REC 29, f. 12-9-70, ef. 1-10-71; REC 5-1978, f. 11-15-78, ef. 1-1-79; REC 2-1981, f. 10-30-81, ef. 11-1-81; REC 6-1984, f. 6-18-84, ef. 7-1-84; REA 2-1997, f. 6-18-97, cert. ef. 7-1-97; REA 5-2003, f. 12-24-03, cert. ef. 1-1-04; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0030

Bank Charges

An escrow agent may not authorize or allow a bank to remove funds from its account established under ORS 696.578 for payment of bank service charges, overdraft charges, printed check charges, collection charges, or bank fees or bank service charges of any kind. Such charges must be paid from the escrow agent’s own funds.

Stat. Auth.: ORS 696.385 & 696.581
Stats. Implemented: ORS 696.541 & 696.578
Hist.: REC 29, f. 12-9-70, ef. 1-10-71; REC 5-1978, f. 11-15-78, ef. 1-1-79; REA 2-1997, f. 6-18-97, cert. ef. 7-1-97; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0033

Notice of Judgments

(1) Except as otherwise provided by section (4) of this rule, an escrow agent must notify the Commissioner in writing of any of the following:

(a) A judgment entered against the escrow agent in any civil action involving the alleged misconduct of the escrow agent in an escrow transaction or of any owner, officer, employee, or director of the escrow agent in an escrow transaction handled through the escrow agent;

(b) A conviction in any criminal proceeding involving the misconduct of the escrow agent in an escrow transaction or of any owner, officer, employee, or director of the escrow agent in an escrow transaction handled through the escrow agent; or

(c) A decision adverse to the escrow agent resulting from court-ordered binding arbitration involving the alleged misconduct of the escrow agent in an escrow transaction or of any owner, officer, employee, or director of the escrow agent in an escrow transaction handled through the escrow agent.

(2) The notice required by section (1) of this rule must contain a brief description of the escrow transaction involved and the names of the principals. If a civil action or court-ordered binding arbitration, the notice must include a copy of the judgment entered or arbitrator’s decision. If a criminal proceeding, the notice must include the criminal charge for which the escrow agent, officer, employee, or director was convicted and the sentence imposed.

(3) The notice required by sections (1) and (2) of this rule must be made within ten banking days after the judgment is entered, the arbitrator’s decision is issued, or the sentencing date. The escrow agent must provide notice under this section even if the judgment or conviction is appealed. If the judgment or conviction is appealed, the escrow agent must report each subsequent decision of an appellate court within ten banking days after the date the appellate order is entered.

(4) A judgment of the Small Claims Department of any Circuit Court or Justice’s Court is exempt from the notice requirements. However, if the judgment is appealed, each subsequent decision of any appellate court must be reported under this rule.

Stat. Auth.: ORS 696.385 & 696.541
Stats. Implemented: ORS 696.511 & 696.535
Hist.: REC 5-1978, f. 11-15-78, ef. 1-1-79; REC 6-1984, f. 6-18-84, ef. 7-1-84; REA 2-1997, f. 6-18-97, cert. ef. 7-1-97; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0035 [Renumbered to 863-049-0050]

Accounting Rules

863-050-0050

Accounting Controls; Record Inspection

(1) An escrow agent must establish and maintain the escrow business records described in this rule as required records.

(a) Individual ledgers must be established to record the accounting for each escrow.

(A)The ledgers must be identified by the escrow number and the names of the principals.

(B) Entries must record each receipt and disbursement of escrow funds and must be posted in date order on, or as of, the date they occur.

(C) Entries must show the amount of the entry, the date of the entry, the receipt number, and the check number or wire identification number and must identify from or to whom funds were received or disbursed.

(D) Each ledger must show and record a running balance of funds held in the individual escrow, on a daily basis, as entries occur.

(E) If an escrow agent uses more than one escrow trust bank account, each ledger must identify the account in which its escrow funds are deposited.

(b) A journal or register must be established for each escrow trust bank account and must record all receipts and disbursements of escrow funds.

(A) Entries must be posted in date order and record a running book balance for total escrow liability of the agent in each escrow trust account, on a daily basis.

(B) If entries are posted in batch totals, backup documentation adequate to identify the individual items in the batch and verify the total must be maintained.

(2) An escrow agent must reconcile each escrow trust account within 30 days of the bank statement date pursuant to the requirements contained in this section.

(a) The reconciliation must have three components, which must be contained in a single reconciliation document:

(A) The bank statement balance, adjusted for outstanding checks and other reconciling bank items;

(B) The balance of the receipts and disbursements journal or check book register as of the bank statement closing date; and

(C) The sum of all the balances of the individual escrow ledgers as of the bank statement closing date.

(b) The balances of each component of the reconciliation must be equal to and reconciled with each other. If any adjustment is needed, the adjustment must be clearly identified and explained on the reconciliation document;

(c) The escrow agent or an authorized officer in direct control of the agent’s escrow operations must date and sign the reconciliation document upon completion, attesting to the accuracy and completeness of the reconciliation;

(d) Outstanding checks must be listed by check number, issue date, payee, and amount; and

(e) The escrow agent must preserve and file in logical sequence the reconciliation document, bank statement, and all supporting documentation including, but not limited to, copies of the receipts and disbursements journal or check book register and a listing of each individual escrow ledger with a balance as of the bank statement closing date.

(3) An escrow agent must take corrective action to resolve all adjustments in a reconciliation before the next reconciliation or document the good faith efforts the escrow agent has taken to resolve the adjustment.

(4) In addition to the maintenance and production requirements contained in ORS 696.534, an escrow agent must comply with the following requirements:

(a) An escrow agent using the computer services of another firm must file a continuing authorization with the Commissioner and the other firm authorizing the Commissioner to examine or audit the escrow agent's records maintained at the other firm's place of business.

(b) If an escrow agent uses a computerized system for producing and maintaining the records and accounts required in the escrow agent's licensed activity, the computerized system must have the following capabilities:

(A) Be capable of printing out any document used in the required accounting and record keeping process that would otherwise be generated or maintained by hand, such as receipt and check registers, receipt, and disbursement journals;

(B) Be capable of backing up its stored data. At least once each month, the escrow agent must back up any data that is stored in the computerized system that was not printed out and preserved under subsection (a) of this section within the last month. The back up data must be made available to the Commissioner or to the Commissioner's authorized representatives upon demand;

(C) The reconciliations and all required supporting data must be capable of being printed out at the time of reconciliation and preserved as required records of the licensed escrow activity.

Stat. Auth.: ORS 696.385 & 696.541
Stats. Implemented: ORS 696.578 & 696.534
Hist.: REC 29, f. 12-9-70, ef. 1-10-71; REC 5-1978, f. 11-15-78, ef. 1-1-79; REC 2-1981, f. 10-30-81, ef. 11-1-81; REC 6-1984, f. 6-18-84, ef. 7-1-84; REA 3-1989, f. 12-13-89, cert. ef. 2-1-90; REA 5-2003, f. 12-24-03, cert. ef. 1-1-04; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0052

Disbursal of Disputed Real Estate Broker Compensation

If there is a dispute among or between real estate brokers who are sole practitioners or principal real estate brokers regarding who is entitled to the moneys or other property agreed to as compensation in a written compensation agreement, and the escrow agent is holding such moneys or other property pursuant to ORS 696.582(1)(a), the escrow agent must hold the moneys or other property until the escrow agent receives a written agreement between the brokers or a final order from a court directing the escrow agent to disburse the moneys or other property.

Stat. Auth.: ORS 696.385, ORS 696.541
Stats. Implemented: ORS 696.582
Hist.: REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0055

Accounting Practices

(1) An escrow agent may not draw, execute, or date a check on an individual escrow account ledger or escrow trust account before the account has sufficient monies to pay the check. An escrow agent may not withdraw or transfer money from any individual escrow account or escrow trust unless such account has sufficient monies for such payment or transfer.

(2) An escrow agent may not withdraw escrow fees from a closing escrow account until:

(a) The escrow is cancelled; or

(b) The escrow is closed with the exception of customary post-closing procedures as contained in the escrow instructions of the principals to the escrow transaction.

(3) An escrow agent may deposit only the funds received as part of an escrow transaction or as trustee of a trust deed under ORS 86.705 to 86.795 in an account established under 696.578.

(4) All funds deposited in an escrow trust account established under ORS 696.578 may be withdrawn, paid out, or transferred to other accounts as specified in the written escrow instructions of the principals to the escrow transaction directed to the escrow agent or pursuant to order of a court of competent jurisdiction.

(5) An escrow agent must provide the Commissioner upon the Commissioner's request with a continuing authorization to certify the actual balance in any escrow trust account the escrow agent has established under ORS 696.578. The escrow agent must file the authorization in the depository in which the escrow trust account is maintained and file a copy of the authorization with the Commissioner.

(6) Upon request by the Commissioner or an authorized representative, an escrow agent must demonstrate that an individual escrow account contained sufficient funds before any disbursement by producing documentation and financial records showing that:

(a) The trust funds deposited into an escrow trust account on behalf of a principal and credited to the individual account were collected and available for disbursement; and

(b) The disbursement of these funds did not involve the use of any other principal’s trust funds.

Stat. Auth.: ORS 696.385 & 696.541
Stats. Implemented: ORS 696.578
Hist.: REC 29, f. 12-9-70, ef. 1-10-71; REC 5-1978, f. 11-15-78, ef. 1-1-79; REC 6-1984, f. 6-18-84, ef. 7-1-84; REA 1-1988, f. 5-31-88, cert. ef. 7-1-88; REA 2-1990, f. 4-18-90, cert. ef. 7-1-90; REA 2-1997, f. 6-18-97, cert. ef. 7-1-97; REA 5-2003, f. 12-24-03, cert. ef. 1-1-04; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0060

Interest-Bearing Accounts

(1) If an escrow agent deposits and maintains the trust funds in an interest-bearing escrow trust account pursuant to ORS 696.578(2) and (3), the written escrow instructions from all principals having an interest in the funds must include:

(a) The names of all principals;

(b) Written approval of all principals to the escrow transaction;

(c) The escrow number;

(d) To whose account the interest earnings will accrue;

(e) How and when the interest will be disbursed; and

(f) Any limitations that may be imposed on withdrawing trust funds deposited in the interest-bearing escrow trust account.

(2) The escrow agent may deposit funds to the interest-bearing escrow trust account before receiving the written instructions required by this rule, but the escrow agent may not disburse any funds from the escrow account until the escrow agent has received the written instructions.

(3) An escrow agent must account separately for the funds deposited and the disposition of interest earned, if any, in each escrow transaction and treat disposition of interest earned as a disbursement in the closing of the escrow transaction.

(4) An escrow agent may maintain one or more separate federally insured interest-bearing accounts for each escrow transaction subject to this rule.

Stat. Auth.: ORS 696.541
Stats. Implemented: ORS 696.578
Hist.: REC 29, f. 12-9-70, ef. 1-10-71; REC 5-1978, f. 11-15-78, ef. 1-1-79; REC 2-1981, f. 10-30-81, ef. 11-1-81; REC 7-1984, f. 9-4-84, ef. 10-1-84; REA 5-1992, f. 8-4-92, cert. ef. 9-1-92; REA 5-2003, f. 12-24-03, cert. ef. 1-1-04; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0065

Disclosure of Bank Services and Refunds

(1) An escrow agent may retain bank services, but only with approval in the written closing instructions of the principals. If an escrow agent retains bank services, the agent must disclose to the principals in a transaction the nature of the benefit the agent receives and retains. The disclosure must contain a good faith estimate of the amount of the benefit received as it applies to the individual escrow.

(2) If an escrow agent disburses funds and those funds are returned or refunded to escrow, the escrow agent must:

(a) Account for and handle such moneys as any other funds deposited in escrow;

(b) Adjust the ledger for the escrow transaction to reflect the refund or return;

(c) Disburse the refunded or returned funds in accordance with the appropriate principals’ dated written escrow instructions, and

(d) Provide an explanation of the refund or return to the appropriate principals.

(3) The requirements contained in section (2) of this rule do not apply to de minimus amounts of fund if those amounts and the disposition of such funds are defined in the escrow instructions.

Stat. Auth.: ORS 696.385, 696.541
Stats. Implemented: ORS 696.578 & 696.581
Hist.: REC 29, f. 12-9-70, ef. 1-10-71; REC 5-1978, f. 11-15-78, ef. 1-1-79; REC 6-1984, f. 6-18-84, ef. 7-1-84; REA 2-1990, f. 4-18-90, cert. ef. 7-1-90; REA 5-1992, f. 8-4-92, cert. ef. 9-1-92; REA 5-2003, f. 12-24-03, cert. ef. 1-1-04; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0066

Deposits

An escrow agent must deposit all checks or cash received in escrow into the agent’s escrow trust account established under ORS 696.578 no later than the close of business of the banking day the day after the agent receives the checks or cash. This requirement does not apply to checks received from a lender who requires that the checks not be deposited until an escrow is ready to close.

Stat. Auth.: ORS 696.385 & 696.541
Stats. Implemented: ORS 696.578
Hist.: REC 5-1978, f. 11-15-78, ef. 1-1-79; REC 6-1984, f. 6-18-84, ef. 7-1-84; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

Records Rules

863-050-0100

Records

(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
Hist.: REC 29, f. 12-9-70, ef. 1-10-71; REC 5-1978, f. 11-15-78, ef. 1-1-79; REC 6-1984, f. 6-18-84, ef. 7-1-84; REA 2-1990, f. 4-18-90, cert. ef. 7-1-90; REA 5-1992, f. 8-4-92, cert. ef. 9-1-92; REA 2-1997, f. 6-18-97, cert. ef. 7-1-97; REA 5-2003, f. 12-24-03, cert. ef. 1-1-04; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0105

Record Location

An escrow agent must notify the Commissioner of any relocation of the records at least 15 days before the relocation. The notice must include the street address of the new location of the agent’s required records. If the new location is not the licensed main office or a licensed branch office of the escrow agent, the escrow agent must provide the Commissioner, in writing, with the information and contact persons necessary to have access to the records during regular business hours.

Stat. Auth.: ORS 696.385 & 696.541
Stats. Implemented: ORS 696.534
Hist.: REC 29, f. 12-9-70, ef. 1-10-71; REC 5-1978, f. 11-15-78, ef. 1-1-79; REC 6-1984, f. 6-18-84, ef. 7-1-84; REA 3-1989, f. 12-13-89, cert. ef. 2-1-90; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0115

Records Retention

(1) In addition to and not in lieu of the requirements of ORS 192.825 to 192.855 (The Electronic Signature Act), the requirements of OAR 863-050-0005 through 863-050-0150 and the Oregon Escrow Law apply to all records, including any electronically generated items.

(2) An escrow agent must maintain at the escrow agent's office a means of viewing copies of documents or records stored pursuant to this section. An escrow agent must provide, at the escrow agent's expense, a paper copy of any document or record requested by the Agency.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.534
Hist.: REC 29, f. 12-9-70, ef. 1-10-71; REC 5-1978, f. 11-15-78, ef. 1-1-79; REC 6-1984, f. 6-18-84, ef. 7-1-84; REA 5-2003, f. 12-24-03, cert. ef. 1-1-04; REA 4-2004, f. 4-28-04 cert. ef. 5-3-04; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

Audit Rules

863-050-0150

Annual Report; Financial Statements; Audit or Examination Expenses

(1) The escrow agent must pay to the Agency the reasonable expenses of an audit or examination as authorized by ORS 696.541.

(2) The Commissioner may require an escrow agent to submit to the Commissioner an independent audit by a certified public accountant or a public accountant, conducted at the escrow agent's expense. The Commissioner may specify the nature and scope of the independent audit. If an escrow agent submits a required independent audit to the Commissioner or the Commissioner's authorized representative, this does not preclude any subsequent audit within the same year.

Stat. Auth.: ORS 696.385, 696.541
Stats. Implemented: ORS 696.534 & 696.541
Hist.: REC 29, f. 12-9-70, ef. 1-10-71; REC 34, f. 2-8-73, ef. 3-1-73; REC 5-1978, f. 11-15-78, ef. 1-1-79; REC 2-1981, f. 10-30-81, ef. 11-1-81; REC 6-1984, f. 6-18-84, ef. 7-1-84; REA 2-1990, f. 4-18-90, cert. ef. 7-1-90; REA 5-1992, f. 8-4-92, cert. ef. 9-1-92; REA 2-1997, f. 6-18-97, cert. ef. 7-1-97; REA 5-2003, f. 12-24-03, cert. ef. 1-1-04; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

863-050-0240 [Renumbered to 863-049-0025]

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