2005 Idaho Code - 54-2042 — CREATION OF NONINTEREST-BEARING TRUST ACCOUNTS -- REQUIREMENTS

                                  TITLE  54
                    PROFESSIONS, VOCATIONS, AND BUSINESSES
                                  CHAPTER 20
                        IDAHO REAL ESTATE LICENSE LAW
    54-2042.  CREATION OF NONINTEREST-BEARING TRUST ACCOUNTS -- REQUIREMENTS.
A broker may establish one (1) or more real estate trust accounts but each
account must meet all requirements of this chapter, including the following:
    (1)  Each trust account must be established at an approved depository and
must be noninterest-bearing, except as allowed in section 54-2043, Idaho Code,
or as otherwise may be provided by law.  Approved depositories are state or
federally chartered banks and trust companies, state or federally chartered
savings and loan associations, properly licensed title insurance companies, or
an actively licensed attorney at law.
    (2)  Each account must be identified by the term "real estate trust
account," on checks, deposit slips, and with the depository.
    (3)  Each trust account must be established and maintained under the
licensed business name of the broker, and shall be under the full control of
the broker.
    (4)  Each broker trust account must have a separate and complete set of
records, which must consist of a monthly accounting, deposits, charges, and
withdrawals or checks, even if the moneys are on deposit with a title company,
attorney or other approved depository. The broker is responsible for ensuring
that these separate account records are provided by the depository.
    (5)  Funds deposited in a real estate trust account must be subject to
withdrawal on demand at the order or direction of the broker at all times,
even if deposited with a title company or other approved depository.
    (6)  A commission-approved form giving notice of opening a trust account
and giving authorization for the commission to inspect the account must be
completed for each trust account, signed by the broker and an officer of the
bank or depository and returned to the commission.
    (7)  No deposits to the trust account shall be made of funds that belong
to the broker or real estate firm, except that the broker may deposit broker
or firm funds for the purpose of opening and maintaining the account and for
the payment of anticipated bank service charges for the trust account. In no
event shall the balance of broker or firm funds in the account exceed three
hundred dollars ($300). Maintenance funds shall not be disbursed for any
purpose other than to cover bank charges charged directly to the trust account
by the bank.
    (8)  An entity not specified as an approved escrow depository in
subsection (1) of this section, may be accepted and approved by the commission
as an escrow depository upon disclosure of the following:
    (a)  The details of the entity's financial structure;
    (b)  The amount and terms of errors and omissions insurance and any
    bonding;
    (c)  A copy of the entity's last audit and financial statement;
    (d)  A copy of any license or certificate issued to the entity; and
    (e)  Any other information that may help the commission make its
    determination.