RCW 18.44.400
Records and accounts—Segregation and disbursements of funds—Violation of section, penalties.
(1) Every licensed escrow agent shall keep adequate records, as determined by rule by the director, of all transactions handled by or through the agent including itemization of all receipts and disbursements of each transaction. These records shall be maintained in this state, unless otherwise approved by the director, for a period of six years from completion of the transaction. These records shall be open to inspection by the director or the director's authorized representatives.
(2) Every licensed escrow agent shall keep separate escrow fund accounts as determined by rule by the director in recognized Washington state depositaries authorized to receive funds, in which shall be kept separate and apart and segregated from the agent's own funds, all funds or moneys of clients which are being held by the agent pending the closing of a transaction and such funds shall be deposited not later than the first banking day following receipt thereof.
(3) An escrow agent, unless exempted by *RCW 18.44.021(2), shall not make disbursements on any escrow account without first receiving deposits directly relating to the account in amounts at least equal to the disbursements. An escrow agent shall not make disbursements until the next business day after the business day on which the funds are deposited unless the deposit is made in cash, by interbank electronic transfer, or in a form that permits conversion of the deposit to cash on the same day the deposit is made. The deposits shall be in one of the following forms:
(a) Cash;
(b) Interbank electronic transfers such that the funds are unconditionally received by the escrow agent or the agent's depository;
(c) Checks, negotiable orders of withdrawal, money orders, cashier's checks, and certified checks that are payable in Washington state and drawn on financial institutions located in Washington state;
(d) Checks, negotiable orders of withdrawal, money orders, and any other item that has been finally paid as described in RCW 62A.4-213 before any disbursement; or
(e) Any depository check, including any cashier's check, certified check, or teller's check, which is governed by the provisions of the federal expedited funds availability act, 12 U.S.C. Sec. 4001 et seq.
(4) For purposes of this section, the word "item" means any instrument for the payment of money even though it is not negotiable, but does not include money.
(5) Violation of this section shall subject an escrow agent to penalties as prescribed in Title 9A RCW and remedies as provided in chapter 19.86 RCW and shall constitute grounds for suspension or revocation of the license of any licensed escrow agent or licensed escrow officer. In addition, an escrow agent who is required to be licensed under this chapter and who violates this section or an individual who is required to be licensed as an escrow officer under this chapter and who violates this section, may be subject to penalties as prescribed in RCW 18.44.430.
[ 1999 c 30 § 8; 1990 c 203 § 1; 1988 c 178 § 1; 1977 ex.s. c 156 § 6; 1965 c 153 § 7. Formerly RCW 18.44.070.]
NOTES:
*Reviser's note: RCW 18.44.021 was amended by 2015 c 229 § 1, changing subsection (2) to subsection (1)(b).
Severability—1988 c 178: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [ 1988 c 178 § 4.]
Structure Revised Code of Washington
Title 18 - Businesses and Professions
Chapter 18.44 - Escrow Agent Registration Act.
18.44.021 - License required—Exceptions.
18.44.023 - Multistate licensing system—Director's discretion.
18.44.031 - License—Application, requisites.
18.44.041 - Branch offices—Application to establish—Requirements.
18.44.051 - Branch offices—Issuance of license.
18.44.061 - Change in business location, office location, business name—Written notice required.
18.44.081 - Escrow officer's license—Application—Form—Timely filing—Proof of moral character, etc.
18.44.091 - License—Fees—Renewal.
18.44.101 - License—Retention and display by agent—Termination—Inactive licenses.
18.44.111 - Licenses—Form and size—Contents.
18.44.127 - Certificate of registration suspension—Noncompliance with support order—Reissuance.
18.44.131 - License application—Issuance.
18.44.141 - License—Duration—Posting.
18.44.151 - License—Expiration and renewal—Fee.
18.44.161 - License—Reinstatement.
18.44.171 - Engaging in business without license—Penalty.
18.44.181 - Proof of licensure prerequisite to action for fee.
18.44.191 - Director—Educational conferences—Examinations.
18.44.201 - Financial responsibility—Fidelity bond—Errors and omissions policy—Surety bond.
18.44.211 - Cancellation of fidelity bond or surety bond, or both—New bond required.
18.44.231 - Corporation for insuring where bond or policy not reasonably available.
18.44.241 - Waiver of errors and omissions policy requirement—Criteria.
18.44.261 - Waiver—Determination.
18.44.270 - Application of administrative procedure act.
18.44.271 - Waiver—Certificate of waiver.
18.44.291 - Waiver—Application by escrow license applicant.
18.44.301 - Prohibited practices.
18.44.305 - Financial interest in an escrow agent—Prohibited practices.
18.44.311 - Prohibited employment practices.
18.44.410 - Powers of director.
18.44.413 - Informal settlement of complaints or enforcement actions.
18.44.420 - Investigation of violations—Procedure—Powers of director.
18.44.425 - Subpoena authority—Application—Contents—Notice—Fees.
18.44.430 - Actions against license—Grounds.
18.44.440 - Violations—Cease and desist orders.
18.44.450 - Referral fees prohibited—Consumer protection act—Application.
18.44.455 - Possession of property and business—Grounds for director's authority.
18.44.457 - Possession of property and business—Scope of director's authority.
18.44.460 - License suspension—Nonpayment or default on educational loan or scholarship.
18.44.465 - Termination of license—Effect upon preexisting escrows—Notice to principals.
18.44.480 - Remedies—Affecting corporate franchise.
18.44.490 - Authority to prosecute—Grants of injunctive relief, temporary restraining orders.
18.44.500 - Committee to advise director—Members—Compensation and travel expenses.
18.44.510 - Compensation and travel expenses of committee members.