§ 2830.1. Interest Bearing Trust Account.

A real estate broker, when acting as agent for a financial institution as beneficiary of a loan, may deposit and maintain funds from or for the account of an obligor for the future payment of property taxes, assessments or insurance relating to real property containing only a one-to-four family residence, in an interest-bearing trust account in a bank or savings and loan association in order to pay interest to the obligor in accordance with Section 2954.8 of the Civil Code if the following requirements are met:

(a) The account is in the name of the broker as trustee.

(b) All of the funds in the account are covered by insurance provided by an agency of the federal government.

(c) All of the funds in the account are funds held in trust by the broker for others.

(d) The broker discloses to the obligor how interest will be calculated and paid.

(e) No interest earned on the funds shall inure directly or indirectly to the benefit of the broker nor to any person licensed to the broker.

HISTORY

1. New section filed 1-17-80; effective thirtieth day thereafter (Register 80, No. 3).

2. Amendment filed 7-9-80; effective thirtieth day thereafter (Register 80, No. 28).

3. Repealer and new section filed 1-9-85; effective thirtieth day thereafter (Register 85, No. 2).

Note

Note: Authority cited: Section 10081, Business and Professions Code. Reference: Section 10145, Business and Professions Code; and Section 2954.8, Civil Code.