S.B. 77

1

INDEPENDENT ESCROW AGENTS
2 AMENDMENTS
3 2003 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Thomas V. Hatch
6 This act modifies the Financial Institution title to exempt qualified intermediaries, as
7 defined, from the chapter regulating independent escrow agencies and to make technical
8 corrections.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 7-22-101, as last amended by Chapter 182, Laws of Utah 1996
12 Be it enacted by the Legislature of the state of Utah:
13 Section 1. Section 7-22-101 is amended to read:
14 7-22-101. Definitions -- Exemptions.
15 (1) As used in this chapter:
16 (a) "Escrow" means any agreement, express or implied, that provides for one or more
17 parties to deliver or entrust any money, certificate of deposit, security, negotiable instrument,
18 deed, or other property or asset to another person to be held, paid, or delivered in accordance
19 with terms and conditions prescribed in the agreement.
20 (b) "Escrow agent" means any person that provides or offers to provide escrow services
21 to the public.
22 (2) This chapter does not apply to:
23 (a) a trust [companies] company authorized to engage in the trust business in Utah in
24 accordance with Title 7, Chapter 5, Trust Business;
25 (b) [persons other than] a person who:
26 (i) is not an escrow [agents] agent regulated under this chapter [that are exempted from
27 the definition of trust business]; and

28 (ii) holds funds, assets, or other property through means described in Subsection
29 7-5-1 (1)(c);
30 (c) a depository [institutions] institution that is:
31 (i) chartered by:
32 (A) a state; or
33 (B) the federal government [that are]; and
34 (ii) engaged in business as a depository institution in Utah; [and]
35 (d) the State Board of Regents[,];
36 (e) the Utah Higher Education Assistance Authority[, or];
37 (f) the State Treasurer[.]; or
38 (g) a person who is a qualified intermediary:
39 (i) for purposes of Section 1031, Internal Revenue Code; and
40 (ii) as defined in 26 CFR 1.1031(k)-1.




Legislative Review Note
as of 1-7-03 3:08 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel