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 Real Estate 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. Statutory/Other Authority: ORS 696.385 & 696.541 Statutes/Other Implemented: ORS 696.578 & 696.534 History: REA 28-2018, minor correction filed 01/05/2018, effective 01/05/2018 REA 10-2008, f. 12-15-08, cert. ef. 1-1-09 REA 5-2003, f. 12-24-03, cert. ef. 1-1-04 REA 3-1989, f. 12-13-89, cert. ef. 2-1-90 REC 6-1984, f. 6-18-84, ef. 7-1-84 REC 2-1981, f. 10-30-81, ef. 11-1-81 REC 5-1978, f. 11-15-78, ef. 1-1-79 REC 29, f. 12-9-70, ef. 1-10-71