California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 9 - Escrow Agents › Article 3 - Bonds › Section 1718 - Cash in Lieu of Surety Bond

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  Section
				  17202.1 of
				  the Financial Code allows licensed escrow agents, or applicants for an escrow
				  agent's license, to deposit with the Commissioner cash, investment certificates
				  of industrial loan companies, certificates of deposit, bank accounts or savings
				  and loan share accounts in lieu of the surety bond required by section
				  17202 of
				  the Financial Code.
The procedures for establishing a deposit are as
					 follows:
(1) The escrow agent or
				  applicant shall make an assignment of the deposit, certificate or account to
				  the Commissioner. The assignment shall be made using the following form
				  containing the information therein specified:
BEFORE THE DEPARTMENT OF BUSINESS OVERSIGHT OF THE
					 STATE OF CALIFORNIA
ASSIGNMENT TO COMMISSIONER OF BUSINESS OVERSIGHT
					 PURSUANT TO FINANCIAL CODE SECTION
					 17202.1
PART I. ASSIGNMENT
(Name), herein after called Assignor, whose place of
					 business is
______________________________
, does hereby assign and set over to the Commissioner of
					 Business Oversight of the State of California or his or her duly appointed
					 conservator or receiver all right, title and interest of whatever nature of
					 Assignor in and to the investment certificate/certificate of deposit/bank
					 account/savings and loan share account of the Assignor in
(Name of industrial loan company, bank or savings and loan
					 association)
(Street) (City), California, in the amount of
					 $____________________, identified as certificate/account no.
					 ______________________________. Assignor agrees that this assignment carries
					 with it the right in the insurance of the assigned accounts by the Federal
					 Deposit Insurance Corporation or the Federal Savings and Loan Insurance
					 Corporation (or its successor) and includes and gives the right to the
					 Commissioner of Business Oversight or his or her duly appointed conservator or
					 receiver to redeem, collect and withdraw the full amount of such deposit,
					 certificate or account at any time without notice to the Assignor. This
					 assignment is given as security for any liability of the Assignor under the
					 provisions of the Escrow Law and in accordance with sections
					 17202 and
					 17202.1 of
					 the California Financial Code.
This assignment includes interest and penalties payable on
					 any such liability. Assignor hereby notifies the above-named industrial loan
					 company, bank or savings and loan association of this assignment.
(A copy of the resolution of Assignor's Board of Directors,
					 certified by the Secretary of the Assignor, must be attached to each copy of
					 this Assignment.)
Dated this __________ day of ____________________,
					 20_____.
________________________________________(Assignor)
________________________________________Signature of
					 Authorized Officer
PART II.
				  RECEIPT FOR NOTICE OF ASSIGNMENT
Receipt is hereby acknowledged of the written notice of the
					 assignment to the Commissioner of Business Oversight, State of California, of
					 the investment certificates, certificates of deposit, bank accounts or savings
					 and loan share accounts identified in Part I hereof. We confirm that such
					 account/certificate is outstanding and we have noted in our records the
					 interest of the Commissioner and his or her duly appointed conservator or
					 receiver therein as shown in said Assignment, and have retained a copy of said
					 Assignment and of this receipt. We certify that said accounts are fully insured
					 by the Federal Deposit Insurance Corporation or the Federal Savings and Loan
					 Insurance Corporation (or its successor) and that we have received no notice of
					 any lien, encumbrance, hold, claim or obligation concerning said certificates
					 or accounts prior to the assignment thereof to the Commissioner of Business
					 Oversight. We further state that no lien or right of offset is or at any
					 subsequent time will be claimed by this industrial loan company, bank or
					 savings and loan association against said certificates or accounts for any
					 obligation due or to become due to this industrial loan company bank or savings
					 and loan association from the Assignor or any of its officers, directors,
					 shareholders or employees. We agree to make payment to the Commissioner of
					 Business Oversight upon request in accordance with the laws applicable to this
					 industrial loan company, bank or savings and loan association.
Dated this __________ day of ____________________,
					 20_____.
________________________________________(Name of industrial
					 loan company, bank or savings and loan association)
________________________________________(Street)
					 (City)
By ___________________________________(Name and Title of
					 Officer)
PART III. RECEIPT
				  FOR DEPOSIT OF INVESTMENT CERTIFICATES, CERTIFICATES OF DEPOSIT, BANK ACCOUNTS
				  OR SAVINGS AND LOAN SHARE ACCOUNTS AND DIRECTIONS TO PAY EARNINGS.
Receipt is acknowledged of the above Assignment and the
					 investment certificates, certificates of deposit, bank accounts or savings and
					 loan share accounts identified therein. The industrial loan company, bank or
					 savings and loan association named in the above Assignment is hereby authorized
					 and directed to pay any earnings which exceed the amount of any penalties which
					 may be assessed on said certificates or accounts to the above-named Assignor
					 until otherwise notified in writing by the Commissioner of Business Oversight
					 of the State of California.
Dated __________ this day of ____________________,
					 20_____.
________________________________________(Commissioner of
					 Business Oversight)
By
					 ___________________________________