N.M. Admin. Code § 12.25.2.7

Current through Register Vol. 35, No. 21, November 5, 2024

Section 12.25.2.7 - DEFINITIONS

A. "Act" means the Escrow Company Act, Sections 58-22-1 NMSA 1978 et seq., as amended.

B. "Banking day" means a day a financial institution is open for the normal conduct of its business, but does not include Saturday, Sunday or any legal holiday.

C. "Director" means the director of the financial institutions division.

D. "Division" means the financial institutions division of the regulation and licensing department, state of New Mexico.

E. "Escrow" means any transaction wherein any written instrument, money, evidence of title to real or personal property or other thing of value is delivered to a person not otherwise having any right, title or interest therein for the purpose of effecting the sale, transfer, encumbrance or lease of real or personal property, to be held by that person as a neutral third-party until the happening of a specified event or the performance of a prescribed condition when it is then to be delivered by such person to a grantee, grantor, promise, promisor, oblige, obligor, bailee, bailor or any agent or employee of any of them pursuant to the written instructions of the principals to the transaction; escrow also includes accepting payments on loans for remission to a third party, otherwise known as "servicing".

F. "Escrow agent" means any person, other than escrow closing agent as defined in Subsection F of 12.25.2.7 NMAC, who engages in the business of receiving escrows for deposit or delivery and who receives or is promised any fee, commission, salary or other valuable consideration, whether contingent or otherwise, for or in anticipation of performance.

G. "Escrow closing agent" means an escrow company which, in the normal course of business, acts as the agent of a buyer and seller of real estate for the purpose of consummating a sale, including, but not limited to, the performance of the following described functions:

(1) preparation of deeds, mortgages, promissory notes, deeds of trust, real estate contracts, assignments or other documents incidental to the sale as permitted by law;

(2) calculations and disbursements of prorated taxes, insurance premiums, utility bills and other charges incidental to the sale;

(3) preparation of buyers' and seller' closing statements;

(4) supervision of signing of documents;

(5) collection and disbursement of a down payment, realtors' commissions, fees and other charges pursuant to a sales agreement; and

(6) recordation of documents.

H."Escrow company" means any person, other than an escrow closing agent as defined in Subsection F of 12.25.2.7 NMAC, engaged in the business of receiving escrows for deposit or delivery for compensation who is required to be licensed under the Escrow Company Act.

I."Generally accepted accounting principles" means professional standards of accounting practice as promulgated from time to time by the American institute of certified public accountants.

J."Ledger" means a chronological record of dated debits and credits maintained either in a bookkeeping ledger book or in a readily retrievable electronic format.

K."Licensee" means a person holding a valid license as an escrow company or escrow agent.

L."Person" means an individual, cooperative, association, company, firm, partnership, corporation or other legal entity.

M."Principal(s)" means all the actual parties or legal entities to the escrow closing transaction, and the term principal(s) shall be deemed to include a duly appointed agent or attorney-in-fact.

N.M. Admin. Code § 12.25.2.7

6/11/87; 9/30/97; Recompiled 10/15/01 ; Adopted by New Mexico Register, Volume XXVI, Issue 16, August 28, 2015, eff. 10/1/2015