Or. Admin. Code § 863-050-0100

Current through Register Vol. 63, No. 12, December 1, 2024

Section 863-050-0100 - Records

(1) An escrow agent must keep at least the following records:

(a) Copies of all receipt records, including voided receipts;

(b) All cancelled checks or bank-supplied images provided pursuant to ORS 696.243, which must be filed with all numbered check forms accounted for, including voided checks;

(c) All vouchers and check stubs, including voided vouchers and check stubs;

(d) Copies of all transfer forms used in making transfers of funds between escrow accounts;

(e) An escrow log, with entries entered in logical sequence based on the escrow number assigned, containing an entry for each escrow that includes the escrow number, the date of opening, and the names of the principals;

(f) Copies of the escrow closing statements required by OAR 863-050-0025;

(g) The books and other records required by OAR 863-050-0050; and

(h) Any other required records, as that term is defined in OAR 863-050-0000.

(2) An escrow agent may use electronic image storage media to retain and store copies of deposit receipts, canceled checks, and other documents executed or obtained by the agent in connection with any escrow activity and transaction, provided the agent satisfies the following requirements:

(a) The electronic image storage must be non-erasable "write once, read many" ("WORM") that does not allow changes to the stored document or record;

(b) The stored document or record was made or preserved as part of and in the regular course of business;

(c) The original record from which the stored document or record was copied was made or prepared by the escrow agent or escrow agent employees at or near the time of the act, condition, or event reflected in the record;

(d) The custodian of the record is able to identify the stored document or record, the mode of its preparation, and the mode of storing it on the electronic image storage; and

(e) The electronic image storage media contains a reliable indexing system that provides ready access to a desired document or record, appropriate quality control of the storage process to ensure the quality of imaged documents or records, and date-ordered arrangement of stored documents or records to assure a consistent and logical flow of paperwork to preclude unnecessary search time.

(3) For any lost or missing checks, an escrow agent must maintain a signed, dated statement explaining why the check is missing.

(4) Except as provided in this rule, an escrow agent may not receive trust funds without issuing a receipt and my not disburse trust funds without issuing a check. An escrow agent must issue an appropriate receipt as soon as practicable after receiving cash in a collection escrow or receiving cash or checks in a closing escrow.

(5) An escrow agent must send an annual written statement to a principal in a collection escrow to show all receipts and disbursements in the collection escrow during the year covered in the report.

(6) For wire and electronic transfers, the following requirements apply:

(a) An escrow agent may not disburse funds from an individual escrow account based upon a wire or electronic transfer deposited into the escrow trust account until the escrow agent has verified the deposit;

(b) An escrow agent must arrange with the escrow depository and other entities for an immediate follow-up hard copy credit memo or a hard copy debit memo when funds are received or disbursed by wire or electronic transfer;

(c) An escrow agent must post the receipt of funds by wire or electronic in the same manner as other receipts and include a traceable identifying name or number supplied by the escrow depository receiving the funds or by the transferring entity; and

(d) The escrow agent disbursing funds by wire or electronic transfer must retain in the individual escrow transaction file a copy of the written authorization from the principals to use wire or electronic transfer for disbursement or funds.

(7) Check forms used by an escrow agent must be pre-numbered with consecutive numbers. If a computer fills in or generates checks and any check copies, all check stock and check copies must be consecutively pre-numbered. If a computer generates checks using unnumbered check stock, the computer must continually and consecutively number the checks as generated. The account number must appear in the magnetic coding on the bank check face to identify the account number for reading by the bank's computerized accounting system.

(8) An escrow agent must produce the records required under this rule for inspection by the Agency as follows:

(a) When the Agency makes a request for production of escrow records, the escrow agent must provide such records within no less than five banking days; and

(b) If the Agency informs an escrow agent that the Agency has reasonable grounds to believe that escrow funds may be missing or misappropriated or that the escrow agent has engaged in fraudulent activity, the escrow agent must produce any records demanded or requested by the Agency immediately.

Or. Admin. Code § 863-050-0100

REC 29, f. 12-9-70, ef. 1-10-71; REC 5-1978, f. 11-15-78, ef. 1-1-79; REC 6-1984, f. 6-18-84, ef. 7-1-84; REA 2-1990, f. 4-18-90, cert. ef. 7-1-90; REA 5-1992, f. 8-4-92, cert. ef. 9-1-92; REA 2-1997, f. 6-18-97, cert. ef. 7-1-97; REA 5-2003, f. 12-24-03, cert. ef. 1-1-04; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09

Stat. Auth.: ORS 696.385 & 696.541

Stats. Implemented: ORS 696.243, 696.534, 696.578 & 696.581