Bulletin: FL000072

Date:
June 30, 1998
To:
All Florida Offices and Agents
RE:
Interest on Trust Accounts

Dear Associates:

Effective July 1, 1998, Florida Statute 626.8473(3) has been amended to read as follows:

626.8473(3) Escrow; Trust Fund -
All funds received by a title insurance agent to be held in trust shall be immediately placed in a financial institution that is located within this state and is a member of the Federal Deposit Insurance Corporation. These funds shall be invested in an escrow account in accordance with the investment requirements and standards established for deposits and investments of state funds in Section 18.10 F.S. where the funds shall be kept until disbursement thereof is properly authorized.

F.S. 18.10 allows for a variety of different options available but at this time the only option which is acceptable to Stewart Title Guaranty Company is F.S. 18.10 (2) (a) Direct United States Treasury obligations. In escrow accounts the overriding concern must always be to protect the principal and not the generation of income. The use of a sweep account collateralized by direct United States Treasury obligations appears to be consistent with that requirement.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
FL000067 Interest Bearing Escrow Accounts Repurchase Agreements
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None