Section R592-17-4 - Account Requirements(1) A title insurance company, an agency title insurance producer, and an individual title insurance producer shall retain adequate records of each deposit in a trust account or a sweep account to establish individual account balances for each person whose funds are held in trust. (2) Funds subject to this rule must be deposited in:(a) a deposit account insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund or any successor federal deposit insurance; or(b) a sweep account that meets the following qualifications:(i) funds are initially deposited into a federally insured demand deposit account;(ii) the depository institution purchases: (A) U.S. Government securities held in a segregated account, subject to a repurchase agreement between the depositor and the depository institution; or(B) shares in a money market mutual fund that only holds obligations of the U.S. Treasury or agencies of the U.S. Government; and(iii) the depository institution can repurchase the securities or sell or redeem the shares or interest, at any time, at par and deposit the funds in the demand deposit account to maintain a minimum balance and pay withdrawals.(3) A depositor may only deposit funds into a sweep account if it agrees to reimburse a trust beneficiary for any decline in value below par of the funds deposited, regardless of the cause of the decline in value.(4) A depositor who uses an account described in Subsection R592-17-4(2)(b) must: (a) receive written authorization from each trust beneficiary stating that the depositor may receive any earnings that are realized from the trust fund deposit; and(b) provide full written disclosure to each trust beneficiary explaining the characteristics of a sweep account deposit as described in Subsection R592-17-4(2)(b).Utah Admin. Code R592-17-4
Adopted by Utah State Bulletin Number 2016-8, effective 3/16/2016Amended by Utah State Bulletin Number 2022-01, effective 12/23/2021