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Bulletin: NY000042

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Bulletin: NY000042

v 2
Date: March 24, 1994
To: All New York State Counsel, Underwriters, Managers and Agents
RE: The Impact of Sec. 1317 of the New York Abandoned Property Law on Escrow Deposits

Dear Associates:

Pursuant to a new section 1317 of the Abandoned Property Law (Chapter 57 of the Laws of 1993), escrow deposits collected by title companies, their agents or representatives as an inducement to issue a title policy, which become 3 or more years old (measured from the date of de...

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.

EXHIBIT A

October 1, 19**

Re: Escrow Deposit Agreement dated: Title No.: Premises:

Dear :

Under the terms of our Escrow Deposit Agreement dated ____________________, a copy of which is attached, the Depositor agreed to produce satisfactory proof of payment by a performance date of __________________.

We request that you contact this office and immediately advise as to your progress in disposing of the items mentioned in the Escrow Agreement.

Please be aware that in accordance with the New York Abandoned Property Law any unclaimed security deposit held by a title insurer, title agent or representative, which becomes 3 or more years old measured from the date of deposit, is deemed abandoned and must be turned over to the Comptroller of the State of New York.

If you are claiming the escrow funds and do not want them deemed abandoned and turned over to the State Comptroller, please sign a copy of this letter in the space provided below and return it to the undersigned by November 1, 19____.

If this office does not hear from you, we will dispose of the funds either in accordance with the terms of the escrow agreement or turn them over to the State Comptroller as abandoned property.

Thank you for your courtesy and cooperation.

Very truly yours,

______________________________ Depositor

EXHIBIT B

October 1, 19**

Re: Escrow Deposit Agreement dated: Title No.: Premises:

Dear :

Under the terms of an Escrow Deposit Agreement dated ____________________, a copy of which is attached, the Depositor agreed to produce satisfactory proof of payment or satisfaction of the items referred to in the agreement by a performance date of ____________________. One or all of the items to be paid or disposed of under the agreement was a judgment, lien or other obligation owed to the City of New York or its agencies. (City Liens)

We request that you contact this office and immediately advise as to your progress in disposing of the items mentioned in the Escrow Agreement.

Please be aware that in accordance with the New York Abandoned Property Law, any unclaimed security deposit held by a title insurer, title agent or representative, which becomes 3 or more years old measured from the date of deposit, is deemed abandoned and must be turned over to the Comptroller of the State of New York.

If you are claiming the escrow funds and do not want them deemed abandoned and turned over to the State Comptroller, please sign a copy of this letter in the space provided below and return it to the undersigned by November 1, 19____.

If this office does not hear from you, we will dispose of the funds either in accordance with the terms of the escrow agreement, pursuant to agreement reached with the City of New York with respect to City Liens or turn them over to the State Comptroller as abandoned property.

Thanks for your courtesy and cooperation.

Very truly yours,

_______________________________ Depositor