- October 16, 1996
- All New York State Counsel, Underwriters, Managers & Agents
- Escrow Deposit Review - Compliance with Sec. 1317 of the New York Abandoned Property Law
Pursuant to Section 1317 of the Abandoned Property Law, a copy of which is obtainable through our New York City office, 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 date of deposit) as of December 31 of any year, must be turned over to the State Comptroller as abandoned property unless there has been written communication from the depositor or other person claiming the deposit within the 3 year period.
This is a reminder that if your office has not already done so, a review should be conducted to identify those escrows that will become 3 years old as of December 31, 1996. If you have escrows that fall into this category, letters should be sent to those depositors advising that the escrowed funds will be turned over to the State Comptroller unless a claim in writing is made for these funds, prior to November 30, 1996, either requesting their return or that they continue to be held by the escrow agent.
Should you have any questions regarding the questions of escrows or the Abandoned Property Law, please contact Company Counsel.
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.