Escrow agents.

The Escrow Law requires the licensing of escrow agents by the Commissioner of Business Oversight, and further requires licensees to participate as members of the Escrow Agents' Fidelity Corporation, a nonprofit corporation established to pay members for loss of trust fund obligations, as specified. The law requires a licensed escrow agent to maintain a bond based on the previous year's average annual trust fund obligations, as specified. This bill would make findings and declarations regarding the role of Fidelity Corporation to support and enhance trust in licensed escrow agents, and specify that Fidelity Corporation is required to indemnify a member escrow agent against loss in accordance with the Escrow Law. The bill would state the intent of the Legislature for the commissioner to utilize the services of private 3rd parties, with prior escrow or escrow conservation, liquidation, or receivership experience, who are independent of the department to perform conservation, liquidation, and receiver functions, and would require the full amount of any penalty revenue, up to $125,000 at any one time, as specified, to be available for use by the commissioner to compensate an appointed conservator, liquidator, or receiver. The bill would also authorize the commissioner to utilize all or a portion of the bond or other required obligations, and all or a portion of a licensee's assets remaining following conservation, liquidation, or receivership to compensate an appointed conservator, liquidator, or receiver. By making this penalty revenue and other revenue available to the commissioner in this regard, this bill would make an appropriation.