(a) A settlement agent may not disburse escrow money unless items that are at least equal in value to the proposed disbursements have been received by the settlement agent for the escrow transaction, have been deposited as required by AS 34.80.020 (b), and are available for withdrawal as a matter of right from the depository escrow account.
Terms Used In Alaska Statutes 34.80.040
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- state: means the State of Alaska unless applied to the different parts of the United States and in the latter case it includes the District of Columbia and the territories. See Alaska Statutes 01.10.060
(b) A settlement agent may not disburse escrow money on the same business day as the items are deposited under AS 34.80.020 (b) unless the deposit is made in cash, by interbank electronic transfer, or in a form that permits conversion of the deposit to cash on the same day the deposit is made.
(c) A settlement agent may not disburse escrow money on the business day after the business day on which the items are deposited under (a) of this section unless the deposit is made by
(1) a cashier’s check or a certified check and the cashier’s check or certified check is payable in the state and drawn on a financial institution located in the state;
(2) a cashier’s check, a negotiable order of withdrawal, a money order, or another item and the check, order of withdrawal, money order, or other item has been finally paid before the disbursement; or
(3) a depository check, including a cashier’s, certified, or teller’s check, that is governed by 12 U.S.C. 4001 § 4010 (Expedited Funds Availability Act).
(d) In (a) of this section, “available for withdrawal as a matter of right” means
(1) when the item has been submitted for collection and payment for the item has been received;
(2) when the financial institution where an item has been deposited considers the money represented by the item available for withdrawal; or
(3) unless written notification has been received from the financial institution where the item was deposited establishing a longer period for an item drawn on an out-of-state financial institution, after a reasonable time has passed for prohibiting customers from drawing on the item.