Arizona Laws 6-841. Internal control structure; definition
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A. An escrow agent shall adopt a systematic internal control structure to ensure that persons employed by or associated with the escrow agent’s business do not make significant errors or perpetuate significant irregularities or fraud without timely detection.
Terms Used In Arizona Laws 6-841
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Control: means ownership or the power to vote, either directly or indirectly, more than twenty per cent of the outstanding voting shares of the controlled person. See Arizona Laws 6-801
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Escrow: means any transaction in which any escrow property is delivered with or without transfer of legal or equitable title, or both, and irrespective of whether a debtor-creditor relationship is created, to a person not otherwise having any right, title or interest therein in connection with the sale, transfer, encumbrance or lease of real or personal property, to be delivered or redelivered by that person upon the contingent happening or nonhappening of a specified event or performance or nonperformance of a prescribed act, when it is then to be delivered by such person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee or bailor, or any designated agent or employee of any of them. See Arizona Laws 6-801
- Escrow agent: means any person engaged in the business of accepting escrows. See Arizona Laws 6-801
- Fraud: Intentional deception resulting in injury to another.
B. For purposes of this section, "internal control structure" means the policies and procedures established to provide reasonable assurance that the escrow agent will achieve the following objectives:
1. Safeguarding of the customers’ assets.
2. Reliability in financial reporting.
3. Reliability in recording of all escrow transactions.