Indiana Code 24-5-8-12. Escrow accounts
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Sec. 12. A seller may not require a payment before the delivery of any goods that exceeds twenty percent (20%) of the initial payment unless the amount in excess of the twenty percent (20%) payment is placed in an escrow account which provides that the money can not be released until:
(2) the seller presents to the escrow agent a bill of lading that proves shipment of the goods as required by the contract.
(1) the investor notifies the escrow agent in writing of the receipt of the goods; or
Terms Used In Indiana Code 24-5-8-12
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Goods: means any merchandise, equipment, product, supply, or material. See Indiana Code 24-5-8-1
- in writing: include printing, lithographing, or other mode of representing words and letters. See Indiana Code 1-1-4-5
- Initial payment: means the total amount an investor is obligated to pay under the terms of the contract before or at the time of delivery of the goods or services to the investor or within six (6) months of the date that the investor commences operation of the business. See Indiana Code 24-5-8-1
- Investor: means a person who is solicited to become obligated or does become obligated on a contract. See Indiana Code 24-5-8-1
- Seller: means a person, or his agent, who sells or leases or offers to sell or lease a business opportunity. See Indiana Code 24-5-8-1
Notification of receipt by the investor to the escrow agent may not be unreasonably withheld.
As added by P.L.134-1984, SEC.1.