Indiana Code 25-34.1-4-5. Trust accounts
(1) shall keep in one (1) or more trust accounts (interest or noninterest bearing) all funds belonging to others that come into the possession of the broker company or of any broker whose license the broker company is holding; and
Terms Used In Indiana Code 25-34.1-4-5
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Broker: means a person who:
Indiana Code 25-34.1-1-2
- Broker company: means a licensee that is a business engaged in the activities described in Indiana Code 25-34.1-1-2
- Commission: means the Indiana real estate commission. See Indiana Code 25-34.1-1-2
- License: means a broker license issued under this article and which is not expired, suspended, or revoked. See Indiana Code 25-34.1-1-2
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
- Trustee: A person or institution holding and administering property in trust.
The trust accounts shall contain all earnest money deposits, funds held for closing escrows, sale proceeds not yet disbursed, and all other funds belonging to others.
(b) The broker company shall not use any trust account for the deposit of any personal funds or other business funds and shall keep a detailed record of the funds and any interest accrued in each trust account that identifies the amount of funds held for each beneficiary. Any interest earned shall be held for the beneficiary.
(c) Upon:
(1) the death of the sole proprietor, in the case of a sole proprietorship broker company;
(2) the termination of a broker company; or
(3) the expiration, revocation, or suspension of a broker company’s license;
the commission shall take custody of each trust account of the broker company and may appoint a successor trustee to protect and distribute the proceeds of that account.
As added by Acts 1979, P.L.248, SEC.1. Amended by P.L.255-1987, SEC.5; P.L.114-2010, SEC.22; P.L.127-2012, SEC.24; P.L.116-2015, SEC.10.