Maine Revised Statutes Title 10 Sec. 1397 – Financial responsibility and insurance coverage requirements
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1. Financial responsibility. An exchange facilitator shall at all times comply with one or more of the following:
A. Maintain a fidelity bond or bonds in an amount not less than $250,000, executed by an insurer authorized to do business in this State; [PL 2009, c. 61, §1 (NEW).]
B. Deposit an amount of cash or securities or irrevocable letters of credit in an amount not less than $250,000 in an interest-bearing deposit account or a money market account with a financial institution. Interest on that amount must accrue to the exchange facilitator; or [PL 2009, c. 61, §1 (NEW).]
C. Deposit all exchange funds in a qualified escrow account or qualified trust, as those terms are defined under United States Treasury Regulation Section 1.1031(k)-1(g)(3), with a financial institution and provide that any withdrawals from that escrow account or trust require that person‘s and the client‘s written authorization. [PL 2009, c. 61, §1 (NEW).]
An exchange facilitator may maintain a bond or bonds or deposit an amount of cash or securities or irrevocable letters of credit in excess of the minimum required amounts. If an exchange facilitator is listed as a named insured on one or more fidelity bonds totaling at least $250,000, the requirements of this subsection are deemed satisfied.
[PL 2009, c. 61, §1 (NEW).]
Terms Used In Maine Revised Statutes Title 10 Sec. 1397
- Client: means the taxpayer with whom the exchange facilitator enters into an agreement described in subsection 4, paragraph A. See Maine Revised Statutes Title 10 Sec. 1395
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Exchange facilitator: means a person that does any of the following:
A. See Maine Revised Statutes Title 10 Sec. 1395Financial institution: means a bank, credit union, savings and loan association, savings bank or trust company or other similar depository or nondepository financial institution including an institution whose accounts are insured by the full faith and credit of the United States, the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund or other similar or successor programs as well as an affiliate or subsidiary of such institution. See Maine Revised Statutes Title 10 Sec. 1395 Person: means an individual, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust or any other form of legal entity, including agents and employees of a person. See Maine Revised Statutes Title 10 Sec. 1395 United States: includes territories and the District of Columbia. See Maine Revised Statutes Title 1 Sec. 72
2. Insurance or alternative coverage. An exchange facilitator shall at all times comply with either of the following:
A. Maintain an errors and omissions insurance policy in an amount not less than $100,000, executed by an insurer authorized to do business in this State; or [PL 2009, c. 61, §1 (NEW).]
B. Deposit an amount of cash, securities or irrevocable letters of credit in an amount not less than $100,000 in an interest-bearing deposit account or a money market account with a financial institution. Interest on that amount must accrue to the exchange facilitator. [PL 2009, c. 61, §1 (NEW).]
An exchange facilitator may maintain insurance or deposit an amount of cash or securities or irrevocable letters of credit in excess of the minimum required amounts. If an exchange facilitator is listed as a named insured on an errors and omissions policy of at least $100,000, the requirements of this section are deemed satisfied.
[PL 2009, c. 61, §1 (NEW).]
SECTION HISTORY
PL 2009, c. 61, §1 (NEW).