Bill Text: CA SB1223 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Escrow agents.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2010-09-30 - In Senate. To unfinished business. (Veto) [SB1223 Detail]

Download: California-2009-SB1223-Amended.html

---

BILL NUMBER: SB 1223	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 8, 2010
	AMENDED IN SENATE  MARCH 22, 2010

INTRODUCED BY   Senator Calderon

                        FEBRUARY 18, 2010

   An act to add Section 17412 to the Financial Code, relating to
escrow agents.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1223, as amended, Calderon. Escrow agents: auctions  :
foreclosures  .
   Existing law, the Escrow Law, provides for the licensure and
regulation by the Commissioner of Corporations of persons engaged in
business as escrow agents, unless specifically exempted  from
licensure. Under the Escrow Law, a "licensee" is defined as any
person holding a valid, unrevoked license as an escrow agent, and an
"escrow agent" is defined as any person engaged in the business of
receiving escrows for deposit or delivery  . A willful violation
of the Escrow Law constitutes a crime.
   This bill would require  an   a licensed
 escrow agent  and any   person acting as an escrow
agent who is exempt from licensure under the Escrow Law  to
return or cause to be returned all deposits and fees received from a
bidder in connection with an auction sale of real property that has
been the subject of a foreclosure sale, upon receipt of escrow
instructions from the auctioneer or auction company directing the
return of all funds placed on deposit by the bidder with that agent
 or person  , except as specified. Because a willful
violation of that provision would constitute a crime, the bill would
impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17412 is added to the Financial Code, to read:
   17412.  (a) An escrow agent shall return or cause to be returned
all deposits and fees received from a bidder in connection with an
auction sale of real property that has been the subject of a
foreclosure sale, upon receipt of escrow instructions from the
auctioneer or auction company directing the return of all funds
placed on deposit by the bidder with that agent. An escrow agent may
recognize an auctioneer or auction company as the agent of the
property seller for this purpose. 
   (b) This section shall apply to persons required to be licensed
under this division and to those persons exempt from licensure under
this division pursuant to Section 17006.  
   (b) 
    (c)  This section shall not apply to any of the
following:
   (1) A sale of real property pursuant to a nonjudicial foreclosure
governed by Article 1 (commencing with Section 2920) of Chapter 2 of
Title 14 of Part 4 of Division 3 of the Civil Code.
   (2) A sale of real property pursuant to a judicial foreclosure
governed by Article 6 (commencing with Section 701.510) of Chapter 3
of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure.
   (3) A sale conducted pursuant to Section 9604 of the Commercial
Code, if an obligation secured by a security interest in personal
property or fixtures is also secured by an interest or an estate in
real property.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.