CHAPTER 14
THIRD PARTY ESCROW

SECTION:

53-14-1: Purpose

53-14-2: Escrow Defined

53-14-3: Proper Accounting

53-14-4: General Ledger

53-14-5: Regular Statements

53-14-6: Fees

53-14-7: Liquidation

53-14-8: Disciplinary Action

53-14-1: PURPOSE:

This chapter provides guidance surrounding the use of third party escrows in Salt Lake City. (2019 Compilation)

53-14-2: ESCROW DEFINED:

To maintain compliance with General Accepted Accounting Principles (GAAP), all third party escrows shall be set up only through or by Salt Lake City Corporation's Department of Finance as these funds are an asset owned by Salt Lake City Corporation. For purposes of this chapter, an escrow is:

   A.   An arrangement made under contractual provisions between transacting parties, whereby an independent third party receives and disburses money or documents for the transacting parties, with the timing of such disbursements by the third party dependent on the fulfillment of contractually agreed conditions by the transacting parties; or

   B.   A trust account held in the borrower's name to pay obligations, such as Property Taxes and insurance premiums. (2019 Compilation)

53-14-3: PROPER ACCOUNTING:

Escrow funds held by a third party are an asset that must be shown on the City's financial records. Proper accounting for these escrows requires advance notification and permission from a designated member of the Salt Lake City Finance Department. (2019 Compilation)