2006 Minnesota Statutes

82A.111 ESCROW REQUIREMENT.
    Subdivision 1. Generally. All funds received by a broker, membership camping operator,
or salesperson in connection with the offer or sale of a membership camping contract must be
deposited immediately upon receipt in an escrow account maintained by the broker or membership
camping operator for that purpose in a bank or an industrial loan and thrift company with deposit
liabilities designated by the broker or membership camping operator. The funds must remain in
the escrow account, for the benefit of the purchaser, until the expiration of the purchaser's right of
rescission as set forth in section 82A.11, subdivision 3. The depository bank must be a Minnesota
bank, trust company, or savings association, or a foreign bank which authorizes the commissioner
to examine its records of these deposits upon demand by the commissioner. The industrial loan
and thrift company must be organized under chapter 53.
    Subd. 2. Membership camping dues. A membership camping operator or the operator's
salesperson shall deposit all membership dues received in an escrow account in a Minnesota
bank, trust company, or savings association, a foreign bank which authorizes the commissioner to
examine its records of these deposits upon demand by the commissioner, or an industrial loan
and thrift company organized under chapter 53 with deposit liabilities. In any calendar year, total
dues to be deposited in the escrow may not exceed an amount approved by the commissioner
as reasonably needed for that calendar year's maintenance budget submitted by the operator.
The operator may draw funds from the escrow as needed provided that funds are expended for
purposes identified by the budget.
    Subd. 3. Commingling funds. A broker, membership camping operator, or salesperson
shall deposit only funds specified in subdivisions 1 and 2 in an escrow account and shall not
commingle personal funds or other funds in an escrow account; except that a broker, membership
camping operator, or salesperson may deposit and maintain a sum not to exceed $100 in an
escrow account from personal funds, which sum must be specifically identified and used to pay
service charges relating to the escrow account.
    Subd. 4. Trust account records. Each broker and membership camping operator shall
maintain and retain records of all escrowed funds and escrow accounts.
    Subd. 5. Notice of trust account status. The names of the banks and industrial loan and
thrift companies and the escrow account numbers used by a broker must be provided to the
commissioner at the time of application for the broker's license, and those used by the membership
camping operator must be provided to the commissioner at the time of application for registration
of the membership camping contract. Every broker or membership camping operator shall
immediately report to the commissioner any change of escrow account status including changes
in banks and industrial loan and thrift companies, account numbers, or additional accounts in the
same or other banks and industrial loan and thrift companies. A broker or membership camping
operator shall not close an existing escrow account without giving ten days' written notice to the
commissioner.
History: 1987 c 154 s 7; 1995 c 202 art 1 s 25