BILL REQ. #:  S-0584.1 

Read first time 01/14/2005.   Referred to Committee on Transportation.

     AN ACT Relating to vessel dealer trust accounts; and amending RCW 88.02.220.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 88.02.220 and 1991 c 339 s 33 are each amended to read as follows:
     A vessel dealer who receives cash or a negotiable instrument of deposit in excess of one thousand dollars, or a deposit of any amount that will be held for more than fourteen calendar days, shall place the funds in a separate trust account.
     (1) The cash or negotiable instrument must be set aside immediately upon receipt for the trust account, or endorsed to such a trust account immediately upon receipt.
     (2) The cash or negotiable instrument must be deposited in the trust account ((by the close of banking hours on the day following the receipt)) within forty-eight hours of acceptance of offer by seller and buyer. The offer must be made to the seller within forty-eight hours of receipt of the funds, or the cash or negotiable instrument must be either returned to the buyer or deposited into the trust account.
     (3) After delivery of the purchaser's vessel the vessel dealer shall remove the deposited funds from the trust account.
     (4) The dealer shall ((not commingle the purchaser's funds with any other funds at any time)) place the purchaser's funds in a separate noninterest bearing trust account.
     (5) The funds shall remain in the trust account until the delivery of the purchased vessel. However, upon written agreement from the purchaser, the vessel dealer may remove and release trust funds before delivery.