BILL REQ. #:  H-1560.1 

     AN ACT Relating to modifying the definition of escrow to include collection of payments and the performance of related services; and reenacting and amending RCW 18.44.011.

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

Sec. 1   RCW 18.44.011 and 2010 c 34 s 1 are each reenacted and amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Controlling person" is any person who owns or controls ten percent or more of the beneficial ownership of any escrow agent, regardless of the form of business organization employed and regardless of whether such interest stands in such person's true name or in the name of a nominee.
     (2) "Department" means the department of financial institutions.
     (3) "Designated escrow officer" means any licensed escrow officer designated by a licensed escrow agent and approved by the director as the licensed escrow officer responsible for supervising that agent's handling of escrow transactions, management of the agent's trust account, and supervision of all other licensed escrow officers employed by the agent.
     (4) "Director" means the director of financial institutions, or his or her duly authorized representative.
     (5) "Director of licensing" means the director of the department of licensing, or his or her duly authorized representative.
     (6) "Escrow" means any transaction, except the acts of a qualified intermediary in facilitating an exchange under section 1031 of the internal revenue code, wherein any person or persons, for the purpose of effecting and closing the sale, purchase, exchange, transfer, encumbrance, or lease of real or personal property to another person or persons, delivers any written instrument, money, evidence of title to real or personal property, or other thing of value to a third person to be held by such third person until the happening of a specified event or the performance of a prescribed condition or conditions, when it is then to be delivered by such third person, in compliance with instructions under which he or she is to act, to a grantee, grantor, promisee, promisor, obligee, obligor, lessee, lessor, bailee, bailor, or any agent or employee thereof. For purposes of this definition, "escrow" includes the collection of payments and the performance of related services by a third party in connection with a loan secured by a lien on real or personal property but excludes vessel transfers.
     (7) "Escrow agent" means any person engaged in the business of performing for compensation the duties of the third person referred to in subsection (6) of this section.
     (8) "Escrow commission" means the escrow commission of the state of Washington created by RCW 18.44.500.
     (9) "Licensed escrow agent" means any sole proprietorship, firm, association, partnership, or corporation holding a license as an escrow agent under the provisions of this chapter.
     (10) "Licensed escrow officer" means any natural person handling escrow transactions and licensed as such by the director.
     (11) "Person" means a natural person, firm, association, partnership, corporation, limited liability company, or the plural thereof, whether resident, nonresident, citizen, or not.
     (12) "Split escrow" means a transaction in which two or more escrow agents act to effect and close an escrow transaction.