HB 2345
Initials PB Page 1 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
HB 2345: loan agreements; escrow
Sponsor: Representative Hendrix, LD 14
Committee on Commerce
Overview
Specifies escrow monies may only be used to make payments pursuant to the loan agreement
unless outlined exceptions apply.
History
An escrow agent is a person engaged in the business of accepting escrows which is any
transaction in which escrow property is delivered to a person not otherwise having any right
or title in connection with the sale or transfer of real or personal property to be delivered by
that person upon the contingent happening of a specified event or performance (A.R.S. § 6-
801).
An escrow agent is required to deposit and maintain all monies deposited in escrow to be
delivered on the close of the escrow or on any other contingency in a bank and keep all escrow
monies separate from monies belonging to the agent (A.R.S. § 6-834).
Provisions
1. Specifies escrow agents may use monies in an escrow account only to make a onetime
payment or multiple payments according to the loan agreement unless:
a) the loan agreement specifically states that the monies may be used for another
purpose and that purpose is expressly stated in the loan agreement;
b) a deed in lieu of foreclosure agreement specifically states the monies may be used for
another purpose and that purpose is stated in the deed in lieu of foreclosure
agreement;
c) an agreement is entered into by the parties to negotiate a settlement of the loan and
that agreement includes a provision for the use of the monies; or
d) an agreement is entered into by the parties that provides for a portion of the escrow
account to be used to bring an account that is in arrears to a current status. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note