Assigned to FIN FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR H.B. 2345
loan agreements; escrow
Purpose
Prescribes exceptions to an escrow agent's authorization to only use monies in an escrow
account to make a onetime payment or multiple payments pursuant to a loan agreement.
Background
Statute requires escrow agents, unless otherwise instructed in writing by parties to the
escrow, to maintain and deposit all monies in escrow, on the close of the escrow or on any other
contingency, in a bank, savings bank or savings and loan association doing business in Arizona.
The escrow agent must keep all escrow monies separate, distinct and apart from monies belonging
to the escrow agent and the monies must be appropriately designated to indicate that the monies
are not the monies of the escrow agent. An escrow agent may only disburse money out of an
escrow account if the deposits that are previously made in the escrow account are at least equal to
the disbursements and the deposits are directly related to the transaction for which the money is
being disbursed (A.R.S. §§ 6-834 and 6-843).
An escrow agent is any person engaged in the business of escrow which refers to any
transaction in which escrow property is delivered to a person not otherwise having any right, title
or interest in connection with the sale, transfer, encumbrance or lease of real or personal property,
upon the occurrence of a contingency. Escrow property may be delivered with or without legal or
equitable title and irrespective of whether a debtor-creditor relationship is created. Escrow property
may be delivered or redelivered by a person receiving escrow property, depending on if a
contingency occurs or a prescribed act is performed.
Escrow property is property, money, a written instrument or evidence of title or possession
to real or personal property or any other thing of value (A.R.S. § 6-801).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Allows an escrow agent to use monies in an escrow account only to make a onetime payment
or multiple payments as stipulated in a loan agreement unless:
a) the loan agreement consists of another expressly stated purpose for which the monies may
be used;
b) a deed in lieu of foreclosure agreement specifically states another purpose for which the
monies may be used;
c) an agreement is entered into by the parties to negotiate a settlement of the loan and includes
a provision for the use of 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. FACT SHEET
H.B. 2345
Page 2
2. Becomes effective on the general effective date.
House Action
COM 2/4/25 DP 10-0-0-0
3
rd
Read 2/13/25 53-0-7
Prepared by Senate Research
March 6, 2025
MG/AL/ci