Connecticut General Statutes 36a-832 – Fidelity bond. Deposit of exchange funds
An exchange facilitator at all times shall:
Terms Used In Connecticut General Statutes 36a-832
- Client: means a beneficiary of a trust for whom the Connecticut bank acts as trustee, a person for whom the Connecticut bank acts as agent, custodian or bailee, or other person to whom a Connecticut bank owes a duty or obligation under a trust or other account administered by such Connecticut bank, regardless of whether such Connecticut bank owes a fiduciary duty to the person. See Connecticut General Statutes 36a-2
- Deposit: means funds deposited with a depository. See Connecticut General Statutes 36a-2
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Financial institution: means any Connecticut bank, Connecticut credit union, or other person whose activities in this state are subject to the supervision of the commissioner, but does not include a person whose activities are subject to the supervision of the commissioner solely pursuant to chapter 672a, 672b or 672c or any combination thereof. See Connecticut General Statutes 36a-2
- State: means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the trust territory of the Pacific Islands, the Virgin Islands and the Northern Mariana Islands. See Connecticut General Statutes 36a-2
(1) Maintain a fidelity bond in an amount of not less than one million dollars executed by an insurer authorized to do business in this state;
(2) Deposit all exchange funds in a separately identified account, as defined in 26 C.F.R. § 1.468B-6(c)(2)(ii)(A), and provide that any withdrawals from such separately identified account require the written authorizations of both the client and the exchange facilitator. Deliver authorization for withdrawals by any commercially reasonable means, including (A) the client’s delivery to the exchange facilitator of the client’s authorization to disburse exchange funds and the exchange facilitator’s delivery to the depository institution of the exchange facilitator’s sole authorization to disburse exchange funds, or (B) delivery to the depository institution of both the client’s and the exchange facilitator’s authorizations to disburse exchange funds; or
(3) Deposit all exchange funds in a qualified escrow or qualified trust, as such terms are defined in 26 C.F.R. § 1.1031(k)-1(g)(3), with a financial institution and provide that any withdrawals from such qualified escrow or qualified trust require the taxpayer’s and the exchange facilitator’s written authorization.