Sec. 36a-832. Fidelity bond. Deposit of exchange funds.
183 words·~1 min read·
/ct/title-36a/chapter-669-regulated-activities/36a-832·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
An exchange facilitator at all times shall:
(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 CFR 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 CFR 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.