A list of the approved “secured and verifiable documents” for identification purposes may be found on the Attorney General’s website at
www.law.ga.gov. An example of a “secure and verifiable document” is a state driver’s license provided it contains a photograph or lists sufficient identifying information such as a name, date of birth, gender, hair color, eye color and address. The form for the affidavit may be found on the website of the State Auditor at
www.audits.georgia.gov/Resources/Other Resources.html. Please note that the affidavit must be verified under oath by a Notary Public with a Notary Public seal and Notary Public expiration date attached thereto. This information can also be accessed through our agency’s website at
www.grec.state.ga.us.
2) CREDIT UNIONS FOR REAL ESTATE TRUST AND ESCROW CHECKING ACCOUNTS
Can a real estate company escrow account be in a credit union checking account?” The answer is yes. However, there are certain conditions that need to be met for the credit union escrow checking account to be acceptable in Georgia.
Pursuant to O.C.G.A. §43-40-20 (a) a trust or escrow checking account must be in a “federally insured bank checking account in this state.” “Bank” is defined in Rule 520-1-.02 (c) as follows:
“Bank” means any financial institution regulated by a member of the federal financial institutions examination council and authorized to provide federally insured checking accounts.
If the credit union meets the definition of “Bank” as defined in the Rule, is providing federally insured checking accounts, and is located in the state of Georgia, then it is acceptable for trust or escrow checking accounts for the real estate business. The threshold question is whether a credit union is a “Bank” as defined in the Rule. If the credit union is regulated by a member of the Federal Financial Institutions Examination Council (FFIEC) and authorized to provide federally insured checking accounts, then it meets the definition of “Bank.” The “FFIEC” is an interagency body of the U.S. government made up of several U.S. financial regulatory agencies which includes the National Credit Union Administration (NCUA). The NCUA charters federal credit unions. However, in addition to federally chartered credit unions there are federally insured state chartered credit unions, and non-federally insured state chartered credit unions. All federal credit unions and federally insured state chartered credit unions report to and are regulated by NCUA. There are some non-federally insured state credit unions that are not required to report to NCUA, and would not meet the definition of a “Bank” under the above stated Rule.
Because a credit union may meet the definition of a “Bank” under the above stated Rule, a trust or escrow checking account may be maintained in a credit union checking account if:
(a) It is located in Georgia;
(b) It is a federal credit union; or
(c ) It is a federally insured state chartered credit union; and
(d) It provides federally insured checking accounts.
Non-federally insured state chartered credit unions cannot be used to establish a trust or escrow checking account for real estate business. Real estate companies or licensees who desire to open trust or escrow checking accounts with a credit union should verify that the credit union for said accounts meets the above criteria.
WILLIAM J. ROGERS, JR. IS THE REAL ESTATE COMMISSIONER FOR THE STATE OF GEORGIA. VISIT THE COMMISSION’S WEB SITE AT
WWW.GREC.STATE.GA.US.
www.garealtor.com GEORGIA REALTOR I 27
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