Bill > HB2345

This bill adds a new section to Arizona law (6-834.01) that clarifies how escrow agents can use monies in an escrow account related to loan agreements. Specifically, the bill allows escrow agents to use escrow account funds only for making one-time or multiple payments according to the original loan agreement, unless certain specific exceptions apply. These exceptions include: (1) the loan agreement explicitly stating another purpose for the funds, (2) a deed in lieu of foreclosure agreement specifying alternative fund usage, (3) a settlement negotiation agreement that includes provisions for using the funds, or (4) an agreement that allows using a portion of the escrow account to bring an account that is behind in payments current. The legislature explicitly states that these changes are meant to be clarifying in nature and do not constitute substantive changes to existing law. The bill appears designed to provide more precise guidance and transparency about how escrow funds can be utilized in different loan-related scenarios, potentially protecting both lenders and borrowers by establishing clear parameters for fund usage.

Budget and Finance, Business and Industry

https://apps.azleg.gov/BillStatus/BillOverview/82123