20 HќќѠіђџȱ юћјђџ ѢљѦȱ2014 DIRECTORS / SENIOR MANAGEMENT Ever since Mark Felt, the Watergate scandal informant, met Woodward and Bernstein in a ȱȱȱȱĴȱȱ ǰȱȃ ȱȱ¢ǷȄȱȱ ȱ ȱȱęȱ ȱȱ investigate any and all suspicious activity. Yet this iconic message has roots that are much older than the Watergate scandal. After all, it took an IRS audit to catch Al Capone. Following the money can reveal both an indiscretion and a legitimate mistake, whether capturing a notorious gangster or merely balancing a personal ȱǯȱ ȱĴȱ provider follows the client money to ensure that it is not misplaced or misappropriated. When the money is in the escrow account, it is the client’s money, but if the money goes ǰȱȱĴȱȱȱ responsible. ALTA* Best Practice No. 2 states: ȱȱȱȱ Ĵȱȱȱȱ ȱ ȱȱǰȱ ȱ ȱȱęȱȱ ǯ The stated purpose of this procedure is to safeguard client funds to help ensure accuracy and minimize exposure to loss. In short, “Follow the money.” There are three steps required to comply with American Land Title Association (ALTA) Best Practice No. 2: 1. ȱȱ Ĵȱ¢ȱȱ procedure for escrow account Dz 2. ȱȱȱ Ĵȱ¢ȱȱ procedure the necessary elements ȱ Dzȱ 3. ȱȱȱ Ĵȱ¢ȱȱ procedure. ȱ Ĵȱ ¢ ȱ ȱȱȱȱȱ Ĵȱ policies that may govern how to administer an escrow account: the state bar, the state department of insurance or some other regulatory body. ALTA has now inserted itself into the equation to bring some consistency across the national Ĵȱǯȱ ȱĴȱ ȱȱȱȱ Ĵȱ¢ȱ that is compliant on all fronts. This article focuses on ALTA Best Practice No. 2. яќѢѡȱѡѕђȱ Ѣѡѕќџ ȱ is vice president for risk management at ȱ ȱ ȱ ¢ and a member of the ALTA Best Practice Task Force. He joined the company in 2012, prior to which he served for ȱȱŘŖȱ¢ȱȱȱ ȱęȱȱ ǰȱ ȱ Carolina. Biggs is a past president of the Durham Bar Association’s Young Lawyers Division and of the Durham Junior Chamber of Commerce. He has been recognized with The Distinguished Service Award by the Durham Jaycees Inc. and, in 1999, was named one of the Five Outstanding Young North Carolinians by the North Carolina Junior Chamber of Commerce. Biggs is a graduate of Duke University and of the Wake Forest University School of Law. The author can be reached at 800-326-4842, email: jbiggs @invtitle.com. Investors Title Insurance Company is an associate member of the Indiana Bankers Association and an IBA Preferred Service Provider. The American Land Title Association ǻ ǼȱȱȱȱĴȱ company gives guidance to help ensure the protection of consumers during real ȱǯȱ ȱěȱȱ standards — known as ALTA Best Practices — by which each bank should measure its service providers. During the next few months, Hoosier Banker will be featuring a series of articles by Investors Title Insurance Company outlining the seven best practices. The June issue covered ALTA Best Practice No. 1 — Licensing. ȱ ȱ ȱ ǯȱŘȱȯȱ ȱ DZȱ ȱȱ ¢
RkJQdWJsaXNoZXIy MTg3NDExNQ==