§ 26-23-314 — Conditions for providing escrow, closing or settlement services, or maintaining title indemnification accounts

(a) A title insurer or title agent may engage in the
escrow, settlement, or closing business, or any combination of
such businesses, and operate as an escrow, settlement, or
closing agent, provided that:
(i) Funds deposited in connection with any escrow,
settlement, closing or title indemnification shall be deposited
in a separate fiduciary trust account or accounts in a bank or
other financial institution insured by an agency of the federal
government. These funds are the property of the person or
persons entitled thereto under the provisions of the escrow,
settlement, closing or title indemnification and shall be
segregated by escrow, settlement, closing or title
indemnification in the records of the title insurer or title
agent. Those funds are not subject to any debts of the title
insurer or title agent and shall be used only in accordance with
the terms of the individual escrow, settlement, closing or title
indemnification under which the funds were accepted;
(ii) Interest received on funds deposited with the
title insurer or title agent in connection with any escrow,
settlement, closing or title indemnification shall be paid to
the depositing party unless the instructions provide otherwise;
(iii) The title insurer or title agent shall maintain
separate records of all receipts and disbursements of escrow,
settlement, closing or title indemnification funds.