Section 17203.1 Of Chapter 2. License And Bond From California Financial Code >> Division 6. >> Chapter 2.
17203.1
. (a) All officers, directors, trustees, and employees of an
escrow agent, whether or not compensated, who have access to money
or negotiable securities belonging to the escrow agent or in the
possession of the escrow agent in the regular discharge of their
duties, or persons who draw checks upon the escrow agent or upon the
trust funds of the escrow agent in the regular discharge of their
duties, before entering upon their duties and throughout the entire
term of their office and employment and any subsequent term thereof,
shall furnish to the escrow agent a bond indemnifying the escrow
agent against loss of money or property. No officer, director,
trustee, or employee shall enter upon their duties or have access to
money or negotiable securities or draw checks upon the escrow agent
or the trust funds of an escrow agent prior to complying with such
rules as the commissioner shall adopt with respect to the
qualifications of these officers, directors, trustees, or employees
to assume their duties.
The commissioner shall prescribe the aggregate amount of the bond
and the terms during which the bond runs. The sufficiency of the
sureties on the bond are at all times subject to the approval of the
commissioner. The bond shall be filed in the commissioner's office.
The aggregate liability of the surety for all claims shall in no
event exceed the penal sum of the bond.
(b) The commissioner may at any time require an additional bond or
surety to be filed when in the commissioner's opinion any bond then
in force is insufficient for any reason.