Section 1781.8 Of Article 3. Deposit Subscription Period From California Health And Safety Code >> Division 2. >> Chapter 10. >> Article 3.
1781.8
. (a) Deposits held in escrow shall be placed in an interest
bearing account or invested as provided under subdivision (e) of
Section 1781.
(b) Interest, income, and other gains derived from deposits held
in a deposit escrow account may not be released or distributed from
the deposit escrow account except upon written approval of the
department.
(c) Approval by the department for the release of earnings
generated from funds held in escrow shall be based upon an assessment
that funds remaining in the deposit escrow account will be
sufficient to pay refunds and any interest promised to all
depositors, as well as administrative costs owed to the escrow agent.
(d) When released by the department, interest earned by the funds
in the deposit escrow account shall be distributed in accordance with
the terms of the deposit agreement.