HAR §16-104-34. Escrow arrangement

(a) Purchasers’ monies shall be deposited with the escrow agent; provided that the subdivider or its agents may hold the monies, until the expiration of the seven-day rescission period or any longer purchaser cancellation period provided in the sales contract, if the payment made by the purchaser is in the form of a check payable to the escrow agent, and no cash shall be accepted. (b) Purchasers’ monies received by an escrow agent shall be deposited in a trust fund with a bank, savings and loan association, or trust company authorized to do business under an escrow arrangement. (c) The subdivider shall establish a mechanism by which the purchaser shall receive and sign a receipt for a written notice of a seven-day period rescission right pursuant to section 484-8.7 or 484-8.6(b) or (c), HRS, and the receipt deposited with the escrow agent. 104-9 (d) Upon notification of a purchaser’s exercise of rescission right, the escrow agent shall immediately refund any monies paid by the purchaser and the purchaser shall be released from the purchaser’s obligations under the sales contracts. (e) The escrow agent shall not disburse purchasers’ monies to the subdivider until the director enters a final order registering the subdivision or exempting the subdivision pursuant to section 484-10(g), HRS, and the director determines that the requirements of sections 484-8.7, 484-8.6(b) and (c), HRS, have been met. [Eff 8/8/87] (Auth: HRS §484-10) (Imp: HRS §§484-7, 484-8.5) SUBCHAPTER 6 ANNUAL REPORT