BILL NUMBER: SB 1223	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 22, 2010

INTRODUCED BY   Senator Calderon

                        FEBRUARY 18, 2010

   An act to add Section 17412 to the Financial Code, relating to
escrow agents.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1223, as amended, Calderon. Escrow agents: auctions.
   Existing law, the Escrow Law, provides for the licensure and
regulation by the Commissioner of Corporations of persons engaged in
business as escrow agents, unless specifically exempted. A willful
violation of the Escrow Law constitutes a crime.
   This bill would require an escrow agent to return or cause to be
returned all deposits and fees received from a bidder in connection
with an auction sale of real property  that has been the subject
of a foreclosure sale  , upon receipt of escrow instructions
from the auctioneer or auction company directing the return of all
funds placed on deposit by the bidder with that agent,  except
 as specified. Because a willful violation of that provision
would constitute a crime, the bill would impose a state-mandated
local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17412 is added to the Financial Code, to read:
   17412.   (a)    An escrow agent shall return or
cause to be returned all deposits and fees received from a bidder in
connection with an auction sale of real property  that has been
the subject of a foreclosure sale  , upon receipt of escrow
instructions from the auctioneer or auction company directing the
return of all funds placed on deposit by the bidder with that agent.
An escrow agent may recognize an auctioneer or auction company as the
agent of the property seller for this purpose. 
   (b) This section shall not apply to any of the following: 

   (1) A sale of real property pursuant to a nonjudicial foreclosure
governed by Article 1 (commencing with Section 2920) of Chapter 2 of
Title 14 of Part 4 of Division 3 of the Civil Code. 
   (2) A sale of real property pursuant to a judicial foreclosure
governed by Article 6 (commencing with Section 701.510) of Chapter 3
of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure.
 
   (3) A sale conducted pursuant to Section 9604 of the Commercial
Code, if an obligation secured by a security interest in personal
property or fixtures is also secured by an interest or an estate in
real property. 
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.