This section simply establishes the name of the division as the "Escrow Law."

This section explains that the definitions in the chapter are used to interpret this part of the law unless the situation clearly demands a different meaning.

In this section, the term "Commissioner" refers to the person who holds the position of Commissioner of Financial Protection and Innovation.

This law defines the term "person" to include not just an individual, but also groups, businesses, and other types of organizations. This can be a cooperative, association, company, partnership, corporation, limited liability company, or any other legal entity.

This law defines what an 'escrow' is. Basically, it involves one person giving something valuable, like money or a legal document, to a third party. This third party holds onto it until a specific event happens or a condition is met, then they pass it on to the other involved person. This can be about selling, transferring, or leasing property.

For Internet escrow companies, it works the same way, but it also includes transactions for personal property or services over the internet. Money or its online equivalent is held by a third party until conditions are met before being transferred to the other person involved.

An 'escrow agent' is someone whose job is to handle and manage escrows, which means they receive things like documents or money for safekeeping until certain conditions are met before passing them on to the intended recipient.

An "Internet escrow agent" is someone who handles deposits or deliveries of escrows online, meaning they manage transactions over the Internet.

A "Licensee" is someone who has a valid and current license to operate as an escrow agent.

A 'joint control agent' is someone who handles money or property specifically for paying costs related to construction work on real estate, like labor or materials. This role can be their main business or part of another business but doesn't include activities related to real estate lending or working as a representative for a lender.

This law defines what counts as a 'business location' or 'business office location' specifically for businesses that receive escrows for deposit or delivery. It clarifies that customer contact centers are not included in this definition.

This law defines what a "customer contact center" is for Internet escrow agents. It's a place that only deals with responding to customer questions via electronic messages or phone calls. Importantly, no money is received or paid out from this location. Any documents or information created or sent from this center must be accessible from the main business location of the Internet escrow agent.

This section defines a "person subject to this division" as anyone performing escrow agent services. It emphasizes that unless a person is specifically exempted according to Section 17006, they fall under this category and cannot be excluded from these regulations.

This law section explains that the phrase “within this state” refers to any activity involving escrow transactions either starting from or being directed to California. It covers transactions that originate from California going outside, start from outside but are aimed at California, or occur entirely within California. It includes situations where contract offers or acceptances involve someone in California, regardless of where they originated.

This law defines the term "escrow agent" for the purposes of this section to include not only traditional escrow agents, but also joint control agents and those that operate online, known as Internet escrow agents. However, there are exceptions detailed in another section, Section 17004.

This section explains that certain businesses and individuals are exempt from the rules that usually apply to escrow agents in California. These exemptions include banks, credit unions, insurers, licensed attorneys with a genuine client relationship, those preparing title insurance documents, and real estate brokers acting within a real estate transaction. However, attorneys and brokers cannot delegate their exempted duties unless directly supervising the work. Also, these exemptions can't be used to perform escrow services for multiple businesses.

If you're in a legal case concerning this law and you claim that you're exempt or an exception applies to you, it's your responsibility to prove it.

This law states that any foreign corporation, which means a company not based in California, cannot conduct escrow business in California without meeting specific legal requirements. Before doing business, the company must appoint the state commissioner as its legal representative for handling legal actions in California. This means any legal notices to the foreign corporation will be considered legally served when delivered to the commissioner.

This law states that whenever official documents are served, the commissioner must send a copy by registered mail to the corporation’s secretary, using the latest address on file with the commissioner.

If you're a plaintiff and you serve legal documents (process) to the commissioner, you'll have to pay a fee of $2 for each copy. If you win the case, you can get this fee back as part of the costs that are reimbursed to you.