THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
Bulletin: AK000010
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Bulletin: AK000010
Dear Associates:
The Alaska Supreme Court has ruled that a real estate escrow account is "property" subject to garnishment. It does not matter whether or not there are funds in the account at the time of garnishment. The account itself must be reported to the garnishor as well as subsequent deposits to the account. Von Gemmingen v. First National Bank of Anchorage, 789 P.2d 353 (Alaska 1990).
In the past we have answered in the negative to garnishments of escrow accounts unless we had money in the account at the time the writ was served. Because of this case we should no longer do this. If you receive a writ of garnishment on an escrow account you should answer that the debtor has opened an escrow and you should report any funds subsequently deposited into that account, or you should contact me.
References
- Bulletins Replaced:
- None
- Related Bulletins:
- None
- Underwriting Manual:
- Exceptions Manual:
- None
- Forms:
- None