Trust funds may, at the request of the owner of the funds, be placed into an interest-bearing account at a bank or savings and loan association if the following requirements are met:
1. The account is in the name of the broker as trustee for the specified beneficiary or principal of a transaction or series of transactions.
2. All of the funds in the account are covered by insurance provided by an agency of the federal government.
3. The funds in the account are kept separate, distinct, and apart from funds belonging to the broker or to any other person for whom the broker holds funds in trust.
4. The broker discloses to the beneficiary of the funds the nature of the account, how interest will be calculated and paid under various circumstances, whether service charges will be paid to the depository and by whom, and the possible penalty for withdrawals.
5. No interest earned on the funds shall inure directly or indirectly to the benefit of the broker nor to any person licensed to the broker.
6. In an executor sale, lease, or loan transaction in which the broker accepts funds in trust to be applied to the purchase, lease, or loan, the parties to the contract shall have specified in the contract or by collateral written agreement the person to whom interest earned on the funds is to be paid or credited.
It should be noted that this would require the broker to maintain a separate bank account for each beneficiary who wishes to earn interest.
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