Arkansas Code § 18-28-402 - Escrow Accounts

(a) (1) A holder of mineral proceeds shall establish an escrow account for mineral proceeds if the person entitled to the receipt of the mineral proceeds is unknown or has not been located within one (1) year after the funds became payable or distributable.

(2) The escrow account shall be for the benefit of the rightful recipient of the mineral proceeds.

(3) A person showing to the holder of mineral proceeds sufficient proof of identity and marketable title to the property shall be promptly paid the sum accumulated for his or her benefit in the escrow account.

(b) (1) If a holder of mineral proceeds is required to establish more than one (1) escrow account by operation of this section, then the mineral proceeds accruing may be commingled in a single escrow account.

(2) Separate records of each deposit and withdrawal on behalf of specific persons shall be maintained.

(c) A holder of mineral proceeds who violates this section is subject to a civil penalty not to exceed two thousand five hundred dollars ($2,500).

(d) The Auditor of State shall enforce this subchapter and may conduct random audits of the escrow accounts required by this section.

Section: 18-28-402  18-28-403  18-28-404    Next

Last modified: November 15, 2016