§ 18-28-402 - Escrow accounts. - Arkansas Statutes

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) Any person showing to the holder of mineral proceeds sufficient proof of identity and ownership of 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) (1) The Auditor of State and the Oil and Gas Commission shall require a report of each escrow account to be filed annually.

(2) The report shall include, but shall not be limited to:

(A) The name and last known address of the property owner;

(B) The legal description of the property interest;

(C) The location and account number of the escrow account;

(D) The name of the person authorized to order withdrawals from the escrow account; and

(E) Any other information that the Auditor of State and the commission may require.

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

(e) The commission shall enforce the provisions of this subchapter and shall conduct random audits of the escrow accounts required by this section.