32-7-115. Maintenance of records. - Montana Statutes

     32-7-115. Maintenance of records. (1) A licensee shall establish and maintain the books, accounts, and records necessary to enable the director at any time to determine whether the escrow transactions performed by the licensee comply with the provisions of this part. The books, accounts, and records must be maintained in accordance with generally accepted accounting principles and good business practice.
     (2) A licensee shall establish and maintain the following records concerning general accounts:
     (a) a general record reflecting the assets, liabilities, capital, income, and expense of the business, maintained in accordance with generally accepted accounting principles;
     (b) a cash receipt and disbursement journal; and
     (c) a reconciliation of monthly statements to the general record.
     (3) The records referred to in subsections (1) and (2) must be reconciled at least once each month with the bank statements reflecting each escrow account.
     (4) A licensee shall preserve for at least 3 years after the close of any escrow:
     (a) all bank statements reflecting each escrow account and records of monthly reconciliations of the statements to the general record;
     (b) all canceled checks drawn on each escrow account;
     (c) any additional records reflecting banking transactions regarding each escrow account, including copies of all receipts for funds transferred from other accounts into each escrow account;
     (d) all statements of account;
     (e) all escrow instructions and amendments to them; and
     (f) all additional records pertinent to each escrow transaction.
     (5) A licensee shall perform one of the following:
     (a) file annually with the director, on or before April 30, a statement of its financial condition, transactions, and affairs as of the preceding December 31. The director may grant an extension, not to exceed 10 days, on or before the April 30 filing date if the licensee demonstrates good cause for an extension. The financial statement must be certified by an independent public accountant and must be in a form and contain the information prescribed by the director.
     (b) request that the director examine the financial condition, transactions, and affairs of the licensee pursuant to procedures prescribed by the director.

     History: En. Sec. 8, Ch. 651, L. 1989.