55-525.5 - Accounting for moneys and property. - Virginia Statutes

§ 55-525.5. Accounting for moneys and property.

A. Every exchange facilitator shall hold all property related to the exchangeclient including the exchange funds, other property, and other considerationor instruments received by the exchange facilitator, on behalf of the client,except funds received as the exchange facilitator's compensation. Exchangefunds shall be held in accordance with the requirements of § 55-525.3.

B. An exchange facilitator shall not:

1. Commingle exchange funds with the operating accounts of the exchangefacilitator; or

2. Lend or otherwise transfer exchange funds to any person or entityaffiliated with or related (as described in Internal Revenue Code § 267(b) or707(b)) to the exchange facilitator except that this subsection shall notapply to a transfer or loan made to a financial institution that is theparent of or related to the exchange facilitator or to a transfer from anexchange facilitator to an EAT as required under the exchange contract.

C. Exchange funds are not subject to execution or attachment on any claimagainst the exchange facilitator. An exchange facilitator shall not keep orcause to be kept any money in any financial institution under any namedesignating the money as belonging to an exchange client of the exchangefacilitator unless the money equitably belongs to the exchange client and wasactually entrusted to the exchange facilitator by the exchange client.

(2010, c. 409.)