§ 55.1-802 Separately identified accounts, or qualified escrows or qualified trusts
1. Deposit the exchange funds in a deposit account that is a separately identified account, as defined in Treasury Regulation § 1.468B-6(c)(ii), and provide that any withdrawals from such separately identified account require the written authorization of the exchange client and written acknowledgment of the exchange facilitator. Authorization for withdrawals may be delivered by any commercially reasonable means, including (i) the exchange client’s delivery to the exchange facilitator of the exchange client’s authorization to disburse exchange funds and the exchange facilitator’s delivery to the financial institution of the exchange facilitator’s authorization to disburse exchange funds or (ii) delivery to the financial institution of both the exchange client’s and the exchange facilitator’s authorizations to disburse exchange funds; or
2. Deposit the exchange funds in a deposit account that is a qualified escrow or qualified trust as those terms are defined under Treasury Regulation § 1.1031(k)-1(g)(3).
B. The deposit account shall be with a financial institution, and the interest earned on such account shall accrue to the parties as provided in a written agreement between the exchange facilitator and the exchange client. However, the exchange client may expressly direct the exchange facilitator in writing to invest the exchange proceeds in an investment of the exchange client’s choice, provided that the exchange facilitator provides written acknowledgment back to the exchange client that includes a confirmation of how the exchange proceeds will be invested.
History
This law was first created in 2010. The record of its establishment is cataloged in chapter 409 of that year’s edition of “Acts of Assembly,” the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by “The Acts of Assembly,” a state publication, by year and chapter. Those modifications that can be read on the General Assembly’s website will be linked accordingly. That modification is as follows: in 2019, chapter 712.
2010, c. 409, § 55-525.3; 2019, c. 712.