1. 1. Each broker shall maintain a separate bank checking account in a financial institution, either a bank, savings and loan association or a credit union in this state, or in an adjoining state with written permission of the commission, which shall be designated an escrow or trust account in which all money not his own coming into his possession, including funds in which he may have some future interest or claim, shall be deposited promptly unless all parties having an interest in the funds have agreed otherwise in writing. No broker shall commingle his personal funds or other funds in this account with the exception that a broker may deposit and keep a sum not to exceed five hundred dollars in the account from his personal funds, which sum shall be specifically identified and deposited to cover service charges related to the account. The commission may, by written waiver issued for good cause as defined by rule and regulation, relieve a broker from the obligation to maintain a separate escrow or trust account.
2. 2. Before issuance of a broker license, each broker shall notify the commission of the name of the financial institution in which each escrow or trust account is maintained, the name and number of each such account, and shall file written authorization directed to each financial institution to allow the commission or its authorized representative to examine each such account; such notification and authorization shall be submitted on forms provided therefor by the commission but shall not be required in any case where maintenance of an escrow or trust account has been waived pursuant to subsection 1 of this section. A broker shall notify the commission within fifteen days of any change of financial institution or account numbers.
3. 3. In conjunction with each escrow or trust account a broker shall maintain at his usual place of business, books, records, contracts and other necessary documents so that the adequacy of said account may be determined at any time. The account and other records shall be open to inspection by the commission and its duly authorized agents at all times during regular business hours at the broker's usual place of business.
4. 4. A broker shall not be entitled to any part of the earnest money or other money paid to him in connection with any real estate transaction as part or all of his commission or fee until the transaction has been consummated or terminated, unless agreed in writing by all parties to the transaction.
5. 5. When, through investigations or otherwise, the commission has reasonable cause to believe that a licensee has acted, is acting or is about to act in violation of this section, the commission may, through the attorney general or any of his assistants designated by him, proceed in the name of the commission to institute suit to enjoin any act or acts in violation of this section.
6. 6. Any such suit shall be commenced in either the county in which the defendant resides or in the county in which the defendant has acted, is acting or is about to act in violation of this section.
7. 7. In such proceeding, the court shall have power to issue such temporary restraining or injunction orders, without bond, which are necessary to protect the public interest. Any action brought under this section shall be in addition to and not in lieu of any other provisions of this chapter. In such action, the commission or the state need not allege or prove that there is no adequate remedy at law or that any individual has suffered any economic injury as a result of the activity sought to be enjoined.

(L. 1978 S.B. 811, A.L. 1981 S.B. 16, A.L. 1986 H.B. 1511, A.L. 1987 S.B. 175)

Effective 6-25-87