1. (a) If, for the purpose of applying deposits to the construction of a condominium, a declarant elects to deliver any deposits to the person providing construction financing, the following requirements shall apply:

   1. (1) The person applying deposits to construction shall be an institutional lender not prohibited from doing business in the state in which the condominium is located;

   2. (2) The declarant shall provide written notice to the bureau of:

      1. a. The name and address of the construction lender; and

      2. b. A copy of the agreement between the lender and declarant which incorporates the statutory limitation that said lender shall either:

         1. 1. Hold deposits in escrow; or
         2. 2. Apply them to the construction of the condominium; and
   3. (3) The bureau shall request, and the declarant shall provide any additional information that will assure that the deposits of purchasers are adequately protected.
2. (b) Deposits made in connection with non-binding reservation agreements shall be held in escrow.

Source. (See Revision Note at chapter heading for Jus 1400) #9783-A, eff 9-11-10, EXPIRED: 9-11-18 New. #12657, INTERIM, eff 11-1-18, EXPIRED: 4-30-19 New. #12910, eff 10-24-19