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You are here: Home . bulletins . 1995earlier . 143

BULLETIN NO. 143

December 18, 1973

 

TO: ALL TITLE INSURANCE COMPANIES LICENSED TO DO BUSINESS IN THE STATE OF TEXAS, AND ALL AGENTS THEREOF.

RE: VIOLATIONS OF ARTICLE 9.30

This Bulletin replaces Bulletin No. 142, dated October 25, 1973.

It has come to our attention that certain practices have developed which we view as unlawful under Article 9.30 (rebates and discounts). These practices are in the area of funding of escrows and range in variety from holding earnest money checks to lending earnest money to prospective parties to a transaction which the agent or company intends to close and insure.

Please be advised that the words in Article 9.30, "or other device", will be liberally construed against agents and companies to mean, among other things, that the agent or company directly or indirectly funding the escrow by means of lending credit, its own money, co-signing notes or in any other way paying or obligating itself to pay such escrow funds to the benefit of one of the parties or prospective parties to a transaction which it intends to close and/or insure. This Bulletin does not prohibit permanent mortgage financing lawfully done by a title agent or underwriter.

/s/ Ira M. Goodrich
IRA M. GOODRICH
Director of Title Insurance



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