AZ SB1270

Allows escrow agents to use reciprocal deposit systems to provide additional federal deposit insurance corporation coverage for deposited monies through eligible depositories.

Requires the eligible depository to arrange deposits in federally insured banks and receive deposits from other financial institutions' customers equal to or greater than the escrow agent's initial deposit amount.

Adds definitions for "adequate notice," "eligible depository" (a bank, savings bank, or savings and loan association with Arizona presence and FDIC insurance), and "reciprocal deposit" (deposits placed through a network on a reciprocal basis with member-set interest rates).

Maintains existing escrow agent requirements for separate account maintenance, interest earning notifications within three business days, and prohibitions on receiving interest or benefits from deposited monies.

Effective date: March 18, 2024 (approved and filed by the Governor and Secretary of State).