Interest-Bearing Trust Accounts

Question 0

Condition 2

Answer 0

Confirms that all funds are federally insured

Question 1

Condition 1

Answer 1

Establishes the account in the name of the licensee in trust for a specific beneficiary

Question 2

Condition 3

Answer 2

Separates trust funds from the funds of the licensee and from funds belonging to any other trust account

Question 3

Condition 4

Answer 3

Discloses the method of calculating and paying interest to the beneficiary and to the person from whom funds are received

Question 4

Condition 5

Answer 4

Discloses whether there will be a payment of service charges to the depository institution and who will pay them

Question 5

Condition 6

Answer 5

Discloses whether there are penalties for the withdrawal of funds from the account

Question 6

Condition 7

Answer 6

Pays all interest earned from the account to the owner of the trust fund or beneficiary

Question 7

Trust fund fact

Answer 7

Trust funds are never treated as an asset of the licensee and are not subject to a claim or an enforcement action against the licensee