Custodial duties; standards.

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(a) Meet a prudent investor standard; and

(b) Satisfy the investment goals of liquidity and preservation of principal.

(2) An exchange facilitator fails to invest exchange funds according to a prudent investor standard if:

(a) The exchange facilitator knowingly commingles exchange funds with the exchange facilitator’s operating accounts; or

(b) Exchange funds are loaned or otherwise transferred to a person or entity, other than a financial institution, that is an affiliate of or otherwise related to the exchange facilitator, unless the exchange funds are transferred from an exchange facilitator to an exchange accommodation titleholder in accordance with a qualified exchange accommodation agreement.

(3) Exchange funds are not subject to execution or attachment in any claim against the exchange facilitator.

(4) An exchange facilitator may not knowingly keep moneys or cause moneys to be kept in a financial institution under a name that designates the moneys as belonging to a client unless the moneys belong to the client and the client entrusted the moneys to the exchange facilitator. [2013 c.392 §4]


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