                                 CODE OF VIRGINIA

SEPARATELY IDENTIFIED ACCOUNTS, OR QUALIFIED ESCROWS OR QUALIFIED TRUSTS (§
55.1-802)

A. An exchange facilitator at all times shall:

   1. Deposit the exchange funds in a deposit account that is a separately
   identified account, as defined in Treasury Regulation &#xA7; 1.468B-6(c)(ii),
   and provide that any withdrawals from such separately identified account
   require the written authorization of the exchange client and written
   acknowledgment of the exchange facilitator. Authorization for withdrawals may
   be delivered by any commercially reasonable means, including (i) the exchange
   client&#8217;s delivery to the exchange facilitator of the exchange
   client&#8217;s authorization to disburse exchange funds and the exchange
   facilitator&#8217;s delivery to the financial institution of the exchange
   facilitator&#8217;s authorization to disburse exchange funds or (ii) delivery
   to the financial institution of both the exchange client&#8217;s and the
   exchange facilitator&#8217;s authorizations to disburse exchange funds; or

   2. Deposit the exchange funds in a deposit account that is a qualified escrow
   or qualified trust as those terms are defined under Treasury Regulation &#xA7;
   1.1031(k)-1(g)(3).

B. The deposit account shall be with a financial institution, and the interest
earned on such account shall accrue to the parties as provided in a written
agreement between the exchange facilitator and the exchange client. However, the
exchange client may expressly direct the exchange facilitator in writing to
invest the exchange proceeds in an investment of the exchange client&#8217;s
choice, provided that the exchange facilitator provides written acknowledgment
back to the exchange client that includes a confirmation of how the exchange
proceeds will be invested.

HISTORY: 2010, c. 409, § 55-525.3; 2019, c. 712.