A Washington broker deposits 2026 trust funds at a federally insured bank with no branch anywhere in the state. Does federal insurance alone satisfy the required in-state branch condition?
Correct Answer
B) Deficient: the deposit goes to an institution branch located in this state
The funds must be deposited in a trust account at a federally insured financial institution branch located in this state, within three business days of receipt, and must remain on deposit until disbursed to the third-party provider except as the act and rules permit. Other choices: federal insurance is one requirement and the in-state branch is another; being authorized to do business is not the same as having a branch here; and a state charter is not required. Source: WAC 208-660-410(3)
Why This Is the Correct Answer
The funds must be deposited in a trust account at a federally insured financial institution branch located in this state, within three business days of receipt, and must remain on deposit until disbursed to the third-party provider except as the act and rules permit. Other choices: federal insurance is one requirement and the in-state branch is another; being authorized to do business is not the same as having a branch here; and a state charter is not required. Source: WAC 208-660-410(3)
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