Sunday, February 22, 2009

Wha?

This was added to TCA 62-13-104-3 in May 2003.  The sponsors were Clabough and Miller.  Phil Bredesen signed it in to law in June 2003 (click here to see the original Act as a .pdf):

(D)  (i)  No funds shall be distributed from the escrow/trustee account until the customer's stay is complete, unless such distribution is in accordance with terms disclosed to the renter in writing at the time of making the reservation, or within a reasonable time thereafter not to exceed three (3) days, mailed to the renter through the United States postal service or transmitted to the renter via electronic mail, facsimile, or other tangible form of communication. Commissions earned by the firm and the revenue due owners shall be disbursed at least monthly. Funds held in escrow shall be disbursed in a prompt manner without unreasonable delay.

Is it just me, or do two distinct sections jump out at you, too?  I can't figure out what the first sentence has to do with the second and third sentences.  The latter two are easily understood and not hard to implement.

The first sentence talks about informing the public that the rental company is spending their deposit money as soon as they get it ~ regardless of the guests' arrival date.  In other words, as long as a vacation rental management company, in the great State of Tennessee, has the following verbiage in it's guest agreement:

Pursuant to the provisions of the Tennessee Code Annotated, Title 47, Chapter 18 and Title 62, Chapter 13, Section 62-13-104(b)(3), Subdivision (D)(i), T***** T***, LLC discloses the following policy as of June 4, 2003: "All advance rent deposits, damage deposits and balance of rent due are deposited into a bank escrow clearing account. These deposits are considered income to T***** T***, LLC upon receipt and may be used immediately. Any refund considerations are expensed from the general books of T***** T***, LLC on a case by case basis."

then that company will be considered good to go as far as plundering the monies their supposed to be holding in a trust account as a fiduciary.

No comments:

Post a Comment

Anonymous comments are welcome as long as they are truthy.