6-833.01. Priority of distribution during receivership

A. In a receivership proceeding filed against an escrow agent, the priority of distribution of claims from the general assets of the escrow agent shall be as provided by this section. Every claim in each class shall be paid in full or adequate monies shall be reserved for the payment before the members of the next class may receive any payment. Subclasses may not be established in any class. The order of distribution is as follows:

1. The costs and expenses of administration incurred in connection with the receivership proceedings.

2. Claims for compensation actually owing to employees of the escrow agent other than its officers for services rendered within three months before the beginning of a receivership against the escrow agent. A claim for compensation may not exceed two months of monetary compensation for each employee. The compensation owed shall be paid as soon as is practicable after the receivership begins, except that the receiver at all times shall reserve enough monies that in the receiver's opinion are sufficient to cover the expenses of administration. This priority is in lieu of any other similar priority authorized by law as to wages or compensation of employees.

3. Claims for breach of escrow agreements.

4. Claims of general creditors that do not fall within any other priority under this section.

5. Claims of the federal, any state or a local government except those claims that are treated as secured claims.

6. Claims of shareholders, members or other owners in that capacity.

B. The owner of a secured claim against an escrow agent for which a receiver has been appointed may surrender the security, and any deficiency shall be treated as a claim against the general assets of the escrow agent on the same basis as claims of unsecured creditors.