1031 Exchange Funds Investment Policy and Disclosure Statement
Exeter 1031 Exchange Services, LLC takes its fiduciary responsibilities and its duty of care for its clients extremely seriously, especially when it comes to receiving, holding, managing, safeguarding and investing clients' 1031 Exchange funds.
Segregated Qualified Trust Accounts, Fidelity Bond and E&O Insurance
We ensure that each and every clients' 1031 Exchange proceeds are held in a separate, segregated Qualified Trust Account. In addition, Exeter 1031 Exchange maintains significant levels of Fidelity Bond and Errors & Omissions Insurance coverage.
Conservative Investment Policy
Our conservative investment policy requires that the investments be safe, secure and prudent, that the 1031 Exchange funds can be withdrawn upon short notice for use in the acquisition of your like-kind replacement properties and that the 1031 Exchange funds earn a competitive interest rate. We are much more concerned with the safety and liquidity of your 1031 Exchange funds than with the interest rate or yield earned on your 1031 Exchange funds.
Therefore, we will only invest your 1031 Exchange proceeds in short-term money market demand accounts (MMDAs) or certificates of deposit (CDs) at commercial banks or trust companies. We can also invest in short-term money market mutual funds, short-term money market instruments, and/or in direct obligations of the United States Government if requested to do so by the client.
We would be happy to provide you with more detailed information regarding the specific commercial banks and/or trust companies used by us for your 1031 Exchange funds. You can contact our national operations group for more complete details.
Effective: February 6, 2006
State of Washington Required Dislcosures
"Washington state law, RCW 19.310.040, requires an exchange facilitator to either maintain a fidelity bond in an amount of not less than one million dollars that protects clients against losses caused by criminal acts of the exchange facilitator, or hold all client funds in a qualified escrow account or qualified trust."
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