Client Funds Handling and Interest Policy for Fusrol

Segregated Account:

All security deposits are held in a segregated, interest-bearing account at a federally insured financial institution.

Client funds are kept separate from Fusrol’s operating accounts to ensure they are protected and available for refund or disbursement at the end of the lease term.

Compliance with State Laws:

Fusrol adheres to state-specific regulations regarding the handling of security deposits, including requirements for account types, interest accrual, and timelines for refunds.

Arbitration decisions are binding and based on the terms of the lease agreement, applicable laws, and evidence provided by both parties.

Security Measures:

Funds are protected by robust security protocols, including encryption and access controls, to prevent unauthorized access or misuse.

Interest-Bearing Account:

Security deposits are held in an account that earns interest over time. The interest rate is determined by the financial institution where the account is held and may vary based on market conditions.

Interest Distribution: State Requirements:

In states where interest on security deposits is mandated by law, Fusrol will distribute the accrued interest in accordance with those regulations. This may include:

1. Paying interest to the tenant at the end of the lease term.
2. Splitting interest between the tenant and landlord, as required by law.

Non-Mandatory States:

In states where interest is not required by law, any accrued interest will be retained by Fusrol to cover administrative costs associated with managing the account and providing custodial services.

Transparency:

Fusrol will provide tenants and landlords with clear information about how interest is handled, including any applicable rates and distribution policies.

End of Lease Term:

At the end of the lease term, Fusrol will release the security deposit (and any applicable interest) in accordance with the lease agreement and state laws.

If no disputes arise, the funds will be refunded to the tenant or disbursed to the landlord within the legally required timeframe (typically 21–30 days, depending on the state).

Dispute Resolution:

If a dispute arises, Fusrol will continue to hold the funds until the arbitration process is complete.

Once the arbitrator reaches a decision, Fusrol will disburse the funds (and any applicable interest) as directed by the arbitrator.

Service Fees:

Fusrol charges a service fee for its custodianship and arbitration services. These fees are clearly communicated during the onboarding process and are separate from the security deposit funds.

Fees may include:

1. A one-time setup fee.
2. An annual maintenance fee for holding the deposit.
3. An arbitration fee, if applicable.

Deduction from Interest:

In states where interest is not required to be distributed to tenants or landlords, Fusrol may use the accrued interest to offset administrative costs.

1. The amount held.
2. Any interest accrued.
3. The expected timeline for refund or disbursement.

Regular statements or updates will be provided to ensure transparency and accountability.