ENSURING THE SECURITY OF YOUR 1031 EXCHANGE FUNDS WITH GENESIS BANK

By Jaime Sibrian, SVP, Head of Banking Operations

At Genesis Bank, we understand the importance of security and safety when it comes to handling your 1031 exchange funds. That’s why we take extra measures to ensure that your funds are protected throughout the exchange process. Here’s how we do it:

1. Segregated Trust Account
   • Funds for Genesis Bank’s 1031 exchange are held in a segregated trust account.

2. FDIC and State of CA Regulation and Insurance
   • Restricted, segregated, and secure trust accounts are held within our FDIC and State of CA regulated and insured banking institution and/or at the Federal Reserve.

3. No Commingling or Unauthorized Use
   • Unlike other Qualified Intermediaries (QIs), funds are never commingled in a general account or used without oversight.

4. Unregulated Practices in Other QIs
   • At other QIs, funds are often held in unregulated and non-segregated subaccounts and connected to a master parent account where separate exchange funds may be commingled and used without oversight.

5. Additional Security Measures
   • Non-bank QI affiliates generally have to rely on fidelity bonds, third-party corporate performance guarantees, and other layers of insurance for security.

At Genesis Bank, we prioritize the security and safety of your funds, ensuring that your 1031 exchange experience is smooth, secure, and worry-free. If you’re interested in learning more about the 1031 exchange process and how it may benefit you, connect with the Genesis Bank Exchange team by calling 800.797.1031 or explore further details on our website: https://www.mygenesisbank.com/1031Exchange.