SB2786 Engrossed LRB095 19143 KBJ 45356 b

1     AN ACT concerning regulation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Title Insurance Act is amended by adding
5 Section 26 as follows:
 
6     (215 ILCS 155/26 new)
7     Sec. 26. Settlement funds.
8     (a) A title insurance company, title insurance agent, or
9 independent escrowee shall not make disbursements in
10 connection with any escrows, settlements, or closings out of a
11 fiduciary trust account or accounts unless the funds in the
12 aggregate amount of $50,000 or greater received from any single
13 party to the transaction are wired funds unconditionally held
14 by and irrevocably credited to the fiduciary trust account of
15 the title insurance company, title insurance agent, or
16 independent escrowee; are good funds as defined in paragraphs
17 (6) or (7) of subsection (c) of this Section; or are collected
18 funds as defined in subsection (d) of this Section.
19     (b) A title insurance company or title insurance agent
20 shall not make disbursements in connection with any escrows,
21 settlements, or closings out of a fiduciary trust account or
22 accounts unless the funds in the amount of less than $50,000
23 received from any single party to the transaction are collected

 

 

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1 funds or good funds as defined in subsection (c) of this
2 Section.
3     (c) "Good funds" means funds in one of the following forms:
4         (1) lawful money of the United States;
5         (2) wired funds unconditionally held by and
6     irrevocably credited to the fiduciary trust account of the
7     title insurance company, the title insurance agent, or
8     independent escrowee;
9         (3) cashier's checks, certified checks, bank money
10     orders, official bank checks, or teller's checks drawn on
11     or issued by a financial institution chartered under the
12     laws of any state or the United States and unconditionally
13     held by the title insurance company, title insurance agent,
14     or independent escrowee;
15         (4) a personal check or checks in an aggregate amount
16     not exceeding $5,000 per closing, provided that the title
17     insurance company, title insurance agent, or independent
18     escrowee has reasonable and prudent grounds to believe that
19     sufficient funds are available for withdrawal in the
20     account upon which the check is drawn at the time of
21     disbursement;
22         (5) a check drawn on the trust account of any lawyer or
23     real estate broker licensed under the laws of any state,
24     provided that the title insurance company, title insurance
25     agent, or independent escrowee has reasonable and prudent
26     grounds to believe that sufficient funds are available for

 

 

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1     withdrawal in the account upon which the check is drawn at
2     the time of disbursement;
3         (6) a check issued by this State, the United States, or
4     a political subdivision of this State or the United States;
5     or
6         (7) a check drawn on the fiduciary trust account of a
7     title insurance company or title insurance agent, provided
8     that the title insurance company, title insurance agent, or
9     independent escrowee has reasonable and prudent grounds to
10     believe that sufficient funds are available for withdrawal
11     in the account upon which the check is drawn at the time of
12     disbursement.
13     (d) "Collected funds" means funds deposited, finally
14 settled, and credited to the title insurance company, title
15 insurance agent, or independent escrowee's fiduciary trust
16 account.
 
17     Section 99. Effective date. This Act takes effect January
18 1, 2009.