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Public Act 098-1067
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| HB4677 Enrolled | LRB098 17406 RPM 52506 b |
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AN ACT concerning insurance.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Title Insurance Act is amended by changing |
Section 26 as follows:
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(215 ILCS 155/26) |
Sec. 26. Settlement funds. |
(a) A title insurance company, title insurance agent, or |
independent escrowee shall not make disbursements in |
connection with any escrows, settlements, or closings out of a |
fiduciary trust account or accounts unless the funds in the |
aggregate amount of $50,000 or greater received from any single |
party to the transaction are good funds as defined in |
paragraphs (2), (6), or (7) of subsection (c) of this Section; |
or are collected funds as defined in subsection (d) of this |
Section. |
For the purposes of this subsection (a), where funds in the |
aggregate amount of $50,000 or greater are received from any |
purchaser of residential real property, as defined in paragraph |
(14) of Section 3 of this Act, the aggregate amount may consist |
of good funds of less than $50,000 per paragraph, as defined in |
paragraphs (3) and (5) of subsection (c) of this Section and of |
up to $5,000 in good funds, as defined in paragraph (4) of |
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subsection (c) of this Section. |
(a-5) In addition to the good funds disbursement |
authorization set forth in subsection (a) of this Section, a |
title insurance company, title insurance agent, or independent |
escrowee is authorized to make disbursements in connection with |
any escrows, settlements, or closings out of a fiduciary trust |
account or accounts where the funds in the aggregate amount of |
$50,000 or greater are received from any single party to the |
transaction if: |
(1) the funds are transferred by a cashier's check, |
teller's check, or certified check, as defined in the |
Uniform Commercial Code, that is drawn on or issued by a |
financial institution, as defined in this Act; |
(2) the title insurance company, title insurance |
agent, or independent escrowee and the financial |
institution, as defined in this Act, are known to each |
other and agree to the use of cashier's checks, teller's |
checks, or certified checks to disburse the loan and |
related closing costs being funded by the financial |
institution as good funds under item (3) of subsection (c) |
of this Section; and |
(3) the cashier's check, teller's check, or certified |
check is delivered to the title insurance company, title |
insurance agent, or independent escrowee in sufficient |
time for the check to be deposited into the title insurance |
company's, title insurance agent's, or independent |
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escrowee's fiduciary trust account prior to disbursement |
from the fiduciary trust account of the title insurance |
company, title insurance agent, or independent escrowee. |
The provisions of this subsection (a-5) are inoperative on |
and after January 1, 2015. |
(b) A title insurance company or title insurance agent |
shall not make disbursements in connection with any escrows, |
settlements, or closings out of a fiduciary trust account or |
accounts unless the funds in the amount of less than $50,000 |
received from any single party to the transaction are collected |
funds or good funds as defined in subsection (c) of this |
Section. |
(c) "Good funds" means funds in one of the following forms: |
(1) lawful money of the United States; |
(2) wired funds unconditionally held by and credited to |
the fiduciary trust account of the title insurance company, |
the title insurance agent, or independent escrowee; |
(3) cashier's checks, certified checks, bank money
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orders, official bank checks, or teller's checks drawn on
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or issued by a financial institution and unconditionally
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held by the title insurance company, title insurance agent,
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or independent escrowee; |
(4) a personal check or checks in an aggregate amount |
not exceeding $5,000 per closing, provided that the title |
insurance company, title insurance agent, or independent |
escrowee has reasonable grounds to believe that sufficient |
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funds are available for withdrawal in the account upon |
which the check is drawn at the time of disbursement; |
(5) a check drawn on the trust account of any lawyer or |
real estate broker licensed under the laws of any state, |
provided that the title insurance company, title insurance |
agent, or independent escrowee has reasonable grounds to |
believe that sufficient funds are available for withdrawal |
in the account upon which the check is drawn at the time of |
disbursement; |
(6) a check issued by this State, the United States, or |
a political subdivision of this State or the United States; |
or |
(7) a check drawn on the fiduciary trust account of a |
title insurance company or title insurance agent, provided |
that the title insurance company, title insurance agent, or |
independent escrowee has reasonable grounds to believe |
that sufficient funds are available for withdrawal in the |
account upon which the check is drawn at the time of |
disbursement. |
(d) "Collected funds" means funds deposited, finally |
settled, and credited to the title insurance company, title |
insurance agent, or independent escrowee's fiduciary trust |
account.
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(e) A purchaser, a seller, or a lender is each considered a |
single party to the transaction for the purposes of this |
Section, regardless of the number of people or entities making |