95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB2786


 
Introduced 2/15/2008, by Sen. Don Harmon
 
SYNOPSIS AS INTRODUCED:
 		













215 ILCS 155/26 new










    Amends the Title Insurance Act. Provides that 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 wired funds unconditionally held by and irrevocably credited to the fiduciary trust account of the title insurance company, title insurance agent, or independent escrowee; are good funds as defined in the provision; or are collected funds as defined in the provision. Provides that 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 the provision. Provides that a lender or any other party to a transaction, using the closing or settlement services of a title insurance company, title insurance agent, or independent escrowee shall, at or before the time of closing or settlement, deliver its funds to the title insurance company, the title insurance agent, or the independent escrowee in the form as required by the provision. Effective January 1, 2009.
















LRB095 19143 KBJ 45356 b

















 


 


A BILL FOR









 











SB2786

LRB095 19143 KBJ 45356 b






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    AN ACT concerning regulation.

 
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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 adding 
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Section 26 as follows:
 
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    (215 ILCS 155/26  new)
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    Sec. 26. Settlement funds.
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    (a) A title insurance company, title insurance agent, or 
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independent escrowee shall not make disbursements in 
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connection with any escrows, settlements, or closings out of a 
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fiduciary trust account or accounts unless the funds in the 
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aggregate amount of $50,000 or greater received from any single 
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party to the transaction are wired funds unconditionally held 
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by and irrevocably credited to the fiduciary trust account of 
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the title insurance company, title insurance agent, or 
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independent escrowee; are good funds as defined in paragraphs 
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(6) or (7) of subsection (c) of this Section; or are collected 
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funds as defined in subsection (d) of this Section.
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    (b) A title insurance company or title insurance agent 
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shall not make disbursements in connection with any escrows, 
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settlements, or closings out of a fiduciary trust account or 
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accounts unless the funds in the amount of less than $50,000 
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received from any single party to the transaction are collected 
 


 






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funds or good funds as defined in subsection (c) of this 
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Section.
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    (c) "Good funds" means funds in one of the following forms:
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        (1) lawful money of the United States;
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        (2) wired funds unconditionally held by and 
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    irrevocably credited to the fiduciary trust account of the 
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    title insurance company, the title insurance agent, or 
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    independent escrowee;
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        (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 federally insured financial institution and 
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    unconditionally held by the title insurance company, title 
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    insurance agent, or independent escrowee;
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        (4) a personal check or checks in an aggregate amount 
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    not exceeding $5,000 per closing, provided that the title 
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    insurance company, title insurance agent, or independent 
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    escrowee has reasonable and prudent grounds to believe that 
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    sufficient funds are available for withdrawal in the 
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    account upon which the check is drawn at the time of 
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    disbursement;
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        (5) a check drawn on the trust account of any lawyer or 
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    real estate broker licensed under the laws of any state, 
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    provided that the title insurance company, title insurance 
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    agent, or independent escrowee has reasonable and prudent 
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    grounds to believe that sufficient funds are available for 
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    withdrawal in the account upon which the check is drawn at 
 


 






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    the time of disbursement;
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        (6) a check issued by this State, the United States, or 
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    a political subdivision of this State or the United States; 
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    or
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        (7) a check drawn on the fiduciary trust account of a 
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    title insurance company or title insurance agent, provided 
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    that the title insurance company, title insurance agent, or 
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    independent escrowee has reasonable and prudent grounds to 
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    believe that sufficient funds are available for withdrawal 
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    in the account upon which the check is drawn at the time of 
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    disbursement.
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    (d) "Collected funds" means funds deposited, finally 
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settled, and credited to the title insurance company, title 
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insurance agent, or independent escrowee's fiduciary trust 
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account.
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    (e)  A lender or any other party to a transaction, using the 
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closing or settlement services of a title insurance company, 
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title insurance agent, or independent escrowee shall, at or 
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before the time of closing or settlement, deliver its funds to 
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the title insurance company, the title insurance agent, or the 
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independent escrowee in the form as required by this Section. 
 

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    Section 99. Effective date. This Act takes effect January 
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1, 2009.