96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB5677


 
Introduced 2/9/2010, by Rep. Lou Lang
 
SYNOPSIS AS INTRODUCED:
 		





 







215 ILCS 155/26











     Amends the Title Insurance Act. In the provision concerning settlement funds, provides that a purchaser, a seller, or a lender are each considered a single party to the transaction, regardless of the number of people or entities making up the purchaser, seller, or lender. Effective January 1, 2011.
  















LRB096 17726 RPM 33091 b

















 


 


A BILL FOR









 




  






HB5677

LRB096 17726 RPM 33091 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 
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Section 26 as follows:
 
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    (215 ILCS 155/26)
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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 good funds as defined in 
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paragraphs (2), (6), or (7) of subsection (c) of this Section; 
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or are collected funds as defined in subsection (d) of this 
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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 credited to 
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    the fiduciary trust account of the title insurance company, 
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    the title insurance agent, or 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 financial institution chartered under the

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    laws of any state or the United States and unconditionally

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    held by the title insurance company, title insurance agent,

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    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 grounds to believe that sufficient 
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    funds are available for withdrawal in the account upon 
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    which the check is drawn at the time of 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 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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        (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 grounds to believe 
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    that 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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    (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 purchaser, a seller, or a lender are each considered 
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a single party to the transaction for the purposes of this 
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Section, regardless of the number of people or entities making 
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up the purchaser, seller, or lender. 
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(Source: P.A. 96-645, eff. 1-1-10.)
 
 
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    Section 99. Effective date. This Act takes effect January 
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1, 2011.