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| 1 | AN ACT concerning insurance.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Title Insurance Act is amended by changing | ||||||
| 5 | Section 26 as follows: | ||||||
| 6 | (215 ILCS 155/26) | ||||||
| 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 good funds as defined in | ||||||
| 14 | paragraphs (2), (6), or (7) of subsection (c) of this Section; | ||||||
| 15 | or are collected funds as defined in subsection (d) of this | ||||||
| 16 | Section. | ||||||
| 17 | For the purposes of this subsection (a), where funds in the | ||||||
| 18 | aggregate amount of $50,000 or greater are received from any | ||||||
| 19 | purchaser of residential real property, as defined in paragraph | ||||||
| 20 | (14) of Section 3 of this Act, the aggregate amount may consist | ||||||
| 21 | of good funds of less than $50,000 per paragraph, as defined in | ||||||
| 22 | paragraphs (3) and (5) of subsection (c) of this Section and of | ||||||
| 23 | up to $5,000 in good funds, as defined in paragraph (4) of | ||||||
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| 1 | subsection (c) of this Section. | ||||||
| 2 | (b) A title insurance company or title insurance agent | ||||||
| 3 | shall not make disbursements in connection with any escrows, | ||||||
| 4 | settlements, or closings out of a fiduciary trust account or | ||||||
| 5 | accounts unless the funds in the amount of less than $50,000 | ||||||
| 6 | received from any single party to the transaction are collected | ||||||
| 7 | funds or good funds as defined in subsection (c) of this | ||||||
| 8 | Section. | ||||||
| 9 | (c) "Good funds" means funds in one of the following forms: | ||||||
| 10 | (1) lawful money of the United States; | ||||||
| 11 | (2) wired funds unconditionally held by and credited to | ||||||
| 12 | the fiduciary trust account of the title insurance company, | ||||||
| 13 | the title insurance agent, or independent escrowee; | ||||||
| 14 | (3) cashier's checks, certified checks, bank money
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| 15 | orders, official bank checks, or teller's checks drawn on
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| 16 | or issued by a financial institution chartered under the
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| 17 | laws of any state or the United States and unconditionally
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| 18 | held by the title insurance company, title insurance agent,
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| 19 | or independent escrowee; | ||||||
| 20 | (4) a personal check or checks in an aggregate amount | ||||||
| 21 | not exceeding $5,000 per closing, provided that the title | ||||||
| 22 | insurance company, title insurance agent, or independent | ||||||
| 23 | escrowee has reasonable grounds to believe that sufficient | ||||||
| 24 | funds are available for withdrawal in the account upon | ||||||
| 25 | which the check is drawn at the time of disbursement; | ||||||
| 26 | (5) a check drawn on the trust account of any lawyer or | ||||||
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| 1 | real estate broker licensed under the laws of any state, | ||||||
| 2 | provided that the title insurance company, title insurance | ||||||
| 3 | agent, or independent escrowee has reasonable grounds to | ||||||
| 4 | believe that sufficient funds are available for withdrawal | ||||||
| 5 | in the account upon which the check is drawn at the time of | ||||||
| 6 | disbursement; | ||||||
| 7 | (6) a check issued by this State, the United States, or | ||||||
| 8 | a political subdivision of this State or the United States; | ||||||
| 9 | or | ||||||
| 10 | (7) a check drawn on the fiduciary trust account of a | ||||||
| 11 | title insurance company or title insurance agent, provided | ||||||
| 12 | that the title insurance company, title insurance agent, or | ||||||
| 13 | independent escrowee has reasonable grounds to believe | ||||||
| 14 | that sufficient funds are available for withdrawal in the | ||||||
| 15 | account upon which the check is drawn at the time of | ||||||
| 16 | disbursement. | ||||||
| 17 | (d) "Collected funds" means funds deposited, finally | ||||||
| 18 | settled, and credited to the title insurance company, title | ||||||
| 19 | insurance agent, or independent escrowee's fiduciary trust | ||||||
| 20 | account.
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| 21 | (e) A purchaser, a seller, or a lender is each considered a | ||||||
| 22 | single party to the transaction for the purposes of this | ||||||
| 23 | Section, regardless of the number of people or entities making | ||||||
| 24 | up the purchaser, seller, or lender. | ||||||
| 25 | (Source: P.A. 96-645, eff. 1-1-10.)
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| 26 | Section 99. Effective date. This Act takes effect January | ||||||
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| 1 | 1, 2011.
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