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HB5677 Enrolled |
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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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| For the purposes of this subsection (a), where funds in the |
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| aggregate amount of $50,000 or greater are received from any |
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| purchaser of residential real property, as defined in paragraph |
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| (14) of Section 3 of this Act, the aggregate amount may consist |
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| of good funds of less than $50,000 per paragraph, as defined in |
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| paragraphs (3) and (5) of subsection (c) of this Section and of |
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| up to $5,000 in good funds, as defined in paragraph (4) of |
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HB5677 Enrolled |
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LRB096 17726 RPM 33091 b |
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| subsection (c) 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 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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HB5677 Enrolled |
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LRB096 17726 RPM 33091 b |
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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 is each considered a |
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| 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 |