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| | SB3180 Engrossed | | LRB097 18837 RPM 64075 b |
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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:
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| 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, or are good funds as defined in paragraph (3) of |
| 17 | | subsection (c) of this Section and the title insurance company, |
| 18 | | title insurance agent, or independent escrowee and the |
| 19 | | financial institution, as defined by this Act, are known to |
| 20 | | each other and agree to the use of these funds. |
| 21 | | For the purposes of this subsection (a), where funds in the |
| 22 | | aggregate amount of $50,000 or greater are received from any |
| 23 | | purchaser of residential real property, as defined in paragraph |
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| | SB3180 Engrossed | - 2 - | LRB097 18837 RPM 64075 b |
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| 1 | | (14) of Section 3 of this Act, the aggregate amount may consist |
| 2 | | of good funds of less than $50,000 per paragraph, as defined in |
| 3 | | paragraphs (3) and (5) of subsection (c) of this Section and of |
| 4 | | up to $5,000 in good funds, as defined in paragraph (4) of |
| 5 | | subsection (c) of this Section. |
| 6 | | (b) A title insurance company or title insurance agent |
| 7 | | shall not make disbursements in connection with any escrows, |
| 8 | | settlements, or closings out of a fiduciary trust account or |
| 9 | | accounts unless the funds in the amount of less than $50,000 |
| 10 | | received from any single party to the transaction are collected |
| 11 | | funds or good funds as defined in subsection (c) of this |
| 12 | | Section. |
| 13 | | (c) "Good funds" means funds in one of the following forms: |
| 14 | | (1) lawful money of the United States; |
| 15 | | (2) wired funds unconditionally held by and credited to |
| 16 | | the fiduciary trust account of the title insurance company, |
| 17 | | the title insurance agent, or independent escrowee; |
| 18 | | (3) cashier's checks, certified checks, bank money
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| 19 | | orders, official bank checks, or teller's checks drawn on
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| 20 | | or issued by a financial institution chartered under the
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| 21 | | laws of any state or the United States and unconditionally
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| 22 | | held by the title insurance company, title insurance agent,
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| 23 | | or independent escrowee; |
| 24 | | (4) a personal check or checks in an aggregate amount |
| 25 | | not exceeding $5,000 per closing, provided that the title |
| 26 | | insurance company, title insurance agent, or independent |
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| 1 | | escrowee has reasonable grounds to believe that sufficient |
| 2 | | funds are available for withdrawal in the account upon |
| 3 | | which the check is drawn at the time of disbursement; |
| 4 | | (5) a check drawn on the trust account of any lawyer or |
| 5 | | real estate broker licensed under the laws of any state, |
| 6 | | provided that the title insurance company, title insurance |
| 7 | | agent, or independent escrowee has reasonable grounds to |
| 8 | | believe that sufficient funds are available for withdrawal |
| 9 | | in the account upon which the check is drawn at the time of |
| 10 | | disbursement; |
| 11 | | (6) a check issued by this State, the United States, or |
| 12 | | a political subdivision of this State or the United States; |
| 13 | | or |
| 14 | | (7) a check drawn on the fiduciary trust account of a |
| 15 | | title insurance company or title insurance agent, provided |
| 16 | | that the title insurance company, title insurance agent, or |
| 17 | | independent escrowee has reasonable grounds to believe |
| 18 | | that sufficient funds are available for withdrawal in the |
| 19 | | account upon which the check is drawn at the time of |
| 20 | | disbursement. |
| 21 | | (d) "Collected funds" means funds deposited, finally |
| 22 | | settled, and credited to the title insurance company, title |
| 23 | | insurance agent, or independent escrowee's fiduciary trust |
| 24 | | account.
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| 25 | | (e) A purchaser, a seller, or a lender is each considered a |
| 26 | | single party to the transaction for the purposes of this |