97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3180

 

Introduced 2/1/2012, by Sen. John G. Mulroe

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 155/26

    Amends the Title Insurance Act to add an exception to the prohibition against a title insurance company, title insurance agent, or independent escrowee making disbursements in connection with any escrows, settlements, or closings out of a fiduciary trust account or accounts if the funds are good funds and the title insurance company, title insurance agent, or independent escrowee and the financial institution, as defined by the Act, are known to each other and agree to the use of these funds


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A BILL FOR

 

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1    AN ACT concerning insurance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Title Insurance Act is amended by changing
5Section 26 as follows:
 
6    (215 ILCS 155/26)
7    Sec. 26. Settlement funds.
8    (a) A title insurance company, title insurance agent, or
9independent escrowee shall not make disbursements in
10connection with any escrows, settlements, or closings out of a
11fiduciary trust account or accounts unless the funds in the
12aggregate amount of $50,000 or greater received from any single
13party to the transaction are good funds as defined in
14paragraphs (2), (6), or (7) of subsection (c) of this Section, ;
15or are collected funds as defined in subsection (d) of this
16Section, or are good funds as defined in paragraph (3) of
17subsection (c) of this Section and the title insurance company,
18title insurance agent, or independent escrowee and the
19financial institution, as defined by this Act, are known to
20each other and agree to the use of these funds.
21    For the purposes of this subsection (a), where funds in the
22aggregate amount of $50,000 or greater are received from any
23purchaser of residential real property, as defined in paragraph

 

 

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1(14) of Section 3 of this Act, the aggregate amount may consist
2of good funds of less than $50,000 per paragraph, as defined in
3paragraphs (3) and (5) of subsection (c) of this Section and of
4up to $5,000 in good funds, as defined in paragraph (4) of
5subsection (c) of this Section.
6    (b) A title insurance company or title insurance agent
7shall not make disbursements in connection with any escrows,
8settlements, or closings out of a fiduciary trust account or
9accounts unless the funds in the amount of less than $50,000
10received from any single party to the transaction are collected
11funds or good funds as defined in subsection (c) of this
12Section.
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
19    orders, official bank checks, or teller's checks drawn on
20    or issued by a financial institution chartered under the
21    laws of any state or the United States and unconditionally
22    held by the title insurance company, title insurance agent,
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
22settled, and credited to the title insurance company, title
23insurance agent, or independent escrowee's fiduciary trust
24account.
25    (e) A purchaser, a seller, or a lender is each considered a
26single party to the transaction for the purposes of this

 

 

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1Section, regardless of the number of people or entities making
2up the purchaser, seller, or lender.
3(Source: P.A. 96-645, eff. 1-1-10; 96-1457, eff. 1-1-11.)