Full Text of HB5677 96th General Assembly
HB5677 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB5677
Introduced 2/9/2010, by Rep. Lou Lang SYNOPSIS AS INTRODUCED: |
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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.
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A BILL FOR
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HB5677 |
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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 | 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 |
| (b) A title insurance company or title insurance agent | 18 |
| shall not make disbursements in connection with any escrows, | 19 |
| settlements, or closings out of a fiduciary trust account or | 20 |
| accounts unless the funds in the amount of less than $50,000 | 21 |
| received from any single party to the transaction are collected | 22 |
| funds or good funds as defined in subsection (c) of this | 23 |
| Section. |
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HB5677 |
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LRB096 17726 RPM 33091 b |
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| (c) "Good funds" means funds in one of the following forms: | 2 |
| (1) lawful money of the United States; | 3 |
| (2) wired funds unconditionally held by and credited to | 4 |
| the fiduciary trust account of the title insurance company, | 5 |
| the title insurance agent, or independent escrowee; | 6 |
| (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; | 12 |
| (4) a personal check or checks in an aggregate amount | 13 |
| not exceeding $5,000 per closing, provided that the title | 14 |
| insurance company, title insurance agent, or independent | 15 |
| escrowee has reasonable grounds to believe that sufficient | 16 |
| funds are available for withdrawal in the account upon | 17 |
| which the check is drawn at the time of disbursement; | 18 |
| (5) a check drawn on the trust account of any lawyer or | 19 |
| real estate broker licensed under the laws of any state, | 20 |
| provided that the title insurance company, title insurance | 21 |
| agent, or independent escrowee has reasonable grounds to | 22 |
| believe that sufficient funds are available for withdrawal | 23 |
| in the account upon which the check is drawn at the time of | 24 |
| disbursement; | 25 |
| (6) a check issued by this State, the United States, or | 26 |
| a political subdivision of this State or the United States; |
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HB5677 |
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LRB096 17726 RPM 33091 b |
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| or | 2 |
| (7) a check drawn on the fiduciary trust account of a | 3 |
| title insurance company or title insurance agent, provided | 4 |
| that the title insurance company, title insurance agent, or | 5 |
| independent escrowee has reasonable grounds to believe | 6 |
| that sufficient funds are available for withdrawal in the | 7 |
| account upon which the check is drawn at the time of | 8 |
| disbursement. | 9 |
| (d) "Collected funds" means funds deposited, finally | 10 |
| settled, and credited to the title insurance company, title | 11 |
| insurance agent, or independent escrowee's fiduciary trust | 12 |
| account.
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| (e) A purchaser, a seller, or a lender are each considered | 14 |
| a single party to the transaction for the purposes of this | 15 |
| Section, regardless of the number of people or entities making | 16 |
| up the purchaser, seller, or lender. | 17 |
| (Source: P.A. 96-645, eff. 1-1-10.)
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| Section 99. Effective date. This Act takes effect January | 19 |
| 1, 2011.
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