Full Text of SB2786 095th General Assembly
SB2786eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning regulation.
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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 adding | 5 |
| Section 26 as follows: | 6 |
| (215 ILCS 155/26 new) | 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 wired funds unconditionally held | 14 |
| by and irrevocably credited to the fiduciary trust account of | 15 |
| the title insurance company, title insurance agent, or | 16 |
| independent escrowee; are good funds as defined in paragraphs | 17 |
| (6) or (7) of subsection (c) of this Section; or are collected | 18 |
| funds as defined in subsection (d) of this Section. | 19 |
| (b) A title insurance company or title insurance agent | 20 |
| shall not make disbursements in connection with any escrows, | 21 |
| settlements, or closings out of a fiduciary trust account or | 22 |
| accounts unless the funds in the amount of less than $50,000 | 23 |
| 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 | 2 |
| Section. | 3 |
| (c) "Good funds" means funds in one of the following forms: | 4 |
| (1) lawful money of the United States; | 5 |
| (2) wired funds unconditionally held by and | 6 |
| irrevocably credited to the fiduciary trust account of the | 7 |
| title insurance company, the title insurance agent, or | 8 |
| independent escrowee; | 9 |
| (3) cashier's checks, certified checks, bank money | 10 |
| orders, official bank checks, or teller's checks drawn on | 11 |
| or issued by a financial institution chartered under the | 12 |
| laws of any state or the United States and unconditionally | 13 |
| held by the title insurance company, title insurance agent, | 14 |
| or independent escrowee; | 15 |
| (4) a personal check or checks in an aggregate amount | 16 |
| not exceeding $5,000 per closing, provided that the title | 17 |
| insurance company, title insurance agent, or independent | 18 |
| escrowee has reasonable and prudent grounds to believe that | 19 |
| sufficient funds are available for withdrawal in the | 20 |
| account upon which the check is drawn at the time of | 21 |
| disbursement; | 22 |
| (5) a check drawn on the trust account of any lawyer or | 23 |
| real estate broker licensed under the laws of any state, | 24 |
| provided that the title insurance company, title insurance | 25 |
| agent, or independent escrowee has reasonable and prudent | 26 |
| grounds to believe that sufficient funds are available for |
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| withdrawal in the account upon which the check is drawn at | 2 |
| the time of disbursement; | 3 |
| (6) a check issued by this State, the United States, or | 4 |
| a political subdivision of this State or the United States; | 5 |
| or | 6 |
| (7) a check drawn on the fiduciary trust account of a | 7 |
| title insurance company or title insurance agent, provided | 8 |
| that the title insurance company, title insurance agent, or | 9 |
| independent escrowee has reasonable and prudent grounds to | 10 |
| believe that sufficient funds are available for withdrawal | 11 |
| in the account upon which the check is drawn at the time of | 12 |
| disbursement. | 13 |
| (d) "Collected funds" means funds deposited, finally | 14 |
| settled, and credited to the title insurance company, title | 15 |
| insurance agent, or independent escrowee's fiduciary trust | 16 |
| account.
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| Section 99. Effective date. This Act takes effect January | 18 |
| 1, 2009.
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