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| [ Engrossed ] | [ Senate Amendment 001 ] |
90_SB1240
215 ILCS 155/17 from Ch. 73, par. 1417
Amends the Title Insurance Act. Provides that title
insurance companies and agents may act as escrow agents even
if not issuing title insurance or qualified as an independent
escrowee. Effective immediately.
LRB9007953JSgc
LRB9007953JSgc
1 AN ACT to amend the Title Insurance Act by changing
2 Section 17.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Title Insurance Act is amended by
6 changing Section 17 as follows:
7 (215 ILCS 155/17) (from Ch. 73, par. 1417)
8 Sec. 17. Independent escrowees.
9 (a) Every independent escrowee shall be subject to the
10 same certification and deposit requirements to which title
11 insurance companies are subject under Section 4 of this Act.
12 (b) No person, firm, corporation or other legal entity
13 shall hold itself out to be an independent escrowee unless it
14 has been issued a certificate of authority by the Director.
15 (c) Every applicant for a certificate of authority,
16 except a firm, partnership, association or corporation, must
17 be 18 years or more of age.
18 (d) Every certificate of authority shall remain in
19 effect one year unless revoked or suspended by the Director
20 or voluntarily surrendered by the holder.
21 (e) An independent escrowee may engage in the escrow,
22 settlement, or closing business, or any combination of such
23 business, and operate as an escrow, settlement, or closing
24 agent, provided that:
25 (1) Funds deposited in connection with any escrow,
26 settlement, or closing shall be deposited in a separate
27 fiduciary trust account or accounts in a bank or other
28 financial institution insured by an agency of the federal
29 government unless the instructions provide otherwise.
30 Such funds shall be the property of the person or persons
31 entitled thereto under the provisions of the escrow,
-2- LRB9007953JSgc
1 settlement, or closing and shall be segregated by escrow,
2 settlement or closing in the records of the independent
3 escrowee. Such funds shall not be subject to any debts
4 of the escrowee and shall be used only in accordance with
5 the terms of the individual escrow, settlement or closing
6 under which the funds were accepted.
7 (2) Interest received on funds deposited with the
8 independent escrowee in connection with any escrow,
9 settlement or closing shall be paid to the depositing
10 party unless the instructions provide otherwise.
11 (3) The independent escrowee shall maintain
12 separate records of all receipt and disbursement of
13 escrow, settlement or closing funds.
14 (4) The independent escrowee shall comply with any
15 rules or regulations promulgated by the Director
16 pertaining to escrow, settlement or closing transactions.
17 (f) The Director or his authorized representative shall
18 have the power and authority to visit and examine at any time
19 any independent escrowee certified under this Act and to
20 compel compliance with the provisions of this Act.
21 (g) A title insurance company or title insurance agent
22 may act in the capacity of an escrow agent even if it is not
23 issuing a title insurance commitment or policy and is not
24 qualified as an independent escrowee. A title insurance
25 agent may so act in this capacity only when specifically
26 authorized in writing by a title insurance company that has
27 duly registered the agent with the Director and only when the
28 authorization is filed with the Director. The authority
29 granted to a title insurance agent may be limited or revoked
30 at any time by the title insurance company.
31 (Source: P.A. 86-239.)
32 Section 99. Effective date. This Act takes effect upon
33 becoming law.