101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB0195

 

Introduced 1/30/2019, by Sen. Michael E. Hastings

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 155/26

    Amends the Title Insurance Act. Provides that the definition of "good funds" includes a check drawn on the fiduciary trust account of an independent escrowee.


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A BILL FOR

 

SB0195LRB101 05472 SMS 50486 b

1    AN ACT concerning regulation.
 
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.
17    For the purposes of this subsection (a), where funds in the
18aggregate amount of $50,000 or greater are received from any
19purchaser of residential real property, as defined in paragraph
20(14) of Section 3 of this Act, the aggregate amount may consist
21of good funds of less than $50,000 per paragraph, as defined in
22paragraphs (3) and (5) of subsection (c) of this Section and of
23up to $5,000 in good funds, as defined in paragraph (4) of

 

 

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1subsection (c) of this Section.
2    (a-5) In addition to the good funds disbursement
3authorization set forth in subsection (a) of this Section, a
4title insurance company, title insurance agent, or independent
5escrowee is authorized to make disbursements in connection with
6any escrows, settlements, or closings out of a fiduciary trust
7account or accounts where the funds in the aggregate amount of
8$50,000 or greater are received from any single party to the
9transaction if:
10        (1) the funds are transferred by a cashier's check,
11    teller's check, or certified check, as defined in the
12    Uniform Commercial Code, that is drawn on or issued by a
13    financial institution, as defined in this Act;
14        (2) the title insurance company, title insurance
15    agent, or independent escrowee and the financial
16    institution, as defined in this Act, agree to the use of
17    cashier's checks, teller's checks, or certified checks to
18    disburse the loan and related closing costs being funded by
19    the financial institution as good funds under item (3) of
20    subsection (c) of this Section; and
21        (3) the cashier's check, teller's check, or certified
22    check is delivered to the title insurance company, title
23    insurance agent, or independent escrowee in sufficient
24    time for the check to be deposited into the title insurance
25    company's, title insurance agent's, or independent
26    escrowee's fiduciary trust account prior to disbursement

 

 

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1    from the fiduciary trust account of the title insurance
2    company, title insurance agent, or independent escrowee.
3    (b) A title insurance company or title insurance agent
4shall not make disbursements in connection with any escrows,
5settlements, or closings out of a fiduciary trust account or
6accounts unless the funds in the amount of less than $50,000
7received from any single party to the transaction are collected
8funds or good funds as defined in subsection (c) of this
9Section.
10    (c) "Good funds" means funds in one of the following forms:
11        (1) lawful money of the United States;
12        (2) wired funds unconditionally held by and credited to
13    the fiduciary trust account of the title insurance company,
14    the title insurance agent, or independent escrowee;
15        (3) cashier's checks, certified checks, bank money
16    orders, official bank checks, or teller's checks drawn on
17    or issued by a financial institution and unconditionally
18    held by the title insurance company, title insurance agent,
19    or independent escrowee;
20        (4) a personal check or checks in an aggregate amount
21    not exceeding $5,000 per closing, provided that the title
22    insurance company, title insurance agent, or independent
23    escrowee has reasonable grounds to believe that sufficient
24    funds are available for withdrawal in the account upon
25    which the check is drawn at the time of disbursement;
26        (5) a check drawn on the trust account of any lawyer or

 

 

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1    real estate broker licensed under the laws of any state,
2    provided that the title insurance company, title insurance
3    agent, or independent escrowee has reasonable grounds to
4    believe that sufficient funds are available for withdrawal
5    in the account upon which the check is drawn at the time of
6    disbursement;
7        (6) a check issued by this State, the United States, or
8    a political subdivision of this State or the United States;
9    or
10        (7) a check drawn on the fiduciary trust account of a
11    title insurance company, or title insurance agent, or
12    independent escrowee, provided that the title insurance
13    company, title insurance agent, or independent escrowee
14    has reasonable grounds to believe that sufficient funds are
15    available for withdrawal in the account upon which the
16    check is drawn at the time of disbursement.
17    (d) "Collected funds" means funds deposited, finally
18settled, and credited to the title insurance company, title
19insurance agent, or independent escrowee's fiduciary trust
20account.
21    (e) A purchaser, a seller, or a lender is each considered a
22single party to the transaction for the purposes of this
23Section, regardless of the number of people or entities making
24up the purchaser, seller, or lender.
25(Source: P.A. 98-387, eff. 8-16-13; 98-1067, eff. 8-26-14.)