HB5160 95TH GENERAL ASSEMBLY

LRB095 18258 AJO 44342 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5160

Introduced , by Rep. Ruth Munson

SYNOPSIS AS INTRODUCED:

765 ILCS 905/4.5 new

Amends the Mortgage Act. Provides that any person who is required to pay or deliver funds to complete a real estate closing shall do so at the closing. Provides a definition of a real estate closing. Provides that a person who wants to make a wire transfer at a closing shall make contact with the person or entity that will receive the funds prior to the closing to determine if a wire transfer can be made and, if so, the details of effecting the transfer. Provides that a person who fails to make any required payment at a closing is liable to any party involved in the closing who incurs a loss or expense because of the failure to make the payment at the closing, plus costs and reasonable attorney's fees. Effective immediately.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Mortgage Act is amended by adding Section 4.5 as follows:

(765 ILCS 905/4.5 new)

Sec. 4.5. Timely payment of sums due.

(a) Any person who is to pay or deliver funds as part of a real estate closing shall do so at the time of the closing.

(b) For purposes of this Section, "real estate closing" or "closing" means the conclusion of a real estate sale or transaction or the refinancing of a real estate loan at which time funds are paid and documents to conclude the transaction are executed.

(c) A person who has an obligation to pay or deliver funds at the time of a closing who prefers to deliver the funds by a wire transfer shall contact, at least one day in advance of the closing, the person or entity that is to receive those funds to determine whether a wire transfer is an acceptable means of transferring funds and, if so, the details of how to complete a wire transfer for the closing.

(d) A person with an obligation to pay or deliver funds to complete a closing who fails to do so at the time of the closing shall be liable for any actual damages to any party involved in the real estate closing who incurs any expense or loss because of the person's failure to pay or deliver funds at the time of the closing, plus costs and reasonable attorney's fees.

Section 99. Effective date. This Act takes effect upon becoming law.