98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4677

 

Introduced , by Rep. Ron Sandack

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 155/26

    Amends the Title Insurance Act. Deletes language that sunsets a provision concerning disbursement of settlement funds out of fiduciary trust accounts on January 1, 2015.


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A BILL FOR

 

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1    AN ACT concerning insurance.
 
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, are known to each
17    other and agree to the use of cashier's checks, teller's
18    checks, or certified checks as good funds under item (3) of
19    subsection (c) of this Section; and
20        (3) the cashier's check, teller's check, or certified
21    check is delivered to the title insurance company, title
22    insurance agent, or independent escrowee in sufficient
23    time for the check to be deposited into the title insurance
24    company's, title insurance agent's, or independent
25    escrowee's fiduciary trust account prior to disbursement
26    from the fiduciary trust account of the title insurance

 

 

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1    company, title insurance agent, or independent escrowee.
2    The provisions of this subsection (a-5) are inoperative on
3and after January 1, 2015.
4    (b) A title insurance company or title insurance agent
5shall not make disbursements in connection with any escrows,
6settlements, or closings out of a fiduciary trust account or
7accounts unless the funds in the amount of less than $50,000
8received from any single party to the transaction are collected
9funds or good funds as defined in subsection (c) of this
10Section.
11    (c) "Good funds" means funds in one of the following forms:
12        (1) lawful money of the United States;
13        (2) wired funds unconditionally held by and credited to
14    the fiduciary trust account of the title insurance company,
15    the title insurance agent, or independent escrowee;
16        (3) cashier's checks, certified checks, bank money
17    orders, official bank checks, or teller's checks drawn on
18    or issued by a financial institution and unconditionally
19    held by the title insurance company, title insurance agent,
20    or independent escrowee;
21        (4) a personal check or checks in an aggregate amount
22    not exceeding $5,000 per closing, provided that the title
23    insurance company, title insurance agent, or independent
24    escrowee has reasonable grounds to believe that sufficient
25    funds are available for withdrawal in the account upon
26    which the check is drawn at the time of disbursement;

 

 

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