Rep. Ron Sandack

Filed: 2/27/2014

 

 


 

 


 
09800HB4677ham001LRB098 17406 RPM 55649 a

1
AMENDMENT TO HOUSE BILL 4677

2    AMENDMENT NO. ______. Amend House Bill 4677 by replacing
3everything after the enacting clause with the following:
 
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.

 

 

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

 

 

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

 

 

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1    or issued by a financial institution and unconditionally
2    held by the title insurance company, title insurance agent,
3    or independent escrowee;
4        (4) a personal check or checks in an aggregate amount
5    not exceeding $5,000 per closing, provided that the title
6    insurance company, title insurance agent, or independent
7    escrowee has reasonable grounds to believe that sufficient
8    funds are available for withdrawal in the account upon
9    which the check is drawn at the time of disbursement;
10        (5) a check drawn on the trust account of any lawyer or
11    real estate broker licensed under the laws of any state,
12    provided that the title insurance company, title insurance
13    agent, or independent escrowee has reasonable grounds to
14    believe that sufficient funds are available for withdrawal
15    in the account upon which the check is drawn at the time of
16    disbursement;
17        (6) a check issued by this State, the United States, or
18    a political subdivision of this State or the United States;
19    or
20        (7) a check drawn on the fiduciary trust account of a
21    title insurance company or title insurance agent, provided
22    that the title insurance company, title insurance agent, or
23    independent escrowee has reasonable grounds to believe
24    that sufficient funds are available for withdrawal in the
25    account upon which the check is drawn at the time of
26    disbursement.

 

 

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1    (d) "Collected funds" means funds deposited, finally
2settled, and credited to the title insurance company, title
3insurance agent, or independent escrowee's fiduciary trust
4account.
5    (e) A purchaser, a seller, or a lender is each considered a
6single party to the transaction for the purposes of this
7Section, regardless of the number of people or entities making
8up the purchaser, seller, or lender.
9(Source: P.A. 98-387, eff. 8-16-13.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".