Illinois General Assembly - Full Text of Public Act 098-1067
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Public Act 098-1067


 

Public Act 1067 98TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 098-1067
 
HB4677 EnrolledLRB098 17406 RPM 52506 b

    AN ACT concerning insurance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Title Insurance Act is amended by changing
Section 26 as follows:
 
    (215 ILCS 155/26)
    Sec. 26. Settlement funds.
    (a) A title insurance company, title insurance agent, or
independent escrowee shall not make disbursements in
connection with any escrows, settlements, or closings out of a
fiduciary trust account or accounts unless the funds in the
aggregate amount of $50,000 or greater received from any single
party to the transaction are good funds as defined in
paragraphs (2), (6), or (7) of subsection (c) of this Section;
or are collected funds as defined in subsection (d) of this
Section.
    For the purposes of this subsection (a), where funds in the
aggregate amount of $50,000 or greater are received from any
purchaser of residential real property, as defined in paragraph
(14) of Section 3 of this Act, the aggregate amount may consist
of good funds of less than $50,000 per paragraph, as defined in
paragraphs (3) and (5) of subsection (c) of this Section and of
up to $5,000 in good funds, as defined in paragraph (4) of
subsection (c) of this Section.
    (a-5) In addition to the good funds disbursement
authorization set forth in subsection (a) of this Section, a
title insurance company, title insurance agent, or independent
escrowee is authorized to make disbursements in connection with
any escrows, settlements, or closings out of a fiduciary trust
account or accounts where the funds in the aggregate amount of
$50,000 or greater are received from any single party to the
transaction if:
        (1) the funds are transferred by a cashier's check,
    teller's check, or certified check, as defined in the
    Uniform Commercial Code, that is drawn on or issued by a
    financial institution, as defined in this Act;
        (2) the title insurance company, title insurance
    agent, or independent escrowee and the financial
    institution, as defined in this Act, are known to each
    other and agree to the use of cashier's checks, teller's
    checks, or certified checks to disburse the loan and
    related closing costs being funded by the financial
    institution as good funds under item (3) of subsection (c)
    of this Section; and
        (3) the cashier's check, teller's check, or certified
    check is delivered to the title insurance company, title
    insurance agent, or independent escrowee in sufficient
    time for the check to be deposited into the title insurance
    company's, title insurance agent's, or independent
    escrowee's fiduciary trust account prior to disbursement
    from the fiduciary trust account of the title insurance
    company, title insurance agent, or independent escrowee.
    The provisions of this subsection (a-5) are inoperative on
and after January 1, 2015.
    (b) A title insurance company or title insurance agent
shall not make disbursements in connection with any escrows,
settlements, or closings out of a fiduciary trust account or
accounts unless the funds in the amount of less than $50,000
received from any single party to the transaction are collected
funds or good funds as defined in subsection (c) of this
Section.
    (c) "Good funds" means funds in one of the following forms:
        (1) lawful money of the United States;
        (2) wired funds unconditionally held by and credited to
    the fiduciary trust account of the title insurance company,
    the title insurance agent, or independent escrowee;
        (3) cashier's checks, certified checks, bank money
    orders, official bank checks, or teller's checks drawn on
    or issued by a financial institution and unconditionally
    held by the title insurance company, title insurance agent,
    or independent escrowee;
        (4) a personal check or checks in an aggregate amount
    not exceeding $5,000 per closing, provided that the title
    insurance company, title insurance agent, or independent
    escrowee has reasonable grounds to believe that sufficient
    funds are available for withdrawal in the account upon
    which the check is drawn at the time of disbursement;
        (5) a check drawn on the trust account of any lawyer or
    real estate broker licensed under the laws of any state,
    provided that the title insurance company, title insurance
    agent, or independent escrowee has reasonable grounds to
    believe that sufficient funds are available for withdrawal
    in the account upon which the check is drawn at the time of
    disbursement;
        (6) a check issued by this State, the United States, or
    a political subdivision of this State or the United States;
    or
        (7) a check drawn on the fiduciary trust account of a
    title insurance company or title insurance agent, provided
    that the title insurance company, title insurance agent, or
    independent escrowee has reasonable grounds to believe
    that sufficient funds are available for withdrawal in the
    account upon which the check is drawn at the time of
    disbursement.
    (d) "Collected funds" means funds deposited, finally
settled, and credited to the title insurance company, title
insurance agent, or independent escrowee's fiduciary trust
account.
    (e) A purchaser, a seller, or a lender is each considered a
single party to the transaction for the purposes of this
Section, regardless of the number of people or entities making
up the purchaser, seller, or lender.
(Source: P.A. 98-387, eff. 8-16-13.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/26/2014