96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB2111


 
Introduced 2/20/2009, by Sen. Don Harmon
 
SYNOPSIS AS INTRODUCED:
 		













215 ILCS 155/26 new










    Amends the Title Insurance Act. Provides that 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 wired funds unconditionally held by and credited to the fiduciary trust account of the title insurance company, title insurance agent, or independent escrowee; are good funds as defined in the provision; or are collected funds as defined in the provision. Provides that 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 the provision. Sets forth definitions for "good funds" and "collected funds". Effective January 1, 2010.
















LRB096 07715 RPM 17816 b

















 


 


A BILL FOR









 











SB2111

LRB096 07715 RPM 17816 b






1
    AN ACT concerning insurance.

 
2
    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:


 
4
    Section 5. The Title Insurance Act is amended  by adding 
5
Section 26 as follows:
 
6
    (215 ILCS 155/26  new)
7
    Sec. 26. Settlement funds.
8
    (a) A title insurance company, title insurance agent, or 
9
independent escrowee shall not make disbursements in 
10
connection with any escrows, settlements, or closings out of a 
11
fiduciary trust account or accounts unless the funds in the 
12
aggregate amount of $50,000 or greater received from any single 
13
party to the transaction are wired funds unconditionally held 
14
by and credited to the fiduciary trust account of the title 
15
insurance company, title insurance agent, or independent 
16
escrowee; are good funds as defined in paragraphs (6) or (7) of 
17
subsection (c) of this Section; or are collected funds as 
18
defined in subsection (d) of this Section.
19
    (b) A title insurance company or title insurance agent 
20
shall not make disbursements in connection with any escrows, 
21
settlements, or closings out of a fiduciary trust account or 
22
accounts unless the funds in the amount of less than $50,000 
23
received from any single party to the transaction are collected 
 


 






SB2111
- 2 -
LRB096 07715 RPM 17816 b




1
funds or good funds as defined in subsection (c) of this 
2
Section.
3
    (c) "Good funds" means funds in one of the following forms:
4
        (1) lawful money of the United States;
5
        (2) wired funds unconditionally held by and credited to 
6
    the fiduciary trust account of the title insurance company, 
7
    the title insurance agent, or independent escrowee;
8
        (3) cashier's checks, certified checks, bank money

9
    orders, official bank checks, or teller's checks drawn on

10
    or issued by a financial institution chartered under the

11
    laws of any state or the United States and unconditionally

12
    held by the title insurance company, title insurance agent,

13
    or independent escrowee;
14
        (4) a personal check or checks in an aggregate amount 
15
    not exceeding $5,000 per closing, provided that the title 
16
    insurance company, title insurance agent, or independent 
17
    escrowee has reasonable grounds to believe that sufficient 
18
    funds are available for withdrawal in the account upon 
19
    which the check is drawn at the time of disbursement;
20
        (5) a check drawn on the trust account of any lawyer or 
21
    real estate broker licensed under the laws of any state, 
22
    provided that the title insurance company, title insurance 
23
    agent, or independent escrowee has reasonable and prudent 
24
    grounds to believe that sufficient funds are available for 
25
    withdrawal in the account upon which the check is drawn at 
26
    the time of disbursement;
 


 






SB2111
- 3 -
LRB096 07715 RPM 17816 b




1
        (6) a check issued by this State, the United States, or 
2
    a political subdivision of this State or the United States; 
3
    or
4
        (7) a check drawn on the fiduciary trust account of a 
5
    title insurance company or title insurance agent, provided 
6
    that the title insurance company, title insurance agent, or 
7
    independent escrowee has reasonable grounds to believe 
8
    that sufficient funds are available for withdrawal in the 
9
    account upon which the check is drawn at the time of 
10
    disbursement.
11
    (d) "Collected funds" means funds deposited, finally 
12
settled, and credited to the title insurance company, title 
13
insurance agent, or independent escrowee's fiduciary trust 
14
account.
 

15
    Section 99. Effective date. This Act takes effect January 
16
1, 2010.