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