Bill Text: IL HB4677 | 2013-2014 | 98th General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: 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.
Spectrum: Bipartisan Bill
Status: (Passed) 2014-08-26 - Public Act . . . . . . . . . 98-1067 [HB4677 Detail]
Download: Illinois-2013-HB4677-Enrolled.html
Bill Title: 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.
Spectrum: Bipartisan Bill
Status: (Passed) 2014-08-26 - Public Act . . . . . . . . . 98-1067 [HB4677 Detail]
Download: Illinois-2013-HB4677-Enrolled.html
| |||||||
| |||||||
| |||||||
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 changing | ||||||
5 | Section 26 as follows:
| ||||||
6 | (215 ILCS 155/26) | ||||||
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 good funds as defined in | ||||||
14 | paragraphs (2), (6), or (7) of subsection (c) of this Section; | ||||||
15 | or are collected funds as defined in subsection (d) of this | ||||||
16 | Section. | ||||||
17 | For the purposes of this subsection (a), where funds in the | ||||||
18 | aggregate amount of $50,000 or greater are received from any | ||||||
19 | purchaser of residential real property, as defined in paragraph | ||||||
20 | (14) of Section 3 of this Act, the aggregate amount may consist | ||||||
21 | of good funds of less than $50,000 per paragraph, as defined in | ||||||
22 | paragraphs (3) and (5) of subsection (c) of this Section and of | ||||||
23 | up to $5,000 in good funds, as defined in paragraph (4) of |
| |||||||
| |||||||
1 | subsection (c) of this Section. | ||||||
2 | (a-5) In addition to the good funds disbursement | ||||||
3 | authorization set forth in subsection (a) of this Section, a | ||||||
4 | title insurance company, title insurance agent, or independent | ||||||
5 | escrowee is authorized to make disbursements in connection with | ||||||
6 | any escrows, settlements, or closings out of a fiduciary trust | ||||||
7 | account or accounts where the funds in the aggregate amount of | ||||||
8 | $50,000 or greater are received from any single party to the | ||||||
9 | transaction 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 to disburse the loan and | ||||||
19 | related closing costs being funded by the financial | ||||||
20 | institution as good funds under item (3) of subsection (c) | ||||||
21 | of this Section; and | ||||||
22 | (3) the cashier's check, teller's check, or certified | ||||||
23 | check is delivered to the title insurance company, title | ||||||
24 | insurance agent, or independent escrowee in sufficient | ||||||
25 | time for the check to be deposited into the title insurance | ||||||
26 | company's, title insurance agent's, or independent |
| |||||||
| |||||||
1 | escrowee's fiduciary trust account prior to disbursement | ||||||
2 | from the fiduciary trust account of the title insurance | ||||||
3 | company, title insurance agent, or independent escrowee. | ||||||
4 | The provisions of this subsection (a-5) are inoperative on | ||||||
5 | and after January 1, 2015. | ||||||
6 | (b) A title insurance company or title insurance agent | ||||||
7 | shall not make disbursements in connection with any escrows, | ||||||
8 | settlements, or closings out of a fiduciary trust account or | ||||||
9 | accounts unless the funds in the amount of less than $50,000 | ||||||
10 | received from any single party to the transaction are collected | ||||||
11 | funds or good funds as defined in subsection (c) of this | ||||||
12 | Section. | ||||||
13 | (c) "Good funds" means funds in one of the following forms: | ||||||
14 | (1) lawful money of the United States; | ||||||
15 | (2) wired funds unconditionally held by and credited to | ||||||
16 | the fiduciary trust account of the title insurance company, | ||||||
17 | the title insurance agent, or independent escrowee; | ||||||
18 | (3) cashier's checks, certified checks, bank money
| ||||||
19 | orders, official bank checks, or teller's checks drawn on
| ||||||
20 | or issued by a financial institution and unconditionally
| ||||||
21 | held by the title insurance company, title insurance agent,
| ||||||
22 | or independent escrowee; | ||||||
23 | (4) a personal check or checks in an aggregate amount | ||||||
24 | not exceeding $5,000 per closing, provided that the title | ||||||
25 | insurance company, title insurance agent, or independent | ||||||
26 | escrowee has reasonable grounds to believe that sufficient |
| |||||||
| |||||||
1 | funds are available for withdrawal in the account upon | ||||||
2 | which the check is drawn at the time of disbursement; | ||||||
3 | (5) a check drawn on the trust account of any lawyer or | ||||||
4 | real estate broker licensed under the laws of any state, | ||||||
5 | provided that the title insurance company, title insurance | ||||||
6 | agent, or independent escrowee has reasonable grounds to | ||||||
7 | believe that sufficient funds are available for withdrawal | ||||||
8 | in the account upon which the check is drawn at the time of | ||||||
9 | disbursement; | ||||||
10 | (6) a check issued by this State, the United States, or | ||||||
11 | a political subdivision of this State or the United States; | ||||||
12 | or | ||||||
13 | (7) a check drawn on the fiduciary trust account of a | ||||||
14 | title insurance company or title insurance agent, provided | ||||||
15 | that the title insurance company, title insurance agent, or | ||||||
16 | independent escrowee has reasonable grounds to believe | ||||||
17 | that sufficient funds are available for withdrawal in the | ||||||
18 | account upon which the check is drawn at the time of | ||||||
19 | disbursement. | ||||||
20 | (d) "Collected funds" means funds deposited, finally | ||||||
21 | settled, and credited to the title insurance company, title | ||||||
22 | insurance agent, or independent escrowee's fiduciary trust | ||||||
23 | account.
| ||||||
24 | (e) A purchaser, a seller, or a lender is each considered a | ||||||
25 | single party to the transaction for the purposes of this | ||||||
26 | Section, regardless of the number of people or entities making |
| |||||||
| |||||||
1 | up the purchaser, seller, or lender. | ||||||
2 | (Source: P.A. 98-387, eff. 8-16-13.)
| ||||||
3 | Section 99. Effective date. This Act takes effect upon | ||||||
4 | becoming law.
|