Bill Text: IL SB2111 | 2009-2010 | 96th General Assembly | Enrolled
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2009-08-24 - Public Act . . . . . . . . . 96-0645 [SB2111 Detail]
Download: Illinois-2009-SB2111-Enrolled.html
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| 1 | AN ACT concerning insurance.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Title Insurance Act is amended by adding | ||||||
| 5 | Section 26 as follows:
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| 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 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 | (b) A title insurance company or title insurance agent | ||||||
| 18 | shall not make disbursements in connection with any escrows, | ||||||
| 19 | settlements, or closings out of a fiduciary trust account or | ||||||
| 20 | accounts unless the funds in the amount of less than $50,000 | ||||||
| 21 | received from any single party to the transaction are collected | ||||||
| 22 | funds or good funds as defined in subsection (c) of this | ||||||
| 23 | Section. | ||||||
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| 1 | (c) "Good funds" means funds in one of the following forms: | ||||||
| 2 | (1) lawful money of the United States; | ||||||
| 3 | (2) wired funds unconditionally held by and credited to | ||||||
| 4 | the fiduciary trust account of the title insurance company, | ||||||
| 5 | the title insurance agent, or independent escrowee; | ||||||
| 6 | (3) cashier's checks, certified checks, bank money
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| 7 | orders, official bank checks, or teller's checks drawn on
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| 8 | or issued by a financial institution chartered under the
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| 9 | laws of any state or the United States and unconditionally
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| 10 | held by the title insurance company, title insurance agent,
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| 11 | or independent escrowee; | ||||||
| 12 | (4) a personal check or checks in an aggregate amount | ||||||
| 13 | not exceeding $5,000 per closing, provided that the title | ||||||
| 14 | insurance company, title insurance agent, or independent | ||||||
| 15 | escrowee has reasonable grounds to believe that sufficient | ||||||
| 16 | funds are available for withdrawal in the account upon | ||||||
| 17 | which the check is drawn at the time of disbursement; | ||||||
| 18 | (5) a check drawn on the trust account of any lawyer or | ||||||
| 19 | real estate broker licensed under the laws of any state, | ||||||
| 20 | provided that the title insurance company, title insurance | ||||||
| 21 | agent, or independent escrowee has reasonable grounds to | ||||||
| 22 | believe that sufficient funds are available for withdrawal | ||||||
| 23 | in the account upon which the check is drawn at the time of | ||||||
| 24 | disbursement; | ||||||
| 25 | (6) a check issued by this State, the United States, or | ||||||
| 26 | a political subdivision of this State or the United States; | ||||||
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| 1 | or | ||||||
| 2 | (7) a check drawn on the fiduciary trust account of a | ||||||
| 3 | title insurance company or title insurance agent, provided | ||||||
| 4 | that the title insurance company, title insurance agent, or | ||||||
| 5 | independent escrowee has reasonable grounds to believe | ||||||
| 6 | that sufficient funds are available for withdrawal in the | ||||||
| 7 | account upon which the check is drawn at the time of | ||||||
| 8 | disbursement. | ||||||
| 9 | (d) "Collected funds" means funds deposited, finally | ||||||
| 10 | settled, and credited to the title insurance company, title | ||||||
| 11 | insurance agent, or independent escrowee's fiduciary trust | ||||||
| 12 | account.
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| 13 | Section 99. Effective date. This Act takes effect January | ||||||
| 14 | 1, 2010.
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