Bill Text: IL SB3180 | 2011-2012 | 97th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Title Insurance Act to add an exception to the prohibition against a title insurance company, title insurance agent, or independent escrowee making disbursements in connection with any escrows, settlements, or closings out of a fiduciary trust account or accounts if the funds are good funds and the title insurance company, title insurance agent, or independent escrowee and the financial institution, as defined by the Act, are known to each other and agree to the use of these funds

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB3180 Detail]

Download: Illinois-2011-SB3180-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB3180 Introduced 2/1/2012, by Sen. John G. Mulroe SYNOPSIS AS INTRODUCED:
215 ILCS 155/26
Amends the Title Insurance Act to add an exception to the prohibition against a title insurance company, title insurance agent, or independent escrowee making disbursements in connection with any escrows, settlements, or closings out of a fiduciary trust account or accounts if the funds are good funds and the title insurance company, title insurance agent, or independent escrowee and the financial institution, as defined by the Act, are known to each other and agree to the use of these funds
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A BILL FOR
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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, or are good funds as defined in paragraph (3) of
subsection (c) of this Section and the title insurance company,
title insurance agent, or independent escrowee and the
financial institution, as defined by this Act, are known to
each other and agree to the use of these funds.
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

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(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.
(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 chartered under the
laws of any state or the United States 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

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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

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Section, regardless of the number of people or entities making
up the purchaser, seller, or lender.
(Source: P.A. 96-645, eff. 1-1-10; 96-1457, eff. 1-1-11.)