Public Act 096-1457
 
HB5677 EnrolledLRB096 17726 RPM 33091 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. 
    (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 
    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. 96-645, eff. 1-1-10.)
 
 
    Section 99. Effective date. This Act takes effect January 
1, 2011.