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
  


LRB097 18837 RPM 64075 b

 
 
A BILL FOR
 

  
SB3180LRB097 18837 RPM 64075 b


  
1    AN ACT concerning insurance.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Title Insurance Act is amended  by changing 
5Section 26 as follows:
 
6    (215 ILCS 155/26)
7    Sec. 26. Settlement funds.
8    (a) A title insurance company, title insurance agent, or 
9independent escrowee shall not make disbursements in 
10connection with any escrows, settlements, or closings out of a 
11fiduciary trust account or accounts unless the funds in the 
12aggregate amount of $50,000 or greater received from any single 
13party to the transaction are good funds as defined in 
14paragraphs (2), (6), or (7) of subsection (c) of this Section, ; 
15or are collected funds as defined in subsection (d) of this 
16Section, or are good funds as defined in paragraph (3) of 
17subsection (c) of this Section and the title insurance company, 
18title insurance agent, or independent escrowee and the 
19financial institution, as defined by this Act, are known to 
20each other and agree to the use of these funds.
21    For the purposes of this subsection (a), where funds in the 
22aggregate amount of $50,000 or greater are received from any 
23purchaser of residential real property, as defined in paragraph 
 
 
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1(14) of Section 3 of this Act, the aggregate amount may consist 
2of good funds of less than $50,000 per paragraph, as defined in 
3paragraphs (3) and (5) of subsection (c) of this Section and of 
4up to $5,000 in good funds, as defined in paragraph (4) of 
5subsection (c) of this Section. 
6    (b) A title insurance company or title insurance agent 
7shall not make disbursements in connection with any escrows, 
8settlements, or closings out of a fiduciary trust account or 
9accounts unless the funds in the amount of less than $50,000 
10received from any single party to the transaction are collected 
11funds or good funds as defined in subsection (c) of this 
12Section.
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 chartered under the

21    laws of any state or the United States and unconditionally

22    held by the title insurance company, title insurance agent,

23    or independent escrowee;
24        (4) a personal check or checks in an aggregate amount 
25    not exceeding $5,000 per closing, provided that the title 
26    insurance company, title insurance agent, or independent 
 
 
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1    escrowee has reasonable grounds to believe that sufficient 
2    funds are available for withdrawal in the account upon 
3    which the check is drawn at the time of disbursement;
4        (5) a check drawn on the trust account of any lawyer or 
5    real estate broker licensed under the laws of any state, 
6    provided that the title insurance company, title insurance 
7    agent, or independent escrowee has reasonable grounds to 
8    believe that sufficient funds are available for withdrawal 
9    in the account upon which the check is drawn at the time of 
10    disbursement;
11        (6) a check issued by this State, the United States, or 
12    a political subdivision of this State or the United States; 
13    or
14        (7) a check drawn on the fiduciary trust account of a 
15    title insurance company or title insurance agent, provided 
16    that the title insurance company, title insurance agent, or 
17    independent escrowee has reasonable grounds to believe 
18    that sufficient funds are available for withdrawal in the 
19    account upon which the check is drawn at the time of 
20    disbursement.
21    (d) "Collected funds" means funds deposited, finally 
22settled, and credited to the title insurance company, title 
23insurance agent, or independent escrowee's fiduciary trust 
24account.

25    (e) A purchaser, a seller, or a lender is each considered a 
26single party to the transaction for the purposes of this 
 
 
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1Section, regardless of the number of people or entities making 
2up the purchaser, seller, or lender. 
3(Source: P.A. 96-645, eff. 1-1-10; 96-1457, eff. 1-1-11.)