| The Trusted Adviser | September 2009 | Volume 2 - Number 7 |
Update from ATG AdministrationGood Funds Legislation
 An amendment to the Title Insurance Act, 215 ILCS 155/26, was approved and will take effect on January 1, 2010. This legislation will impact disbursements made by title insurance companies and title insurance agents in connection with escrows, settlements, and closings in Illinois. The new law prohibits disbursement from a fiduciary trust account unless the funds received from a single party are either "good funds" or "collected funds" as defined in the amendment.
This legislation has the potential to delay disbursements beyond the closing date by requiring certain types of funds depending on the amount. To avoid delays at your closings, please familiarize yourself with the requirements contained in the amendment. Please note that amounts received from a single party that are equal to or in excess of $50,000.00 must be one of the following:- A wire transfer unconditionally held and credited to the fiduciary trust account from which disbursements are to be made.
- A check issued by the State of Illinois.
- A check issued by the United States of America.
- A check issued by a political subdivision of the State of Illinois or the United States of America.
- Collected funds as defined in the amendment being funds deposited, finally settled, and credited to the title insurance company, title insurance agent, or independent escrowee's fiduciary trust account.
- A check drawn on the fiduciary trust account of a title insurance company or agent provided the recipient has reasonable grounds to believe sufficient funds are available in the account for withdrawal at the time of disbursement.
Cashier's checks, certified checks, bank money orders, official bank checks, and teller's checks are not considered good funds for amounts of $50,000.00 or more until they are deposited, finally settled, and credited to the fiduciary trust account.
For a detailed discussion of this topic and other changes to the closing process that go into effect January 1, 2010, attend The 2009 Harold I. Levine Real Estate Institute — Survive and Thrive: Preparing Your Practice for Changing Times in Chicago on November 5, 2009. See Program Calendar for details on this premier event and our other seminars.
David Huffman
Senior Vice President - Title Operations
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THE TRUSTED ADVISER is published by Attorneys’ Title Guaranty Fund, Inc., P.O. Box 9136, Champaign, IL 61826-9136. Inquiries may be made directly to Mary Beth McCarthy, Corporate Communications Manager. ATG®, ATG® plus logo, are marks of Attorneys’ Title Guaranty Fund, Inc. and are registered in the U.S. Patent and Trademark Office. The contents of the The Trusted Adviser © Attorneys' Title Guaranty Fund, Inc.
[Last update: 9-28-09] |
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