Public Act 98-0387 (IL)


Public Act 98-387 (HB 1335); Effective Date: 8/16/ 2013


Statutes Amended: 215 ILCS 155/26 and 155/3


As an exception to the requirement that the incoming funds be good funds, recent amendments to the Good Funds Law allow the parties to a real estate transaction to bring in $50,000 or more IF: (1) the form of the incoming funds is a cashier’s check, teller’s check, or certified check, as defined in the Uniform Commercial Code, that is from a financial institution, whose definition is provided below; (2) the title company or title agent and the lender are known to each other and agree to use the checks as good funds; and (3) the checks are delivered to the title company or title agent in sufficient time for the funds to be deposited in the closing trust account before disbursement. This exception provision is only going to be in effect until December 31, 2014. 215 ILCS 155/26(a-5).


As noted above, the checks must be from a financial institution for the foregoing exception to apply. “Financial Institution,” as defined in a new paragraph (15) of Section 155/3, means, “any bank subject to the Illinois Banking Act, any savings and loan association subject to the Illinois Savings and Loan Act of 1985, any savings bank subject to the Savings Bank Act, any credit union subject to the Illinois Credit Union Act, and any federally chartered commercial bank, savings and loan association, savings bank, or credit union organized and operated in [Illinois] pursuant to the laws of the United States.” 215 ILCS 155/3(15).


Bill Number: 
HB 1335
Public Act or Public Law Number: 
PA 98-387
By: ATG Underwriting Department | Posted on: Tue, 09/10/2013 - 1:45pm