Public Act 98-1067 (IL)

Good Funds Statute

Effective date:  August 26, 2014

Statutes Amended:  215 ILCS 155/26


The law amends the Title Insurance Act’s Good Funds statute. In the last General Assembly, this statute was changed to allow a title company or agent to disburse closing funds of $50,000 or more that it received from the lender as a cashier’s check, teller’s check or certified check when the title insurance company or agent and the lender are “known to each other and agree” to the use of the funds in this form instead of by a wire transfer. The language, “known to each other and agree,” had no regulatory guidance and was vague, and therefore the General Assembly this year has passed legislation to clean it up.

The new statute authorizes title insurance company or agent and the lender to agree to the use of a cashier's checks, teller's checks, or certified checks for the lender’s funds in the amount of $50,000 or more for closings, which funds will be considered good funds. The act deletes the language requiring the title insurance company, title insurance agent, or independent escrowee and the financial institution to be known to each other.

Please see our Underwriters' Bulletin, Illinois Good Funds Law Amended, Again, to find out ATG's underwriting guidelines in connection with this change in the statute.

Bill Number: 
HB 4677
By: ATG Underwriting Department | Posted on: Mon, 01/12/2015 - 12:36pm