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ATTORNEYS | Practice Notes

Illinois

Closings; Title Insurance Agents

PA 96-0645, Senate Bill 2111, Effective Date: January 1, 2010. Adds: 215 ILCS 155/26.

This Illinois law amends the Title Insurance Act by adding a section titled "Settlement Funds." The law prohibits a title insurance company, title insurance agent, or independent escrowee (collectively, "Closing Agent"), from disbursing money from a fiduciary trust account unless the funds received from a single party are either "good funds" or "collected funds." The form of the funds depends on the aggregate dollar amount.

If the aggregate funds received from a single party are $50,000 or greater, the funds must be "good funds" in the form of either: (1) wired funds unconditionally held by the Closing Agent; (2) a check issued by the State of Illinois, United States, or a subdivision of either; or, (3) a check drawn on the fiduciary account of a title insurance company or agent which the Closing Agent reasonably believes contains sufficient funds. Alternatively, instead of good funds, the funds may be "collected funds," meaning funds finally deposited and credited to the fiduciary trust account of the Closing Agent.

If the aggregate funds from a single party are less than $50,000, they must be good funds or collected funds as described above, or be in one of the following additional forms of good funds: (1) lawful United States currency; (2) a cashier's, certified, official bank or teller's check or a bank money order, from a U.S. bank, held unconditionally by the Closing Agent; (3) personal checks in aggregate not to exceed $5,000 per closing which the Closing Agent reasonably believes are drawn on accounts with sufficient funds; or, (4) a check drawn on the trust account of a lawyer or real estate broker which the Closing Agent reasonably believes has sufficient funds.

See also "Good Funds Legislation," September 2009ATG Trusted Adviser.

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: 10-1-09]