The Illinois General Assembly is considering a bill that would add an exception to the prohibition against a title insurance company making disbursement in connection with any escrows, settlements or closings out of a fiduciary trust account.
The bill, SB 3180, is being sponsored by Sen. John Mulroe, D-Chicago.
Under the current law, a title insurance company, title insurance agent or independent escrowee cannot make disbursements in connection with any escrows, settlements or closings out of a fiduciary trust account or accounts unless the funds in the aggregate amount of $50,000 or greater received from any single party to the transaction are wired funds, a check issued by the state, the United States or a political subdivision of the state or the United States or a check drawn on the fiduciary trust account of a title insurance company or title insurance agent, provided that the title insurance company, title insurance agent or independent escrowee has reasonable grounds to believe that sufficient funds are available for withdrawal in the account upon which the check is drawn at the time of disbursement. They can also be collected funds.
The bill would allow title companies to accept funds of $50,000 or more in the form of cahsier’s checks, certified checks, bank money orders official bank checks or teller’s checks drawn on or issued by a financial institution chartered under the laws of any state or the United States and unconditionally held by the title insurance company, title insurance agent or independent escrowee, if the title insurance company and the financial institution know each other and agree to the use of these funds.