August 28, 2014
Governor Quinn signed into law HB 4677 (P.A. 98-1067) on Tuesday. HB 4677 is trailer legislation for a 2013 CBAI initiative (HB 1335/ P.A. 98-0387) that amended the “good funds” disbursement authorization provisions of the Title Insurance Act to allow financial institutions and title companies that know each other and both agree to use cashier’s checks, teller’s checks and certified checks as settlement funds in transactions greater than $50,000. At the request of the Illinois Land Title Association, HB 4677 removes the provision that the title company and financial institution be “known to each other” and adds a provision that in order to use cashiers, tellers or certified checks as settlement funds, the funds must be used to disburse a loan and closing costs funded by the financial institution. Finally, HB 4677 removes a sunset provision that would have repealed all the new changes to the statute.
HB 4677 will finalize changes that have been sought by CBAI for five years to amend the settlement funds section of the Title Insurance Act and allow financial institutions and title companies to agree to the use of funds other than wire transfers or collected funds in transactions greater than $50,000. This will allow for more flexibility for community banks and title companies and will reduce closing costs for consumers.
CBAI appreciates the hard work and effort by both of the sponsors, Representative Ron Sandack (R- Downers Grove) and Senator John Mulroe (D-Chicago). CBAI would also like to thank Governor Quinn for understanding the significance of this bill and community banking in Illinois.