Contents
Overview
Sources
Wet or Dry Settlement
Dry
Definition
Funds may not be disbursed until the day established by the following: (1) On the business day following the day the funds are deposited, unless such funds are deposited by cash or electronic payment that are accorded next day availability according to federal law; (2) Except for drafts, deposits not accorded next day availability pursuant to Part 229 of Title 12 of the Code of Federal Regulations shall not be disbursed until the day on which these funds must be made available to depositors under the federal regulation specified in this subsection; (3) Funds deposited by cash or by electronic payment may be disbursed following deposit on the same business day as the business day of deposit; (4) Notwithstanding the provisions of subparagraph (2) above, deposits other than drafts may be disbursed on the business day following the business day of deposit if the financial institution to which the funds have been deposited informs the title insurance company, controlled escrow company, or underwritten title company in writing that final settlement has occurred on the deposited item. For the purposes of this subdivision, an electronically transmitted document that specifies that final settlement has occurred constitutes written notice as to an individual item; and (5) Where a draft, other than a share draft, has been received and submitted for collection, no title insurance company, controlled escrow company, or underwritten title company shall disburse funds from an escrow account with respect to the draft until the proceeds of the draft have become available for withdrawal from the financial institution to which the draft has been submitted for collection. For purposes of this subdivision, ?available for withdrawal? means when the draft has been submitted for collection and payment received. Notwithstanding this subdivision, disbursement of funds represented by share drafts shall be governed by subdivisions (2) and (4), if applicable. CA Ins. Code 12413.1.
Requirements
None of the funds shall be utilized until the conditions of the escrow have been met. CA Ins. Code 12413.5.
