Good Funds in Louisiana
Settlement agents may not accept personal or commercial checks exceeding $2,500 in the aggregate.
La. R.S. 22:512 and 22:532.
Wet or Dry Settlement
Good funds are in one or more of the following forms: (a) Cash. (b) Wire transfers unconditionally received by the title insurer or the title insurance producer or the depository of either. (c) A depository check, including a certified check, cashier's check, or teller's check as defined by the Expedited Funds Availability Act, 12 U.S.C. 4001 et seq. (d) A personal check or other item which has been presented for payment and for which funds have been unconditionally collected. (e) Credit transfers through the ACH which have been deemed available by the depository institution receiving the credit. The credit shall conform to the operating rules established by the National ACH Association. (f) Checks unconditionally issued by mortgage lenders which are subject to periodic audit by the HUD or the secretary of Veterans Affairs, and which are drawn on financial institutions insured by the FDIC. (g) A check or checks, drawn on the trust account or sales escrow account of a licensed real estate broker in an amount up to the amount of the then current guarantee provided by the Real Estate Recovery Fund as established in LA Rev. Stat. 37:1463. (h) A personal or commercial check or checks in an aggregate amount not exceeding $2,500 per closing if the settlement agent making the deposit has reasonable and prudent grounds to believe that the deposit will be irrevocably credited to the settlement agent's trust or escrow account. (i) Checks unconditionally issued by credit unions chartered by applicable state or federal statute. (j) Checks unconditionally issued by municipalities or political subdivisions of LA. (k) Checks drawn on the escrow accounts of title insurers or title insurance producers when the title insurance producer issuing the check shall have certified by affidavit the following: (i) That funds drawn at the time of the real estate closing and settlement are from an escrow account as defined by LA Rev. Stat. 22:512(6). (ii) That the funds disbursed are from those funds received by the title insurance producer at the time of the real estate closing and settlement and were in one of the forms enumerated in LA Rev. Stat. 22:532(B)(3). LA Rev. Stat. 22:532(B).
Must have good funds at or before closing.
Exceptions to Requirements