Difference between revisions of "Good Funds in Florida"

Latest revision as of 06:47, 2 October 2018

Overview

Sources

Florida Statute 626.8473(4) and Florida Administrative Code Rule 69O-186.008

Wet or Dry Settlement

Wet

Definition

Florida Statute 626.8473(4)requires title agents to maintain an escrow account and deposit funds in to that escrow account. Florida Administrative Code Rule 69O-186.008 requires that a title insurer or a title agent to disburse on "collected funds". "Collected Funds" are defined as funds deposited and finally settled and credited to the insurer's or title agent's escrow account.

Requirements

Must have "collected funds" as defined by Rule 69O-186.008(1) i.e. good funds, before disbursing at the closing.

Exceptions to Requirements

Notwithstanding that a deposit made by a title insurance agent or title insurer to the escrow account has not been finally settled and credited to the account, the title insurance agent or title insurer may disburse funds from the trust account in reliance on such deposits under any of the following circumstances:

(a) The deposit is made by a certified check, cashier’s check, or money order;
(b) The deposit is made by a check representing loan proceeds issued by a federally- or state-chartered bank, savings bank, savings and loan association, credit union, mortgage broker licensed under Chapter 494, Florida Statutes, or other duly licensed or chartered lender;
(d) The deposit is made by a check drawn on the trust account of a lawyer licensed to practice in the State of Florida or on the escrow or trust account of a real estate broker licensed under Chapter 475, Florida Statutes, or on the account of a mortgage broker licensed under Chapter 494, Florida Statutes, or on the escrow trust account of a title insurance agent or title insurer licensed under the Florida Insurance Code, when the title insurance agent or title insurer has a reasonable or prudent belief that the deposit will clear and constitute collected funds in the trust account within a reasonable period of time;
(e) The deposit is made by a check issued by the United States Government, the State of Florida or any agency or political subdivision of the State of Florida;
(f) The deposit is made by a check issued by an insurance company authorized to do business in the State of Florida and the title insurance agent or title insurer has a reasonable and prudent belief that the instrument will clear and constitute collected funds in the trust account within a reasonable period of time;
(g) The deposit is made by a personal check in an amount not to exceed $500 when the title insurance agent or title insurer has a reasonable and prudent belief that the instrument will clear and constitute collected funds in the trust account within a reasonable period of time.

However, due to the high incidence of counterfeit and forged cashier and certified checks, most, if not all, title insurers and agencies require that funds be received by wire and that those funds be "collected funds" before disbursing.

@@ Line 6: / Line 6: @@
 Wet
 ==Definition==
-Florida Statute 626.8473(4)requires title agents to maintain an escrow account and deposit funds in to that escrow account. Florida Administrative Code Rule 69O-186.008 requires that a title insurer or a title agent disburse on "collected funds".  "Collected Funds" are defined as funds deposited and finally settled and credited to the insurer's or title agent's escrow account.
+Florida Statute 626.8473(4)requires title agents to maintain an escrow account and deposit funds in to that escrow account. Florida Administrative Code Rule 69O-186.008 requires that a title insurer or a title agent to disburse on "collected funds".  "Collected Funds" are defined as funds deposited and finally settled and credited to the insurer's or title agent's escrow account.
-Notwithstanding that a deposit made by a title insurance agent or title insurer to the trust account has not been finally settled and credited to the account, the title insurance agent or title insurer may disburse funds from the trust account in reliance on such deposits under any of the following circumstances:
+==Requirements==
+Must have "collected funds" as defined by Rule 69O-186.008(1) i.e. good funds, before disbursing at the closing.
+====Exceptions to Requirements====
+Notwithstanding that a deposit made by a title insurance agent or title insurer to the escrow account has not been finally settled and credited to the account, the title insurance agent or title insurer may disburse funds from the trust account in reliance on such deposits under any of the following circumstances:
 *(a) The deposit is made by a certified check, cashier’s check, or money order;
 *(b) The deposit is made by a check representing loan proceeds issued by a federally- or state-chartered bank, savings bank, savings and loan association, credit union, mortgage broker licensed under Chapter 494, Florida Statutes, or other duly licensed or chartered lender;
-*(c) The deposit is made by a bank check, cashier’s check, official check, treasurer’s check, or other such official instrument issued by a bank, savings and loan association, or credit union when the instrument is drawn by the bank on itself, or on another bank whether or not the check is “payable through” or “payable at” a bank and the title insurance agent or title insurer has reasonable and prudent grounds to believe the instrument will clear and constitute collected funds in the title insurance agent’s or title insurer’s trust account within a reasonable period of time. Such instruments are considered by the Federal Reserve Board, under Federal Regulation CC, otherwise cited as 12 C.F.R. 229, to be “next day” payable items. A check drawn by a corporation on a bank or a draft drawn by a corporation on itself whether or not the check or draft is “payable at” or “payable through” a bank and is not a “next day” payable item under Regulation CC unless the depository bank chooses to treat it as such, and may not be disbursed on until collected.
 *(d) The deposit is made by a check drawn on the trust account of a lawyer licensed to practice in the State of Florida or on the escrow or trust account of a real estate broker licensed under Chapter 475, Florida Statutes, or on the account of a mortgage broker licensed under Chapter 494, Florida Statutes, or on the escrow trust account of a title insurance agent or title insurer licensed under the Florida Insurance Code, when the title insurance agent or title insurer has a reasonable or prudent belief that the deposit will clear and constitute collected funds in the trust account within a reasonable period of time;
 *(e) The deposit is made by a check issued by the United States Government, the State of Florida or any agency or political subdivision of the State of Florida;
 *(f) The deposit is made by a check issued by an insurance company authorized to do business in the State of Florida and the title insurance agent or title insurer has a reasonable and prudent belief that the instrument will clear and constitute collected funds in the trust account within a reasonable period of time;
 *(g) The deposit is made by a personal check in an amount not to exceed $500 when the title insurance agent or title insurer has a reasonable and prudent belief that the instrument will clear and constitute collected funds in the trust account within a reasonable period of time.
-However, due to the high incidence of counterfeit and forged cashier and certified checks, most, if not all, title insurers and agencies require that funds be received by wire.
-==Requirements==
-Must have good funds at or before closing.
-Notwithstanding that a deposit made by a title insurance agent or title insurer to the trust account has not been finally settled and credited to the account, the title insurance agent or title insurer may disburse funds from the trust account in reliance on such deposits under any of the following circumstances:
-(a) The deposit is made by a certified check, cashier’s check, or money order;
-(b) The deposit is made by a check representing loan proceeds issued by a federally- or state-chartered bank, savings bank, savings and loan association, credit union, mortgage broker licensed under Chapter 494, Florida Statutes, or other duly licensed or chartered lender;
-(c) The deposit is made by a bank check, cashier’s check, official check, treasurer’s check, or other such official instrument issued by a bank, savings and loan association, or credit union when the instrument is drawn by the bank on itself, or on another bank whether or not the check is “payable through” or “payable at” a bank and the title insurance agent or title insurer has reasonable and prudent grounds to believe the instrument will clear and constitute collected funds in the title insurance agent’s or title insurer’s trust account within a reasonable period of time. Such instruments are considered by the Federal Reserve Board, under Federal Regulation CC, otherwise cited as 12 C.F.R. 229, to be “next day” payable items. A check drawn by a corporation on a bank or a draft drawn by a corporation on itself whether or not the check or draft is “payable at” or “payable through” a bank and is not a “next day” payable item under Regulation CC unless the depository bank chooses to treat it as such, and may not be disbursed on until collected.
-(d) The deposit is made by a check drawn on the trust account of a lawyer licensed to practice in the State of Florida or on the escrow or trust account of a real estate broker licensed under Chapter 475, Florida Statutes, or on the account of a mortgage broker licensed under Chapter 494, Florida Statutes, or on the escrow trust account of a title insurance agent or title insurer licensed under the Florida Insurance Code, when the title insurance agent or title insurer has a reasonable or prudent belief that the deposit will clear and constitute collected funds in the trust account within a reasonable period of time;
-(e) The deposit is made by a check issued by the United States Government, the State of Florida or any agency or political subdivision of the State of Florida;
-(f) The deposit is made by a check issued by an insurance company authorized to do business in the State of Florida and the title insurance agent or title insurer has a reasonable and prudent belief that the instrument will clear and constitute collected funds in the trust account within a reasonable period of time;
-(g) The deposit is made by a personal check in an amount not to exceed $500 when the title insurance agent or title insurer has a reasonable and prudent belief that the instrument will clear and constitute collected funds in the trust account within a reasonable period of time.
-However, due to the high incidence of counterfeit and forged cashier and certified checks, most, if not all, title insurers and agencies require that funds be received by wire.
-===Exceptions to Requirements===
+However, due to the high incidence of counterfeit and forged cashier and certified checks, most, if not all, title insurers and agencies require that funds be received by wire and that those funds be "collected funds" before disbursing.
-N/A
 ==Cross-References==
 * [[Florida]]
 * [[Good Funds]]