Good Funds in Utah
Contents
Overview
Sources
Wet or Dry Settlement
Wet
Definition
Money is considered to be "collected and cleared," and may be disbursed as follows: (1) cash may be disbursed on the same day it is deposited; (2) wire transfers may be disbursed on the same day they are deposited; (3) the proceeds of one or more of the following financial instruments may be disbursed the same day the financial instruments are deposited if received from a single party to the transaction and if the aggregate of the financial instruments is less than $10,000: (a) a cashier?s check, certified check, or official check that is drawn on the existing account as a federally insured financial institution; (b) a check drawn on the trust account of a principal broker or associate broker, if the title producers has reasonable and prudent grounds to believe sufficient money will be available from the trust account on which the check is drawn at the time of disbursement of proceeds from the title producers? escrow account; (c) a personal check not to exceed $500 per closing; or (d) a check drawn on the escrow account of another title producer, if the title producer in the escrow transaction has reasonable and prudent grounds to believe sufficient money will be available from the account upon which the check is drawn at the time of disbursement of money from the escrow account of the title producer in the escrow transaction. UT Code 31A-23a-406(5)(b).
Other checks or deposits may be disbursed within the time limits provided under the Expedited Funds Availability Act, (12 U.S.C. ? 4001 et seq.), and related regulations of the Federal Reserve System or upon written notification from the financial institution to which the funds have been deposited, that final settlement has occurred on the deposited item. UT Code 31A-23a-406(5)(c).
Requirements
No check may be drawn, executed or dated, nor any funds otherwise disbursed, unless the segregated escrow account from which funds are to be disbursed contains a sufficient credit balance consisting of "collected and cleared" money at the time the check is drawn, executed, or dated, or money is otherwise disbursed. UT Code 31A-23a-406(5)(a).
Exceptions to Requirements
N/A
