Good Funds in Alaska

Overview

Sources

Wet or Dry Settlement

Dry

Definition

Funds must be available for withdrawal as a matter of right, meaning (i) when the item has been submitted for collection and payment for the item has been received; (ii) when the financial institution in which an item has been deposited considers the money represented by the item available for withdrawal; or (iii) unless written notification has been received from the financial institution where the item was deposited establishing a longer period for an item drawn on an out-of-state financial institution, after a reasonable time has passed for prohibiting customers from drawing on the item. AK Stat. 34.80.040(a), (d).

In addition, escrow money may not be disbursed on the same business day on which the items are deposited unless the dpeosit is made in cash, by interbank electronic transfer, or in a form that permits conversation of the deposit to cash on the same day the deposit is made. AK Stat. 34.80.040(b). Also may not disburse escrow money on the business day after the business day on which the items are deposited unless the deposit is made by (i) a cashier's check or certified check, payable in and drawn on a financial institution located in Alaska; (ii) a cashier's check, negotiable order of withdrawal, money order, or other item, and the item has been finally paid before the disbursement; or (iii) a depository check, including a cashier's, certified, or teller's check, that is governed by the Federal Expedited Funds Availability Act. AK Stat. 34.80.040(c).

Requirements

May not record until the money required by the escrow transaction agreement to be disbursed at the same time is available for disbursement. AK Stat. 34.80.050.

Exceptions to Requirements

N/A