Citations Affected: IC 27-7-3.7.
Synopsis: Escrow transactions. Provides that funds received in
connection with an escrow transaction in a real estate transaction must
be deposited in an escrow account unless the parties to the escrow
transaction agree in writing to another arrangement. Prohibits a closing
agent from making disbursements from an escrow account in
connection with a real estate transaction unless any funds that: (1) are
received from a single party to the transaction; and (2) in the aggregate
are at least $10,000; are wired funds that are unconditionally held by
and irrevocably credited to the closing agent's escrow account. Sets
forth certain types of instruments and other forms of money that
constitute "good funds" for purposes of an escrow transaction. Prohibits
a closing agent from making disbursements from an escrow account in
connection with a real estate transaction unless any funds that: (1) are
received from a single party to the transaction; and (2) in the aggregate
are less than $10,000; are good funds. Provides that if: (1) the closing
agent in a real estate transaction receives wired funds unconditionally
held and irrevocably credited to the closing agent's escrow account; and
(2) a holder of a mortgage lien so requests; the lien holder is entitled to
receive its proceeds from the real estate transaction through funds
electronically transferred to an account specified by the holder.
Provides that a closing agent may advance up to $500 from an escrow
account on behalf of a party to an escrow transaction for the purpose of
paying certain incidental fees in connection with the real property that
is the subject of the escrow transaction.
Effective: July 1, 2009.
January 13, 2009, read first time and referred to Committee on Financial Institutions.
A BILL FOR AN ACT to amend the Indiana Code concerning
insurance.
interest in real estate.
Sec. 6. Funds received in connection with an escrow transaction
must be deposited in an escrow account unless the parties to the
escrow transaction agree in writing to another arrangement.
Sec. 7. A closing agent may not make disbursements from an
escrow account or accounts in connection with a real estate
transaction unless any funds that:
(1) are received from any single party to the real estate
transaction; and
(2) in the aggregate are at least ten thousand dollars
($10,000);
are wired funds that are unconditionally held by and irrevocably
credited to the escrow account of the closing agent.
Sec. 8. A closing agent may not make disbursements from an
escrow account or accounts in connection with a real estate
transaction unless any funds that:
(1) are received from any single party to the real estate
transaction; and
(2) in the aggregate are less than ten thousand dollars
($10,000);
are good funds.
Sec. 9. If:
(1) the closing agent in a real estate transaction receives wired
funds unconditionally held and irrevocably credited to the
escrow account of the closing agent; and
(2) a holder of a mortgage lien encumbering real estate so
requests, as part of written closing instructions or a written
payoff statement in advance of closing;
the holder of the mortgage lien is entitled to receive its proceeds
from the real estate transaction through funds electronically
transferred to an account specified by the holder of the mortgage
lien.
Sec. 10. A closing agent may advance an amount not to exceed
five hundred dollars ($500) from an escrow account on behalf of a
party to an escrow transaction for the purpose of paying incidental
fees, including conveyance and recording fees. Incidental fees may
be paid in order to:
(1) effect and close the sale of;
(2) purchase;
(3) exchange;
(4) transfer;
(5) encumber; or