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#570175 - 06/20/06 04:14 PM Wet Settlement/Good Funds
WesMantooth Offline
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WesMantooth
Joined: Feb 2006
Posts: 380
San Diego
AllRegs says that Illinois doesn't have any prohibitions against recording a mortgage if money is not available for immediate disbursal to the mortgagor. However, I have a matrix that says IL is a wet settlement/good funds state. Any idea who is right? Thanks.

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#570176 - 06/21/06 02:47 AM Re: Wet Settlement/Good Funds
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Illinois has special rules for what constitutes "good funds" for real estate settlements when funds are being released from a special REFA attorney's account:

(2) has met the "good-funds" requirements. The good-funds requirements shall be met if the bank in which the REFA was established has agreed in a writing directed to the lawyer to honor all disbursement orders drawn on that REFA for all transactions up to a specified dollar amount not less than the total amount being deposited in good funds. Good funds shall include only the following forms of deposits: (a) a certified check, (b) a check issued by the State of Illinois, the United States, or a political subdivision of the State of Illinois or the United States, (c) a cashier's check, teller's check, bank money order, or official bank check drawn on or issued by a financial institution insured by the Federal Deposit Insurance Corporation or a comparable agency of the federal or state government, (d) a check drawn on the trust account of any lawyer or real estate broker licensed under the laws of any state, (e) a personal check or checks in an aggregate amount not exceeding $5,000 per closing if the lawyer making the deposit has reasonable and prudent grounds to believe that the deposit will be irrevocably credited to the REFA, (f) a check drawn on the account of or issued by a lender approved by the United States Department of Housing and Urban Development as either a supervised or a nonsupervised mortgagee as defined in 24 C.F.R. ยง202.2, (g) a check from a title insurance agent of the title insurance company, provided that the title insurance company has guaranteed the funds of that title insurance agent.

Read the whole section under safekeeping property.

Illinois
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Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
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#570177 - 06/21/06 03:23 PM Re: Wet Settlement/Good Funds
WesMantooth Offline
Gold Star
WesMantooth
Joined: Feb 2006
Posts: 380
San Diego
Thanks kb.

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