DEPARTMENT OF INSURANCE
August 24, 2009 Bulletin 171
Good Funds
This bulletin is directed to all closing agents as defined inIC 27-7-3.7-1 and is intended to clarify the provisions of Indiana's new Good Funds Law,IC 27-7-3.7-1 throughIC 27-7-3.7-10 .
The Good Funds Law provides that disbursements of certain escrow account funds must be made from wired funds or, if the aggregate funds received by a party are less than $10,000, other good funds. For purposes of the Good Funds Law, the Department interprets "wired funds" to include intrabank transfers. Wired funds means any deposit or credit to a closing agent's escrow account by electronic means and may include Federal Reserve wire (Fedwire), automated clearing house (ACH), and electronic funds transfer (EFT) methods, if unconditionally held and irrevocably credited. Since these methods are not always irrevocable, it is the responsibility of the closing agent to ensure the irrevocable and unconditional nature of any transfer before disbursing funds.
In addition, the $10,000 threshold in the law references funds received from a single party. The Department interprets "single party" to mean a buyer, seller, or lender, regardless of the number of people or entities making up the buyer, seller, or lender. For example, a husband and wife involved in a closing will be considered a single party for purposes of applying the Good Funds Law.
Questions regarding this bulletin should be directed to Stephen W. Robertson, Deputy Commissioner, at (317) 234-5154 or srobertson@idoi.in.gov.
Indiana Department of Insurance___________________________Carol Cutter, Commissioner
Posted: 09/09/2009 by Legislative Services Agency
DIN: 20090909-IR-760090685NRAComposed: Nov 01,2016 12:44:52AM EDTA PDF version of this document.
