Bulletin: NJ000075

Date:
October 01, 2003
To:
All Issuing Offices in New Jersey
RE:
Good Funds [Revised 4-8-15]

Dear Associates:

We thought that this was a good time to remind everyone of the necessity of receiving good funds for closings. By statute (N.J.S.A. 17:46B-10.1) you are required to receive good funds in order to be able to disburse them at closing. Good funds consist of the following:

  1. Cash

  2. Wire Transfer

  3. Certified Check

  4. Cashier's Check

  5. Teller's Check - defined as a draft drawn by a bank on another bank or payable through a bank.

  6. Bank Check - defined as a negotiable instrument drawn by a state or federally chartered bank on itself or on its account in another bank which does business in New Jersey.

So called "official checks" are not necessarily good funds unless they meet the criteria for a bank check or teller's check set forth above. Additionally, you may disburse against other collected funds for less than $1,000.

You should also remember that by statute (N.J.S.A. 17:11C-22 k), mortgage bankers and brokers are required to supply good funds to you for closings.

Please call the state office if you have any questions.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
NJ000026 This Bulletin has been replaced by NJ000075.
Related Bulletins:
SLS2011005 Disbursement Practices: Good Funds vs. Collected Funds [Revised 04-27-12]
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None