- September 29, 1994
- All Florida Offices and Agents
- Escrow Disbursement and Collected Funds
Apparently there continue to be problems with some loans being closed with drafts (as opposed to checks) or other instruments, whatever they may be called, which do not constitute collected funds.
The Department of Insurance has pending a proposed amendment to the Administrative Code which it is now prepared to revise with specific reference to the escrow disbursement requirements to further clarify that a title agent may disburse only upon collected funds.
A photocopy of a recent memorandum from W. M. Senter, Title Insurance Coordinator, together with a proposed revision to subsection (c) of the Escrow Disbursement rule is available from the Florida Stewart Title Guaranty office. For your better understanding of the change, also attached you will find a copy of the entire Escrow Disbursement section.
While the new regulation is not yet effective, the memorandum indicates clearly that it does reflect the Department's position effective immediately. All agents are advised to comply.
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.
- Bulletins Replaced:
- Related Bulletins:
- Underwriting Manual:
- 5.16 Escrow Closings
- Exceptions Manual: