- November 23, 2011
- All North Dakota Issuing Offices
- Good Funds Legislation
The state of North Dakota has passed House Bill No. 1421 creating a new chapter 47-34-01 of the North Dakota Century Code requiring closing agents handling real estate transactions in excess of $10,000.00 to disburse from their escrow account only when they are in possession of "good funds".
Under the statute "closing agent" means a person that closes real estate transactions in connection with the purchase, sale or financing of any interest in real estate. It does not include closings that are conducted in a lender's office by the lender.
Good Funds is defined to be:
a) US currency
b) Wired funds actually received
c) A check for which payment has been received
d) A check not to exceed $3,000.00 drawn on the account of a licensed real estate broker or attorney if the closing agent reasonable believes that the check will be good when disbursements are made
e) A cashier's check not to exceed $10,000.00
f) A check from the escrow account of another closing agent if the closing agent in the current transaction reasonably believes that it will be good when disbursements are made.
NOTE: Certified checks, bank drafts and money orders are not addressed under the statute, nor does it provide any penalties for violation.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
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.