Updating Escrow Disbursement Practices
The bill modifies the types of funds that are available for immediate withdrawal as a matter of right in real estate transactions by:
- Limiting wire transfer funds to only those funds that are wired through a funds-transfer system operated by the federal reserve or the Clearing House Payments Company ; and
- Adding funds credited to an escrow account,
if the bank or financial institution holding the account confirms that there has been final settlement of the credited fundsincluding a real-time or an instant payment made through a funds-transfer service operated by the federal reserve or the Clearing House Payments Company's real-time payments system.
(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)