Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69O - OIR - Insurance Regulation › Chapter 69O-186 - TITLE INSURANCE RATES › Section 69O-186.008 - Escrow Requirements

Current through Reg. 50, No. 138; July 16, 2024
(1) A title
				insurance agent or title insurer may not use, endanger, or encumber money held
				in trust without the permission of the owner of such money, given after full
				disclosure of the circumstances. Accordingly, except as hereinafter provided, a
				title insurance agent or title insurer may not disburse funds unless the funds
				are collected funds. For purposes of this provision, "collected funds" means
				funds deposited, finally settled and credited to the title insurance agent's or
				title insurer's trust account. Notwithstanding that a deposit made by a title
				insurance agent or title insurer to the trust account has not been finally
				settled and credited to the account, the title insurance agent or title insurer
				may disburse funds from the trust account in reliance on such deposits under
				any of the following circumstances:
(a) The
				deposit is made by a certified check, cashier's check, or money
				order;
(b) The deposit is made by a
				check representing loan proceeds issued by a federally- or state-chartered
				bank, savings bank, savings and loan association, credit union, mortgage broker
				licensed under Chapter 494, F.S., or other duly licensed or chartered
				lender;
(c) The deposit is made by
				a bank check, cashier's check, official check, treasurer's check, or other such
				official instrument issued by a bank, savings and loan association, or credit
				union when the instrument is drawn by the bank on itself, or on another bank
				whether or not the check is "payable through" or "payable at" a bank and the
				title insurance agent or title insurer has reasonable and prudent grounds to
				believe the instrument will clear and constitute collected funds in the title
				insurance agent's or title insurer's trust account within a reasonable period
				of time. Such instruments are considered by the Federal Reserve Board, under
				Federal Regulation CC, otherwise cited as 12 C.F.R. 229, to be "next day"
				payable items. A check drawn by a corporation on a bank or a draft drawn by a
				corporation on itself whether or not the check or draft is "payable at" or
				"payable through" a bank and is not a "next day" payable item under Regulation
				CC unless the depository bank chooses to treat it as such, and may not be
				disbursed on until collected;
(d)
				The deposit is made by a check drawn on the trust account of a lawyer licensed
				to practice in the State of Florida or on the escrow or trust account of a real
				estate broker licensed under Chapter 475, F.S., or on the account of a mortgage
				broker licensed under Chapter 494, F.S., or on the escrow trust account of a
				title insurance agent or title insurer licensed under the Florida Insurance
				Code, when the title insurance agent or title insurer has a reasonable or
				prudent belief that the deposit will clear and constitute collected funds in
				the trust account within a reasonable period of time;
(e) The deposit is made by a check issued by
				the United States Government, the State of Florida or any agency or political
				subdivision of the State of Florida;
(f) The deposit is made by a check issued by
				an insurance company authorized to do business in the State of Florida and the
				title insurance agent or title insurer has a reasonable and prudent belief that
				the instrument will clear and constitute collected funds in the trust account
				within a reasonable period of time;
(g) The deposit is made by a personal check
				in an amount not to exceed $500 when the title insurance agent or title insurer
				has a reasonable and prudent belief that the instrument will clear and
				constitute collected funds in the trust account within a reasonable period of
				time.