- February 06, 1995
- All Massachusetts Policy Issuing Offices
- "Good Funds Statute" - Chapter 245 of the Acts of 1994
Please be advised that a happy day has dawned on the conveyancing community and the title insurance industry: the "Good Funds" statute has passed! This is such a critical piece of legislation that we are sure you will hear more of it in the coming months. However, we thought it important to make you aware of it well in advance of its effective date so that you can discuss it with your lenders and prepare your staff for any procedural changes in escrow funding and reconciliation that may be necessary because of the "Good Funds" mandate.
For your reference, a copy of the new statute is enclosed with this bulletin. Please note that the bill was signed by the Governor on December 27, 1994, without an emergency preamble. Accordingly, the statute becomes effective ninety days from the date of signing, i.e., March 27, 1995. The statute amends M.G.L. Chapter 183 by adding a new section 63B.
Please note, also, that Stewart Title considers it to be our agent's responsibility to verify compliance with the statutory funding mandate prior to disbursements and the recording of the mortgage documents to be insured under Stewart Title insurance policies. As it has always been Stewart Title's policy that closing settlement disbursements should only be based upon verified receipt of "good funds", the statutory mandate may not require significant changes to your current practice.
If you have any questions regarding the effect of the "Good Funds" statute or Stewart Title's position regarding your responsibilities in assuming compliance with same, feel free to contact the Boston Office Legal Department.
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: