- August 08, 1990
- All Issuing Offices
- Wire Transfers
In closing a large loan, it is vital that ready funds are available for disbursement on the date you close the transaction to avoid having to pay several days interest on two loans.
The closing of such loans should be set up several days in advance; you should consult your banker as to the best procedure for obtaining available funds for the disbursement. The construction lender should also be contacted as to the time of day it will be necessary to deliver funds to him in order to stop interest running on that particular day. There are numerous ways funds can be transferred on the closing date so that the interest stops on the construction loan the same date it starts on the permanent loan.
One common means of transferring funds is through wire transfers; however, this type of transfer is extremely hazardous since most are initiated by a telephone call to your banker.
The following resolution, passed by our various corporate boards and sent to the bank, gives us some protection:
Resolved, that any two of the following persons, and only the following persons, are authorized to initiate and confirm wire transfers of funds from the "Stewart Title Company Escrow Account Number ____________" at the _______________,____________, Texas under the following described procedure:
Any of the persons named above may initiate the transfer. Upon receipt of the initiating call, the bank must call one of the above named persons, other than the initiator, at _____________ for confirmation before executing the transfer.
Note: Some of our offices authorize a certain person to initiate the transfer only and certain others confirm the transfer. In those cases, the second paragraph is changed slightly to identify those persons who can confirm the transfer. Hope you will find this information helpful.
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: