First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0366.01 Renee Leone x2695
SENATE BILL 25-016
Senate Committees House Committees
Finance
A BILL FOR AN ACT
C
ONCERNING UPDATING THE FRAMEWORK GOVERNING ESCROW101
DISBURSEMENTS FOR RE AL ESTATE TRANSACTIONS .102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
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; and
! Adding funds credited to an escrow account if the bank or
SENATE SPONSORSHIP
Snyder,
HOUSE SPONSORSHIP
Boesenecker,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. financial institution holding the account confirms that there
has been final settlement of the credited funds.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 38-35-125, amend2
(1)(a) as follows:3
38-35-125. Closing and settlement services - disbursement of4
funds - deceptive trade practice - definitions. (1) As used in this5
section, unless the context otherwise requires:6
(a) "Available for immediate withdrawal as a matter of right"7
includes funds transferred by any of the following means:8
(I) Any A wire transfer MADE THROUGH A FUNDS -TRANSFER9
SERVICE OPERATED BY THE FEDERAL RESERVE ;10
(II) Any A certified check, cashier's check, teller's check, or any11
other instrument as defined by federal regulation CC, 12 CFR 229.10 (c);12
AND13
(III) A
CREDIT TO AN ESCROW ACCOUNT, INCLUDING A REAL-TIME14
OR AN INSTANT PAYMENT MADE THROUGH A FUNDS -TRANSFER SERVICE15
OPERATED BY THE FEDERAL RESERVE OR THE CLEARING HOUSE PAYMENT16
COMPANY'S REAL-TIME PAYMENTS SYSTEM, IF THE BANK OR FINANCIAL17
INSTITUTION HOLDING THE ACCOUNT CONFIRMS TO THE INDIVIDUAL OR18
ENTITY DISBURSING THE FUNDS THAT THERE HAS BEEN FINAL SETTLEMENT19
OF THE CREDITED FUNDS.20
SECTION 2. Act subject to petition - effective date -21
applicability. (1) This act takes effect at 12:01 a.m. on the day following22
the expiration of the ninety-day period after final adjournment of the23
general assembly; except that, if a referendum petition is filed pursuant24
to section 1 (3) of article V of the state constitution against this act or an25
SB25-016-2- item, section, or part of this act within such period, then the act, item,1
section, or part will not take effect unless approved by the people at the2
general election to be held in November 2026 and, in such case, will take3
effect on the date of the official declaration of the vote thereon by the4
governor.5
(2) This act applies to real estate transactions occurring on or after6
the applicable effective date of this act.7
SB25-016
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