87R16261 MWC-F
By: Smithee H.B. No. 2240
Substitute the following for H.B. No. 2240:
By: Oliverson C.S.H.B. No. 2240
A BILL TO BE ENTITLED
AN ACT
relating to the disbursement of funds from a trust fund account by a
title insurance company, title insurance agent, or escrow officer.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2651.202, Insurance Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) For the purpose of this section, "good funds" includes
money received and deposited in an account through an Automated
Clearing House (ACH) transaction if the ACH transaction is
irrevocable and final and cannot be canceled or reversed. The ACH
transaction must be a bank-to-bank transfer of funds or a deposit of
funds from a customer's account at a depository institution and
must not be treated by the depository institution as a consumer
payment with respect to chargeback and pullback consumer payment
protections. The transferred funds must be:
(1) directly linked to and backed by funds in the
customer's account at the depository institution; and
(2) directly transferred and deposited into the
settlement service provider's escrow account.
SECTION 2. Section 2652.004, Insurance Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) For the purpose of this section, "good funds" includes
money received and deposited in an account through an Automated
Clearing House (ACH) transaction if the ACH transaction is
irrevocable and final and cannot be canceled or reversed. The ACH
transaction must be a bank-to-bank transfer of funds or a deposit of
funds from a customer's account at a depository institution and
must not be treated by the depository institution as a consumer
payment with respect to chargeback and pullback consumer payment
protections. The transferred funds must be:
(1) directly linked to and backed by funds in the
customer's account at the depository institution; and
(2) directly transferred and deposited into the
settlement service provider's escrow account.
SECTION 3. This Act takes effect September 1, 2021.