IL HB1335

Amends the Title Insurance Act to add a new definition of "financial institution" including banks, savings and loan associations, savings banks, and credit unions chartered under Illinois or federal law.

Creates new subsection (a-5) allowing disbursements from fiduciary trust accounts using cashier's checks, teller's checks, or certified checks drawn on financial institutions when certain conditions are met, effective until January 1, 2015.

Modifies the definition of "good funds" in subsection (c)(3) by removing the requirement that checks be drawn on institutions "chartered under the laws of any state or the United States."

Maintains existing requirements that funds of $50,000 or greater from a single party must be in "good funds" or "collected funds" before disbursement, with exceptions for residential real property purchases allowing certain combinations of smaller good funds.

Defines "collected funds" as deposits that have been finally settled and credited to the fiduciary trust account of title insurance companies, agents, or independent escrowees.