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A BILL TO BE ENTITLED
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AN ACT
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relating to the disbursement of funds from a trust fund account by a |
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title insurance company, title insurance agent, or escrow officer. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2651.202, Insurance Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) For the purpose of this section, "good funds" includes |
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United States dollars received and deposited in an account through |
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an Automated Clearing House (ACH) transaction if the ACH |
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transaction is irrevocable and final and cannot be canceled or |
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reversed by the customer once the funds have been directly |
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transferred from the customer's bank account. The ACH transaction |
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must be a bank-to-bank transfer of funds or a deposit of funds from |
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a customer's account at a depository institution and must not be |
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treated as a consumer payment with respect to chargeback and |
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pullback consumer payment protections. The transferred funds must |
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be: |
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(1) directly linked to and backed by funds in the |
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customer's account at the depository institution; and |
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(2) directly transferred from the customer's bank |
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account and deposited into the settlement service provider's escrow |
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account by ACH transfer in accordance with the standards of any |
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governing body with oversight over ACH transactions. |
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SECTION 2. Section 2652.004, Insurance Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) For the purpose of this section, "good funds" includes |
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|
United States dollars 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 by the customer once the funds have been directly |
|
|
transferred from the customer's bank account. 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 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 |
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|
(2) directly transferred from the customer's bank |
|
|
account and deposited into the settlement service provider's escrow |
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|
account by ACH transfer in accordance with the standards of any |
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|
governing body with oversight over ACH transactions. |
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SECTION 3. This Act takes effect September 1, 2021. |