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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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money received and deposited in an account through an Automated |
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Clearing House (ACH) transaction if the ACH transaction is |
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irrevocable and final and cannot be canceled or reversed. The ACH |
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transaction must be a bank-to-bank transfer of funds or a deposit of |
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funds from a customer's account at a depository institution and |
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must not be treated by the depository institution as a consumer |
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payment with respect to chargeback and pullback consumer payment |
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protections. The transferred funds must 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 and deposited into the |
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settlement service provider's escrow account. |
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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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|
money received and deposited in an account through an Automated |
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|
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 |
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|
protections. The transferred funds must 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 and deposited into the |
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settlement service provider's escrow account. |
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SECTION 3. This Act takes effect September 1, 2021. |