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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 consumer once the funds have been directly |
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transferred from the consumer'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 consumer'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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(1) be directly linked to and directly backed by funds |
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in the consumer's account at the depository institution; |
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(2) be directly transferred from the consumer's bank |
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account and directly deposited into the settlement service |
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provider's escrow account by ACH transfer in accordance with the |
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standards of any applicable governing body or standards |
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organization with oversight over ACH transactions; |
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(3) at all points during the transfer process, utilize |
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a unique identification and tracking system that designates the |
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funds for their authorized purpose; |
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(4) not be subject to third-party access or |
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commingling of funds at any point during the transfer process; and |
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(5) not utilize an intermediary account other than by |
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a financial institution acting as ACH originator and operator as |
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part of the ACH network. |
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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 |
|
|
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 consumer once the funds have been directly |
|
|
transferred from the consumer's bank account. The ACH transaction |
|
|
must be a bank-to-bank transfer of funds or a deposit of funds from |
|
|
a consumer'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: |
|
|
(1) be directly linked to and directly backed by funds |
|
|
in the consumer's account at the depository institution; |
|
|
(2) be directly transferred from the consumer's bank |
|
|
account and directly deposited into the settlement service |
|
|
provider's escrow account by ACH transfer in accordance with the |
|
|
standards of any applicable governing body or standards |
|
|
organization with oversight over ACH transactions; |
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|
(3) at all points during the transfer process, utilize |
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|
a unique identification and tracking system that designates the |
|
|
funds for their authorized purpose; |
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|
(4) not be subject to third-party access or |
|
|
commingling of funds at any point during the transfer process; and |
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|
(5) not utilize an intermediary account other than by |
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|
a financial institution acting as ACH originator and operator as |
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part of the ACH network. |
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SECTION 3. This Act takes effect September 1, 2021. |
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