Brief (1)
HB 2677, as amended, concerns escrow funds of title insurance agents. The bill adds "teller's checks" to the types of funds which may be deposited for real estate closings. As defined in the Uniform Commercial Code, KSA 84-3-104 (h), a teller's check is one drawn by a bank (1) on another bank, or (2) payable at or through a bank.
The House Committee amendment adds to the types of funds that may be deposited for real estate closings, funds received from federally chartered instrumentalities of the United States.
Background
HB 2677 was requested by the Kansas Bankers Association whose representatives explained that only after the escrow funds of title insurance agents bill had passed in the 1999 Session of the Legislature, did it become known that a teller's check was a type of "good funds" described in that legislation which should be accepted for deposit for a real estate closing.
The House Committee amendment was proposed by the Farm Credit Council Incorporated. It was explained that funds from federally chartered instrumentalities also are "good funds" and should be accepted for deposit for real estate closings. (Examples of such instrumentalities would include Federal National Mortgage Corporation - Fannie Mae and Federal Home Loan Mortgage Corporation - Freddie Mac).
The bill was supported by the Kansas Bankers Association, the Kansas Insurance Department, the Heartland Community Bankers Association, the Farm Credit Council Incorporated, the Kansas Land Title Association, and the Kansas Association of Realtors.
The State Bank Commissioner and the Kansas Real Estate Commission indicate that no state fiscal impact would result from the passage of the bill.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html