Money deposited in escrow: Requirements for disbursement; disbursement on same business day allowed for certain forms of deposit; compliance with federal laws and regulations

1. A title insurer, title agent or escrow officer shall not disburse money from an escrow account unless deposits which are at least equal in value to the proposed disbursements and which relate directly to the transaction for which the money is to be disbursed have been received. 2. A title insurer, title agent or escrow officer shall not disburse money from an escrow account on the same business day as the money is deposited unless the deposit is made in one of the following forms: (a) Cash; (b) Interbank electronic transfer such that the money deposited is available for immediate withdrawal without condition and payable in United States currency; (c) Negotiable order of withdrawal, money order, cashier’s check or certified check which is drawn from a financial institution authorized to do business in this State; (d) Any depository check, including any cashier’s check or teller’s check, that is governed by the Expedited Funds Availability Act, 12 U.S.C. §§ 4001 et seq.; or (e) Any other form that permits conversion of the deposit to cash on the same day as the deposit is made. 3. A title insurer, title agent or escrow officer who disburses money from an escrow account pursuant to this section on the next business day after the day on which the money is deposited shall comply with all applicable federal laws or regulations with respect to the disbursement of money accorded next-day availability that is deposited in an escrow account.