A Reminder of "Good Funds Law"
The practices under the "Good Funds Law" will remain substantially the same except that the date of disbursing funds is now specifically governed by statute.
The law reenacts the requirements that checks be deposited prior to disbursement. In addition, the actual day we disburse funds us governed by the type of funds we have deposited into our account.
We intend to follow the disbursement schedule of the "Good Funds Law" and the guidelines set forth by our underwriters. We will be able to do the following:
1. Disburse-funds the same day as our deposit, if we received:
- Wired funds (we must verify receipt by our bank).
2. Disburse-funds the next day following the day of deposit if we received:
- Cashier's Checks
- Certified ChecksWe can draw on these checks the next day if from out of state, but we will require the bank's phone number to verify issuance of the check.
3. Disburse-funds 2-8 days after the date of deposit if we received:
- A personal check from any source
Recording at 8:00 A.M.:
Our 8:00 A.M. recordings will continue to require the funds be deposited the evening before recording and, in most instances, we will be able to disburse our funds the day of recording.
Special Recording:
(In counties that allow special recordings):
We will deposit the funds on the same day as received, and disburse funds on the day following confirmation of the special recording, unless funds were received at least one day prior to the special recording or by wire or cashiers / certified check.
Note: Disbursement by wire has a deadline of 2 P.M. Pacific Standard Time.
Section 23413.1 et seq. of the California Insurance Code
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