A Bill for an Act
Page 1, Line 101Concerning updating the framework governing escrow
Page 1, Line 102disbursements for real estate transactions.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill modifies the types of funds that are available for immediate withdrawal as a matter of right in real estate transactions by:
- Limiting wire transfer funds to only those funds that are wired through a funds-transfer system operated by the federal reserve; and
- Adding funds credited to an escrow account if the bank or financial institution holding the account confirms that there has been final settlement of the credited funds.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 38-35-125, amend (1)(a) as follows:
Page 2, Line 338-35-125. Closing and settlement services - disbursement of
Page 2, Line 4funds - deceptive trade practice - definitions. (1) As used in this section, unless the context otherwise requires:
Page 2, Line 5(a) "Available for immediate withdrawal as a matter of right" includes funds transferred by any of the following means:
Page 2, Line 6(I)
AnyPage 2, Line 7service operated by the federal reserve or the Clearing House Payments Company;
Page 2, Line 8(II)
AnyPage 2, Line 9other instrument as defined by federal regulation CC, 12 CFR 229.10 (c); and
Page 2, Line 10(III) A real-time or an instant payment made through a
Page 2, Line 11funds-transfer service operated by the federal reserve or the Clearing House PaymentsCompany's real-time payments system.
Page 2, Line 12SECTION 2. Act subject to petition - effective date -
Page 2, Line 13applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 2, Line 14the expiration of the ninety-day period after final adjournment of the
Page 2, Line 15general assembly; except that, if a referendum petition is filed pursuant
Page 2, Line 16to section 1 (3) of article V of the state constitution against this act or an
Page 2, Line 17item, section, or part of this act within such period, then the act, item,
Page 2, Line 18section, or part will not take effect unless approved by the people at the
Page 2, Line 19general election to be held in November 2026 and, in such case, will take
Page 3, Line 1effect on the date of the official declaration of the vote thereon by the governor.
Page 3, Line 2(2) This act applies to real estate transactions occurring on or after the applicable effective date of this act.