Georgia Attorneys Title Guaranty Fund

Underwriting Bulletin No. 69

September 13, 2001

SUBJECT: TEMPORARY PAYOFF AND GOOD FUNDS PROCEDURES
Due to the recent tragic events, commerce has been disrupted including overnight delivery services. As we know, if the funds submitted to the lender are insufficient, the lender may refuse to accept the payoff potentially making us liable for any additional amounts needed to obtain the necessary satisfaction, release or reconveyance documents from the lender.

Therefore, we suggest that 5 days of additional interest be withheld at closing for loan payoffs. Obviously, any excess funds in your possession after closing should be promptly reimbursed to the appropriate party. In the case of refinances you should check with the lender to make sure this doesn’t create any loan qualification or marketability issues on the new loan.

As always you must have good funds to disburse. Now more than ever, be sure to have the funds in your possession prior to disbursement. This means that you or the bank must have received a wire or have physical possession of the funding check (that meets promulgated “good funds” criteria) before we disburse. Do not let anyone pressure you into disbursement without your verification that the funds or funding instrument has been received.

We suggest this procedure be observed until such time as we are confident that commerce, especially these types of services, has returned to normal.

If you have any questions or concerns, please contact the underwriting department at 404-250-1604 or 1-800-328-2642.

Printable version: ub69.pdf

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