Indiana Good Funds Statute

The statute, Indiana Code 27-2-3.7, prohibits a closing agent from making disbursements from an escrow account in connection with a real estate transaction unless the funds received for the transaction are good funds. Funds received from any party to the transaction in an amount of $10,000 or more must be wired funds that are unconditionally held by and irrevocably credited to the closing agent's escrow account. Funds received from any party in an amount less than $10,000 may consist of other good funds as defined in the statute, including irrevocable wire, cashier's check, certified check, check drawn on the escrow account of another closing agent, check drawn on the trust account of a real estate broker licensed under Indiana Code 25-34.1, or a personal check not exceeding $500.