44. Which of the following methods of payment does NOT comply with the requirement that good funds be delivered at closing?
Answer: D
A title company check does NOT comply with the requirement that good funds be delivered at closing.
A title company check is not considered good funds because it may not be immediately available for disbursement at the time of closing, which can delay the transaction.
A) A savings and loan teller check
A savings and loan teller check is generally accepted as good funds because it is drawn on the institution's own funds and can be guaranteed to be available at closing.
B) Funds transferred by wire
Funds transferred by wire are considered good funds since they are electronic transfers that provide immediate access to the funds, ensuring that they are available at the closing.
C) A certified check
A certified check is a check guaranteed by the bank, confirming that the funds are available; thus, it complies with the requirement for good funds at closing.
D) A title company check
A title company check may not be considered good funds because it can be subject to holds or delays in availability, which does not fulfill the immediate access requirement for funds at closing.
Conclusion
In conclusion, a title company check does not meet the necessary criteria for good funds since it may not be readily accessible at the time of closing. In contrast, the other options—savings and loan teller checks, wire transfers, and certified checks—are all methods that ensure immediate availability of funds, thereby complying with the requirement.