Escrow & Title

What is the 'good funds' law in Oregon and how does it affect closing?

AA law requiring all parties to have good credit
BOregon law requiring that funds for closing be in collected, verified form (wire transfer, cashier's check, or similar) before the escrow company can disburse proceeds✓ Correct
CA law requiring earnest money to be in a federally insured account
DA federal law requiring mortgage funds to be wired 3 days before closing

Explanation

Oregon's 'good funds' law requires that closing funds must be in fully collected, available form before a title/escrow company can record the deed and disburse proceeds. Acceptable forms include wire transfers and certified/cashier's checks. Personal checks or business checks are generally not acceptable for closing funds — they represent uncollected funds until they clear the bank.

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