COL LEG Escrow Disbursement Bill

Updated on: Apr 1, 2025

Latest Event


  • Mar. 2025 COL LEG Bill Approval
  • On Mar. 26, 2025, COL LEG reported bill approval by governor, effective Aug. 6, 2025.

On Mar. 20, COL LEG passed bill updating escrow disbursement.

  • COL LEG passed SB 25-016 updating escrow disbursement practices for real estate transactions, modifying type of funds available for immediate withdrawal by right.
  • Bill makes amendments to Colorado Revised Statutes, found at COL LEG 38-35-125.
  • Bill Provisions
  • Limits wire transfer funds to only those funds wired through a funds-transfer system operated by the Federal Reserve or by the Clearing House Payments Company.
  • Adding funds to an escrow including a real-time payment through funds transfer service operated by Federal Reserve or Clearing House Payments Company's system.
  • Legislative History
  • On Jan. 8, 2025, bill introduced in Senate; on Feb. 6, 2025, bill passed Senate.
  • On Feb. 6, 2025, bill introduced in House; on Mar. 13, 2025, bill passed House.
  • On Mar. 20, 2025, bill was sent to the governor for review and actioning.
  • Effectiveness
  • If approved, the bill takes effect at 12:01 am on the day following the expiration of the ninety-day period after the final adjournment of the Colorado general assembly.
  • Provided, however, that bill is subject to referendum and if referendum petition is filed, bill will not take effect unless approved by the people at Nov. 2026 election.
  • If approved at such election, the bill will take effect on date vote is declared.
  • Mar. 2025 COL LEG Bill Approval
  • On Mar. 26, 2025, COL LEG reported bill approval by governor, effective Aug. 6, 2025.
Regulators
COL LEG
Entity Types
CNSM; Corp
Reference
Bill SB25-016, 3/26/2025; Bill, SB25-016, 3/20/2025; Citation: COL LEG 38-35-125;
Functions
Client Money; Compliance; Financial; Legal
Countries
United States of America
Category
State
N/A
Products
Corporate; Loan; Mortgage; Payments
Rule Type
Final
Regions
Am
Rule Date
Mar 20, 2025
Effective Date
Aug 6, 2025
Rule ID
247753
Linked to
N/A
Reg. Last Update
Mar 26, 2025
Report Section
US Consumer