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Committee backs modernizing 'good funds' definition to include real‑time payment systems
Summary
The committee recommended Senate Bill 16 be sent to the Committee of the Whole after sponsors and industry witnesses said the bill updates the definition of acceptable closing funds to include RTP and FedNow, with consumer safeguards and existing enforcement mechanisms preserved.
The House Finance Committee voted to send Senate Bill 16 to the Committee of the Whole with a favorable recommendation after sponsors and industry witnesses described the bill as a technical modernization to allow real‑time payment systems in real‑estate closings.
Sponsor Representative Basenecker described the measure as an update to the statutory term “good funds,” adding modern, instantaneous payment systems — including the Clearing House RTP (Real‑Time Payments) and the Federal Reserve’s FedNow service — while preserving consumer protections and preventing reversals. “This bill authorizes the use of modern real time or instant payment systems for real estate closings,” Basenecker said.
Brian Phillips of the Land Title Association of Colorado testified in support, saying the systems reduce wire‑fraud risk and that enforcement for violations already exists: a deceptive trade practice enforcement path available to the Attorney General, unchanged by this bill. Allison Morgan of the Colorado Bankers Association said banks generally support the technical amendment and remain in monitor position.
Representative Weinberg moved a narrowly focused technical amendment (L005) to address a Senate drafting omission; the amendment was adopted without objection. The committee recorded the final vote as 13‑0 in favor; the measure moves to the Committee of the Whole as amended.
Ending: The bill advances with technical fixes to allow recognized real‑time payment rails to qualify as “good funds” in Colorado closings; sponsors and banking/title witnesses said enforcement and consumer protections remain as in current law.
