California's good funds law provides that

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Multiple Choice

California's good funds law provides that

The concept being tested is what counts as “good funds” under California law for escrow. Good funds are those that are immediately usable by the escrow holder and can be credited to the escrow trust account on the day they’re received, making them available for disbursement that same day. Wire transfers are electronically transmitted and clear quickly, so once received they are credited to the escrow account the same day. Cashier’s checks are bank-guaranteed instruments; once deposited, the funds are reliably available and, under the Good Funds Law, treated as good funds the same day. Because both types meet the standard of immediate availability, they can be used for closing disbursements promptly. Other options don’t fit because they omit one of these two instruments or imply that neither qualifies, whereas California law clearly recognizes both wire transfers and cashier’s checks as good funds on the day of receipt.

The concept being tested is what counts as “good funds” under California law for escrow. Good funds are those that are immediately usable by the escrow holder and can be credited to the escrow trust account on the day they’re received, making them available for disbursement that same day.

Wire transfers are electronically transmitted and clear quickly, so once received they are credited to the escrow account the same day. Cashier’s checks are bank-guaranteed instruments; once deposited, the funds are reliably available and, under the Good Funds Law, treated as good funds the same day. Because both types meet the standard of immediate availability, they can be used for closing disbursements promptly.

Other options don’t fit because they omit one of these two instruments or imply that neither qualifies, whereas California law clearly recognizes both wire transfers and cashier’s checks as good funds on the day of receipt.

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