Funds constituting "certified funds" must be presented under which condition when disbursing funds?

When disbursing funds, the condition that "certified funds" must be deposited prior to disbursement is essential to ensure the security, authenticity, and reliability of the transaction. Certified funds are typically guarantees that the money is available and cannot bounce, which makes them a preferred method in transaction processes involving significant amounts, such as real estate closings. This measure helps prevent fraud and ensures that all parties involved have assurance that the funds are valid and secured.

The necessity for prior deposit is particularly significant in the context of established practices in the title and real estate industry, where the timing and integrity of payments are critical to the completion of transactions. By requiring that certified funds be deposited ahead of disbursement, it mitigates risks associated with bad checks or insufficient funds, thereby protecting the interests of all parties involved in the transaction.