What primarily distinguishes "good funds" in a transaction?

The characteristic that primarily distinguishes "good funds" in a transaction is that they meet specific regulatory standards for reliability. In the context of financial transactions, particularly in real estate, "good funds" refer to those that are immediately available for use without risk of non-payment. This includes funds that have been verified and have cleared, minimizing the chance of fraud or insufficient funds.

Regulatory standards ensure that the funds used in transactions are legitimate, preventing issues such as bounced checks or other forms of payment that might not be honored. These standards help protect all parties involved in the transaction, providing a level of assurance regarding the availability and safety of the funds.

While it is true that other factors, such as the source of the funds or the ability to transfer them without additional verification, can be relevant in discussions of financial transactions, they do not encapsulate what "good funds" specifically denotes in the legal and regulatory sense.