You're right. TCs can, if they wish to, pay you from their general fund. The EO tells you that she worked on that file since the beginning of February and TC received nothing. That may be so that OCT didn't receive payment. However, I'm sure she and her staff were paid for all time worked.
Given all the above - most TCs do not pay when a file cancels and/or doesn't fund for whatever reason. It doesn't happen often, but it does happen. That's one of the main reasons for working direct and charging the good, professional fees - you run the risk of not getting paid. The notary is supposed to be an impartial party to the transaction and pay should not be contingent on file funding (jmo). Unfortunately, that's not how TCs view it.
I would normally say keep pushing back and demand payment. You may, however, lose OCT's business. I say this from personal experience. Msg #505655 After that foray, I only worked with OCT once or twice and only 'cause another notary referred them to me because they needed someone fluent in Spanish. I've never tried pursuing it further.
Good luck with whatever you decide. Let's us know the final outcome.
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