The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 8 V.S.A. § 2218)
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§ 2218. Segregated accounts
(a) All permitted charges paid by loan applicants or borrowers to a lender or a mortgage
broker subject to this chapter shall be deposited in one or more accounts maintained
at a bank approved by the Commissioner, and with respect to such funds the lender
or mortgage broker shall act as a fiduciary. Such account or accounts shall be segregated
from all other accounts of the lender or broker. No permitted charges shall be used
in the conduct of a lender’s or a broker’s personal affairs, nor in a lender’s or
a broker’s business affairs not specifically related to the applicant or borrower.
(b) Such lender or mortgage broker may withdraw funds from the segregated account for
payment directly to third parties for authorized fees.
(c) Such lender or mortgage broker may withdraw funds from the segregated account for
commissions to which it is entitled for services actually performed. Services are
deemed to have been performed when a loan has closed, the loan applicant has withdrawn
the loan application in writing, or such mortgage broker or lender has provided to
the loan applicant or borrower written notice that the loan has been denied.
(d) Such lender or mortgage broker may return funds from the segregated account to the
borrower if not prohibited by the application or contract.
(e) Such lender or mortgage broker shall maintain complete and accurate account records,
including, at a minimum, the source of all deposits, the nature of all disbursements,
the date and amount of each transaction, and the name of the loan applicant or borrower.
All documents pertaining to account activity shall be produced upon request of the
Commissioner. (Added 1995, No. 162 (Adj. Sess.), § 19, eff. Jan. 1, 1997.)