§ 201. Definitions
As used in this subchapter:
(1) “Disbursement of loan funds” means the delivery of the loan funds by the lender to
the settlement agent in one or more of the following forms:
(A) cash;
(B) wired funds or electronic transfer;
(C) certified check;
(D) checks issued by a governmental entity or instrumentality;
(E) cashier’s check, teller’s check, or any transfer of funds by check or otherwise that
is fully collected and unconditionally available to the settlement agent;
(F) checks or other drafts issued by a state-chartered or federally chartered financial
institution; checks or other drafts issued by a state-chartered or federally chartered
credit union; and
(G) checks issued by an insurance company licensed in the State of Vermont.
(2) “Disbursement of the settlement proceeds” means the payment of all proceeds of the
transaction by the settlement agent to the persons or accounts designated to receive
the proceeds.
(3) “Lender” means any person who is in the business of making loans secured by a mortgage
on real estate and to whom the debt is initially payable on the face of the loan documents.
(4) “Loan closing” means the time a borrower executes any loan document or becomes contractually
obligated on a credit transaction, whichever occurs sooner.
(5) “Loan documents” means the note evidencing the debt due the lender, the mortgage securing
the debt due the lender, and any other documents required by the lender to be executed
by the borrower as part of the transaction.
(6) “Loan funds” means the proceeds of the loan to be disbursed by the lender to others
at closing.
(7) “Settlement” means the time when the settlement agent has received the loan funds,
loan documents, and other documents and funds to carry out the terms of the contract
between the parties, and the settlement agent reasonably determines that all conditions
of such contracts have been satisfied. “Parties,” as used in this subdivision, means
the seller, purchaser, borrower, lender, and settlement agent.
(8) “Settlement agent” means the person responsible for conducting the settlement and
disbursement of the settlement proceeds, and includes an individual, corporation,
partnership, or other entity conducting the settlement and disbursement of the settlement
proceeds. The lender may be the settlement agent. (Added 2001, No. 55, § 2.)