The Vermont Statutes Online

Title 9 : Commerce and Trade

Chapter 004 : Interest

Subchapter 003 : FUNDED SETTLEMENTS

• § 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.)