Contents
Overview
Sources
Wet or Dry Settlement
Wet
Definition
"Qualified loan funds" means funds in one of the following forms: (1) lawful money of the United States; (2) wired funds when unconditionally held by the closing agent; (3) cashier's checks, certified checks, bank money orders, or teller's checks issued by a federally insured financial institution and unconditionally held by the closing agent; and (4) United States treasury checks, Federal Reserve Bank checks, federal home loan bank checks, and state of Minnesota warrants. MN Stat. 82.77, subdiv. 1(f).
"Collected funds" means funds deposited, finally settled, and credited to the closing agent's escrow account. MN Stat. 82.77, subdiv. 1(c).
Requirements
A closing agent shall not make disbursements out of an escrow, security deposit, settlement, or closing account unless the funds received from the lender are collected funds or qualified loan funds. MN Stat. 82.77, subdiv. 2(a).
Exceptions to Requirements
N/A
