Contents
Overview
Sources
Wet or Dry Settlement
Wet
Definition
"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: 1. Cash; 2. Wired funds; 3. Certified check; 4. Checks issued by the Commonwealth or a political subdivision of the Commonwealth; 5. Cashier's check, or teller's check with equivalent funds availability in conformity with the federal Expedited Funds Availability Act (12 U.S.C. ? 4001 et seq.); 6. Checks issued by a financial institution, the accounts of which are insured by an agency of the federal or state government, which checks are drawn on a financial institution located within the Fifth Federal Reserve District, the accounts of which are insured by an agency of the federal or state government; 7. Drafts issued by a state chartered or federally chartered credit union, which drafts are drawn on the United States Central Credit Union; 8. Checks issued by an insurance company licensed and regulated by the State Corporation Commission, which checks are drawn on a financial institution located within the Fifth Federal Reserve District, the accounts of which are insured by an agency of the federal government; or 9. Checks issued by a state or federal savings and loan association or savings bank operating in the Commonwealth, which checks are drawn on the Federal Home Loan Bank of Atlanta. VA Code 55-525.8.
Requirements
The lender shall, at or before loan closing, cause disbursement of loan funds to the settlement agent. In the case of a refinancing or any other loan where a right of rescission applies, the lender shall, within one business day after the expiration of the rescission period required under the federal Truth in Lending Act (15 U.S.C. ? 1601 et seq.), cause disbursement of loan funds to the settlement agent. VA Code 55-525.10.
Exceptions to Requirements
N/A
