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: (A) cash; (B) wired funds or electronic transfer; (C) certified check; (D) checks issued by a governmental entity or instrumentality; (E) cashier?s check, or teller 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-charted credit union; and (G) checks issued by an insurance company licensed in a state of Vermont. 9 VT Stat. Ann. 201(1).
Requirements
The lender shall, at or before the loan closing, cause disbursement of loan funds to the settlement agent; however, in the case of a refinancing, or any other loan where a right of rescission applies but has not been exercised, the lender shall, prior to 2:00 p.m. Eastern Standard Time of the first 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. 9 VT Stat. Ann. 203(a).
Exceptions to Requirements
N/A
