Good Funds in West Virginia
Wet or Dry Settlement
"Collected funds" or "good funds" means moneys used to fund the disbursement of settlement proceeds deposited and irrevocably credited to a settlement agent's account. WV Stat. 46A-6K-2(a).
"Disbursement of loan funds" means the delivery of the loan funds by the lender to the settlement agent in the form of: (1) Cash; (2) Wired funds; (3) Certified check; (4) Checks issued by the United States treasury, the State of West Virginia or an instrumentality of the United States or state of West Virginia; (5) Cashier's check or teller's check or other similar draft or obligation of a federally insured bank, savings bank, savings and loan association or credit union or of any holding company or wholly owned subsidiary of the foregoing; (6) Checks issued by a licensed lender qualified to do business in West Virginia which has posted the required surety bond; (7) Checks issued by an insurance company licensed and regulated by the West Virginia Insurance Commission, which checks are drawn on a federally insured financial institution; (8) Checks drawn on the escrow account of a licensed West Virginia attorney r on the escrow account of a licensed West Virginia real estate broker; or (9) Personal check or checks in an aggregate amount not exceeding $5,000 per loan closing. WV Stat. 46A-6K-2(b).
The lender shall, at or before 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, 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Act (15 U. S. C. ?1601 et seq.), cause disbursement of loan funds to the settlement agent, unless the loan is rescinded by the customer. All funds disbursed by the lender to the settlement agent must be collected funds. WV Stat. 46A-6K-3.
Exceptions to Requirements