§203. Duty of lender

Link to law: http://legislature.vermont.gov/statutes/section/09/004/00203
Published: 2015

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Title

09

:
Commerce and Trade






Chapter

004

:
INTEREST






Subchapter

003
:
FUNDED SETTLEMENTS










 

§

203. Duty of lender

(a) 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.

(b) If the

lender is acting as settlement agent, the lender shall cause disbursement of

the settlement proceeds at the loan closing, or, for any other loan where a

right of rescission applies, the lender shall cause disbursement of the settlement

proceeds on the first business day after the expiration of the rescission

period.

(c) The lender

shall not be entitled to receive or charge any interest on the loan until

disbursement of the settlement proceeds. (Added 2001, No. 55, § 2.)
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