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The Vermont Statutes Online
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.)