55-525.8 - (Effective October 1, 2010) Definitions.
§ 55-525.8. (Effective October 1, 2010) Definitions.
As used in this chapter, unless the context requires a different meaning:
"Disbursement of loan funds" means the delivery of the loan funds by thelender 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 theCommonwealth;
5. Cashier's check, or teller's check with equivalent funds availability inconformity 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 areinsured by an agency of the federal or state government, which checks aredrawn on a financial institution located within the Fifth Federal ReserveDistrict, the accounts of which are insured by an agency of the federal orstate 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 StateCorporation Commission, which checks are drawn on a financial institutionlocated within the Fifth Federal Reserve District, the accounts of which areinsured by an agency of the federal government; or
9. Checks issued by a state or federal savings and loan association orsavings bank operating in the Commonwealth, which checks are drawn on theFederal Home Loan Bank of Atlanta.
"Disbursement of settlement proceeds" means the payment of all proceeds ofthe transaction by the settlement agent to the persons entitled thereto.
"Lender" means any person regularly engaged in making loans secured bymortgages or deeds of trust on real estate.
"Loan closing" means the time agreed upon by the borrower and lender, whenthe execution of the loan documents by the borrower occurs.
"Loan documents" means the note evidencing the debt due the lender, thedeed of trust, or mortgage securing the debt due the lender, and any otherdocuments required by the lender to be executed by the borrower as a part ofthe transaction.
"Loan funds" means the gross or net proceeds of the loan to be disbursed bythe lender at loan closing.
"Settlement" means the time when the settlement agent has received the dulyexecuted deed, loan funds, loan documents, and other documents and fundsrequired to carry out the terms of the contract between the parties and thesettlement agent reasonably determines that prerecordation conditions of suchcontracts have been satisfied. A determination by a settlement agent thatprerecordation conditions have been satisfied shall not control the rightsand obligations of the parties under the contract including whethersettlement has occurred under the terms and conditions of the contract."Parties" as used in this definition means the seller, purchaser, borrower,lender, and the settlement agent.
"Settlement agent" means the person responsible for conducting thesettlement and disbursement of the settlement proceeds and includes anyindividual, corporation, partnership, or other entity conducting thesettlement and disbursement of loan proceeds.
"Settlement service provider" means any person providing settlementservices, as that term is defined under the Real Estate Settlement ProceduresAct (12 U.S.C. § 2601 et seq.).
"Thing of value" means any payment, advance, funds, loan, service, or otherconsideration.
(1980, c. 730, § 6.1-2.10; 1981, c. 86; 1984, c. 118; 1987, cc. 576, 577;1990, c. 340; 1991, c. 254; 1999, c. 109; 2008, c. 514; 2010, c. 794.)