45A-5. Duty of lender, purchaser, or seller.
(a) The lender, purchaser, or seller shall, at or before closing, deliver closing funds, including the gross or net loan funds, if applicable, to the settlement agent either in the form of collected funds or in the form of a negotiable instrument described in G.S. 45A-4(a)(1) through (7), provided that the lender, purchaser, or seller, as applicable, shall cause that negotiable instrument to be honored upon presentment for payment to the bank or other depository institution upon which the instrument is drawn. However, in the case of a refinancing, or any other loan where a right of rescission applies, the lender shall, no later than the 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 in one or more of the forms prescribed by provisions in this Chapter.
(b) (For applicability date, see note) The lender shall include in the loan closing instructions to the settlement agent the name of the mortgage broker or other person, if any, who acted as a mortgage broker in the origination of the loan. (1995 (Reg. Sess., 1996), c. 714, s. 1; 2007-176, s. 2.)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 45A - Good Funds Settlement Act
§ 45A-4 - Duty of settlement agent.
§ 45A-5 - Duty of lender, purchaser, or seller.
§ 45A-6 - Validity of loan documents.
§ 45A-8 - Embezzlement of closing funds by settlement agent.
§ 45A-9 - Interest on settlement agent's real estate trust and escrow accounts.