funding notice
Effictive for all loan closings commencing on or after September 1, 2005, (or
refinances with disbursement dates on or after September 1, 2005) pursuant
to Public Chapter 273 of the Public Acts of Tennessee 2005 "The Residential Closing
Funds Disbursement Act of 2005" (the "Act"), all loan funds must be delivered
to the settlement agent at or before closing either by wire
or cashier's check. The closing agent shall not disburse any funds from an
escrow or settlement account until the loan funds have been received. If
additional funds are required from the borrower or a third party, the settlement
agent is prohibited under the Act from accpeting personal checks in excess
of $1,000.00 Any funds recieved in excess of $1,000.00 must be in cash, certified
funds or by wire. Any violation of this statute may result in penalties.
You may contact the Tennessee Department of Financial Institutions at 615.741.2236
if you have any questions.
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