§ 47-32-101. Short Title

This chapter shall be known and may be cited as the “Residential Closing Funds Distribution Act of 2005.”

§ 47-32-102. Chapter Definitions

As used in this chapter, unless the context otherwise requires: “Agricultural land” means land used for agriculture, as defined in § 1-3-105; “Commercial real estate,” for purposes of this chapter only, means any real estate used for any business purpose, including one (1) to four (4) residential units or parcels of unimproved, residential property sold […]

§ 47-32-103. Application

This chapter applies to transactions involving loans made by mortgage lenders utilizing settlement agents, which loans shall be secured by deeds of trust or mortgages on real estate, on the following: Dwellings containing not more than four (4) residential units, regardless of the purpose of such dwellings; Vacant lots zoned or designated for use as […]

§ 47-32-104. Disbursement of Loan Funds to Settlement Agent

A mortgage lender, mortgage loan broker, mortgage loan servicer, or other person shall, at or before loan closing, cause disbursement of loan funds, in one (1) of the forms identified in § 47-32-102(3), to the settlement agent. In any transaction in which the borrower may exercise a right of rescission under the federal Truth-in-Lending Act, […]

§ 47-32-105. Disbursement of Funds by Settlement Agent From Escrow or Settlement Account

No settlement agent shall disburse any funds from an escrow or settlement account in connection with a mortgage loan transaction identified in § 47-32-103(a), until: Disbursement of loan funds, designated for said mortgage loan, has been received by the settlement agent; Such additional funds necessary to be provided by the borrower or other third party […]

§ 47-32-106. Noncompliance

Failure to comply with this chapter shall not affect the validity or enforceability of any loan documents.

§ 47-32-107. Violations — Liability — Penalties — Frivolous Actions

Any party violating this chapter is liable to any other party suffering a loss due to such violation, for any actual damages sustained, plus reasonable attorneys’ fees. In addition, any party in violation of this chapter shall pay to the other party or parties suffering a loss an amount equal to one thousand dollars ($1,000), […]