A lender shall, at or before loan closing, cause disbursement of loan funds to a settlement agent. A lender shall not receive or charge any interest on a loan until disbursement of loan funds and loan closing have occurred, and shall not require payment of any interest in advance. For purposes of this section, the term “interest” means any compensation directly or indirectly imposed by a lender for the extension of credit for the use or forbearance of money as defined in § 28-3311, except that for purposes of this section, the term “interest” shall not include any loan fee, origination fee, service and carrying charge, investigator's fee, or point under § 28-3301 (e).
CREDIT(S)
(Feb. 24, 1987, D.C. Law 6-187, § 4, 33 DCR 7681.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-2803.
Legislative History of Laws
For legislative history of D.C. Law 6-187, see Historical and Statutory Notes following § 42-2401.