§ 45A-5. Duty of lender, purchaser, or seller. - North Carolina Statutes

§ 45A‑5.  Duty oflender, 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 agenteither in the form of collected funds or in the form of a negotiable instrumentdescribed in G.S. 45A‑4(a)(1) through (7), provided that the lender,purchaser, or seller, as applicable, shall cause that negotiable instrument tobe honored upon presentment for payment to the bank or other depositoryinstitution upon which the instrument is drawn. However, in the case of arefinancing, or any other loan where a right of rescission applies, the lendershall, no later than the business day after the expiration of the rescissionperiod 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 oneor more of the forms prescribed by provisions in this Chapter.

(b)        (Forapplicability date, see note) The lender shall include in the loan closinginstructions to the settlement agent the name of the mortgage broker or otherperson, 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.)