PRINTER'S NO. 1910
No. 1580 Session of 1987
INTRODUCED BY G. SNYDER, SWEET, PICCOLA, MORRIS, DORR, B. SMITH,
BORTNER, FOSTER, CHADWICK, REBER, NAHILL, BARLEY, GODSHALL,
FOX, TRELLO, CORNELL, JOHNSON, HECKLER, SEMMEL, ACOSTA,
SAURMAN, PHILLIPS, HERSHEY, CLYMER, MICHLOVIC, VEON AND
ITKIN, JUNE 22, 1987
REFERRED TO COMMITTEE ON BUSINESS AND COMMERCE, JUNE 22, 1987
AN ACT
1 Providing for the disbursement of certain loan proceeds related
2 to real estate transactions; and providing a penalty.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Real Estate
7 Loan Disbursement Act.
8 Section 2. General rule.
9 In a transaction involving a loan secured by a mortgage lien
10 on real property situated in this Commonwealth, the lender shall
11 disburse the loan proceeds to the settlement agent in accordance
12 with section 3. Disbursement shall be made by the lender on or
13 before the date of closing.
14 Section 3. Form of disbursement.
15 A lender shall disburse loan proceeds to the settlement agent
16 in one of the following forms:
1 (1) Cash.
2 (2) Wired funds.
3 (3) A certified check.
4 (4) A check issued by the Treasury of the United States,
5 the Commonwealth or a political subdivision of the
6 Commonwealth.
7 (5) A cashier's check.
8 (6) A check drawn on a financial institution that is
9 insured by the Federal Deposit Insurance Corporation or the
10 Federal Savings and Loan Insurance Corporation, that
11 regularly conducts business and that maintains an office in
12 the county in which all or part of the real estate subject to
13 the transaction is located.
14 Section 4. Penalty.
15 A lender that does not disburse loan proceeds subject to the
16 provisions of this act in accordance with its provisions shall
17 pay to the Commonwealth an amount equal to all interest charged
18 on the loan for the first 30 days following the date of closing.
19 Section 5. Effective date.
20 This act shall take effect in 60 days.
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