{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/55.1-902.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/55.1-902.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/55.1-902.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/55.1-902.html"}],"law_id":63887,"edition_id":1,"section_id":63887,"structure_id":14903,"section_number":"55.1-902","catch_line":"Duty of lender","history":"1980, c. 730, \u00a7 6.1-2.12; 1993, c. 530; 2010, c. 794, \u00a7 55-525.10; 2019, c. 712.","full_text":"The lender shall, at or before loan closing, cause disbursement of loan funds to the settlement agent. In the case of a refinancing or any other loan where a right of rescission applies, the lender shall, within one business day after the expiration of the rescission period required under the federal Truth in Lending Act (15 U.S.C. \u00a7 1601 et seq.), cause disbursement of loan funds to the settlement agent. The lender shall not be entitled to receive or charge any interest on the loan until disbursement of loan funds and loan closing has occurred.","order_by":null,"text":{"0":{"id":232700,"text":"The lender shall, at or before loan closing, cause disbursement of loan funds to the settlement agent. In the case of a refinancing or any other loan where a right of rescission applies, the lender shall, within one business day after the expiration of the rescission period required under the federal Truth in Lending Act (15 U.S.C. \u00a7 1601 et seq.), cause disbursement of loan funds to the settlement agent. The lender shall not be entitled to receive or charge any interest on the loan until disbursement of loan funds and loan closing has occurred.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":14903,"edition_id":1,"name":"Real Estate Settlements","identifier":"9","label":"chapter","depth":3,"order_by":1,"parent_id":13524,"metadata":{},"date_created":"2026-06-26 03:50:41","date_modified":"2026-06-26 03:50:41","permalink":{"id":245849,"object_type":"structure","relational_id":14903,"identifier":"9","token":"55.1\/II\/9","url":"\/55.1\/II\/9\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13524,"edition_id":1,"name":"Real Estate Settlements and Recordation","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12707,"metadata":{},"date_created":"2026-06-26 03:45:07","date_modified":"2026-06-26 03:45:07","permalink":{"id":245369,"object_type":"structure","relational_id":13524,"identifier":"II","token":"55.1\/II","url":"\/55.1\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12707,"edition_id":1,"name":"Property and Conveyances","identifier":"55.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":244769,"object_type":"structure","relational_id":12707,"identifier":"55.1","token":"55.1","url":"\/55.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":79247,"structure_id":14903,"section_number":"55.1-900","catch_line":"Definitions","url":"\/55.1-900\/","token":"55.1\/II\/9\/55.1-900","metadata":false},{"id":84919,"structure_id":14903,"section_number":"55.1-901","catch_line":"Applicability; effect of noncompliance","url":"\/55.1-901\/","token":"55.1\/II\/9\/55.1-901","metadata":false},{"id":63887,"structure_id":14903,"section_number":"55.1-902","catch_line":"Duty of lender","url":"\/55.1-902\/","token":"55.1\/II\/9\/55.1-902","metadata":false},{"id":67904,"structure_id":14903,"section_number":"55.1-903","catch_line":"Duty of settlement agent","url":"\/55.1-903\/","token":"55.1\/II\/9\/55.1-903","metadata":false},{"id":62791,"structure_id":14903,"section_number":"55.1-904","catch_line":"Repealed","url":"\/55.1-904\/","token":"55.1\/II\/9\/55.1-904","metadata":false},{"id":74930,"structure_id":14903,"section_number":"55.1-905","catch_line":"Disclosure of affiliated business by settlement service providers","url":"\/55.1-905\/","token":"55.1\/II\/9\/55.1-905","metadata":false},{"id":56898,"structure_id":14903,"section_number":"55.1-906","catch_line":"Disclosure of charges for appraisal or valuation using automated or other valuation mechanism","url":"\/55.1-906\/","token":"55.1\/II\/9\/55.1-906","metadata":false},{"id":81795,"structure_id":14903,"section_number":"55.1-907","catch_line":"Penalty","url":"\/55.1-907\/","token":"55.1\/II\/9\/55.1-907","metadata":false}],"previous_section":{"id":84919,"structure_id":14903,"section_number":"55.1-901","catch_line":"Applicability; effect of noncompliance","url":"\/55.1-901\/","token":"55.1\/II\/9\/55.1-901","metadata":false},"next_section":{"id":67904,"structure_id":14903,"section_number":"55.1-903","catch_line":"Duty of settlement agent","url":"\/55.1-903\/","token":"55.1\/II\/9\/55.1-903","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/55.1-902\/","history_text":"

This law was first created in 1980. The record of its establishment is cataloged in chapter 730 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1980 \u201cActs\u201d aren\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1993, chapter 530; in 2010, chapter 794<\/a>; in 2019, chapter 712<\/a>.<\/p>","references":[{"id":81795,"section_number":"55.1-907","catch_line":"Penalty","order_by":null,"url":"\/55.1-907\/"}],"refers_to":false,"permalink":{"id":245859,"object_type":"law","relational_id":63887,"identifier":"55.1-902","token":"55.1\/II\/9\/55.1-902","url":"\/55.1-902\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/55.1-902\/","token":"55.1\/II\/9\/55.1-902","dublin_core":{"Title":"Duty of lender","Type":"Text","Format":"text\/html","Identifier":"\u00a7 55.1-902","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

The lender<\/span> shall, at or before loan closing<\/span>, cause disbursement of loan funds<\/span> to the settlement agent<\/span>. In the case of a refinancing or any other loan where a right of rescission applies, the lender<\/span> shall, within one business day after the expiration of the rescission period required under the federal Truth in Lending Act (15 U.S.C. \u00a7 1601 et seq.), cause disbursement of loan funds<\/span> to the settlement agent<\/span>. The lender<\/span> shall not be entitled to receive or charge any interest on the loan until disbursement of loan funds<\/span> and loan closing<\/span> has occurred.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDUTY OF LENDER (\u00a7 55.1-902)\n\nThe lender shall, at or before loan closing, cause disbursement of loan funds to\nthe settlement agent. In the case of a refinancing or any other loan where a\nright of rescission applies, the lender shall, within one business day after the\nexpiration of the rescission period required under the federal Truth in Lending\nAct (15 U.S.C. \u00a7 1601 et seq.), cause disbursement of loan funds to the\nsettlement agent. The lender shall not be entitled to receive or charge any\ninterest on the loan until disbursement of loan funds and loan closing has\noccurred.\n\nHISTORY: 1980, c. 730, \u00a7 6.1-2.12; 1993, c. 530; 2010, c. 794, \u00a7 55-525.10;\n2019, c. 712.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}