California Financial Code

§ 50204

FIN § 50204 Effective Oct 11, 2009Div. 20 · Ch. 4

Statute text

A licensee may not do any of the following:

(a)Disburse the mortgage loan proceeds in a form other than direct deposit to the borrower’s or borrower’s designee’s account, wire, bank or certified check, ACH funds transfer, or attorney’s check drawn on a trust account. An entity may apply to the commissioner for a waiver of the requirements of this subdivision by demonstrating, in a letter application, that it has adopted or will adopt another method of disbursement of loan proceeds that will satisfy the purposes of this subdivision.

(b)Fail to disburse funds in accordance with a commitment to make a mortgage loan that is accepted by the applicant.

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Legislative history

Amended by Stats. 2009, Ch. 160, Sec. 65. (SB 36) Effective October 11, 2009.