Virginia Code 55.1-900: Definitions
As used in this chapter, unless the context requires a different meaning:
Terms Used In Virginia Code 55.1-900
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Includes: means includes, but not limited to. See Virginia Code 1-218
- Lender: means any person regularly engaged in making loans secured by mortgages or deeds of trust on real estate. See Virginia Code 55.1-900
- Loan closing: means the time agreed upon by the borrower and lender, when the execution of the loan documents by the borrower occurs. See Virginia Code 55.1-900
- Loan documents: means the note evidencing the debt due the lender, the deed of trust, or the mortgage securing the debt due the lender and any other documents required by the lender to be executed by the borrower as a part of the transaction. See Virginia Code 55.1-900
- Loan funds: means the gross or net proceeds of the loan to be disbursed by the lender at loan closing. See Virginia Code 55.1-900
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes any individual, corporation, partnership, association, cooperative, limited liability company, trust, joint venture, government, political subdivision, or any other legal or commercial entity and any successor, representative, agent, agency, or instrumentality thereof. See Virginia Code 1-230
- real estate: includes lands, tenements and hereditaments, and all rights and appurtenances thereto and interests therein, other than a chattel interest. See Virginia Code 1-219
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Settlement: means the time when the settlement agent has received the duly executed deed, loan funds, loan documents, and other documents and funds required to carry out the terms of the contract between the parties and the settlement agent reasonably determines that prerecordation conditions of such contracts have been satisfied. See Virginia Code 55.1-900
- Settlement agent: means the person responsible for conducting the settlement and disbursement of the settlement proceeds and includes any individual, corporation, partnership, or other entity conducting the settlement and disbursement of loan proceeds. See Virginia Code 55.1-900
- State: when applied to a part of the United States, includes any of the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, and the United States Virgin Islands. See Virginia Code 1-245
“Disbursement of loan funds” means the delivery of the loan funds by the lender to the settlement agent in one or more of the following forms:
1. Cash;
2. Wired funds;
3. Certified check;
4. Checks issued by the Commonwealth or a political subdivision of the Commonwealth;
5. Cashier’s check, or teller’s check with equivalent funds availability in conformity with the federal Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.);
6. Checks issued by a financial institution, the accounts of which are insured by an agency of the federal or state government, which checks are drawn on a financial institution located within the Fifth Federal Reserve District, the accounts of which are insured by an agency of the federal or state government;
7. Drafts issued by a state chartered or federally chartered credit union;
8. Checks issued by an insurance company licensed and regulated by the State Corporation Commission, which checks are drawn on a financial institution located within the Fifth Federal Reserve District, the accounts of which are insured by an agency of the federal government; or
9. Checks issued by a state or federal savings and loan association or savings bank operating in the Commonwealth, which checks are drawn on the Federal Home Loan Bank of Atlanta.
“Disbursement of settlement proceeds” means the payment of all proceeds of the transaction by the settlement agent to the persons entitled to such proceeds.
“Lender” means any person regularly engaged in making loans secured by mortgages or deeds of trust on real estate.
“Loan closing” means the time agreed upon by the borrower and lender, when the execution of the loan documents by the borrower occurs.
“Loan documents” means the note evidencing the debt due the lender, the deed of trust, or the mortgage securing the debt due the lender and any other documents required by the lender to be executed by the borrower as a part of the transaction.
“Loan funds” means the gross or net proceeds of the loan to be disbursed by the lender at loan closing.
“Settlement” means the time when the settlement agent has received the duly executed deed, loan funds, loan documents, and other documents and funds required to carry out the terms of the contract between the parties and the settlement agent reasonably determines that prerecordation conditions of such contracts have been satisfied. A determination by a settlement agent that prerecordation conditions have been satisfied shall not control the rights and obligations of the parties under the contract, including whether settlement has occurred under the terms and conditions of the contract. “Parties,” as used in this definition, means the seller, purchaser, borrower, lender, and settlement agent.
“Settlement agent” means the person responsible for conducting the settlement and disbursement of the settlement proceeds and includes any individual, corporation, partnership, or other entity conducting the settlement and disbursement of loan proceeds.
“Settlement service provider” means any person providing settlement services, as that term is defined under the federal Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.).
“Thing of value” means any payment, advance, funds, loan, service, or other consideration.
1980, c. 730, § 6.1-2.10; 1981, c. 86; 1984, c. 118; 1987, cc. 576, 577; 1990, c. 340; 1991, c. 254; 1999, c. 109; 2008, c. 514; 2010, c. 794, § 55-525.8; 2019, c. 712.