§ 2916.
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/vt/title-8/chapter-85/2916A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 2916. Segregated accounts
(a)All amounts paid by borrowers to a licensee subject to this chapter shall be deposited in one or more accounts maintained at a federally insured depository institution and with respect to such funds, the licensee shall act as a fiduciary. Such account or accounts shall be segregated from all other accounts of the licensee. Such funds shall not be used in the conduct of the licensee’s personal affairs or in the licensee’s business affairs.
(b)The licensee may withdraw funds from the segregated account for payment directly to the owner of the loan or other third party of principal and interest and other payments as may be required pursuant to the terms of the loan document or servicing contract.
(c)The licensee may withdraw funds from the segregated account for commissions to which it is entitled for services actually performed.
(d)The licensee may return funds from the segregated account to the borrower if not prohibited.
(e)The licensee shall maintain complete and accurate account records, including, at a minimum, the source of all deposits, the nature and recipient of all disbursements, the date and amount of each transaction, and the name of the borrower. All documents pertaining to account activity shall be produced upon request of the Commissioner. (Added 2009, No. 96 (Adj. Sess.), § 1, eff. Jan. 1, 2011.)