Sec. 1. 33 MRSA c. 9, sub-c. I-A is enacted to read:

SUBCHAPTER I-A

FUNDED SETTLEMENT ACT

§521.__Short title

This subchapter may be known and cited as the "Funded Settlement Act".

§522.__Definitions

As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings.

1.__Disbursement of loan funds.__"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:

A.__Cash;

B.__Wired funds;

C.__Certified check;

D.__Checks issued by a state or political subdivision of a state;

E.__Cashier's check or teller's check with equivalent funds availability in conformity with the federal Expedited Funds Availability Act, 12 United States Code, Section 4001, et seq.;

F.__Checks issued by a state-chartered or federally chartered financial institution;

G.__Drafts issued by a state-chartered or federally chartered credit union; or

H.__Checks issued by an insurance company licensed and regulated by the Bureau of Insurance.

2.__Disbursement of settlement proceeds.__"Disbursement of settlement proceeds" means the payment of all proceeds of the transaction by the settlement agent to the person entitled to the proceeds.