4.__Loan closing.__"Loan closing"__means that time agreed upon by the borrower and lender when the execution of the loan documents by the borrower occurs.

5.__Loan documents.__"Loan documents"__means the note evidencing the debt due the lender, the mortgage securing the debt due to the lender and any other documents required by the lender to be executed by the borrower as a part of the transaction.

6.__Loan funds.__"Loan funds" means the gross or net proceeds of the loan to be disbursed by the lender at loan closing.

7.__Settlement.__"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.__"Parties" as used in this subsection means the seller, purchaser, borrower, lender and the settlement agent.

8.__Settlement agent.__"Settlement agent" means the person responsible for conducting the settlement and disbursement of the settlement proceeds and includes an individual, corporation, partnership or other entity conducting the settlement and disbursement of loan proceeds.

§523.__Applicability

This subchapter applies to transactions:

1.__Purposes.__That are insured primarily for personal, family or household purposes;

2.__Not open-end credit.__That are not open-end credit as that term is defined in Title 9-A, section 1-301, subsection 26; and

3.__Secured by mortgages.__That are secured by mortgages on real estate containing not more than 4 residential dwelling units.

§524.__Duty of lender

The lender shall cause, at or before loan closing, disbursement of loan funds to the settlement agent; however, in