District Of Columbia § 42-2401 - Definitions.
Full text of District Of Columbia D.C. Code § 42-2401 — Definitions., with citation guidance and answers to common questions.
§ 42-2401. Definitions.
42-2401For the purposes of this chapter, the term:
“Disbursement of loan funds” means the delivery of loan funds by a lender to a settlement agent in the form of:
Cash;
Wired funds;
Certified checks;
Checks issued by the District of Columbia;
Cashier’s check or teller’s check; or
Checks drawn on a financial institution the accounts of which are insured by an agency of the federal, a state, or the District of Columbia government, and are located within the Fifth Federal Reserve District.
“Disbursement of settlement proceeds” means the payment of all proceeds of a transaction by a settlement agent to the persons entitled to receive the proceeds.
“Lender” means any person regularly engaged in making loans secured by mortgages or by deeds of trust on real estate.
“Loan closing” means that time agreed upon by a borrower and a lender when the execution of the loan documents by the borrower occurs.
“Loan documents” means a note evidencing a debt due a lender, a deed of trust or a mortgage securing a debt due a lender, and any other documents required by a lender to be executed by a borrower as part of a transaction.
“Loan funds” means the gross or net proceeds of the loan to be disbursed by a lender at loan closing.
“Parties” means a seller, a purchaser, a borrower, a lender, and a settlement agent.
“Settlement” means the time when the settlement agent has received a duly executed deed, loan funds, loan documents, and other documents and certified funds required to carry out the terms of a contract between the parties, and the settlement agent can reasonably determine that prerecordation conditions of the contract have been satisfied.
“Settlement agent” means a person responsible for conducting a settlement and disbursement of the settlement proceeds.
Annotations
Source: official District Of Columbia text · Last verified 2026-08-27
Frequently Asked Questions About District Of Columbia § 42-2401
What does D.C. Code § 42-2401 cover?
Section 42-2401 ("Definitions.") is part of the D.C. Code, the codified statutory law of District Of Columbia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite District Of Columbia § 42-2401?
A common citation format is "D.C. Code § 42-2401" (District Of Columbia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of District Of Columbia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the District Of Columbia official source linked on this page or consult a licensed District Of Columbia attorney.
How does District Of Columbia § 42-2401 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in District Of Columbia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in District Of Columbia.