Terms Used In Vermont Statutes Title 9 Sec. 47

  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Fees: shall mean earnings due for official services, aside from salaries or per diem compensation. See
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

§ 47. Application of payments

(a) On a note, bill, or other similar obligation, payable on demand or at a specified time, with interest, when a payment is made, the payment shall be applied: first, to liquidate the interest accrued at the time of the payment; and second, to extinguish the principal.

(b) Notwithstanding any other provision of this chapter to the contrary, payments shall be applied to interest, principal, and escrow charges, if any, before any portion of the payment is applied to late fees, delinquency charges, deferral charges, or any similar fees or charges. (Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968; amended 2019, No. 20, § 104.)