Section 160.560  Payments to Contractors

No lender shall make a payment of any proceeds of a subject loan to a contractor under a home improvement contract other than:

a)         by instrument payable to the borrower or jointly to the borrower and the contractor; or

b)         at the election of the borrower, by a third party escrow agent in accordance with the terms established in a written agreement signed by the borrower, the lender, and the contractor before the date of payment.

(Source:  Added at 25 Ill. Reg. 6261, effective May 17, 2001)