Uniform State Test (UST) · 11% of the SAFE exameasy
Correct answer: This is a violation of §5-25-12 — the Alabama Banking Department can take enforcement action including license suspension or revocation
Failing to disburse funds in accordance with a written commitment to make a mortgage loan is a specifically prohibited act under Alabama Code §5-25-12. The Alabama State Banking Department has enforcement authority and can impose penalties including license suspension, revocation, fines, and other disciplinary action. The borrower may also have civil remedies, but this is simultaneously a regulatory violation — not just a private business dispute.
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