As used in this chapter, the following terms shall have the following meanings:
- (1) ACCOUNT HOLDER. A first-time and second chance home buyer who establishes, individually or jointly with another first-time and second chance home buyer, a first-time and second chance home buyer savings account.
- (2) ALLOWABLE CLOSING COSTS. A disbursement listed on a settlement statement for the purchase of a single-family residence in Alabama by a first-time and second chance home buyer.
- (3) DEPARTMENT. Alabama Department of Revenue.
- (4) ELIGIBLE COSTS. The down payment and allowable closing costs for the purchase of a single-family residence in Alabama by a first-time and second chance home buyer. Eligible costs do not include any costs incurred prior to the establishment of a first-time and second chance home buyer savings account.
- (5) FINANCIAL INSTITUTION. Any bank, savings institution, industrial loan association, credit union, or other similar entity authorized to do business and accept deposits in Alabama.
- (6) FIRST-TIME AND SECOND CHANCE HOME BUYER. An individual who resides in Alabama and has not owned or purchased, either individually or jointly, a single-family residence during a period of ten years prior to the date of the purchase of a single-family residence.
- (7) FIRST-TIME AND SECOND CHANCE HOME BUYER SAVINGS ACCOUNT or ACCOUNT. An account with a financial institution created for the purpose of payment or reimbursement of eligible costs for the purchase of a single-family residence in Alabama by a first-time and second chance home buyer and designated by the financial institution upon its creation as a first-time and second chance home buyer savings account.
- (8) SETTLEMENT STATEMENT. The statement of receipts and disbursements for a transaction related to real estate, including a statement prescribed under the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. §2601 et seq., as amended, and regulations thereunder.
- (9) SINGLE-FAMILY RESIDENCE. A single-family residence owned and occupied by a first-time and second chance home buyer as the first-time and second chance home buyer’s principal residence, which may also include a manufactured home, trailer, mobile home, condominium unit, or cooperative.
(Act 2018-467, §3.)