Consummation refers to:

• A. The signing of the note
• B. The disbursement of funds
• C. The time a consumer becomes contractually obligated on a credit transaction (correct)
• D. The date the property changes hands

Answer: (C)

Consummation is the moment the borrower becomes contractually obligated on the loan. At closing, after the loan documents are signed and all required conditions are met, the borrower commits to repaying the loan under the agreed terms, creating a binding legal obligation. This is what the term specifically refers to. Disbursement of funds happens after this obligation is created, and the transfer of property occurs at settlement, not at the exact moment the borrower becomes obligated.