§ 76-874.01 — Payments to escrow account; use

Nebraska § 76-874.01

• Jurisdiction: Nebraska
• Ch. 76: Real Property

Text

(a) The association may
require a person who purchases a unit on or after September 6, 2013, to make
payments into an escrow account established by the association until the balance
in the escrow account for that unit is in an amount not to exceed six months
of assessments.
(b) All payments made
under this section and received on or after September 6, 2013, shall be held
in an interest-bearing checking account in a bank, savings bank, building
and loan association, or savings and loan association in this state under
terms that place these payments beyond the claim of creditors of the association.
Upon request by a unit owner, an association shall disclose the name of the
financial institution and the account number where the payments made under
this section are being held. An association may maintain a single escrow account
to hold payments made under this section from all of the unit owners. If a
single escrow account is maintained, the association shall maintain separate
accounting records for each unit owner.
(c) The payments made under this section may be used
by the association to satisfy any assessments attributable to a unit owner
for which assessment payments are delinquent. To the extent that the escrow
deposit or any part thereof is applied to offset any unpaid assessments of
a unit owner, the association may require such owner to replenish the escrow
deposit.
(d)
The association shall return the payments made under this section, together
with any interest earned on such payments, to the unit owner when the owner
sells the unit and has fully paid all assessments.
(e) Nothing in this section shall
prohibit the association from establishing escrow deposit requirements in
excess of the amounts authorized in this section pursuant to provisions in
the association's declaration.

Legislative History

Source: Laws 2013, LB442, § 6.