§ 5-601 — Interest on deposits in escrow with mortgage investing institutions

New York § 5-601

• Jurisdiction: New York
• Law GOB: General Obligations
• Title 6: Interest On Certain Deposits
• Art. 5: Creation, Definition and Enforcement of Contractual Obligations

Text

§ 5-601. Interest on deposits in escrow with mortgage investing\ninstitutions. Any mortgage investing institution which maintains an\nescrow account pursuant to any agreement executed in connection with a\nmortgage on any one to six family residence occupied by the owner or on\nany property owned by a cooperative apartment corporation, as defined in\nsubdivision twelve of section three hundred sixty of the tax law, (as\nsuch subdivision was in effect on December thirtieth, nineteen hundred\nsixty), and located in this state shall, for each quarterly period in\nwhich such escrow account is established, credit the same with dividends\nor interest at a rate of not less than two per centum per year based on\nthe average of the sums so paid for the average length of time on\ndeposit or a rate prescribed by the superintendent of financial services\npursuant to section fourteen-b of the banking law and pursuant to the\nterms and conditions set forth in that section whichever is higher. The\nsuperintendent of financial services shall prescribe by regulation the\nmethod or basis of computing any minimum rate of interest required by\nthis section and any such minimum rate shall be a net rate over and\nabove any service charge that may be imposed by any mortgage lending\ninstitution for maintaining an escrow account. No mortgage investing\ninstitution shall impose a service charge in connection with the\nmaintenance of an escrow account unless provision therefor was expressly\nmade in a loan contract executed prior to the effective date of this\nsection.\n