Bill Text: NY S07489 | 2009-2010 | General Assembly | Introduced

---

Bill Title: Limits the amount held in mortgage escrow accounts to a one month reserve.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-04-15 - REFERRED TO LOCAL GOVERNMENT [S07489 Detail]

Download: New_York-2009-S07489-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7489
                                   I N  S E N A T E
                                    April 15, 2010
                                      ___________
       Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
         printed to be committed to the Committee on Local Government
       AN ACT to amend the real property  tax  law  and  the  banking  law,  in
         relation to the amounts held in mortgage escrow accounts
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivision 1 of section 953 of the real property tax  law,
    2  as  added  by  chapter  440  of  the laws of 1989, is amended to read as
    3  follows:
    4    1. Every mortgage investing institution shall make  all  payments  for
    5  taxes for which they hold real property tax escrow accounts, in a timely
    6  manner.    NOTWITHSTANDING FEDERAL LAW, THE AMOUNT HELD IN SUCH ACCOUNTS
    7  MAY NOT EXCEED THE ESTIMATED ANNUAL AMOUNT OF THE  TAXES  THAT  WILL  BE
    8  PAID BY MORE THAN ONE-TWELFTH OF SUCH AMOUNT.
    9    S 2. Paragraph (a) of subdivision 2 of section 6-k of the banking law,
   10  as  added  by  chapter  563  of  the laws of 1992, is amended to read as
   11  follows:
   12    (a) Every mortgage investing institution shall make all  payments  for
   13  insurance for which they hold real property insurance escrow accounts in
   14  a  timely manner.   NOTWITHSTANDING FEDERAL LAW, THE AMOUNT HELD IN SUCH
   15  ACCOUNTS MAY NOT EXCEED THE ESTIMATED ANNUAL  AMOUNT  OF  THE  INSURANCE
   16  PREMIUMS THAT WILL BE PAID BY MORE THAN ONE-TWELFTH OF SUCH AMOUNT.
   17    S 3. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD16870-01-0