§ 5-601. Interest on deposits in escrow with mortgage investing
institutions. Any mortgage investing institution which maintains an
escrow account pursuant to any agreement executed in connection with a
mortgage on any one to six family residence occupied by the owner or on
any property owned by a cooperative apartment corporation, as defined in
subdivision twelve of section three hundred sixty of the tax law, (as
such subdivision was in effect on December thirtieth, nineteen hundred
sixty), and located in this state shall, for each quarterly period in
which such escrow account is established, credit the same with dividends
or interest at a rate of not less than two per centum per year based on
the average of the sums so paid for the average length of time on
deposit or a rate prescribed by the superintendent of financial services
pursuant to section fourteen-b of the banking law and pursuant to the
terms and conditions set forth in that section whichever is higher. The
superintendent of financial services shall prescribe by regulation the
method or basis of computing any minimum rate of interest required by
this section and any such minimum rate shall be a net rate over and
above any service charge that may be imposed by any mortgage lending
institution for maintaining an escrow account. No mortgage investing
institution shall impose a service charge in connection with the
maintenance of an escrow account unless provision therefor was expressly
made in a loan contract executed prior to the effective date of this
section.