Legislation
SECTION 956
Additional liabilities of mortgage investing institutions
Real Property Tax (RPT) CHAPTER 50-A, ARTICLE 9, TITLE 3-A
§ 956. Additional liabilities of mortgage investing institutions. 1.
In addition to any other remedies permitted by law, a mortgagor whose
taxes are to be paid by means of a real property tax escrow account
pursuant to this title may bring an action against the mortgage
investing institution maintaining such account for the mortgagor under
the provisions of this section if payments for real property taxes have
not been made for one hundred eighty days after the date such taxes have
become due and payable. If a court shall find, after considering the
circumstances of the failure of a mortgage investing institution to pay
the real property taxes of a mortgagor pursuant to an escrow agreement,
that such failure was due to the negligence or intentional acts of the
mortgage investing institution, its agent, or both, the court may award
the mortgagor injunctive relief and liquidated damages in an amount
equal to three times the tax not paid within such one hundred eighty day
period but in no event greater than six thousand dollars.
2. In addition to any other violations provided by law, if a mortgage
investing institution through negligence or intentional acts fails to
pay real property taxes for more than one hundred eighty days after the
date such taxes become due and payable, it shall constitute a separate
violation of this title.
In addition to any other remedies permitted by law, a mortgagor whose
taxes are to be paid by means of a real property tax escrow account
pursuant to this title may bring an action against the mortgage
investing institution maintaining such account for the mortgagor under
the provisions of this section if payments for real property taxes have
not been made for one hundred eighty days after the date such taxes have
become due and payable. If a court shall find, after considering the
circumstances of the failure of a mortgage investing institution to pay
the real property taxes of a mortgagor pursuant to an escrow agreement,
that such failure was due to the negligence or intentional acts of the
mortgage investing institution, its agent, or both, the court may award
the mortgagor injunctive relief and liquidated damages in an amount
equal to three times the tax not paid within such one hundred eighty day
period but in no event greater than six thousand dollars.
2. In addition to any other violations provided by law, if a mortgage
investing institution through negligence or intentional acts fails to
pay real property taxes for more than one hundred eighty days after the
date such taxes become due and payable, it shall constitute a separate
violation of this title.