47-10.2 Escrow Accounts
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<![CDATA[CHAPTER 47-10.2ESCROW ACCOUNTS47-10.2-01. Definitions. In sections 47-10.2-01 through 47-10.2-03, unless the contextor subject matter otherwise requires:1."Borrower" means the obligor under a residential mortgage held by a secondary<br>mortgagee.2."Excess amount" means any amount received in an escrow account during a<br>calendar year in excess of three hundred dollars plus the amount necessary to pay<br>real estate taxes, special assessments, and insurance premiums during that<br>calendar year.3."Secondary mortgagee" means a successor mortgagee not residing or domiciled in<br>this state who purchased the interest originally belonging to the mortgagee who<br>originated a loan, under which an escrow is required to assure payment of<br>obligations including property taxes, special assessments, and insurance premiums,<br>if that loan is secured by a first lien real estate mortgage or equivalent security<br>interest in a dwelling that the borrower uses as a principal place of residence in this<br>state, not including a mobile home.4."Servicer" means a person or entity maintaining an escrow account for a secondary<br>residential mortgagee.47-10.2-02. Notice of excess escrow payments. If an escrow account is maintainedby the servicer of a secondary residential mortgage for a secondary mortgagee, and the account<br>contains an excess amount, the servicer shall provide written notice to the borrower, on or before<br>March first of the following year, of the escrow account status. The information provided to the<br>borrower must include the balance in the escrow account after the annual payment of taxes and<br>special assessments.47-10.2-03.Application of excess escrow payments.Upon receipt of the writtennotice under section 47-10.2-02, the borrower may, within thirty days after the date of the notice,<br>elect in a written request to the servicer one of the following options:1.Refund of all or part of the excess amount; or2.Retention of all or part of the excess amount in the escrow account.If the borrower does not advise the servicer in writing within the time provided in this section, the<br>servicer may continue maintenance of the escrow account in the same manner until the next<br>report to the borrower under sections 47-10.2-01 through 47-10.2-03. If the borrower advises the<br>servicer of an election within the time prescribed in sections 47-10.2-01 through 47-10.2-03, the<br>servicer must comply with the borrower's election within thirty days of the election.47-10.2-04. Payments from escrow - Notice - Liability of lender or escrow agent.1.If the borrower notifies the escrow agent as provided in subsection 2, is current in<br>loan payments, and funds in the escrow account are sufficient, the borrower may<br>direct the escrow agent under the borrower's loan to do any of the following:a.Pay the property taxes by December thirty-first, if the escrow agent has<br>received a tax statement for that property by December twentieth.b.Pay the property taxes on or before February fifteenth to qualify for the discount<br>for early payment under section 57-20-09.Page No. 1c.Pay the property taxes when due.2.To require the escrow agent to make payments in any of the manners specified in<br>subsection 1, the borrower shall send, by December first, written notice to the<br>escrow agent specifying the manner in which the borrower wants the escrow agent<br>to make payments under subsection 1.Once notified, the escrow agent shallannually make payments in that manner unless the borrower is not current in loan<br>payments, unless funds in the escrow account are not sufficient, or unless otherwise<br>notified in writing by the borrower by December first. If the borrower has never<br>provided a written notice to the escrow agent, the escrow agent shall pay property<br>taxes as provided in subdivision b of subsection 1.3.An escrow agent who fails to comply with a directive of a borrower under subsection<br>1 made within the time limitations under subsection 2 is liable to the borrower for five<br>hundred dollars plus actual damages, costs, and reasonable attorney fees.4.In this section, unless the context or subject matter otherwise requires:a."Escrow agent" means a person who receives escrow payments on behalf of<br>itself or another person.b."Loan" means a loan under which an escrow is required by the lender to assure<br>payment of property taxes and which is secured by a first lien real estate<br>mortgage or equivalent security interest in a dwelling that the borrower uses as<br>a principal place of residence, not including a mobile home.47-10.2-05. Annual escrow account statement. Each residential mortgagee, includingany insurance company with articles of incorporation filed under section 26.1-01-03 or which is<br>required to obtain a certificate of authority under section 26.1-01-05, intending to maintain an<br>escrow account for the payment of taxes, assessments, insurance premiums, and other charges<br>upon the mortgagor's residence shall furnish annually each mortgagor with a detailed statement<br>showing all debits and credits to the account.Page No. 2Document Outlinechapter 47-10.2 escrow accounts]]>