§ 953. Duties and responsibilities of mortgage investing institutions.\n1. Every mortgage investing institution shall make all payments for\ntaxes for which they hold real property tax escrow accounts, in a timely\nmanner.\n 2. Every mortgage investing institution subject to the provisions of\nsection fourteen-b of the banking law shall pay at least the minimum\nrate of interest on each real property tax escrow account as prescribed\ntherein except that any such mortgage investing institution shall not be\nrequired to pay such minimum rate of interest on real property tax\nescrow accounts established for non-mortgagors.\n 3. Every mortgage investing institution shall deposit funds from a\nreal property tax escrow account of a mortgagor in a banking institution\nwhose deposits are insured by a federal agency or a licensed branch of a\nforeign banking corporation whose deposits are insured by a federal\nagency. Notwithstanding the foregoing provisions of this subdivision,\nthe superintendent of financial services shall have the power to exempt\nfrom the requirements of this subdivision any banking organization which\ndoes not receive deposits or share accounts from the general public.\n 4. No mortgage investing institution shall impose a service charge or\nany other fee in connection with the maintenance of a real property tax\nescrow account nor, as provided in section two hundred fifty-four-d of\nthe real property law, shall a fee be imposed for direct payment of real\nproperty taxes.\n 5. A mortgage investing institution may debit a mortgagor's real\nproperty tax escrow account for payments of taxes only if actual payment\nfor such taxes is made within twenty-one days after such debit.\n 6. Every mortgage investing institution shall, at least annually and\nwithout charge to the mortgagor, provide to the mortgagor an analysis of\nthe real property tax escrow account of the mortgagor. Such analysis\nshall contain, for the twelve month period covered by the analysis, at\nleast: (i) interest earned; (ii) the amount of taxes paid from the real\nproperty tax escrow account; and (iii) the account balance as of the\nbeginning of the period the analysis covers and the ending account\nbalance as of a specified date within forty-five days preceding the date\nof the analysis. In addition, the mortgage investing institution shall,\nupon request by the mortgagor, provide to the mortgagor without charge\nthe date or dates of the payment of taxes from such real property tax\nescrow account. The information required by this subdivision may be\nprovided in notices otherwise required by federal or state law,\nregulation or rule to be sent on at least an annual basis to the\nmortgagor. The analysis shall also contain the following information in\nat least eight point bold face type in substantially the following\nlanguage:\n (a) that the mortgage investing institution is obligated to make all\npayments for taxes for which the real property tax escrow account is\nmaintained and that if any such payments are not timely, the mortgage\ninvesting institution is responsible for making such payments including\nany penalties and interest;\n (b) that the mortgagor is obligated to pay one-twelfth of the taxes\neach month to the mortgage investing institution which is deposited into\nthe real property tax escrow account, unless there is a deficiency or\nsurplus in the account, in which case a greater or lesser amount may be\nrequired;\n (c) if the mortgage investing institution is subject to the provisions\nof subdivision three of this section, that the mortgage investing\ninstitution must deposit the escrow payments made by the mortgagor in a\nbanking institution or a licensed branch of a foreign banking\ncorporation whose deposits are insured by a federal agency; and\n (d) that the mortgage investing institution cannot impose any fees\nrelating to the maintenance of the real property tax escrow account.\n 6-a. Every mortgage investing instituti
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