§ 6.1-2.8. Obligation of lender to pay taxes and insurance; penalties
Any bank or lender maintaining escrow accounts for the payment of taxes or insurance, which on receipt of notice thereof, fails to make timely payment therefor, and incurs a penalty or late charge thereon or a cancellation for nonpayment if there be sufficient funds in such escrow account at least five days before such due date to make such payment, shall be liable for the penalty or late charge assessed for late payment and for any loss as a result of the property being uninsured for nonpayment. Such bank or lender shall give written notice to any obligor of the payment of such penalty or late charge within five days after such payment is made.
(1978, c. 685.)
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