Arizona Laws 6-115. Insurance premium transmitters; timely payment required; civil penalty
A. A person who contracts to receive a payment that includes an amount for payment of a mortgage, deed of trust or any other obligation secured by real estate and any amounts to be tendered for payment of an insurance policy premium, a property tax assessment or any other collateral obligation shall make timely payment of those amounts, except as provided in subsection C of this section.
Terms Used In Arizona Laws 6-115
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
B. Monies collected for payment of an insurance policy premium, a property tax assessment or any other collateral obligation shall be such that the total of the payments collected for each category during the insurance, tax or other period will approximate the actual insurance premium, tax or other payment when due.
C. A person who contracts to receive and tender monies as described in subsection A of this section and who receives a delinquent payment from the payor shall exercise reasonable diligence in tendering those payments and is not subject to a penalty for failure to make a timely payment of those monies when first due.
D. A person who violates this section is subject to a civil penalty under section 6-132.