N.Y. Real Property Tax Law 953-A – Real property tax escrow accounts for non-mortgagors
§ 953-a. Real property tax escrow accounts for non-mortgagors. 1. Any mortgage investing institution may establish real property tax escrow accounts for non-mortgagors. Such accounts shall be subject to the provisions of this title, except as otherwise provided by this section.
Terms Used In N.Y. Real Property Tax Law 953-A
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage investing institution: means any bank, trust company, national bank, savings bank, savings and loan association, federal savings bank, federal savings and loan association, private banker, credit union, federal credit union, investment company, pension fund, licensed mortgage banker or any other entity which maintains a real property tax escrow account for real property located in this state. See N.Y. Real Property Tax Law 952
- Non-mortgagor: means a person having title to and occupying a one to six family residence which is located in this state and is not subject to a mortgage. See N.Y. Real Property Tax Law 952
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Real property tax escrow account: means an account established by contract between a mortgagor of real property improved by a one to six family residence and the mortgage investing institution having a mortgage thereon, into which the mortgage investing institution shall deposit money collected from the mortgagor for the purpose of paying taxes. See N.Y. Real Property Tax Law 952
- taxes: means a charge imposed upon real property by or on behalf of a county, city, town, village or school district for municipal or school district purposes, including a special ad valorem levy, special assessment or any similar charge. See N.Y. Real Property Tax Law 952
2. A mortgage investing institution may enter into agreements with non-mortgagors to provide for payment of real property taxes by such mortgage investing institution on behalf of such non-mortgagor from funds on deposit in a real property tax escrow account.
3. Mortgage investing institutions shall not be required to pay the minimum rate of interest required by subdivision two of section nine hundred fifty-three of this article on real property tax escrow accounts of non-mortgagors.
4. If the non-mortgagor shall fail to make required payments to a real property tax escrow account within twenty-one days after the date such payment is due, the mortgage investing institution may terminate the account upon written notification to the non-mortgagor. Such written notification shall include but not be limited to the following information: (a) that the real property tax escrow account has been or will be terminated (whichever is applicable); and (b) the non-mortgagor will be obliged to pay to the appropriate collecting officers taxes becoming due thereafter. The written notice shall also set forth the effective date of the termination and shall provide the name, address and telephone number of each collecting officer or office and advise the non-mortgagor to contact such officer or office for tax billing information. Upon termination, the mortgage investing institution shall refund any and all funds remaining in such account to such non-mortgagor.