Virginia Code 6.2-414: Obligation of person maintaining escrow account to pay taxes and insurance; penalties.
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Any lender or other person maintaining escrow accounts for the payment of taxes or insurance, who 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 are 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. The lender or other person shall give written notice to any obligor of the payment of such penalty or late charge within five days after such payment is made.
Terms Used In Virginia Code 6.2-414
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Person: means any individual, corporation, partnership, association, cooperative, limited liability company, trust, joint venture, government, political subdivision, or other legal or commercial entity. See Virginia Code 6.2-100
1978, c. 685, § 6.1-2.8; 2010, c. 794.