Bill
Bill > S705
MA S705
Relative to the fiduciary responsibility of lenders for non-payment of insurance premiums from escrowed accounts
summary
Introduced
03/29/2021
03/29/2021
In Committee
03/29/2021
03/29/2021
Crossed Over
Passed
Dead
12/31/2022
12/31/2022
Introduced Session
192nd General Court
Bill Summary
For legislation relative to the fiduciary responsibility of lenders for non-payment of insurance premiums from escrowed accounts. Financial Services.
AI Summary
This bill amends Section 4 of Chapter 167E of the General Laws in Massachusetts. It establishes that if a bank requires a borrower to escrow insurance premiums for property insurance on real estate secured by a mortgage loan, and the bank fails to pay the insurance premium when due despite having sufficient escrowed funds, the bank is liable for any resulting loss to the property owner. The bank must pay the insurance premium, any increased cost for a new policy for three years, and any late fees charged by the insurance company.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Accompanied a study order, see S2699 (on 02/17/2022)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://malegislature.gov/Bills/192/S705 |
| Bill | https://malegislature.gov/Bills/192/S705.pdf |
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