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MA S558
MA S558Relative to the fiduciary responsibility of lenders for non-payment of insurance premiums from escrowed accounts
summary
Introduced
01/23/2017
01/23/2017
In Committee
01/23/2017
01/23/2017
Crossed Over
Passed
Dead
12/31/2018
12/31/2018
Introduced Session
190th 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 the General Laws of Massachusetts to impose fiduciary responsibility on banks that require borrowers to escrow insurance premiums for property secured by a mortgage loan. If the bank fails to pay the insurance premium when due, despite having sufficient escrowed funds, and the property owner suffers a loss as a result, the bank will be liable for the loss, up to the coverage limits of the lapsed policy. The bank must also pay the insurance premium and any increased cost for a new policy for three years, as well as any late fees charged by the insurance company.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Accompanied a study order, see S2496 (on 04/30/2018)
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/190/S558 |
| Bill | https://malegislature.gov/Bills/190/S558.pdf |
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