2006 Code of Virginia § 6.1-2.8 - Obligation of lender to pay taxes and insurance; penalties

6.1-2.8. Obligation of lender to pay taxes and insurance; penalties.

Any bank or lender maintaining escrow accounts for the payment of taxes orinsurance, which on receipt of notice thereof, fails to make timely paymenttherefor, and incurs a penalty or late charge thereon or a cancellation fornonpayment if there be sufficient funds in such escrow account at least fivedays before such due date to make such payment, shall be liable for thepenalty or late charge assessed for late payment and for any loss as a resultof the property being uninsured for nonpayment. Such bank or lender shallgive written notice to any obligor of the payment of such penalty or latecharge within five days after such payment is made.

(1978, c. 685.)