2006 New York Code - Interest On Insurance Draft Deposits In Escrow With Mortgage Investing Institutions

 
    § 5-602. Interest  on insurance draft deposits in escrow with mortgage
  investing  institutions.  Any  mortgage  investing   institution   which
  maintains  an  escrow  account  pursuant  to  any  agreement executed in
  connection with a mortgage or any loan, secured by a lien on any one  to
  six family residence occupied by the owner or on any property owned by a
  cooperative  apartment  corporation, as defined in subdivision twelve of
  section three hundred sixty of the tax law, (as such subdivision was  in
  effect  on  December  thirtieth, nineteen hundred sixty), and located in
  this state and which  residence  or  cooperative  apartment  corporation
  received  from  an  insurance  carrier  a draft, forwarded to a mortgage
  investing institution, as compensation for damage done  to  a  residence
  shall,  for  each  quarterly  period  in  which  such  escrow account is
  established, credit the same with dividends or interest at a rate of not
  less than two per centum per year based on the average of  the  sums  so
  paid  for  the average length of time on deposit or a rate prescribed by
  the banking board pursuant to section fourteen-b of the banking law  and
  pursuant to the terms and conditions set forth in that section whichever
  is higher. The banking board shall prescribe by regulation the method or
  basis of computing any minimum rate of interest required by this section
  and any such minimum rate shall be a net rate over and above any service
  charge  that  may  be  imposed  by  any mortgage lending institution for
  maintaining an escrow account. No mortgage investing  institution  shall
  impose  a service charge in connection with the maintenance of an escrow
  account unless provision therefor was expressly made in a loan  contract
  executed prior to the effective date of this section.