956 - Additional liabilities of mortgage investing institutions. - New York Statutes

§ 956. Additional liabilities of mortgage investing institutions. 1. In addition to any other remedies permitted by law, a mortgagor whose taxes are to be paid by means of a real property tax escrow account pursuant to this title may bring an action against the mortgage investing institution maintaining such account for the mortgagor under the provisions of this section if payments for real property taxes have not been made for one hundred eighty days after the date such taxes have become due and payable. If a court shall find, after considering the circumstances of the failure of a mortgage investing institution to pay the real property taxes of a mortgagor pursuant to an escrow agreement, that such failure was due to the negligence or intentional acts of the mortgage investing institution, its agent, or both, the court may award the mortgagor injunctive relief and liquidated damages in an amount equal to three times the tax not paid within such one hundred eighty day period but in no event greater than six thousand dollars. 2. In addition to any other violations provided by law, if a mortgage investing institution through negligence or intentional acts fails to pay real property taxes for more than one hundred eighty days after the date such taxes become due and payable, it shall constitute a separate violation of this title.