§ 27-5-6.2 - Escrow accounts for insurance premiums. - Rhode Island Statutes

SECTION 27-5-6.2

   § 27-5-6.2  Escrow accounts for insurancepremiums. – All banks and lending institutions doing business in this state, whether actingunder state or federal authority, which include, but are not limited to: (1) abank, savings bank, or trust company, as defined in title 19, its affiliates orsubsidiaries, (2) a bank holding company, as defined in 12 U.S.C. § 1841,its affiliates or subsidiaries, (3) mortgage companies and mortgage services,and (4) any other individual, corporation, partnership, or associationauthorized to take deposits and/or to makes loans of money under the provisionsof title 19, that in connection with a loan secured by residential propertysituated in the state of Rhode Island of four (4) or fewer units and occupiedor to be occupied in whole or in part by the mortgagor, require the mortgagorto escrow for hazard insurance premiums, shall pay the annual premium to theinsurance company on or before the last to occur of the following dates: (A)ten (10) days after receipt of the annual insurance premium bill, approved inwriting by the mortgagor if required by the bank or lending institutionprovided the bank or lending institution has notified the mortgagor in writingthat the mortgagor's approval is required, or (B) seven (7) days before theeffective date of the hazard insurance policy; provided, that no payment shallbe required unless the mortgagor has sufficient funds escrowed for payment ofthe annual premium.